On April 1, the U.S. Securities and Exchange Commission (SEC) reportedly added Baidu and iQiyi to the list of companies that may be delisted by the U.S. stock exchange because they could not check the audit papers of the two companies.
In this regard, Baidu announced on the Hong Kong Stock Exchange that according to HFCAA regulations, listed companies will only be delisted in the United States if an audit institution that has been determined by the SEC to use the audit paper that has not been reviewed by the PCAOB for three consecutive years issues an annual audit report. The Company has been actively seeking possible solutions. The Company will continue to ensure compliance with relevant U.S. and Chinese laws and regulations and, subject to conditions permitting, maintain the Company's listing on both NASDAQ Markets and The Stock Exchange of Hong Kong Limited.
iQIYI also issued a statement saying that this is a routine procedure for US regulators to implement the foreign company accountability law and related implementation rules that have been previously promulgated, and we have been paying continuous attention to this. Entry into the provisional list does not imply that the Company's Depositary Shares will be forcibly delisted and delisted in the near future. We will actively seek solutions to protect the interests of our shareholders.