Shares in iQiyi Inc. (Nasdaq: IQ) climbed more than 2% in trading Tuesday after a new funding announcement on its virtual reality (VR) division - iQIYI Intelligent.
China’s top entertainment platform, based in Beijing, said it has recently completed a multi-hundred million yuan Series B funding round for its VR division.
Led by Yitang Changhou Fund and Fresh Capital, this funding, exact number unannounced, is believed to be the largest single round of funding in China's VR industry in 2020, the company said.
"After this round of funding, we will remain committed to our strategic goal of being a pioneer and leader of China's new VR entertainment ecosystem," said Xiong Wen, CEO of iQIYI Intelligent. "We will increase our investment in independent technological innovation to create an excellent VR product and our technology will usher in the next generation of computing platforms."
The capital raised will be used to fund the research and development of key VR technologies, algorithms and products.
iQIYI Intelligent began developing VR products in 2016. So far, the company has rolled out Qiyu, the world's first and only all-in-one VR headset with a 4K ultra-high-definition screen, and Qiyu 2, the world's first 4K VR all-in-one headset supporting 8K panoramic video playback.
The firm expects to reveal its next-generation headset Qiyu 3 soon.
Shares of iQiyi have dropped more than 40% after the company announced disappointing third-quarter earnings.
Net loss in the third quarter reached $173 million, or 24 cents per share, according to the filing.