iQiyi Inc. (NASDAQ: IQ) experienced a significant plummet of 12.6% in its stock price during the Thursday morning trading session. The decline was driven by the company's lackluster financial performance and a convertible bond offering announcement.

For the fiscal year 2024, iQiyi reported a substantial 60% drop in net income to RMB764 million, down from RMB1.9 billion in the previous year. The fourth quarter saw a swing to a net loss of RMB189 million, compared to a net income of RMB466 million in the same period of 2023. Revenue figures were also disappointing, with a year-over-year decline of 8.3% to RMB29.22 billion for the full year, and a 14% drop in the fourth quarter to RMB6.6 billion.

Adding to the investor concerns, iQiyi announced the launch of a $300 million convertible bond offering due in 2030. This move could potentially dilute existing shareholders' equity and contribute to the stock's downward pressure.