Bilibili Inc (BILI) 2018 Q4 法說會逐字稿

Good day, and welcome to the Bilibili 2018 Fourth Quarter and Full Year Earnings Conference Call.

美好的一天，歡迎來到 Bilibili 2018 年第四季度和全年收益電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time, I would like to turn the conference over to Juliet Yang, Senior Director of Investor Relations.

此時，我想將會議轉交給投資者關係高級總監 Juliet Yang。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線員。

Please note that discussion today will contain forward-looking statements relating to the company's future performance and are intended to qualify the safe harbor from liability as established by the U.S. Private Securities and Litigation Reform Act.

請注意，今天的討論將包含與公司未來業績相關的前瞻性陳述，旨在使安全港免於承擔美國私人證券和訴訟改革法案所規定的責任。

Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors.

此類陳述不是對未來業績的保證，並受某些風險和不確定性、假設和其他因素的影響。

Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion.

其中一些風險超出了公司的控制範圍，可能導致實際結果與今天的新聞稿和本次討論中提到的結果大不相同。

A general discussion of the risk factors that could affect Bilibili's business and financial results is included in the certain filings of the company with the Securities and Exchange Commission.

關於可能影響 Bilibili 業務和財務業績的風險因素的一般性討論包含在公司向證券交易委員會提交的某些文件中。

The company does not undertake any obligation to update this forward-looking information, except as required by law.

除非法律要求，否則公司不承擔更新此前瞻性信息的任何義務。

During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only.

在今天的電話會議中，管理層還將討論某些非公認會計準則財務指標，僅供比較。

For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial measures, please see the 2018 fourth quarter and full year financial results news release issued earlier today.

有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務指標的對賬，請參閱今天早些時候發布的 2018 年第四季度和全年財務業績新聞稿。

As a reminder, this conference call is being recorded.

提醒一下，正在錄製此電話會議。

In addition, an investor presentation and a webcast replay of this conference call will be available on Bilibili Investor Relation's website at ir.bilibili.com.

此外，投資者介紹和本次電話會議的網絡重播將在 Bilibili Investor Relation 的網站 ir.bilibili.com 上提供。

Joining us today on the call from Bilibili senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer; and Mr. Sam Fan, Chief Financial Officer.

今天應Bilibili高級管理層的電話加入我們的是董事會主席兼首席執行官陳睿先生；副董事長兼首席運營官李嘉玲女士；以及首席財務官 Sam Fan 先生。

And I will now turn the call over to Mr. Fan, who will lead the prepared remarks on behalf of Mr. Chen.

我現在將把電話轉給范先生，他將代表陳先生主持準備好的發言。

Thank you, Juliet, and thank you, everyone, for participating in today's earnings call.

謝謝朱麗葉，謝謝大家參加今天的財報電話會議。

I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

我很高興代表陳先生髮表今天的開幕詞。

2018 was an exciting year for Bilibili as we made great strides across our business.

2018 年對於 Bilibili 來說是激動人心的一年，我們在業務上取得了長足的進步。

In March, we successfully completed our IPO, and throughout the year, we continued to build on that success and grow each of our core divisions.

3 月，我們成功完成了首次公開募股，並且在這一年中，我們繼續在這一成功的基礎上發展壯大我們的每個核心部門。

We added massive amounts of new diverse content through our robust Professional User Generated Video or PUGV ecosystem as well as entered a number of new cooperation agreements.

我們通過強大的專業用戶生成視頻或 PUGV 生態系統添加了大量新的多樣化內容，並簽訂了許多新的合作協議。

Our ever growing content supports our expanding community.

我們不斷增長的內容支持我們不斷擴大的社區。

By the end of the year, our MAUs grew to record level of 92.8 million.

到年底，我們的 MAU 增長到創紀錄的 9280 萬。

Importantly, we deepened the level of connectivity within our community and enhanced our monetization capabilities.

重要的是，我們加深了社區內的連接水平並增強了我們的貨幣化能力。

By the end of 2018, we had increased our revenue by 67% to RMB 4.1 billion, and the number of paying users quadrupled from 1.1 million to 4.4 million in the last 12 months.

到 2018 年底，我們的收入增長了 67%，達到 41 億元人民幣，付費用戶數量在過去 12 個月裡翻了兩番，從 110 萬增加到 440 萬。

The fourth quarter was an extension of this momentum, and the total net revenues increased 57% year-over-year to RMB 1.2 billion, once again surpassing our expectations and beating the high end of our guidance.

第四季度是這一勢頭的延續，總淨收入同比增長 57% 至人民幣 12 億元，再次超出我們的預期並超過了我們的指導上限。

During the fourth quarter, we further grew our robust compilation of high-quality content through our PUGVs.

在第四季度，我們通過 PUGV 進一步增加了對高質量內容的強大編譯。

As we announced during the quarter, we entered strategic agreements with market giants Tencent and Alibaba, which considerably strengthened our capacity in anime, mobile games and commercialization.

正如我們在本季度宣布的那樣，我們與市場巨頭騰訊和阿里巴巴簽訂了戰略協議，這大大增強了我們在動漫、手機遊戲和商業化方面的能力。

Our extensive and growing library of content continues to attract young people to our community, generating substantial user growth.

我們廣泛且不斷增長的內容庫繼續吸引年輕人加入我們的社區，從而產生大量用戶增長。

In the fourth quarter, the number of monthly active users grew by 29% year-over-year, reaching 92.8 million.

第四季度，月活躍用戶數同比增長 29%，達到 9280 萬。

Our mobile monthly active users grow even faster by 37% year-over-year to 79.5 million in the fourth quarter.

我們的移動月度活躍用戶在第四季度同比增長 37%，達到 7950 萬。

Our platform's exceptional user growth and increased engagement levels are a testament to our unparalleled community.

我們平台的非凡用戶增長和更高的參與度證明了我們無與倫比的社區。

In the fourth quarter, our users spent a daily average of 78 minutes on our platform, excluding time spent playing our mobile games.

第四季度，我們的用戶平均每天在我們的平台上花費 78 分鐘，不包括玩我們的手機遊戲的時間。

This is up 5 minutes compared to the same period last year, while an increasingly large number of new users also joined in our platform.

這比去年同期增加了 5 分鐘，同時越來越多的新用戶也加入了我們的平台。

In 2018, the most popular content verticals were entertainment, lifestyle, games, anime and technology.

2018 年，最受歡迎的垂直內容是娛樂、生活方式、遊戲、動漫和科技。

Within our massive user base, we have a unique core user group: official members.

在我們龐大的用戶群中，我們有一個獨特的核心用戶群：官方會員。

They pride themselves on passing our community entrance exam and exhibit much more loyal and engaged user behavior compared to nonofficial members.

他們以通過我們的社區入學考試而自豪，與非官方成員相比，他們表現出更加忠誠和參與的用戶行為。

They are also considerably more inclined to pay for Bilibili's premium content, and their 12-month retention rate is over 80%.

他們也更傾向於為 Bilibili 的優質內容付費，他們的 12 個月留存率超過 80%。

By the end of 2018, our official members, once again, outpaced our MAU growth, increasing by 44% year-over-year to 45 million.

到 2018 年底，我們的官方會員再次超過了我們的 MAU 增長，同比增長 44% 至 4500 萬。

Through our entertainment ecosystem, our video content creation continues to be dominated by PUGVs.

通過我們的娛樂生態系統，我們的視頻內容創作繼續由 PUGV 主導。

Looking at the fourth quarter specifically, approximately 89% of our viewed videos came from PUGVs.

具體來看第四季度，我們觀看的視頻中約有 89% 來自 PUGV。

Finding ways to support this important constituency was one of our primary goals in 2018.

找到支持這一重要選區的方法是我們 2018 年的主要目標之一。

Today, our submission process has been more streamlined with technical updates on mobile content submission and streaming.

今天，隨著移動內容提交和流媒體的技術更新，我們的提交流程更加精簡。

Our cash incentive program has over 100,000 enrollments, further activating and encouraging continuous content creation.

我們的現金獎勵計劃有超過 100,000 名註冊，進一步激活和鼓勵持續的內容創作。

In the fourth quarter, we had on average of 570,000 active content creators uploading 1.7 million videos monthly, up 143% and 148%, respectively, compared to the same period last year.

第四季度，我們平均有 570,000 名活躍內容創作者每月上傳 170 萬條視頻，與去年同期相比分別增長 143% 和 148%。

In addition, we hosted Bilibili Top 100 Content Creators Awards Ceremony in January 2019, where we celebrated outstanding achievements of leading content creators in various categories.

此外，我們還於 2019 年 1 月舉辦了 B站 100 強內容創作者頒獎典禮，表彰了各個類別的領先內容創作者的傑出成就。

We will continue to improve our platform's design competencies and expand our commercialization capabilities to help our content creators shine even brighter.

我們將繼續提升我們平台的設計能力並擴大我們的商業化能力，以幫助我們的內容創作者更加閃耀。

In addition to our diverse PUGVs, our premium licensed content in anime, variety shows and documentaries continues to thrill our community.

除了我們多樣化的 PUGV 之外，我們在動漫、綜藝節目和紀錄片中的優質授權內容繼續讓我們的社區興奮不已。

As we further our leadership in overseas anime offerings, we are also expanding our footprint in domestic anime.

隨著我們進一步在海外動漫產品中的領先地位，我們也在擴大我們在國內動漫領域的足跡。

In December, we hosted a "Made by Bilibili" press conference, where we released over 20 Bilibili-produced domestic animation shows.

12月，我們舉辦了“嗶哩嗶哩製作”發布會，發布了20多部嗶哩嗶哩出品的國產動畫節目。

Furthermore, our self-produced variety show, Storyman 2, and annual Bilibili New Year Gala gained instant successes among the younger generations following their releases.

此外，我們的自創綜藝《故事男2》和一年一度的嗶哩嗶哩跨年晚會上映後，在年輕一代中獲得了立竿見影的效果。

Building partnerships with market leaders was also one of the important ways we extended our content offerings and improved our commercialization capabilities.

與市場領導者建立合作夥伴關係也是我們擴展內容產品和提高商業化能力的重要方式之一。

In early October, we announced Tencent's equity investment of USD 370 million and our subsequent partnership.

10月初，我們宣布了騰訊3.7億美元的股權投資及後續合作。

Under our agreement, both Bilibili and Tencent will exchange, co-produce and jointly invest in anime content as well as expand our partnership in mobile games operations.

根據我們的協議，嗶哩嗶哩和騰訊將交換、共同製作和共同投資動漫內容，並擴大我們在手機遊戲運營方面的合作夥伴關係。

As of the end of February 2019, we have already exchanged a number of domestic animation copyrights and more are planned for the rest of the year.

截至2019年2月底，我們已經交換了多項國內動畫版權，併計劃在今年餘下時間進行更多。

We are also jointly working on certain new anime-related projects, aiming to deliver more high-quality content to anime lovers.

我們還聯合開展了一些與動漫相關的新項目，旨在為動漫愛好者提供更多高質量的內容。

Furthermore, in December 2018, we entered into a partnership with Taobao, China's largest mobile commerce destination under Alibaba for content driven e-commerce and the commercialization of Bilibili's IP assets.

此外，我們於 2018 年 12 月與阿里巴巴旗下中國最大的移動商務平台淘寶建立了合作夥伴關係，以開展內容驅動的電子商務和 Bilibili 知識產權資產的商業化。

Leveraging Taobao's gigantic platform and expertise in e-commerce, we expect to further help our content creators to realize and improve their commercial values while building a more virtuous content community and commercialization-focused ecosystem.

借助淘寶在電子商務方面的龐大平台和專業知識，我們希望進一步幫助我們的內容創作者實現和提高他們的商業價值，同時建立一個更加良性的內容社區和以商業化為重點的生態系統。

We are working closely with Taobao, and in the coming months, we expect to introduce the first batch of top content creators to promote merchandise on both platforms.

我們正與淘寶密切合作，未來幾個月，我們預計將引入第一批頂級內容創作者在兩個平台上推廣商品。

Our finger remains on the pulse of the online entertainment industry, particularly through our core Generation Z demographic and their continued enthusiasm for ACG content.

我們的手指仍然掌握在線娛樂行業的脈搏，特別是通過我們的核心 Z 世代人口及其對 ACG 內容的持續熱情。

In November, we considerably strengthened our fundamental competencies in ACG with the launch of our new Bilibili Comic app, rounding out our offerings and fortifying our position as a leader in ACG.

11 月，我們推出了新的 Bilibili Comic 應用程序，大大增強了我們在 ACG 的基礎能力，完善了我們的產品並鞏固了我們作為 ACG 領導者的地位。

We are rapidly accumulating exciting comic content, in December, we also acquired assets from NetEase's comics division to further build our complementary suite of premium licensed content.

我們正在迅速積累精彩的漫畫內容，12 月，我們還收購了網易漫畫部門的資產，以進一步構建我們互補的優質授權內容套件。

We will continue to invest in ACG content to satisfy the growing demand for our eager community.

我們將繼續投資於 ACG 內容，以滿足我們熱切的社區不斷增長的需求。

As we discussed in the past, technology is the cornerstone of our business.

正如我們過去所討論的，技術是我們業務的基石。

We continue to improve our product design and AI power to connect users and grow our community.

我們將繼續改進我們的產品設計和 AI 能力，以連接用戶並發展我們的社區。

Over 70% of our video views are now generated by our smart recommendation system, and over 1/3 of MAUs visited Bilibili Moments, a social interactive function that allows users to interact and engage with content creators and like-minded friends in the community.

現在我們超過 70% 的視頻觀看量是由我們的智能推薦系統產生的，超過 1/3 的 MAU 訪問了 Bilibili Moments，這是一種社交互動功能，允許用戶與社區中的內容創作者和志同道合的朋友互動和互動。

Based on these functionalities and improved recommendation powers, our users are building deeper connections and engaging more with the platform and each other than ever before.

基於這些功能和改進的推薦能力，我們的用戶正在建立更深層次的聯繫，並比以往任何時候都更多地與平台和彼此互動。

In the fourth quarter, we saw exciting participation levels with 436 million daily views and 1 billion monthly interactions through bullet chats, comments, likes and Bilibili Moment posts, up 107% and 298% year-over-year, respectively.

在第四季度，我們看到了令人興奮的參與水平，通過彈幕、評論、點贊和 Bilibili Moment 帖子的每日瀏覽量為 4.36 億次，每月互動量為 10 億次，同比分別增長 107% 和 298%。

These unique interactions are central to our success and one of the ways that we continue to build our loyal offerings.

這些獨特的互動是我們成功的核心，也是我們繼續打造忠誠產品的方式之一。

With that overview on content community, I'd like to take a few moments to review our commercialization progress.

通過對內容社區的概述，我想花點時間回顧一下我們的商業化進展。

Revenues from mobile games grew 15% year-over-year to RMB 713 million in the fourth quarter of 2018 or USD 104 million, led primarily Fate/Grand Order, or FGO.

2018 年第四季度手游收入同比增長 15% 至 7.13 億元人民幣或 1.04 億美元，主要是 Fate/Grand Order 或 FGO。

The game's pervasive popularity continued throughout the fourth quarter, and users responded quite favorably to the release of the major content update, FGO Chapter 2.0, around the 2019 Chinese New Year.

該遊戲在整個第四季度持續火爆，用戶對在 2019 年春節前後發布的主要內容更新 FGO 第 2.0 章反應相當積極。

Additionally, we released new titles, including Song of the Time in November, an exciting ACG-themed RPG based on a well-known IP, which has been gaining popularity among core users.

此外，我們還發布了新遊戲，包括《十一月的時代之歌》，這是一款基於知名 IP 的激動人心的 ACG 主題 RPG，在核心用戶中越來越受歡迎。

For our jointly operated games.

對於我們共同運營的遊戲。

In the fourth quarter, we published several titles, including Naruto Online from Tencent and Night Falls: Survival from NetEase, both of which were well received by our users.

第四季度，我們發布了多款遊戲，包括騰訊的火影忍者在線和網易的夜幕降臨：生存，這兩款遊戲都受到了用戶的好評。

Looking at our pipeline, besides those titles we had previously announced, we have added a number of new games to our release lineup.

從我們的渠道來看，除了我們之前宣布的那些遊戲外，我們還在我們的發行陣容中添加了許多新遊戲。

On the exclusively-licensed game front, we have Final Gear, a highly anticipated tactical RPG set against a doomsday backdrop.

在獨家授權的遊戲方面，我們擁有 Final Gear，這是一款以世界末日為背景的備受期待的戰術角色扮演遊戲。

We will also be jointly operating 2 thrilling ACG-themed mobile games, RWBY and Arknights.

我們還將聯合運營2款驚險刺激的ACG主題手游RWBY和Arknights。

These 3 games have already obtained regulatory approvals and are scheduled for launch on Bilibili's platform in the second quarter.

這三款遊戲已經獲得監管批准，計劃於二季度登陸嗶哩嗶哩平台。

Turning to our advertising business.

轉向我們的廣告業務。

Revenues from advertising increased by over 300% to RMB 160 million or USD 23 million in the fourth quarter of 2018.

2018 年第四季度，廣告收入增長超過 300%，達到 1.6 億元人民幣或 2300 萬美元。

Our 2 growth engines, brand advertising and performance-based advertising, gained considerable momentum throughout the year.

我們的兩個增長引擎，品牌廣告和基於效果的廣告，在全年獲得了相當大的發展勢頭。

We are actively improving our advertising efficiencies while expanding the number of advertisers in different industry verticals.

我們正在積極提高廣告效率，同時擴大不同垂直行業的廣告客戶數量。

The top 3 industry verticals for brand advertising in the fourth quarter were games, e-commerce and Internet services.

第四季度品牌廣告排名前三的垂直行業是遊戲、電子商務和互聯網服務。

And the top 3 verticals for performance-based advertising were e-commerce, education and games.

基於效果的廣告排名前三的垂直領域是電子商務、教育和遊戲。

Our live broadcasting and the VAS revenues increased by 276% year-over-year to RMB 202 million or USD 29 million in the fourth quarter of 2018 with contribution from both our live broadcasting business and premium memberships.

2018 年第四季度，我們的直播和增值服務收入同比增長 276% 至人民幣 2.02 億元或 2900 萬美元，這得益於我們的直播業務和高級會員的貢獻。

In 2018, we started a number of initiatives to expand our live broadcasting content, including bringing in a number of high-quality e-sports matches to capture our highly concentrated base of game lovers.

2018年，我們啟動了多項舉措來拓展直播內容，包括引入多場優質電競比賽，以抓住我們高度集中的遊戲愛好者群。

These include top matches in League of Legend and the Overwatch League Championships.

其中包括英雄聯盟和守望先鋒聯賽的頂級比賽。

The results were encouraging: we recorded peak live streaming page views during the LPL S8 final game, which reached top industry levels.

結果令人鼓舞：我們在 LPL S8 決賽期間記錄了最高的直播頁面瀏覽量，達到了行業最高水平。

We have also improved product design and the user experience, attracting more live streaming viewers and improving our monetization efficiency.

我們還改進了產品設計和用戶體驗，吸引了更多的直播觀眾，提高了我們的貨幣化效率。

In the fourth quarter, live broadcasting paying users grew over 200% compared to the same period last year.

第四季度，直播付費用戶同比增長超過200%。

In January 2018, we launched a premium membership program allowing paying members to enjoy exclusive or advanced licensed content.

2018 年 1 月，我們推出了高級會員計劃，允許付費會員享受獨家或高級許可內容。

The program was an immediate hit in the community and attracted millions of subscriptions.

該計劃立即在社區中引起轟動，並吸引了數百萬訂閱者。

By the end of December, we had recorded 3.6 million valid premium members, demonstrating our user's high willingness to pay for premium content and Bilibili's heightened monetization potential.

截至 12 月底，我們已經記錄了 360 萬有效高級會員，這表明我們的用戶對優質內容的支付意願很高，以及 Bilibili 的變現潛力更大。

Last but not least, we are delighted to share our e-commerce and others revenue reached RMB 81 million or USD 11.8 million in the fourth quarter, an increase of 254% from the same period of last year, largely thanks to the increase in sales of products through our e-commerce platform.

最後但同樣重要的是，我們很高興分享我們的電子商務和其他收入在第四季度達到 8100 萬元人民幣或 1180 萬美元，比去年同期增長 254%，這主要歸功於銷售額的增長通過我們的電子商務平台購買產品。

We are optimistic about the potential of this business with the growing demand for ACG-related products from our users.

隨著用戶對 ACG 相關產品的需求不斷增長，我們看好該業務的潛力。

As we move through 2019, we will continue to strategically grow our business by adding best-in-class content to our industry leading platform and further increase the bond within our dynamic community driven by the inquisitive minds of the Generation Z population.

隨著我們邁入 2019 年，我們將繼續戰略性地發展我們的業務，為我們的行業領先平台添加一流的內容，並進一步加強由 Z 世代人口的好奇心驅動的充滿活力的社區內的聯繫。

This concludes Mr. Chen's remarks.

陳先生的發言到此結束。

I will now provide a brief overview of our fourth quarter 2018 and full year financial results.

我現在將簡要概述我們 2018 年第四季度和全年的財務業績。

During the fourth quarter, each of our premium business lines continued to grow.

在第四季度，我們的每條優質業務線都繼續增長。

Our total net revenues increased by 57% year-over-year to RMB 1.2 billion or USD 168 million.

我們的總淨收入同比增長 57%，達到 12 億元人民幣或 1.68 億美元。

We further improved our revenue structure with increased gains from advertising and live broadcasting segments as well as our value-added services business.

我們進一步優化了收入結構，增加了廣告和直播業務以及增值服務業務的收益。

Our nongame revenues accounted for 38% of total revenues in the fourth quarter, up from 31% in the third quarter and 16% in the fourth quarter of 2017.

我們的非遊戲收入在第四季度佔總收入的 38%，高於第三季度的 31% 和 2017 年第四季度的 16%。

As we execute our commercialization strategy, the number of paying users nearly quadrupled in 2018 versus 2017, reaching 4.4 million in the fourth quarter, demonstrating our heightened monetization potential.

隨著我們執行商業化戰略，2018 年的付費用戶數量與 2017 年相比幾乎翻了兩番，第四季度達到 440 萬，這表明我們的貨幣化潛力有所提高。

Of note, this number accounts for each paying user, not each service a paying user purchases.

值得注意的是，這個數字代表每個付費用戶，而不是付費用戶購買的每項服務。

Cost of revenues increased by 72% to RMB 959 million or USD 139 million from the same period 2017.

收入成本較 2017 年同期增長 72% 至 9.59 億元人民幣或 1.39 億美元。

Revenue-sharing costs, a primary component of cost of revenues, was RMB 434 million or USD 63 million, representing a 54% increase year-over-year.

收入分成成本是收入成本的主要組成部分，為 4.34 億元人民幣或 6300 萬美元，同比增長 54%。

Gross profit increased by 12% to RMB 197 million or USD 29 million from the same period of 2017.

毛利潤較 2017 年同期增長 12% 至人民幣 1.97 億元或 2,900 萬美元。

Our gross profit margin declined to 17%, primarily due to increased bandwidth costs, content cost, staff costs and the lower revenue contribution mix from our higher-margin game business.

我們的毛利率下降至 17%，主要是由於帶寬成本、內容成本、員工成本的增加以及我們利潤率較高的遊戲業務的收入貢獻組合較低。

Total operating expenses increased by 104% to RMB 486 million or USD 71 million from the same period of 2017.

總運營費用較 2017 年同期增長 104% 至 4.86 億元人民幣或 7100 萬美元。

As we continued to grow our business and further optimize our monetization structure, we expect to see better operational leverage.

隨著我們繼續發展業務並進一步優化我們的貨幣化結構，我們預計會看到更好的運營槓桿。

Selling and marketing expenses were RMB 182 million or USD 27 million, representing a 181% increase year-over-year.

銷售和營銷費用為人民幣1.82億元或2700萬美元，同比增長181%。

The increase was primarily attributed to the increased channel and marketing expenses associated with our app and the brand, including promotional activities for our Made by Bilibili press conference as well as promotional expenses for our mobile games and increase in headcount in selling and marketing personnel.

增加的主要原因是與我們的應用程序和品牌相關的渠道和營銷費用增加，包括我們的 Made by Bilibili 新聞發布會的促銷活動以及我們的手機遊戲的促銷費用以及銷售和營銷人員人數的增加。

General and administrative expenses were RMB 150 million or USD 22 million, representing a 75% increase year-over-year.

管理費用為人民幣1.5億元或2200萬美元，同比增長75%。

The increase was primarily due to increased general and administrative personnel-related expenses and increased other miscellaneous expenses.

增加的主要原因是一般和行政人員相關費用增加以及其他雜項費用增加。

Research and development expenses were RMB 153 million or USD 22 million, representing a 76% increase year-over-year.

研發費用為人民幣1.53億元或2200萬美元，同比增長76%。

The increase were primarily due to increased headcount in R&D personnel and increase in share-based compensation expenses.

增加的主要原因是研發人員人數增加和股權激勵費用增加。

Losses from operations were RMB 289 million or USD 42 million compared with a loss of RMB 62 million in the same period of 2017.

經營虧損為人民幣 2.89 億元或 4,200 萬美元，而 2017 年同期虧損為人民幣 6,200 萬元。

Income tax expenses were RMB 9 million or USD 1.3 million compared to RMB 2 million in the same period of 2017.

所得稅費用為 900 萬元人民幣或 130 萬美元，而 2017 年同期為 200 萬元人民幣。

Investment income was RMB 75.1 million or USD 10.9 million, representing an increase of 892% from the same period of 2017.

投資收益為人民幣7,510萬元或1,090萬美元，較2017年同期增長892%。

The increase was primarily due to the gain arising from the revaluation for our previously held equity interest in one of our investees when we obtain control over it during the fourth quarter of 2018, partially offset by the impairment loss charged for other investees.

增加的主要原因是我們在 2018 年第四季度獲得控制權時，對我們之前持有的其中一個被投資方的股權進行重估所產生的收益，部分被其他被投資方的減值損失所抵消。

Net loss totaled RMB 191 million or USD 28 million for the fourth quarter of 2018 compared with RMB 51 million in the same period of 2017.

2018 年第四季度淨虧損總額為 1.91 億元人民幣或 2800 萬美元，而 2017 年同期為 5100 萬元人民幣。

Adjusted net loss, which mainly excludes share-based compensation expenses and amortization expenses related to intangible assets acquired through business acquisitions, was RMB 152 million or USD 22 million from RMB 25 million in the prior year.

調整後的淨虧損（主要不包括與通過業務收購取得的無形資產相關的股權補償費用和攤銷費用）為人民幣1.52億元或2200萬美元，而上年為人民幣2500萬元。

Basic and diluted loss per share were RMB 0.59.

每股基本及攤薄虧損為人民幣0.59元。

Non-GAAP basic and diluted loss per share were RMB 0.46.

非美國通用會計準則每股基本和攤薄虧損為人民幣 0.46 元。

For the full year of 2018, total revenues increased by [67%] (corrected by company after the call) to RMB 4.1 billion or USD 601 million.

2018 年全年，總收入增長 [67%]（由公司在電話會議後更正）至 41 億元人民幣或 6.01 億美元。

Revenues from mobile games increased 43% to RMB 2.9 billion or USD 427 million.

手機遊戲收入增長 43%，達到 29 億元人民幣或 4.27 億美元。

Revenues from live broadcasting and VAS increased 232% to RMB 586 million or USD 85 million.

直播和增值服務收入增長 232%，達到 5.86 億元人民幣或 8500 萬美元。

Revenues from advertising increased 191% to RMB 464 million or USD 67 million.

廣告收入增長 191%，達到 4.64 億元人民幣或 6700 萬美元。

Revenue from e-commerce increased 92% to RMB 143 million or USD 21 million.

電子商務收入增長 92%，達到 1.43 億元人民幣或 2100 萬美元。

Cost of revenues for 2018 increased by 71% to RMB 3.3 billion or USD 476 million.

2018 年的收入成本增長了 71%，達到 33 億元人民幣或 4.76 億美元。

Gross profit increased 56% to RMB 855 million or USD 124 million.

毛利潤增長 56% 至人民幣 8.55 億元或 1.24 億美元。

Total operating expenses increased 105% from 2017 to RMB 1.6 billion or USD 230 million.

總運營費用較 2017 年增長 105%，達到 16 億元人民幣或 2.3 億美元。

Net loss for 2018 was RMB 565 million or USD 82 million compared to RMB 184 million in 2017.

2018 年的淨虧損為 5.65 億元人民幣或 8200 萬美元，而 2017 年為 1.84 億元人民幣。

Adjusted net loss for 2018 was RMB 377 million or USD 55 million compared to RMB 101 million in 2017.

2018 年調整後的淨虧損為 3.77 億元人民幣或 5500 萬美元，而 2017 年為 1.01 億元人民幣。

Basic and diluted net loss per share for 2018 were RMB 2.64 or USD 0.38 compared to RMB 8.17 in 2017.

2018 年每股基本和攤薄淨虧損為人民幣 2.64 元或 0.38 美元，而 2017 年為人民幣 8.17 元。

Adjusted basic and diluted net loss per share were RMB 1.84 or USD 0.27 compared to RMB 6.99 in 2017.

調整後的每股基本和攤薄淨虧損為人民幣 1.84 元或 0.27 美元，而 2017 年為人民幣 6.99 元。

As of December 31, 2018, we had cash, cash equivalents as well as time deposits of RMB 4.3 billion or USD 624 million compared with [RMB 764.8 million] (corrected by company after the call) as of December 31, 2017.

截至 2018 年 12 月 31 日，我們的現金、現金等價物和定期存款為 43 億元人民幣或 6.24 億美元，而截至 2017 年 12 月 31 日，[人民幣 7.648 億元]（公司在電話會議後更正）。

As we look ahead, our financial goals are to further grow our business and improve our operational efficiency.

展望未來，我們的財務目標是進一步發展我們的業務並提高我們的運營效率。

With that in mind, we are currently projecting net revenues for the first quarter of 2019 to be between RMB 1.27 billion and RMB 1.29 billion.

考慮到這一點，我們目前預計 2019 年第一季度的淨收入將在人民幣 12.7 億元至人民幣 12.9 億元之間。

Thank you for your attention.

感謝您的關注。

We would like now to open the call to your questions.

我們現在想打開您的問題的電話。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) And our first question comes from the line of Thomas Chong from Crédit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸的 Thomas Chong。

(foreign language) I have 2 questions.

（外語）我有兩個問題。

My first question is about e-commerce strategy, our cooperation with Taobao.

我的第一個問題是關於電子商務戰略，我們與淘寶的合作。

Can management talk about more details about how we should think about this business line in 2019?

管理層能否談談我們在 2019 年應該如何看待這條業務線的更多細節？

And any financial implications to the top line and the bottom line?

對頂線和底線有任何財務影響嗎？

And my second question is about our user growth.

我的第二個問題是關於我們的用戶增長。

Given our strong user growth this quarter, can management share our thoughts in 2019 and 2020?

鑑於我們本季度強勁的用戶增長，管理層能否分享我們在 2019 年和 2020 年的想法？

(foreign language)

（外語）

Thank you, Thomas, for your questions.

謝謝你，托馬斯，你的問題。

I will translate Mr. Chen's answer.

我會翻譯陳先生的回答。

The cooperation with Taobao we announced in December last year, the cooperation mainly includes content-driven e-commerce business and commercialization of Bilibili IP assets.

去年12月我們宣布與淘寶的合作，合作主要包括內容驅動的電商業務和B站IP資產的商業化。

(foreign language)

（外語）

For example, to Bilibili content creators, we'll register and operate a number of accounts on Taobao and promote merchandise by producing content on creative and interactive format on both platforms in a way to increase their commercial values.

例如，對於B站內容創作者，我們會在淘寶上註冊和運營多個賬號，通過在兩個平台上製作創意和互動形式的內容來推廣商品，以增加他們的商業價值。

(foreign language)

（外語）

As for the Bilibili's IP assets, we'll connect both the front and the back end of the database and to improve our commercialization of our IP assets.

對於嗶哩嗶哩的IP資產，我們會打通數據庫的前後端，提高我們IP資產的商業化程度。

(foreign language)

（外語）

And Taobao will provide Bilibili with e-commerce technical support to ensure a smooth and more efficient user experience.

淘寶將為嗶哩嗶哩提供電商技術支持，確保用戶體驗更流暢、更高效。

(foreign language)

（外語）

Currently, our collaboration with Taobao with regarding the content creators are progressing very smoothly.

目前，我們與淘寶在內容創作者方面的合作進展非常順利。

(foreign language)

（外語）

We are actually in a process of introducing our first batch of content creators who have over 1 million followers to to be set up on Taobao.

我們實際上正在引入我們的第一批擁有超過 100 萬粉絲的內容創作者將在淘寶上建立。

(foreign language)

（外語）

The collaboration between Bilibili and Taobao is more of a union of 2 ecosystems, the Bilibili's content ecosystem as well as Taobao's commercial system.

B站和淘寶的合作更多是兩個生態的結合，B站的內容生態和淘寶的商業系統。

As the 2 ecosystems united, we see a lot of synergies and commercialization opportunities.

隨著 2 個生態系統的聯合，我們看到了很多協同效應和商業化機會。

(foreign language)

（外語）

In the future, there will be multiple ways for us to work together.

未來，我們將有多種合作方式。

That includes advertising opportunity related to e-commerce and for our content creators to better monetize their traffic.

這包括與電子商務相關的廣告機會，以及讓我們的內容創作者更好地利用他們的流量獲利。

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

So Thomas, with regarding the user expansion plan Mr. Chen has discussed in the past, in 2019, our user goal is to reach a peak MAU around 110 million to 120 million and to reach 140 million to 150 million in 2020.

所以Thomas，關於陳總之前討論的用戶擴張計劃，2019年我們的用戶目標是達到峰值MAU在1.1億到1.2億左右，2020年達到1.4億到1.5億。

Currently, we are well on track to deliver that goal.

目前，我們正在順利實現這一目標。

And our next question comes from the line of Alex Yao from JPMorgan.

我們的下一個問題來自摩根大通的 Alex Yao。

(foreign language) So my first question is to follow up Thomas' question on the partnership with Alibaba.

（外語）所以我的第一個問題是跟進托馬斯關於與阿里巴巴合作的問題。

Given the Alibaba partnership, how should we think about your revenue mix change over the next 2 to 3 years?

鑑於阿里巴巴的合作夥伴關係，我們應該如何看待您未來 2 到 3 年的收入組合變化？

Then the second question is on the user acquisition costs to achieve our target of 2019 MAU.

然後第二個問題是關於實現我們 2019 年 MAU 目標的用戶獲取成本。

To be able to achieve that target, what's your user acquisition strategy?

為了能夠實現這個目標，你的用戶獲取策略是什麼？

And how should we think about your sales marketing budget over the coming quarters?

我們應該如何考慮您在未來幾個季度的銷售營銷預算？

(foreign language)

（外語）

In the past, we have made revenue structure forecasts.

過去，我們進行過收入結構預測。

From a 3-year horizon, we projected by then we will have about a 50-50 revenue split, 50% games and 50% nongames.

從 3 年的角度來看，我們預計到那時我們將有大約 50-50 的收入分成，50% 的遊戲和 50% 的非遊戲。

Based on our current business plans, this goal is still on track.

根據我們目前的業務計劃，這個目標仍在軌道上。

(foreign language)

（外語）

Okay.

好的。

Mr. Chen added, as he mentioned earlier, that the collaboration with Taobao is beyond just on the revenue lines, is more of a union of 2 ecosystems.

陳先生補充說，正如他之前提到的，與淘寶的合作不僅僅是在收入線上，更多的是兩個生態系統的結合。

This will, for one, definitely help on our commercial advertising business which will help us to grow faster and healthier.

一方面，這肯定有助於我們的商業廣告業務，這將幫助我們更快、更健康地成長。

More importantly, they will also help us to build a stronger ecosystem with our content creators to better connect the user, the content and the merchandise.

更重要的是，它們還將幫助我們與內容創作者建立更強大的生態系統，以更好地連接用戶、內容和商品。

In a way, it'll fundamentally reinforce our powers to generate revenue more healthily.

在某種程度上，它將從根本上增強我們更健康地創造收入的能力。

(foreign language)

（外語）

Okay.

好的。

So the core competency in our commercial ability, one is to grow in a healthy way.

所以我們商業能力的核心競爭力，一個是健康成長。

Second is more sustainable way.

二是更可持續的方式。

It probably won't immediately show on the P&L but will help us not only not hurting our user experience but finding and providing more right content and right consumption products to our users and to help us grow in the longer run.

它可能不會立即顯示在損益表上，但會幫助我們不僅不會損害我們的用戶體驗，還會為我們的用戶找到並提供更多正確的內容和正確的消費產品，並幫助我們實現長期發展。

(foreign language)

（外語）

As for the sustainability, we think our revenue growth will be a very healthy longer-term sustainable growth.

至於可持續性，我們認為我們的收入增長將是一個非常健康的長期可持續增長。

(foreign language)

（外語）

Okay.

好的。

(foreign language)

（外語）

So the fourth quarter user growth as well as the full year user growth is in line with our initial projections.

因此，第四季度用戶增長以及全年用戶增長符合我們最初的預測。

(foreign language)

（外語）

The key driving force of that user growth is mainly driven by our content, specifically in PUGV and our OGV content as well as the stickiness and engagement level of our community.

用戶增長的主要驅動力主要來自我們的內容，特別是 PUGV 和我們的 OGV 內容，以及我們社區的粘性和參與度。

(foreign language)

（外語）

At the same time, based on our experience and advantage of our content offering, we'll also actively try to attract users from outside of our community to come to Bilibili.

同時，基於我們在內容服務方面的經驗和優勢，我們也將積極嘗試吸引社區以外的用戶來到嗶哩嗶哩。

(foreign language)

（外語）

In 2018, our user acquisition strategy has gained a very deep experience in terms of evaluating the quality of the new users in terms of level of engagement and level of retention.

2018年，我們的用戶獲取策略在評估新用戶的參與度和留存度方面獲得了非常深刻的經驗。

(foreign language)

（外語）

So based on our internal analysis, we see the new users who came in, in 2018, their conversion to registered users and their conversion to paying users, the level is much higher compared to the same period in 2017.

所以根據我們的內部分析，我們看到2018年新進來的用戶，他們轉化為註冊用戶和轉化為付費用戶的水平比2017年同期要高很多。

(foreign language)

（外語）

That results are strong improvements of our 2018 user acquisition strategy.

這一結果是我們 2018 年用戶獲取策略的有力改進。

Looking into 2019, we'll continue to focus on the quality of new users and focus on the key metrics such as their engagement level, their conversion to paying users and to improve our user acquisition policy.

展望 2019 年，我們將繼續關注新用戶的質量，關注他們的參與度、轉化為付費用戶等關鍵指標，並改進我們的用戶獲取政策。

(foreign language)

（外語）

So all in all, in 2018, we'll considerably add some budget as in terms of absolute dollar amount in user acquisition.

總而言之，在 2018 年，我們將大幅增加一些預算，就用戶獲取的絕對金額而言。

Yes.

是的。

Let me add some input for that.

讓我為此添加一些輸入。

Actually, there were 3 cost components in our selling and marketing expenses.

實際上，我們的銷售和營銷費用中有 3 個成本組成部分。

They are the promotion expenses for our online games and the quota to acquire the new users, as well as the personnel costs related to our commercial sales team person.

它們是我們的網絡遊戲的推廣費用和獲得新用戶的配額，以及與我們的商業銷售團隊人員相關的人員成本。

So as we mentioned that there will be more games to be released in this year, and we will enlarge our investment in the user acquisition.

所以正如我們提到的，今年會有更多的遊戲發布，我們會加大在用戶獲取上的投入。

We forecast that, overall, the selling expenses will account for around 60% of the total revenues, but the percentage will be varied through the different quarters.

我們預計，總體而言，銷售費用將佔總收入的 60% 左右，但不同季度的比例會有所不同。

Like in Q1, Q3, there will be higher percentage.

就像第一季度、第三季度一樣，會有更高的百分比。

In Q2 and Q4, they will be a little bit lower.

在第二季度和第四季度，它們會稍微低一些。

And our next question comes from the line of Alex Poon from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) I'll translate my questions.

（外語）我會翻譯我的問題。

My first question is regarding MAU growth.

我的第一個問題是關於 MAU 的增長。

Could you give us some more color on where these new users will come from, whether they are students or nonstudents or come from higher tier cities, lower tier cities, age demographics, whether they are game streaming users or they are -- they watch [to win] and they don't go to win anymore or they come from Taobao because of the new partnership?

您能否為我們提供更多關於這些新用戶來自哪裡的信息，他們是學生還是非學生，或者來自較高線城市、較低線城市、年齡人口統計數據，無論他們是遊戲流媒體用戶還是他們——他們觀看 [ to win]，他們不再去贏了，或者他們來自淘寶，因為新的合作夥伴關係？

My second question is regarding gross margin improvement.

我的第二個問題是關於毛利率的提高。

In the next 2 years, assuming fourth quarter, assuming the revenue mix is already 50-50 between games and nongame, what the gross margin would be today?

在接下來的 2 年中，假設第四季度，假設遊戲和非遊戲之間的收入組合已經是 50-50，那麼今天的毛利率是多少？

And for most of the business segments, you have a quite high revenue share for games, advertising and live streaming.

對於大多數業務領域，遊戲、廣告和直播的收入份額都相當高。

And in the next 2, 3 years, what are the plans to increase the gross margin of each of these businesses?

而在接下來的2、3年，這些業務的毛利率有哪些提升的計劃？

(foreign language)

（外語）

So the driving force of our user growth is through content.

所以我們用戶增長的驅動力是通過內容。

We use content to attract users and use our community to retain users.

我們使用內容來吸引用戶，並使用我們的社區來留住用戶。

We do not solely rely on pure traffic acquisition.

我們不僅僅依靠純粹的流量獲取。

(foreign language)

（外語）

So we have been relying on this model for the past years, and we'll be relying on this model in the future.

所以過去幾年我們一直依賴這個模型，未來我們也會依賴這個模型。

That -- the key reason behind our user growth is we have a content-driven business model.

那——我們用戶增長背後的關鍵原因是我們有一個內容驅動的商業模式。

As we expand our content categories and improve our content qualities, we will be attracting more and more users who are interested in those categories.

隨著我們擴展內容類別並提高內容質量，我們將吸引越來越多對這些類別感興趣的用戶。

And because our strong community features that our own users have much higher retention level compared to other platforms, that's why we are able to continue to grow in the future.

而且由於我們強大的社區功能，我們自己的用戶與其他平台相比具有更高的保留水平，這就是我們能夠在未來繼續發展的原因。

(foreign language)

（外語）

So I think, for the young generations in China, their demand for content will only grow stronger, and their demand for the quality of content is another way of consumption upgrade.

所以我認為，對於中國的年輕一代來說，他們對內容的需求只會越來越強，他們對內容質量的需求是另一種消費升級的方式。

(foreign language)

（外語）

So that's why more and more young people will become our users.

所以這就是為什麼越來越多的年輕人會成為我們的用戶。

(foreign language)

（外語）

So based on the second half of 2018 new user profile analysis, we see both first and second tier city as well as third and fourth tier, fifth tier city.

所以根據2018年下半年新增用戶畫像分析，我們看到一二線城市以及三四線、五線城市。

They are both growing.

他們都在成長。

(foreign language)

（外語）

The user who are coming from third tier and below are growing faster than the first and second tier city.

來自三線及以下的用戶增長速度快於一二線城市。

(foreign language)

（外語）

We think this trend will continue in the next few years.

我們認為這一趨勢將在未來幾年持續。

Okay, let me take the question about the gross profit margin.

好的，讓我來回答關於毛利率的問題。

Actually, if you look at the revenue sharing costs that we already disclosed, in Q4, that number is around 78% of the revenues.

實際上，如果你看一下我們在第四季度已經披露的收入分成成本，這個數字大約是收入的 78%。

So that means that we don't pay too much to those kind of users.

這意味著我們不會為這些用戶支付太多費用。

For the individual business segments like games, actually, for exclusive games, the gross profit margin is quite stable, like 55% for exclusive game license.

對於遊戲等個別業務板塊，實際上獨占遊戲的毛利率相當穩定，獨占遊戲授權的毛利率為55%。

Therefore, the whole operation model, we don't share any profit to third parties.

因此，整個運營模式，我們不與第三方分享任何利潤。

So that means that the GP margin will be around 100%.

這意味著 GP 利潤率將在 100% 左右。

And for the live broadcasting, currently, the gross profit is not that high, but actually, if you count the -- our subscription membership revenues, the overall margin is still reasonable.

而對於直播來說，目前毛利並沒有那麼高，但實際上，如果你算上——我們的訂閱會員收入，整體利潤率還是合理的。

So we will not like to calculate gross profit margin in like just to look at 1 quarter or 2 quarter numbers.

因此，我們不喜歡只看 1 個季度或 2 個季度的數字來計算毛利率。

We will keep investing our Comic business so that we will incur more content cost for our comic, and we will also invest in different areas like virtual idol, Luo Tianyi, that will help us to grow our community.

我們將繼續投資我們的漫畫業務，以便為我們的漫畫產生更多的內容成本，我們還將投資於虛擬偶像洛天依等不同領域，這將有助於我們發展我們的社區。

So in the short term, like 1 or 2 quarters, the gross profit margin may have some fluctuations.

所以短期內，比如1、2個季度，毛利率可能會有一些波動。

You already saw that in Q3 and Q4.

您已經在第三季度和第四季度看到了這一點。

Also, there might be some pressure in Q1.

此外，第一季度可能會有一些壓力。

But in the long run, I think the investment for today is to have their value to help us to achieve more stabilized sales mix.

但從長遠來看，我認為今天的投資是有價值的，可以幫助我們實現更穩定的銷售組合。

At that time, we foresee that when normalized, our gross profit margin, where we have 50% revenue from games and 30% from advertising and 20% from VAS, that means the gross profit margin will be around 40%.

那時，我們預計，當我們的毛利率正常化時，我們有 50% 的遊戲收入和 30% 的廣告收入和 20% 的增值服務，這意味著毛利率將在 40% 左右。

That's our projection.

這就是我們的預測。

And our last question comes from the line of Hillman Chan from Citi.

我們的最後一個問題來自花旗的 Hillman Chan。

(foreign language) So my first question is about our content strategy.

（外語）所以我的第一個問題是關於我們的內容策略。

As we are getting more and more diverse in terms of the content offering, could management share more on our focuses and plans for particular content [show] in 2019 to attract more new users?

隨著我們在內容提供方面變得越來越多樣化，管理層是否可以更多地分享我們在 2019 年對特定內容 [show] 的重點和計劃以吸引更多新用戶？

And related to that, how should we think about the impact to Bilibili branding and the potential impact to the core ACG user loyalty?

與此相關的是，我們應該如何考慮對 Bilibili 品牌的影響以及對核心 ACG 用戶忠誠度的潛在影響？

And related to the content investment budget, could management share more on that for 2019?

關於內容投資預算，管理層能否在 2019 年分享更多內容？

How should we think about the time line of turning around the business?

我們應該如何看待業務扭虧為盈的時間線？

And then my second question is on the game.

然後我的第二個問題是關於遊戲的。

Could management share more on the pipeline, the time line as well as the game approval process update?

管理層能否分享更多關於管道、時間線以及遊戲審批流程更新的信息？

(foreign language)

（外語）

I will divide our content on our platform into 2 brackets: one is the core ACG-related content, including anime, comics and games; and the second part is more general entertainment-related content.

我將我們平台上的內容分為兩類：一類是核心ACG相關內容，包括動漫、漫畫和遊戲；第二部分是更一般的娛樂相關內容。

That includes lifestyle and entertainment, pop culture, celebrity related.

這包括生活方式和娛樂、流行文化、名人相關。

(foreign language)

（外語）

Okay, so first of all, in the core ACG content target users, they themselves are growing bigger and bigger.

好的，那麼首先，在核心 ACG 內容的目標用戶中，他們自己是越來越大的。

That includes, for example, for the domestic animations, we have more and more viewers who are interested in domestic animations.

比如說國產動畫，我們有越來越多的觀眾對國產動畫感興趣。

And more and more users are starting to accept and grow fond of VTubers.

越來越多的用戶開始接受並喜歡上 VTuber。

And e-sports, nevertheless to say, it's becoming country-wide sensation.

和電子競技，不過可以說，它正在成為全國范圍內的轟動。

(foreign language)

（外語）

We have a core competency in terms of ACG content.

我們在 ACG 內容方面具有核心競爭力。

In the near future, we'll continue to invest and keep our leadership position in this content category.

在不久的將來，我們將繼續投資並保持我們在此內容類別中的領先地位。

(foreign language)

（外語）

So as for the more general entertainment content, where we actually offer is a very wide array category of content, that can also be seen from the data we show to our investors, the number of video views.

至於更一般的娛樂內容，我們實際提供的是非常廣泛的內容類別，這也可以從我們向投資者展示的數據中看出，視頻觀看次數。

In terms of video views, entertainment content ranked #1.

在視頻觀看量方面，娛樂內容排名第一。

(foreign language)

（外語）

For example, there are a lot of traditional Chinese type of music are getting more and more popularity.

例如，有很多中國傳統類型的音樂越來越受歡迎。

A lot of digital product review sessions are now available and gaining popularity as well.

現在可以使用許多數字產品評論會議並且也越來越受歡迎。

And we are also seeing vlog as an important content category that's attracting more and more users.

我們還將視頻博客視為吸引越來越多用戶的重要內容類別。

(foreign language)

（外語）

So from all those content mentioned above, they have one thing in common.

所以從上面提到的所有內容來看，它們有一個共同點。

That is all of those fans, they follow those content based on their own interests and habits.

那就是所有那些粉絲，他們根據自己的興趣和習慣關注那些內容。

And they love those high-quality content produced by our content creators.

他們喜歡我們的內容創作者製作的那些高質量的內容。

They also have established strong emotional bond and connection with those content creators.

他們還與這些內容創作者建立了牢固的情感紐帶和聯繫。

(foreign language)

（外語）

So in terms of different content categories within our community, we have one practice, which is we put the content quality a top priority.

因此，對於我們社區內不同的內容類別，我們有一個做法，即我們將內容質量放在首位。

The original content creation a priority.

原創內容創作優先。

We also value the positive feedback our users have given to the content creators.

我們也重視用戶對內容創作者的積極反饋。

(foreign language)

（外語）

That's why since the community culture is one thing in common amongst those different content categories, that our users will proud themselves for being a Bilibili user.

這就是為什麼社區文化是這些不同內容類別中的共同點，我們的用戶會為自己是 Bilibili 用戶而自豪。

Our Bilibili content creators will also be proud of themselves for being a content creator on Bilibili.

我們的 Bilibili 內容創作者也會為自己成為 Bilibili 的內容創作者而感到自豪。

(foreign language)

（外語）

We'll -- From a product design perspective, the whole Bilibili ecosystem is a decentralized system.

我們將——從產品設計的角度來看，整個 Bilibili 生態系統是一個去中心化的系統。

Each user will see a different Bilibili.

每個用戶都會看到不同的 Bilibili。

They only see the contents that they are interested in.

他們只看到他們感興趣的內容。

(foreign language)

（外語）

Also, thanks to the big data-driven, AI-powered efficiency improvement, even though we have more and more user coming on our platform, more and more content submissions, our users can always find their favorite content.

此外，得益於大數據驅動、人工智能驅動的效率提升，即使我們平台上的用戶越來越多，提交的內容越來越多，我們的用戶總能找到自己喜歡的內容。

(foreign language)

（外語）

We are also improving our product experience by adding new functionalities that allow the content creators and the fans and like-minded friends to connect better.

我們還通過添加新功能來改善我們的產品體驗，使內容創作者和粉絲以及志同道合的朋友能夠更好地聯繫。

For example, the Bilibili Moments function, essentially, it's Weibo and Instagram like products where people can post and share their day-to-day life through pictures and texts and a short-video form, long-video form content.

比如嗶哩嗶哩功能，本質上就是微博、Instagram之類的產品，人們可以通過圖文和短視頻形式、長視頻形式的內容髮布和分享自己的日常生活。

(foreign language)

（外語）

So our data suggests over 1/3 of our MAUs will visit the Bilibili Moments function.

因此，我們的數據表明，我們超過 1/3 的 MAU 將訪問 Bilibili Moments 功能。

(foreign language)

（外語）

And in 2018, every registered user, on average, follow 20 content creators.

而在 2018 年，每個註冊用戶平均關注 20 位內容創作者。

This number is up 35% year-on-year.

這個數字同比增長了 35%。

This is another evidence showing that the connection within our community is becoming deeper and deeper.

這是另一個證據，表明我們社區內的聯繫越來越深。

(foreign language)

（外語）

(foreign language)

（外語）

As for the game approval process, we are delighted to see that the process was resumed in December 2018 and we, Bilibili, also are in the first batch of the approval list.

至於遊戲審批流程，我們很高興看到該流程已於2018年12月恢復，我們B站也進入了第一批審批名單。

(foreign language)

（外語）

In the fourth quarter, we launched exclusively licensed game, Song of The Time, that is based on Bilibili IP that has been well received.

第四季度，我們推出了基於嗶哩嗶哩IP的獨家授權遊戲《時光之歌》，廣受好評。

(foreign language)

（外語）

As for our pipeline, we have over 30 games, 30 exclusively licensed games in our pipeline.

至於我們的管道，我們有超過 30 款遊戲，30 款獨家授權遊戲正在我們的管道中。

(foreign language)

（外語）

We have 30 games in our pipeline which are exclusively licensed, and 1 game already obtained approval and is scheduled to release in the second quarter and 2 licensed jointly operated games also obtained approval and will be scheduled to release in the second quarter.

我們有 30 款獨家授權遊戲正在籌備中，其中 1 款遊戲已經獲得批准併計劃在第二季度發布，2 款授權合作遊戲也獲得批准併計劃在第二季度發布。

(foreign language)

（外語）

And as we discussed in the past, we have a number of games in our pipeline that have been ranked on top of the charts in Japanese iOS App Stores, and we are actively preparing for the game licenses.

正如我們過去所討論的，我們有許多遊戲在日本 iOS 應用商店排行榜上名列前茅，我們正在積極準備遊戲許可證。

(foreign language)

（外語）

In addition to exclusively licensed games, on the jointly operated games, we also have hundreds of games in our pipeline.

除了獨家授權遊戲外，在聯營遊戲中，我們還有數百款遊戲正在籌備中。

(foreign language)

（外語）

In terms of the license games that have already obtained game approval and are scheduled to release in the second quarter, one of the games is called RWBY that we will co-publish with Shanda Games, and another game is called Arknights, a very highly anticipated ACG RPG.

在已經獲得遊戲批准併計劃在第二季度發布的授權遊戲方面，其中一款遊戲名為RWBY，我們將與盛大遊戲合作發行，另一款遊戲名為Arknights，非常值得期待。 ACG 角色扮演遊戲。

(foreign language)

（外語）

Our collaboration with Tencent in terms of jointly operating more Tencent games will also help us to diversify our game offerings.

我們與騰訊在共同運營更多騰訊遊戲方面的合作也將有助於我們多樣化我們的遊戲產品。

(foreign language)

（外語）

So based on what Mr. Chen has mentioned earlier, because we have a very tight community and a very high engaged users, we'll continue to invest in our content.

所以基於陳先生之前提到的，因為我們有一個非常緊密的社區和非常高的用戶參與度，我們將繼續投資於我們的內容。

(foreign language)

（外語）

Based on our experience accumulated in 2018, we will invest more in the self-produced content categories.

基於我們2018年積累的經驗，我們會在自產內容品類上加大投入。

(foreign language)

（外語）

We'll focus on several verticals that have a lot of attractions from our users, for example, animation and documentaries.

我們將專注於對我們的用戶有很多吸引力的幾個垂直領域，例如動畫和紀錄片。

(foreign language)

（外語）

This will not only help us to attract and retain users.

這不僅有助於我們吸引和留住用戶。

This will also help us to promote our premium membership program.

這也將有助於我們推廣我們的高級會員計劃。

(foreign language)

（外語）

More importantly, the value of those IPs from those self-produced shows.

更重要的是，那些自產節目的IP的價值。

(foreign language)

（外語）

This will give us profound values of the whole Bilibili ecosystem.

這將給我們整個 Bilibili 生態系統的深刻價值。

Yes.

是的。

And the percentage of the total amortized content cost with our total revenue, the percentage will be around 15% in this year, do not include our investment in Comic business.

並且攤銷的內容成本占我們總收入的比例，今年這個比例在15%左右，不包括我們對漫畫業務的投入。

That does not include the comic content costs.

這不包括漫畫內容成本。

And that concludes the question-and-answer session.

問答環節到此結束。

I would like to turn the conference back over to the management for any additional or closing comments.

我想將會議轉回管理層，以獲取任何其他或結束的評論。

Thank you, once again, for joining us today.

再次感謝您今天加入我們。

If you have any further questions, please contact myself, Juliet Yang, Bilibili's Senior IR Director, or TPG Investor Relations.

如果您還有任何問題，請聯繫我本人、嗶哩嗶哩高級投資者關係總監 Juliet Yang 或 TPG 投資者關係部。

Our content information for IR in both China and the U.S. can be found in today's press release.

我們在中國和美國的 IR 內容信息可在今天的新聞稿中找到。

Have a great day.

祝你有美好的一天。

And that does conclude the conference for today.

這確實結束了今天的會議。

Thank you for participating.

感謝您的參與。

You may all disconnect.

你們都可以斷開連接。