Bilibili Inc (BILI) 2019 Q1 法說會逐字稿

Good day, and welcome to the Bilibili 2019 First Quarter Earnings Conference Call.

美好的一天，歡迎來到 Bilibili 2019 年第一季度財報電話會議。

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 the discussion today will contain forward-looking statements relating to the company's future performances and are intended to qualify for the safe harbor from liability, as established by the U.S. Private Securities 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，旨在符合《美國私人證券訴訟改革法案》規定的免責安全港的資格。

Such statements are not guarantees of future performances 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 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 results, please see the 2019 first quarter financial results news release issued earlier today.

有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的對賬，請參閱今天早些時候發布的 2019 年第一季度財務業績新聞稿。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

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

此外，Bilibili 的投資者關係網站 ir.bilibili.com 上將提供投資者介紹和本次電話會議的網絡重播。

Joining us today on the call from Bilibili's 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 read prepared remarks on behalf of Mr. Chen.

我現在將把電話轉給范先生，范先生將代表陳先生宣讀準備好的發言。

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。

We have started the year off with strong first quarter results.

我們以強勁的第一季度業績開始了新的一年。

Our total revenues reached RMB 1.37 billion, representing a year-over-year growth of 58% and beating the high-end of our guidance of RMB 1.29 billion.

我們的總收入達到人民幣 13.7 億元，同比增長 58%，超過了我們指導的 12.9 億元人民幣的高端。

We have also achieved 2 exciting milestones on the user front.

我們還在用戶方面實現了 2 個令人興奮的里程碑。

Our total MAUs grew 31% year-over-year and surpassed 100 million for the first time, reaching 101.3 million.

我們的總月活躍用戶同比增長 31%，首次突破 1 億，達到 1.013 億。

Our mobile MAUs accelerated even more, increasing by 39% year-over-year, reaching 88.6 million, including a total of 3.2 million mobile MAUs from our Bilibili Comic App and Maoer App, an audio drama platform, which we acquired in December 2018.

我們的移動 MAU 增長更快，同比增長 39%，達到 8860 萬，其中包括來自我們的 Bilibili 漫畫應用程序和我們於 2018 年 12 月收購的音劇平台貓兒應用程序的總計 320 萬移動 MAU。

Our DAUs also reached a milestone of 30 million in the first quarter, demonstrating the heightened stickiness of our growing community.

我們的 DAU 在第一季度也達到了 3000 萬的里程碑，這表明我們不斷發展的社區的粘性增強。

Based on our high-quality content and unique community experience, Bilibili is becoming a must have among our primary audience of Gen Z users.

基於我們高質量的內容和獨特的社區體驗，B站正在成為我們Z世代用戶的主要受眾中的必備品。

This generation readily pays for premium content, more so than any other generation.

這一代人比其他任何一代人更願意為優質內容付費。

With this in mind, we are actively exploring ways to satisfy their diverse entertainment needs and expand our paying user group.

考慮到這一點，我們正在積極探索滿足他們多樣化娛樂需求的方法，並擴大我們的付費用戶群。

Our initiative with our high-quality PUGV and OGV content, exciting mobile game portfolio, Comic App and audio and e-sports lines are continuously attracting and converting our massive community of users to new paying users.

我們以高質量的 PUGV 和 OGV 內容、令人興奮的手機遊戲組合、漫畫應用程序以及音頻和電子競技系列的舉措不斷吸引我們龐大的用戶社區並將其轉化為新的付費用戶。

In the first quarter, our average monthly paying users grew 132% year-over-year to 5.7 million, laying a solid foundation for further monetization opportunities.

第一季度，我們的平均每月付費用戶同比增長 132% 至 570 萬，為進一步的貨幣化機會奠定了堅實的基礎。

I will now review our Q1 results through the lens of our 3 key metrics: content, community and commercialization.

我現在將通過我們的 3 個關鍵指標：內容、社區和商業化來回顧我們的第一季度業績。

Content remains the cornerstone of our business model, and our ever-growing PUGV ecosystem continues to be our leading source of content creation, accounting for 89% of our total video views.

內容仍然是我們商業模式的基石，我們不斷發展的 PUGV 生態系統仍然是我們內容創作的主要來源，占我們總視頻瀏覽量的 89%。

In the first quarter, we had an average of 732,000 active content creators, uploading 2.1 million videos monthly, representing increase of 150% and 130% year-over-year, respectively.

第一季度，我們平均有 732,000 名活躍內容創作者，每月上傳 210 萬條視頻，同比分別增長 150% 和 130%。

Engaging and incentivizing these content creators remain one of our key tasks.

吸引和激勵這些內容創作者仍然是我們的關鍵任務之一。

We continue to introduce new functions and improve our product design to make content creation more streamlined and user-friendly.

我們不斷推出新功能並改進我們的產品設計，以使內容創建更加精簡和用戶友好。

For example, the mobile content submission function is playing a large role in attracting new creators by enabling easy uploads with just a few finger strokes, anytime, anywhere.

例如，移動內容提交功能在吸引新的創作者方面發揮了重要作用，只需輕觸幾下即可隨時隨地輕鬆上傳。

We have also launched a number of programs to reward ingenuity and inspire creative content through monetary rewards and healthy competition.

我們還推出了多項計劃，通過金錢獎勵和良性競爭來獎勵獨創性並激發創意內容。

In January of this year, we held BILIBILI POWER UP 100, an award ceremony to celebrate and give wider recognition to these important contributors in a number of categories.

今年 1 月，我們舉辦了 BILIBILI POWER UP 100 頒獎典禮，以慶祝和更廣泛地表彰這些重要貢獻者在多個類別中的表現。

In tandem with PUGVs, we continue to invest in high-quality OGV content to broaden our user base and attract more premium members.

與 PUGV 一起，我們繼續投資於高質量的 OGV 內容，以擴大我們的用戶群並吸引更多優質會員。

We do this with 2 key strategic approaches.

我們通過兩種關鍵的戰略方法來做到這一點。

First, we license premium content from leading content producers.

首先，我們從領先的內容製作者那裡獲得優質內容的許可。

For example, in March this year, we announced the partnership with Funimation, a subsidiary of Sony Pictures Television, to acquire premium Japanese anime IP for global distribution.

例如，今年 3 月，我們宣布與索尼影視旗下的 Funimation 合作，收購優質的日本動漫 IP 以進行全球發行。

Second and most importantly, is to jointly or self produce original content in anime, documentaries and variety shows, where we benefit from a relatively low content cost and own the IP.

其次，也是最重要的，是在動漫、紀錄片和綜藝節目中聯合或自產原創內容，我們受益於相對較低的內容成本並擁有IP。

On the anime side, we continue to strengthen our leadership by producing dozens of high-quality domestic animation projects, including Ling Long, a highly Sci-Fi anime series, which will be released in June.

在動漫方面，我們繼續加強領導力，製作了數十部優質的國產動漫項目，其中包括將於6月上映的極具科幻感的動漫系列《玲瓏》。

On the documentary front, besides a number of well-received documentaries in handcraft, food and history, we are welcoming Season 2 of our self-produced hit food documentary, The Story of Chuaner, this summer.

紀錄片方面，除了多部廣受好評的手工藝、美食、歷史紀錄片外，我們今年夏天迎來了自拍美食紀錄片《川兒的故事》第二季。

In addition to select TV and movies, we introduced our first self-produced pet reality show, Animal Hospital, earlier this month.

除了精選電視和電影，本月初我們還推出了首個自製寵物真人秀《動物醫院》。

This new series is already resonating well with many pet lovers on Bilibili.

這個新系列已經在嗶哩嗶哩上引起了眾多寵物愛好者的共鳴。

Our partnerships with market titans, such as Tencent and Alibaba, are also well underway.

我們與騰訊和阿里巴巴等市場巨頭的合作也在順利進行。

With Tencent, we have already exchanged a number of domestic animation copyrights and are jointly working on new anime-related projects.

我們已經與騰訊交換了多項國內動漫版權，並正在共同開發新的動漫相關項目。

We have also launched a number of Tencent games on our platform, and have gained considerable traction, including with our exclusive license of Unheard in collaboration with Tencent's NEXT Studio.

我們還在我們的平台上推出了多款騰訊遊戲，並獲得了相當大的吸引力，包括我們與騰訊 NEXT Studio 合作獲得的 Unheard 獨家授權。

This story-driven audio drama game with exciting puzzle elements is resonating well with fans, selling more than [150,000] (corrected by company after the call) copies in just 1 week.

這款故事驅動的音頻戲劇遊戲具有令人興奮的解謎元素，在短短 1 週內就賣出了超過 [150,000] 份（由公司在電話會議後更正）的銷量。

Our partnership with Taobao is also progressing.

我們與淘寶的合作也在推進。

In the first quarter, the first batch of Bilibili's top creators began producing content and attracting followers on Taobao's e-commerce platforms, in preparation for the next stage of the commercialization process.

第一季度，嗶哩嗶哩首批頂級創作者開始在淘寶電商平台上製作內容並吸引粉絲，為下一階段的商業化進程做準備。

We believe our content creators have great commercial value particularly in e-commerce.

我們相信我們的內容創作者俱有巨大的商業價值，尤其是在電子商務方面。

Our partnership with Taobao will help those content creators to realize and improve their commercial value on both platforms.

我們與淘寶的合作將幫助這些內容創作者在兩個平台上實現和提高他們的商業價值。

There remains tremendous opportunity for growth in the ACG market.

ACG 市場仍有巨大的增長機會。

As the industry leader, we continue to invest in and develop premium content in a number of ACG areas to expand and diversify our reach.

作為行業領導者，我們繼續在多個 ACG 領域投資和開發優質內容，以擴大和多樣化我們的影響力。

In late 2018, we acquired a majority interest in Maoer Inc., a platform that offers audio drama.

2018 年底，我們收購了提供有聲劇的平台貓兒公司的多數股權。

We also launched our second mobile application, Bilibili Comic, to better address our core user group's interest for premium comic content.

我們還推出了我們的第二個移動應用程序 Bilibili Comic，以更好地滿足我們的核心用戶群對優質漫畫內容的興趣。

Both our new comic and audio platforms are already contributing to our top line.

我們的新漫畫和音頻平台都已經為我們的收入做出了貢獻。

Virtual idols and VTuber-related live broadcasting is another engaging business gaining more popularity among young generations.

虛擬偶像和與 VTuber 相關的直播是另一項在年輕一代中越來越受歡迎的引人入勝的業務。

With a number of investment and business initiatives underway, we are pioneering these relatively unchartered areas of entertainment.

隨著一系列投資和商業計劃的開展，我們正在開拓這些相對未知的娛樂領域。

In February of this year, we held a concert for our virtual idol Luo Tianyi, featuring top pianist, Lang Lang, in Shanghai.

今年2月，我們為虛擬偶像洛天依在上海舉辦了一場由頂級鋼琴家郎朗主唱的音樂會。

This sensational event combining 2 distinct entertainment genres of classic music with modern virtual idols, marked the first gathering of its kind.

這一轟動性的活動將兩種截然不同的經典音樂娛樂類型與現代虛擬偶像相結合，標誌著此類活動的首次聚會。

I'd now like to look at our second pillar, community.

我現在想看看我們的第二個支柱，社區。

As we welcomed more users to our platform, our community engagement levels were higher than ever, once again showing the quality of our growth.

隨著我們歡迎更多用戶使用我們的平台，我們的社區參與度比以往任何時候都高，再次顯示了我們的增長質量。

In Q1, users spent a daily average of 81 minutes on our platform, up by 5 minutes compared to the same period a year ago.

第一季度，用戶平均每天在我們的平台上花費 81 分鐘，與去年同期相比增加了 5 分鐘。

This measure excludes the time users spend on our mobile games, audio and comic products.

該衡量標準不包括用戶在我們的手機遊戲、音頻和漫畫產品上花費的時間。

Our core user group, official members who have passed our community entrance exam is also on the rise, increasing by 39% year-over-year to 49.3 million by end of Q1.

我們的核心用戶群、通過社區入學考試的官方成員也在增加，到第一季度末，同比增長 39% 至 4930 萬。

These users not only tend to be the most active and engaged with our content and each other, but are also more like to purchase premium content.

這些用戶不僅往往是最活躍的，並且對我們的內容和彼此的參與度最高，而且更喜歡購買優質內容。

Their 12-month retention rate remains at about 80%.

他們的 12 個月保留率保持在 80% 左右。

On the engagement front, during the first quarter, our users generated 514 million daily views and 1.4 billion monthly interactions through bullet-chats, comments, likes and Bilibili Moment post, up 93% and over 360% year-over-year, respectively.

在參與方面，第一季度，我們的用戶通過彈幕、評論、點贊和 Bilibili Moment 帖子產生了 5.14 億次每日瀏覽量和 14 億次每月互動，同比分別增長 93% 和 360% 以上。

Active interfaces among our community further engage our content creators to produce more content.

我們社區之間的活躍界面進一步吸引了我們的內容創建者來製作更多內容。

Over 40% of our MAUs now visit our Bilibili Moment functions, all of which promotes our growing community and help to raise Bilibili's profile among our core demographic of Gen Z users.

現在我們超過 40% 的 MAU 訪問了我們的 Bilibili Moment 功能，所有這些都促進了我們不斷發展的社區，並有助於提升 Bilibili 在我們 Z 世代核心用戶群中的形象。

With that overview of our content and community, I'd now like to review the progress we have been making with our commercialization strategy.

通過對我們的內容和社區的概述，我現在想回顧一下我們在商業化戰略方面取得的進展。

In the first quarter of 2019, revenues from our mobile games grew 27% year-over-year to RMB 873 million, led primarily by Fate/Grand Order or FGO.

2019年第一季度，我們的手游收入同比增長27%至人民幣8.73億元，主要由Fate/Grand Order或FGO領銜。

FGO's popularity hit new heights in the first quarter, with a major content upgrade, Chapter 2.0, revealed in early February.

FGO 的受歡迎程度在第一季度達到了新的高度，2 月初公佈了重大的內容升級，第 2.0 章。

Earlier this month, we also jointly launched 2 highly anticipated ACG-themed mobile games, Arknights and RWBY, both of which are gaining good traction.

本月初，我們還聯合推出了備受期待的2款ACG主題手游《明日方舟》和《RWBY》，均獲得了不錯的關注。

Our pipeline of games for the year is also strong with a number of new games in our release line-up.

我們今年的遊戲管道也很強勁，我們的發行陣容中有許多新遊戲。

We currently have regulatory approval for our exclusively licensed game, BanG Dream, a highly rated Japanese music RPG and Final Gear, an exciting domestic RPG, which will be released in May and July, respectively.

目前，我們的獨家授權遊戲 BanG Dream（一款備受好評的日本音樂角色扮演遊戲）和令人興奮的國產角色扮演遊戲 Final Gear（將於 5 月和 7 月分別發布）已獲得監管部門的批准。

On the jointly operated games front, we are looking forward to bringing ACG-themed mobile game, The Legend of Heroes: Trails of Star, and the mobile game, The Legend of Heroes: Akatsuki no Kiseki to our users in coming quarters.

在聯營遊戲方面，我們期待在未來幾個季度為我們的用戶帶來以 ACG 為主題的手機遊戲《英雄傳說：星之軌跡》和手機遊戲《英雄傳說：曉之軌跡》。

As we roll out more premium game titles, we are confident that we can satisfy more users' pent-up and diversified demand.

隨著我們推出更多優質遊戲，我們有信心滿足更多用戶被壓抑的多元化需求。

Our live broadcasting and VAS revenues increased by 205% year-over-year to RMB 292 million in the first quarter of 2019, with contribution from both our live broadcasting business and premium memberships.

2019年第一季度，我們的直播和增值服務收入同比增長205%至人民幣2.92億元，這得益於我們的直播業務和高級會員服務。

The initiatives we began in 2018 to diversify our live broadcasting content is helping us to expand into new genres and grow our paying user base.

我們於 2018 年開始採取的多樣化直播內容的舉措正在幫助我們擴展到新的流派並擴大我們的付費用戶群。

We continue to enlarge our game-related offerings in PC, mobile, console and e-sports content.

我們繼續擴大我們在 PC、移動、控制台和電子競技內容方面的遊戲相關產品。

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

其中包括英雄聯盟和守望先鋒聯賽的頂級比賽。

Notably, our e-sport team, Hangzhou Spark, won over millions of fans globally for their brilliant performances in 2019 Overwatch Championship.

值得一提的是，我們的電競戰隊杭州星火在 2019 年守望先鋒錦標賽中的精彩表現贏得了全球數百萬粉絲的關注。

So far, they have already made to top 4 position in the Stage 2 Playoffs, which was the best performance Chinese teams have ever achieved.

到目前為止，他們已經在第二階段的季后賽中取得了前四的位置，這是中國隊有史以來最好的表現。

Meanwhile, we are also curating unique content and perfectly fit Bilibili users' entertainment preference: VTuber, audio and ACG-related talent shows are top categories gaining traffic and converting paying users.

同時，我們也在策劃獨特的內容，完美契合B站用戶的娛樂偏好：VTuber、音頻和ACG相關的選秀節目是獲得流量和轉化付費用戶的頂級類別。

In the first quarter, we had 11.4 million valid MAUs who visited live broadcasting room pages for over 5 minutes.

第一季度，我們有 1140 萬訪問直播間頁面超過 5 分鐘的有效 MAU。

1.2 million users paid for live broadcasting services at least once during this period, which is up 139% year-over-year.

在此期間，有 120 萬用戶至少為直播服務付費一次，同比增長 139%。

Our premium membership program gives paying users access to advanced or exclusive content and continues to bring in new subscriptions.

我們的高級會員計劃使付費用戶可以訪問高級或獨家內容，並繼續帶來新的訂閱。

By the end of March, we had recorded [4.8 million] (corrected by company after the call) valid premium members, up 95% year-over-year.

截至 3 月底，我們記錄了 [480 萬]（由公司在電話會議後更正）有效高級會員，同比增長 95%。

Turning to our advertising business.

轉向我們的廣告業務。

Revenues from advertising increased 60% year-over-year to RMB 112.5 million in the first quarter of 2019.

2019年第一季度廣告收入同比增長60%至人民幣1.125億元。

Our unique platforms offers considerable traffic advantages and our performance-based advertising continues to grow.

我們獨特的平台提供了可觀的流量優勢，我們基於效果的廣告持續增長。

The top 3 industrial verticals for brand advertising in the first quarter were digital products, games and skincare and cosmetics.

一季度品牌廣告排名前三的垂直行業分別是數碼產品、遊戲和護膚化妝品。

And the top three verticals for performance-based advertising were games, education and Internet services.

基於效果的廣告排名前三的垂直領域是遊戲、教育和互聯網服務。

And finally, our e-commerce and other revenue stream also continued to grow, reaching RMB 96 million in the first quarter, an increase of 621% from the same period in 2018, largely due to our expanding e-commerce platform product sales.

最後，我們的電子商務和其他收入來源也繼續增長，第一季度達到人民幣 9600 萬元，比 2018 年同期增長 621%，這主要是由於我們不斷擴大的電子商務平台產品銷售。

We are highly focused on strategic growth through leading content creation that brings our community together as well as continued monetization with a solid game pipeline, strong user growth and excellent traction with our live broadcasting and VAS business as well as positive momentum with our newer comic and audio offerings.

我們高度關注戰略增長，通過領先的內容創作將我們的社區凝聚在一起，並通過穩固的遊戲管道、強勁的用戶增長和我們的直播和增值服務業務的出色牽引力以及我們新的漫畫和音頻產品。

We are confident in our ability to attract even more users to our robust online entertainment ecosystem and further grow our business in 2019.

我們有信心在 2019 年吸引更多用戶加入我們強大的在線娛樂生態系統並進一步發展我們的業務。

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 financial results for the first quarter of 2019.

我現在將簡要概述我們 2019 年第一季度的財務業績。

Our total net revenues increased by 58% year-over-year to RMB 1.4 billion.

我們的總淨收入同比增長 58% 至人民幣 14 億元。

Our nongame revenues accounted for 36% of total revenues in the first quarter, up from 21% in the first quarter of 2018.

我們的非遊戲收入佔第一季度總收入的 36%，高於 2018 年第一季度的 21%。

We are pleased with the progress of our commercialization strategy and the average number of monthly paying users more than doubled year-over-year in the first quarter of 2019, reaching 5.7 million.

我們對商業化戰略的進展感到高興，2019 年第一季度平均每月付費用戶數量同比增長一倍以上，達到 570 萬。

Cost of revenues increased by 81% to RMB 1.2 billion compared to RMB 655 million in the same period of 2018.

與 2018 年同期的人民幣 6.55 億元相比，收入成本增加了 81% 至人民幣 12 億元。

Revenue sharing cost, a key component of cost of revenues, was RMB 552 million, representing an increase of 65% from the same period in 2018.

收入分成成本是收入成本的重要組成部分，為人民幣5.52億元，較2018年同期增長65%。

Gross profit was RMB 189 million compared to RMB 213 million in the same period of 2018.

毛利潤為人民幣1.89億元，而2018年同期為人民幣2.13億元。

Our gross profit margin was 13.8% primarily due to increases in content costs, staff costs and bandwidth costs, which were primarily reflecting continued user expansion as well as lower revenue contribution mix from our higher-margin game business.

我們的毛利率為 13.8%，主要是由於內容成本、員工成本和帶寬成本的增加，這主要反映了持續的用戶擴張以及我們較高利潤率的遊戲業務的收入貢獻組合下降。

Total operating expenses increased to RMB 496 million, representing an increase of 73% from the same period of 2018.

總營業費用增至人民幣4.96億元，較2018年同期增長73%。

S&M expenses were RMB 182 million, representing a 130% increase year-over-year.

S&M費用為1.82億元，同比增長130%。

The increase was mainly primarily attributable to the increased channel and marketing expenses associated with Bilibili's app and brand as well as promotional expenses for the company's mobile games and an increase in headcount in selling and marketing personnel.

增加的主要原因是與嗶哩嗶哩的應用程序和品牌相關的渠道和營銷費用增加，以及公司手游的推廣費用增加，以及銷售和營銷人員人數的增加。

R&D expenses was up RMB 186 million, representing a 76% increase year-over-year.

研發費用增加1.86億元，同比增長76%。

The increase was primarily due to increased headcount in R&D personnel and other increased R&D expenses for online games, apps development and virtual idol business.

增長主要是由於研發人員人數增加以及網絡遊戲、應用程序開發和虛擬偶像業務的其他研發費用增加。

G&A expenses were [RMB 128 million], (corrected by company after the call) representing a 25% increase year-over-year.

G&A 費用為[人民幣 1.28 億元]（由公司在電話會議後更正），同比增長 25%。

The increase was primarily due to increased G&A personnel-related expenses and increased amortization expense related to intangible assets acquired through business acquisition, partially offset by the decreased IPO-related onetime share-based compensation cost.

增加的主要原因是與一般行政人員相關的費用增加，以及與通過業務收購獲得的無形資產相關的攤銷費用增加，部分被與首次公開募股相關的一次性股權補償成本的減少所抵消。

Loss from operations was RMB 307 million compared to RMB 74 million in the same period on 2018.

經營虧損為人民幣 3.07 億元，而 2018 年同期為人民幣 7,400 萬元。

Investment income was RMB 82 million, representing an increase of 222% from the same period of 2018.

投資收益8200萬元，較2018年同期增長222%。

The increase was primarily due to the gain arising from the disposal of an equity investment during the first quarter of 2019.

增加的主要原因是2019年第一季度出售股權投資產生的收益。

Net loss was RMB 196 million for the first quarter of 2019 compared to RMB 58 million in the same period of 2018.

2019年第一季度淨虧損為人民幣1.96億元，而2018年同期為人民幣5800萬元。

Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation cost and amortization expense related to intangible assets, was RMB 145 million compared to RMB 3 million in the same period of 2018.

調整後的淨虧損為人民幣 1.45 億元，而 2018 年同期為人民幣 300 萬元，這是一項非公認會計準則指標，不包括與無形資產相關的股權補償成本和攤銷費用。

Basic and diluted net loss per share were RMB 0.6.

每股基本及攤薄淨虧損為人民幣0.6元。

Adjusted basic and diluted net loss per share was RMB 0.44.

調整後的基本及攤薄每股淨虧損為人民幣 0.44 元。

As of March 31, 2019, we had cash and cash equivalents as well as time deposits of RMB 3.5 billion compared to RMB 4.3 billion as of December 2018.

截至 2019 年 3 月 31 日，我們的現金和現金等價物以及定期存款為 35 億元人民幣，而截至 2018 年 12 月為 43 億元人民幣。

In April, the company completed the offering of USD 500 million in aggregate principal amount of convertible senior notes and a concurrent offering of [14.2 million] (corrected by company after the call) ADS at USD 18 per ADS.

4 月，公司完成了本金總額為 5 億美元的可轉換優先票據的發行，並以每股 ADS 18 美元的價格同時發行了 [1420 萬]（由公司在電話會議後更正）ADS。

The company received a total of approximately USD 734 million of net proceeds from the [two] (corrected by company after the call) offerings, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the company.

在扣除承銷折扣和佣金以及公司應付的預計發行費用後，公司從[兩次]（由公司在電話會議後更正）發行中獲得總計約 7.34 億美元的淨收益。

The company plans to use the new proceeds for enriching content offering, investing in research and development and other general corporate purposes.

該公司計劃將新收益用於豐富內容提供、投資研發和其他一般公司用途。

As we look ahead, our financial goals are to further grow our business and improve our operating 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 second quarter of 2019 to be between RMB 1.45 billion and RMB 1.49 billion.

考慮到這一點，我們目前預計 2019 年第二季度的淨收入將在人民幣 14.5 億元至人民幣 14.9 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) Our first question comes from the line of Hillman Chan from Citigroup.

（操作員說明）我們的第一個問題來自花旗集團的 Hillman Chan。

(foreign language)Thank you very much for taking my question.

（外語）非常感謝您接受我的提問。

Congrats on a solid quarter of results.

祝賀業績穩定的四分之一。

My first question is regarding the content strategy.

我的第一個問題是關於內容策略。

Could you provide more color on the content cost for license and self-produced video content for anime as well as for the comic content?

您能否提供更多關於動漫和漫畫內容的許可和自製視頻內容的內容成本？

And how should we think about the gross margin in 2019 and 2020, please?

請問我們應該如何考慮 2019 年和 2020 年的毛利率？

And my second question is regarding the e-commerce and Taobao cooperation.

我的第二個問題是關於電子商務和淘寶的合作。

Could you share more with us the operating metrics, some of the financial contributions right now?

您能否與我們分享更多運營指標，以及目前的一些財務貢獻？

And how should we think about the growth strategy in coming few quarters on operations and monetization, please?

請問我們應該如何考慮未來幾個季度的運營和貨幣化增長戰略？

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] Okay.

[解釋] 好的。

So Hillman, Carly will take the first question on the content expenditure.

所以 Hillman, Carly 將首先提出關於內容支出的問題。

So first of all, we'll continue to execute our strategy in continuing with spending on the high quality OGV content.

因此，首先，我們將繼續執行我們的戰略，繼續在高質量的 OGV 內容上投入資金。

And all of the strategies are built on our ever-growing PUGV ecosystem while investing certain verticals that we are specializing and echo with our user groups.

所有的策略都建立在我們不斷增長的 PUGV 生態系統之上，同時投資於我們專注的某些垂直領域，並與我們的用戶群體產生共鳴。

(foreign language)

（外語）

[Interpreted] So as for the OGV expenditure, we will be mainly focused on the self-produced content categories.

【解讀】所以對於OGV的支出，我們將主要集中在自產內容類別上。

And the reason why we choose that path is, first of all, that will help us to increase our premium membership sales and more importantly, we'll gain more of a big value on the long-term IP value that bringing to us and all of our strategy will be focused on that.

我們選擇這條路的原因首先是，這將有助於我們增加高級會員的銷售額，更重要的是，我們將在長期 IP 價值上獲得更大的價值，為我們和所有人帶來我們的戰略將集中於此。

(foreign language)

（外語）

[Interpreted] So on the premier membership front, we noticed the end new package ratio or multi-automatic renewal ratio are extremely high and will also be focusing on trying out different initiatives to unlock the value of those IPs.

【解讀】所以在頂級會員方面，我們注意到終端新包率或多自動續費率非常高，也將專注於嘗試不同的舉措來釋放這些IP的價值。

Okay.

好的。

On the financial side, we already guided that content cost will be in around about 50% of total revenues.

在財務方面，我們已經指導內容成本將佔總收入的 50% 左右。

And we still maintain those kind of outlook.

我們仍然保持這種觀點。

And if you compare with the revenue from our membership and the percentage for the advertise content cost, it's around 60%.

如果你將我們的會員收入和廣告內容成本的百分比進行比較，它大約是 60%。

It's pretty much healthy for the company, thus we're keeping this kind of investment.

這對公司來說非常健康，因此我們保留了這種投資。

(foreign language)

（外語）

[Interpreted] So as regards your second question the collaboration with Taobao because the first batch of our content creator only have entered Taobao ecosystem for just over a month.

【解讀】關於第二個問題，與淘寶的合作，因為我們的第一批內容創作者進入淘寶生態才一個多月。

So we currently don't have many detailed operation data to share.

所以我們目前沒有太多詳細的運營數據可以分享。

(foreign language)

（外語）

[Interpreted] So as for helping our content creators to unlock their commercial value and the partnership with Taobao, we will definitely have some number to share by the end of this year.

【解讀】為了幫助我們的內容創作者釋放商業價值和與淘寶的合作，今年年底我們肯定會有一些數據可以分享。

(foreign language)

（外語）

[Interpreted] So on the top line contribution front, we don't see any significant contribution with the Taobao partnership this year.

[解釋] 所以在收入貢獻方面，我們看不到今年與淘寶合作有任何重大貢獻。

Well, we value the partnership because it's creating a healthy circulation of merchandise and content creators on both platforms.

好吧，我們重視這種夥伴關係，因為它在兩個平台上創造了商品和內容創作者的健康流通。

That's very positive for both of our ecosystem.

這對我們的兩個生態系統都是非常積極的。

(foreign language)

（外語）

(foreign language)

（外語）

Our next question comes from Natalie Wu from CICC.

我們的下一個問題來自中金公司的 Natalie Wu。

Congratulations on a very solid quarter.

祝賀一個非常穩定的季度。

My question is related with live broadcasting.

我的問題與直播有關。

Just wondering if management can give us some more color on the strategy of your live broadcasting initiative development this year.

只是想知道管理層是否可以為您今年的直播計劃發展戰略提供更多色彩。

More specifically, it would be great if you can give us some update on your VTube initiatives, including revenue contribution, margin profile as well as the differences between this model and traditional live broadcasting model you have observed in your past operation.

更具體地說，如果您能向我們提供一些關於您的 VTube 計劃的最新信息，包括收入貢獻、利潤概況以及您在過去運營中觀察到的這種模式與傳統直播模式之間的差異，那就太好了。

I would translate myself briefly, (foreign language)

我會簡單地翻譯一下自己，（外語）

(foreign language)

（外語）

[Interpreted], So we think for our company, live broadcasting was never just a business lineup contributing revenue, but it's more of ability, because live broadcasting of the content format plays an important role in our overall content ecosystem.

【解讀】所以我們認為，對於我們公司來說，直播從來不僅僅是一個業務線貢獻收入，而更多的是能力，因為內容格式的直播在我們整個內容生態系統中扮演著重要的角色。

(foreign language)

（外語）

[Interpreted] So there are 3 key characteristics with our live broadcasting business.

【解讀】所以我們的直播業務有3個關鍵特徵。

First of all, our users that are watching all these recorded videos are the same set of audiences that potentially could be our live broadcasting users.

首先，觀看所有這些錄製視頻的用戶是同一組觀眾，可能是我們的直播用戶。

And the categories also mirror on to 2 formats of content.

這些類別還反映了 2 種內容格式。

(foreign language)

（外語）

[Interpreted] We have also released the number of valid MAU for our live broadcasting this quarter, which is over 10 million.

【解讀】我們也公佈了本季度直播的有效MAU數，超過1000萬。

(foreign language)

（外語）

[Interpreted] And we also think this number will continue to increase.

[解讀]而且我們也認為這個數字還會繼續增加。

(foreign language)

（外語）

[Interpreted] And secondly, the majority of our live broadcasting posts are also content creators on Bilibili platform.

【解讀】其次，我們的大部分直播帖子也是嗶哩嗶哩平台的內容創作者。

In the first quarter, actually over 50% of the valid host have also been our content creators.

在第一季度，實際上超過 50% 的有效主機也是我們的內容創作者。

That gives us a deep full of access to verify and high-quality potential live broadcasting post, and that is the most important thing for live broadcasting business to ensure that you have a big resource for high-quality content host.

這給了我們一個深度驗證和高質量潛在的直播帖子，這是直播業務最重要的事情，以確保您擁有大量的優質內容主持人資源。

(foreign language)

（外語）

[Interpreted] And thirdly, as our content creators have already formed a deep connection with their fans on Bilibili platforms.

【解讀】第三，我們的內容創作者已經在嗶哩嗶哩平台上與粉絲建立了深厚的聯繫。

So for their followers, they have more stickiness and willingness to pay.

所以對於他們的追隨者來說，他們有更多的粘性和支付意願。

And they will have a stronger sense of the volume and ownership of the community.

他們將對社區的數量和所有權有更強烈的認識。

(foreign language)

（外語）

[Interpreted] We believe Bilibili platform will become the most influential content platform for Gen Z. And Bilibili live broadcasting will also be the most popular most influential live broadcasting platform for this generation.

【解讀】我們相信嗶哩嗶哩平台將成為Z世代最具影響力的內容平台，嗶哩嗶哩直播也將是這一代人最火爆、最具影響力的直播平台。

(foreign language)

（外語）

[Interpreted] As for certain content categories, we believe we have a strong edge into, for example, games related, e-sports related, and VTubers, we should be able to achieve absolute leadership in those content categories.

【解讀】對於某些內容品類，我們認為我們在遊戲相關、電競相關、VTubers等方面有很強的優勢，我們應該能夠在這些內容類別中實現絕對領先。

(foreign language)

（外語）

[Interpreted] As for the VTuber, a subcategory, we have seen very good traction in the first quarter.

[解讀] 至於子品類VTuber，我們在第一季度看到了非常好的牽引力。

We have over 6,000 VTubers coming from all across the globe, we have set up live broadcasting in the first quarter of Bilibili platform, and the viewership was over 6 million.

我們有超過6000名來自全球各地的VTuber，我們在B站第一季度開設了直播，收視率超過600萬。

(foreign language)

（外語）

[Interpreted] Because we are in absolute monopoly in terms of ACG content, we also held absolute leadership in this industry with the success of VTuber business, we can see that our users have resonated extremely well with this format of content and their engagement, their paying ratio all of the metrics that are very high.

【解讀】因為我們在ACG內容方面處於絕對壟斷地位，我們也憑藉VTuber業務的成功在這個行業佔據絕對領先地位，我們可以看到我們的用戶對這種形式的內容和他們的參與度產生了非常好的共鳴，他們的支付比率所有的指標都非常高。

(foreign language)

（外語）

[Interpreted] We're confident to keep our leadership in the VTuber content categories.

[解釋] 我們有信心在 VTuber 內容類別中保持領先地位。

And we believe this very creative format of entertainment has great potential to grow.

我們相信這種極具創意的娛樂形式具有巨大的發展潛力。

(foreign language)

（外語）

Yes, actually as you know, the live broadcasting and VAS, all the revenue streams grew very strongly.

是的，實際上如你所知，直播和增值服務，所有的收入來源都增長得非常強勁。

And for Q1, the live broadcasting contributed about 40% of the total live broadcasting and VAS revenue streams.

而對於第一季度，直播貢獻了約 40% 的直播和增值服務總收入流。

Just a very quick follow-up.

只是一個非常快速的跟進。

For the VTube-related live broadcasting, what's the revenue contribution in the first quarter?

對於VTube相關的直播，第一季度的收入貢獻是多少？

We don't disclosed that number yet.

我們還沒有透露這個數字。

We just started this kind of business.

我們剛剛開始這種業務。

As Rui mentioned, that has a great potential to grow in this year.

正如 Rui 所說，這在今年有很大的增長潛力。

Got it.

知道了。

Understood.

明白了。

but we noticed the first time the MAU and the quarterly paying users, so just for your reference.

但我們第一次注意到MAU和季度付費用戶，所以僅供參考。

Our next question comes from the line of Kenneth Fong from Crédit Suisse.

我們的下一個問題來自瑞士信貸的 Kenneth Fong。

(foreign language) Let me translate in English.

（外語）讓我翻譯成英文。

Congrats on a very strong quarterly results.

祝賀季度業績非常強勁。

I have 2 questions.

我有 2 個問題。

The first question is related to the games market outlook, especially in the ACG market, given the very strong first quarter result.

第一個問題與遊戲市場前景有關，尤其是在 ACG 市場，因為第一季度業績非常強勁。

The second question is the advertising revenue was a bit weak in the first quarter.

第二個問題是第一季度的廣告收入有點疲軟。

We understand that there is some seasonality as well as China macro elements in it.

我們知道其中有一些季節性因素以及中國宏觀因素。

So I just wanted to see what is the management monetization strategy going forward, especially in the video platform?

所以我只是想看看未來的管理貨幣化策略是什麼，尤其是在視頻平台？

(foreign language)

（外語）

[Interpreted] So we stay very positive towards ACG game market.

[解讀]所以我們對ACG遊戲市場保持非常積極的態度。

There has been a research report forecasting that the overall ACG game market will reach RMB30 billion in 3 years.

有研究報告預測，整個ACG遊戲市場將在3年內達到300億元。

So from our perspective, this is quite a realistic forecast that we think we can achieve.

因此，從我們的角度來看，這是一個我們認為可以實現的非常現實的預測。

(foreign language)

（外語）

[Interpreted] So there are 2 key areas we wanted to focus.

[解釋] 所以我們想要關注兩個關鍵領域。

One is definitely on the ACG-related games, that is very in line with our user profile and our strength in the operation field.

一個肯定是ACG相關的遊戲，非常符合我們的用戶畫像和我們在運營領域的實力。

And second of all, is to better address our existing users who have high demands and better understandings of specific games and for those games that requires or are in a more creative ways, we will introduce those games to our users.

其次，是為了更好地滿足我們現有用戶對特定遊戲的高要求和更好的理解，對於那些需要或以更有創意的方式的遊戲，我們會將這些遊戲介紹給我們的用戶。

(foreign language)

（外語）

[Interpreted] So looking at our pipeline, we have 2 sets of pipeline that satisfy these 2 categories.

[解釋]所以看看我們的管道，我們有 2 組管道滿足這 2 個類別。

First of all, the high-quality ACG games, we have BanG Dream!, 2 exclusively licensed games that will be released in the coming months, which is BanG Dream!

首先是高品質的ACG遊戲，我們有BanG Dream!，未來幾個月將發布的2款獨家授權遊戲，這就是BanG Dream！

and Final Gear.

和最終裝備。

We believe those 2 types are high quality and should resonate well with our users.

我們相信這兩種類型都是高質量的，應該會引起我們的用戶的共鳴。

And second, to satisfy user with higher demand in creative content format, we also partnered with Tencent NEXT Studio launch audio drama with puzzle element at games called Unheard, and this game has received very high reviews from our users and once achieved top 2 in China's teen chart and the best review is over 94%, people gave a good review.

其次，為了滿足用戶對創意內容格式的更高需求，我們還與騰訊NEXT工作室合作，在Unheard遊戲中推出了帶有解謎元素的音頻劇，這款遊戲在用戶中獲得了很高的評價，曾一度進入中國前2名。青少年排行榜和最佳評價超過 94%，人們給予了很好的評價。

(foreign language)

（外語）

[Interpreted] In terms of games publishing, we think we are at a very advantageous position because we have acquired the core user growth for both ACG and games.

【解讀】在遊戲發行方面，我們認為我們處於非常有利的位置，因為我們已經獲得了 ACG 和遊戲的核心用戶增長。

And for those categories are the top 5 popular content categories on our video platform.

這些類別是我們視頻平台上最受歡迎的 5 個內容類別。

(foreign language)

（外語）

[Interpreted] So as those users are using Bilibili, we are in a very precise environment to collect the data to their behaviours on what types of content they are watching, what type of community behaviour they have exhibiting, so we can be more precisely recommend the right games to the right users.

【解讀】所以當那些用戶在使用嗶哩嗶哩的時候，我們是在一個非常精準的環境中收集到他們在看什麼類型的內容，他們表現出什麼類型的社區行為的行為數據，所以我們可以更精準的推薦為正確的用戶提供正確的遊戲。

(foreign language)

（外語）

[Interpreted] And also our team has very deep understanding of our users' preferences and how the market is shaping out.

[解釋] 而且我們的團隊對我們用戶的偏好以及市場如何形成有著非常深刻的理解。

So we're quite confident to standout very leading position in terms of ACG games as well as those new creative format of games.

所以我們非常有信心在ACG遊戲以及那些新的創意遊戲格式方面脫穎而出。

(foreign language)

（外語）

[Interpreted] So in our pipeline, we currently have over 30 exclusively licensed games and hundreds of jointly operated games that pretty much cover all the best quality games that's coming in the next 1 or 2 years.

[解釋]因此，在我們的籌備過程中，我們目前擁有超過 30 款獨家授權遊戲和數百款聯合運營的遊戲，這些遊戲幾乎涵蓋了未來 1 或 2 年內所有最優質的遊戲。

So we remain quite confident towards our gaming business.

所以我們對我們的遊戲業務仍然充滿信心。

Okay.

好的。

I just wanted to add one point on Mr. Chen's remarks that our GAAP game revenues in Q2 was a little bit flattish compared with Q1, mainly because of 2 reasons.

我只是想在陳先生的評論中補充一點，我們的 GAAP 遊戲收入在 Q2 與 Q1 相比有點平淡，主要是因為兩個原因。

One is that we deferred FGO's cash revenue over 7 month.

一是我們將 FGO 的現金收入推遲了 7 個月。

The FGO's cash growth revenue in Q4 last year is quite strong, so they will help to pull up the FGO GAAP revenue in Q1.

FGO去年第四季度的現金增長收入相當強勁，因此它們將有助於拉動第一季度的FGO GAAP收入。

The second reason is that about the contribution from the new games.

第二個原因是關於新遊戲的貢獻。

We may release our 2 new games, BanG Dream!

我們可能會發布我們的 2 款新遊戲 BanG Dream！

in the end of May and Final Gear, a very excited domestic RPG in July.

五月底和Final Gear，一個非常激動的七月國產RPG。

So that a well contributed that the game revenue build up in the second half of this year, not in Q2.

因此，遊戲收入在今年下半年而非第二季度有所增加。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So in 2018, we actually reached ground breaking for our advertising business.

[解釋] 所以在 2018 年，我們的廣告業務實際上取得了突破性進展。

We have built our performance-based from 0 to 1 and also achieved great growth for our brand advertising.

我們建立了從0到1的績效導向，也為我們的品牌廣告取得了巨大的增長。

(foreign language)

（外語）

[Interpreted] For the first quarter, we still achieved [60%] (corrected by company after the call) year-on-year growth, while decreased in quarter-over-quarter.

[解讀]第一季度，我們仍然實現了[60%]（由公司在電話會議後更正）同比增長，但環比下降。

(foreign language)

（外語）

[Interpreted] So in the first quarter, it's a seasonality reason, the brand advertising for the traditional advertising format will be a relatively low quarter, plus the macro economy headwind, the brand advertising was a little below our expectation.

【解讀】所以一季度是季節性的原因，傳統廣告業態的品牌廣告投放會是一個相對較低的季度，加上宏觀經濟逆風，品牌廣告投放略低於我們的預期。

However, our performance-based advertising has been performing relatively in line with our expectation.

然而，我們基於效果的廣告的表現相對符合我們的預期。

We are continuing to see the increase in the bill rate.

我們繼續看到賬單利率的上升。

(foreign language)

（外語）

[Interpreted] So on the performance-based advertising, we're executing a strategy that's focusing on building a better ecosystem.

[解釋]因此，在基於效果的廣告方面，我們正在執行一項專注於建立更好的生態系統的策略。

First of all, on the advertising agency system, we are more focused on the retention, the engagement of our advertising agency.

首先，在廣告代理系統上，我們更關注廣告代理的保留、參與。

(foreign language)

（外語）

[Interpreted] Second of all, we are still continuing to increase our algorithm to improve the efficiency of our performance-based advertising, while lowering the conversion cost.

【解讀】其次，我們還在繼續增加算法，以提高我們基於效果的廣告的效率，同時降低轉化成本。

(foreign language)

（外語）

[Interpreted] Third is to improve the formatting of how we review our performance-based advertisement to our views.

[解釋] 第三是改進我們如何根據我們的觀點審查基於績效的廣告的格式。

(foreign language)

（外語）

[Interpreted] So as for the brand performance, we'll continue to increase our influence in the overall brand advertisement industry, and to attract more premium brand advertisers.

【解讀】在品牌表現方面，我們將繼續提昇在整體品牌廣告行業的影響力，吸引更多優質品牌廣告主。

(foreign language)

（外語）

[Interpreted] We will also provide new and creative integrated marketing solutions that benefit our brand advertisers' needs to address Gen Z demographics.

[解釋] 我們還將提供新的和創造性的整合營銷解決方案，有利於我們的品牌廣告商滿足 Z 世代人口統計的需求。

(foreign language)

（外語）

[Interpreted] At the same time, we'll also continue to penetrate the customer base in our brand advertisement and also improve our ability to do better integrated marketing.

【解讀】同時，我們也將在品牌廣告中不斷深入客戶群，提升整合營銷能力。

(foreign language)

（外語）

[Interpreted] So we remain confident given our group of users that are highly engaged and highly active that will continue to convert more and more advertisers on Bilibili platform.

[解釋]因此，鑑於我們的用戶群高度參與和高度活躍，我們仍然有信心，他們將繼續在 Bilibili 平台上轉化越來越多的廣告商。

(foreign language)

（外語）

[Interpreted] In addition, we'll also try our new initiatives that benefits our community and content to provide value-added solutions to our advertisers.

[解釋] 此外，我們還將嘗試有利於我們的社區和內容的新舉措，為我們的廣告商提供增值解決方案。

(foreign language)

（外語）

[Interpreted] For example, in e-commerce industry, we will also try our new ways to better connect the merchandise, merchants and content.

【解讀】比如在電商行業，我們也會嘗試新的方式，更好的連接商品、商家和內容。

That's all.

就這樣。

Our next question comes from the line of [Zang Li] from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的[Zang Li]。

(foreign language) My first question is about regulation.

（外語）我的第一個問題是關於監管的。

Do you see more traction regulation on content on social community and impacts to our community?

您是否看到對社交社區內容的更多牽引力監管以及對我們社區的影響？

And when do we expect to launch the addiction prevention system to the teenagers?

我們預計何時向青少年推出成癮預防系統？

And second question about Bilibili Comics in the Maoer.

第二個問題是關於貓兒的嗶哩嗶哩漫畫。

Do we have any details you can share with us in terms of user overlap with Bilibili's community, user time spend and the paying user, the revenue contribution for this year?

關於用戶與 Bilibili 社區的重疊、用戶時間花費和付費用戶、今年的收入貢獻，我們有什麼細節可以分享給我們嗎？

(foreign language)

（外語）

[Interpreted] So first of all, not only just the China government but the authorities from all over the globe are implementing more standard control towards Internet content.

【解讀】首先，不僅是中國政府，世界各地的主管部門都在對互聯網內容實施更加規範的管控。

(foreign language)

（外語）

[Interpreted] So we think this is an inevitable trend that for the Internet company should adopt and face it right on.

【解讀】所以我們認為這是一個必然的趨勢，對於互聯網公司來說，應該採用並正視它。

Because right now, as Internet penetrated to almost everybody, the regulations on content that we're facing no matter if it's privacy control or teen anti-addiction control.

因為現在，隨著互聯網幾乎滲透到每個人，無論是隱私控制還是青少年防沉迷控制，我們都面臨著對內容的監管。

This is the problem that all the country should be facing.

這是整個國家都應該面對的問題。

So this is the new norm for our industry.

所以這是我們行業的新規範。

(foreign language)

（外語）

[Interpreted] So as for Bilibili, we have always given our active attitude towards the content control.

【解讀】所以對於嗶哩嗶哩，對於內容管控，我們一直都表現出積極的態度。

We have strengthened our overall content audit team and also improved on the safety of the content as well as guidance towards more positive content on our platform.

我們加強了我們的整體內容審核團隊，並改進了內容的安全性以及對我們平台上更積極內容的指導。

(foreign language)

（外語）

[Interpreted] So as for the team's anti-addiction control, many of you probably have heard the news around the end of March.

【解讀】所以關於團隊的防沉迷管控，很多人大概在3月底左右就已經聽說了這個消息。

Bilibili has been actively spontaneously trying to improve more safety content environment for teams in China.

嗶哩嗶哩一直在積極主動地嘗試為中國團隊改善更多的安全內容環境。

We are developing new version of our products that better fits the teen's usage.

我們正在開發更適合青少年使用的新版本產品。

No matter what's on the content, the quality of the content and the functionality, we are doing number of measurements to make it a safer environment for them.

無論內容、內容質量和功能如何，我們都會進行多次測量，以使其成為更安全的環境。

(foreign language)

（外語）

[Interpreted] So as our MAUs surpassed 100 million, we've analyzed our user' profiles.

[解釋] 因此，當我們的 MAU 超過 1 億時，我們分析了用戶的個人資料。

The overall average age of Bilibili users are over 21 years old.

B站用戶整體平均年齡超過21歲。

So a number of users that under 14 is less than 10%, even less than paying user proportion.

所以14歲以下的用戶數量不足10%，甚至低於付費用戶比例。

(foreign language)

（外語）

[Interpreted] So all the measurements that we're providing a safer environment to teenagers, will not have a material impact on our time spent as well as our revenues.

[解釋] 因此，我們為青少年提供更安全環境的所有衡量標準，不會對我們花費的時間和收入產生實質性影響。

(foreign language)

（外語）

[Interpreted] So we are a true advocate for the teen anti-addiction control.

[解讀]所以我們是青少年防成癮控制的真正倡導者。

And we think this is our social responsibility to provide a healthy positive Internet environment to our youngsters.

我們認為這是我們的社會責任，為我們的青少年提供一個健康積極的互聯網環境。

(foreign language)

（外語）

[Interpreted] So Maoer and Comics are 2 new business in our group and both of them are in a relatively early stage.

【解讀】所以貓兒和漫畫是我們集團的兩個新業務，都處於比較早期的階段。

And for those 2 products, they have the same characters as they're more paying user oriented.

對於這兩種產品，它們具有相同的特徵，因為它們更面向付費用戶。

They are both very professional platform that's providing high-quality content that require pay-to-view or pay-to-hear.

它們都是非常專業的平台，提供需要付費觀看或付費聆聽的高質量內容。

So you won't see a massive ramp on the overall MAU, but should have a positive impacts on our overall teenagers.

因此，您不會看到整體 MAU 大幅上升，但應該會對我們的整體青少年產生積極影響。

(foreign language)

（外語）

[Interpreted] Also, as for the overall Bilibili ecosystem, these 2 platforms provide a very high quality professionally produced content, which will be the source of our IP.

【解讀】另外，對於整個B站生態來說，這兩個平台提供了非常高質量的專業內容，這將是我們IP的來源。

Thus we really value the high-quality content on both of the platforms.

因此，我們非常重視兩個平台上的高質量內容。

(foreign language)

（外語）

[Interpreted] So we encourage you to focus more on the quality of the content, the revenue contribution of those 2 products and influential IP that's been generated on both platforms including comic and the high-quality audio drama.

【解讀】所以我們鼓勵大家更加關注內容的質量、這兩個產品的收入貢獻以及在包括漫畫和優質有聲劇在內的兩個平台上產生的有影響力的IP。

And that concludes the question-and-answer session.

問答環節到此結束。

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

我現在想將會議轉交給管理層，以徵求任何其他或結束意見。

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 Director, or TPG Investor Relations.

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

Our contact information for both -- 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投資者關係的聯繫信息可以在今天的新聞稿中找到。

Have a great day.

祝你有美好的一天。