Bilibili Inc (BILI) 2019 Q3 法說會逐字稿

Good day, and welcome to the Bilibili 2019 Third Quarter earnings Conference Call.

美好的一天，歡迎來到 Bilibili 2019 年第三季度財報電話會議。

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 certain forward-looking statements relating to the company's future performances and are intended to qualify 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某些前瞻性陳述，旨在使安全港免於承擔責任，正如美國私人證券訴訟改革法案所規定的那樣。

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 exchange -- 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交易所提交的某些文件中——證券交易委員會。

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 discuss certain non-GAAP financial measures for comparison purpose only.

在今天的電話會議中，管理層將討論某些非公認會計原則的財務措施，僅供比較。

For definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2019 third 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 年第三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 Investor Relations website at ir.bilibili.com.

此外，Bilibili 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 the 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講話。

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。

Our third quarter was another strong quarter of growth.

我們的第三季度是另一個強勁的增長季度。

Our active user acquisition strategy and increased commercialization efforts are paying off.

我們積極的用戶獲取策略和增加的商業化努力正在取得成效。

We secured another quarter to record high MAUs and paying users, while meaningfully improving our top line and gross margin.

我們又一個季度獲得了創紀錄的高月活躍用戶和付費用戶，同時有意義地提高了我們的收入和毛利率。

In the third quarter, we added 17.5 million MAUs to our platforms sequentially.

第三季度，我們的平台連續增加了 1750 萬個 MAU。

This is our highest quarterly net adds ever, bringing our total MAUs to 127.9 million, up 38% from the same period last year.

這是我們有史以來最高的季度淨增長，使我們的總月活躍用戶達到 1.279 億，比去年同期增長 38%。

The growth rate for our mobile MAUs even more accelerated, reaching 114.2 million in the third quarter, up 43% year-on-year.

我們的移動 MAU 增速更加加快，第三季度達到 1.142 億，同比增長 43%。

While growing our user base, we're also keeping our community engagement at a high level.

在擴大用戶群的同時，我們也將社區參與度保持在高水平。

Total DAUs were up 40% in the third quarter, reaching 37.6 million, and on average, they spend 83 minutes per day our platform.

第三季度總 DAU 增長了 40%，達到 3760 萬，他們平均每天在我們的平台上花費 83 分鐘。

Our user stickiness and loyalty creates longevity and willingness to pay for premium content and the services.

我們的用戶粘性和忠誠度創造了長壽和願意為優質內容和服務付費。

In the third quarter, our average monthly paying users once again more than doubled compared to the same period in 2018, which is 7.9 million.

第三季度，我們的平均月付費用戶再次比 2018 年同期增加了一倍多，即 790 萬。

Revenues per MAU was RMB 14.5, a 25% increase from the same period in 2018.

每 MAU 收入為 14.5 元人民幣，較 2018 年同期增長 25%。

These set of numbers demonstrate improving monetization of our growing traffic.

這組數字表明我們不斷增長的流量正在改善貨幣化。

For the sixth consecutive quarter since our IPO, we exceeded our revenue guidance, beating the high end of our expectations by nearly RMB 100 million.

自首次公開募股以來，我們連續第六個季度超過了我們的收入預期，超過了我們預期的高端近 1 億元人民幣。

Total net revenues came in at RMB 1.86 billion for the third quarter, up 72% year-on-year.

第三季度總淨收入為人民幣18.6億元，同比增長72%。

We think this means we are doing something very right.

我們認為這意味著我們正在做一些非常正確的事情。

At our top line expense, we are realizing more leverage and our gross margin has improved meaningfully each quarter this year from 13.8% in Q1 to 18.9% in Q3.

在我們的頂線支出中，我們正在實現更多的槓桿作用，我們的毛利率從今年第一季度的 13.8% 到第三季度的 18.9%，今年每個季度都有顯著提高。

To give a bit more insight into our strategy, I'd like to walk you through our third quarter performance and provide an update on what we consider the backbone strategy of our business, content, community and commercialization.

為了更深入地了解我們的戰略，我想向您介紹我們第三季度的業績，並提供我們認為的業務、內容、社區和商業化的骨幹戰略的最新情況。

Our full-spectrum entertainment ecosystem is strong and growing.

我們的全方位娛樂生態系統強大且不斷發展。

We continue to improve our tools and services to better support and inspire our content creators.

我們將繼續改進我們的工具和服務，以更好地支持和激勵我們的內容創作者。

The mobile content submission tool has been widely adopted by our content creators, which around 50% of content now being uploaded through mobile devices.

移動內容提交工具已被我們的內容創建者廣泛採用，現在大約 50% 的內容是通過移動設備上傳的。

We believe the 5G network adoption will also have a positive impact on video creation and consumption beyond our imagination.

我們相信 5G 網絡的採用也將對視頻創作和消費產生超出我們想像的積極影響。

During the third quarter, we had an average of 1.1 million active content creator, up 93% year-over-year, uploading 3.1 million videos monthly, up 83% on year-over-year basis.

第三季度，我們平均有 110 萬活躍內容創作者，同比增長 93%，每月上傳 310 萬個視頻，同比增長 83%。

The top 5 content categories in the third quarter were lifestyle, entertainment, game, animation and technology.

第三季度排名前五的內容類別是生活方式、娛樂、遊戲、動漫和科技。

For lifestyle, our vlog campaign was a great success this summer.

對於生活方式，我們的視頻博客活動在今年夏天取得了巨大成功。

By the end of Q3, vlog has more than 11 billion cumulative views.

截至第三季度末，vlog 累計瀏覽量超過 110 億次。

Our interactive video feature continues to be a great outlet for our content creators to stretch their imaginations in various verticals, attracting a viewership of more than 300 million in just 4 months.

我們的互動視頻功能仍然是我們的內容創作者在各個垂直領域發揮想像力的絕佳渠道，在短短 4 個月內吸引了超過 3 億的觀眾。

In October, we launched the new joint creation program that encourage our content creators with matching talent to work together to jointly coproduce titles.

10 月，我們推出了新的聯合創作計劃，鼓勵具有匹配人才的內容創作者共同合作共同製作作品。

This initiative has been well received by our community, particularly in the verticals that require more professional skills such as music, dance and animation.

這一舉措得到了我們社區的好評，特別是在需要更多專業技能的垂直領域，如音樂、舞蹈和動畫。

Looking ahead, we aim to further expand our content offerings in entertainment, fashion and the technology with more effective operations, which we believe will help attract mass audience.

展望未來，我們的目標是通過更有效的運營進一步擴展我們在娛樂、時尚和技術方面的內容產品，我們相信這將有助於吸引大眾觀眾。

Notably, as our smart content distribution engine and operational capability is improved, we are excited to see our content and content creators gain traction faster than ever.

值得注意的是，隨著我們智能內容分發引擎和運營能力的提高，我們很高興看到我們的內容和內容創作者比以往任何時候都更快地獲得關注。

In the third quarter, the number of new videos that achieved 1 million views more than quadrupled compared to the same period last year.

第三季度，觀看次數達到 100 萬的新視頻數量比去年同期增長了四倍多。

The ability to showcase their talent and gain realtime fans in heavily populated community is making Bilibili the ideal platform for content creators.

在人口稠密的社區中展示他們的才華並獲得實時粉絲的能力使 Bilibili 成為內容創作者的理想平台。

In addition, we continue to expand our OGV library to supplement our ever-growing PUGV offerings.

此外，我們繼續擴展我們的 OGV 庫，以補充我們不斷增長的 PUGV 產品。

We remain the dominant leader in animation field with one of the China's largest anime libraries.

憑藉中國最大的動漫圖書館之一，我們仍然是動漫領域的主導領導者。

We recently released updates on dozen of Chinese anime projects, including The Three-Body Problem, San Ti, and over 20 new titles, including Heaven Official's Blessing Tian Guan Cì Fú; and the Legend of Mortal Ascension, Fánrén Xiuxian Zhuán.

我們最近發布了十幾個中國動漫項目的更新，包括三體問題，三體，以及20多個新作品，包括天官賜福天官慈福；還有神仙傳，凡仁修仙傳。

In the documentary and the variety show departments, our signature food documentary series, The Story of Chuaner Season 2, and our self-produced animal reality show, Animal Hospital, has been a hot topic all summer long.

在紀錄片和綜藝部門，我們的招牌美食紀錄片《川兒的故事》第二季，以及我們自產的動物真人秀《動物醫院》，整個夏天都是熱議的話題。

At the same time, we continue to work with leading overseas producers to bring our audience top-level titles.

同時，我們繼續與領先的海外製作人合作，為我們的觀眾帶來頂級遊戲。

These include Chinese version of Discovery's outdoor survivor reality show, First Man Out, starring Ed Stafford; and Hidden Kingdoms of China, a phenomenal documentary that we coproduced with National Geographic.

其中包括中國版 Discovery 的戶外倖存者真人秀節目 First Man Out，由 Ed Stafford 主演；和《中國隱藏的王國》，一部我們與國家地理共同製作的非凡紀錄片。

This mass appeal titles have not only helped attracting broader audience, but also yield decent advertisement and premier membership revenue.

這種具有大眾吸引力的標題不僅有助於吸引更廣泛的受眾，而且還產生了可觀的廣告和一流的會員收入。

Looking at our community, we are seeing accelerated user expansion.

縱觀我們的社區，我們正在加速用戶擴張。

We are experiencing fast growth in numbers as well as engagement levels.

我們正在經歷數量和參與度的快速增長。

In the third quarter, we had 725 million daily video views, up 60% year-on-year.

第三季度，我們的每日視頻觀看量為 7.25 億次，同比增長 60%。

This large base is deeply engrossed in our platform, connecting with each other and our content.

這個龐大的基礎深深地全神貫注於我們的平台，將彼此和我們的內容聯繫起來。

In Q3, our users generated 2.5 billion monthly interactions through bullet chats, comments, likes and Bilibili moment post.

在第三季度，我們的用戶通過彈幕、評論、點贊和 Bilibili 時刻發布每月產生 25 億次互動。

This is up 122% compared to the same period last year.

與去年同期相比，增長了 122%。

Our official membership program is also on the rise.

我們的官方會員計劃也在增加。

At the end of third quarter, we had 62 million official members who passed our 100-question exam, up 46% year-over-year.

截至第三季度末，我們有 6200 萬正式會員通過了我們的 100 題考試，同比增長 46%。

Our 12-month retention rate remains high as well at above 80%.

我們的 12 個月保留率仍然很高，也高於 80%。

This is an excellent indicator of the high quality of our user growth.

這是我們用戶增長高質量的一個很好的指標。

Turning to commercialization.

轉向商業化。

According to the latest iResearch report issued in November this year, by 2023, China's online entertainment market will achieve a market size of RMB 1.1 trillion.

根據艾瑞今年11月發布的最新報告，到2023年，中國網絡娛樂市場將達到1.1萬億元的市場規模。

As the driving force of this remarkable growth, Gen Z will contribute nearly 66% of the overall market, and more so than any other generation.

作為這一顯著增長的驅動力，Z 世代將貢獻近 66% 的整體市場份額，並且比其他任何一代都多。

Paying for entertainment is the new norm in China.

為娛樂付費是中國的新常態。

Drilling down a bit further, the ACG end market is forecast to hit RMB 62 billion by 2023.

再深入一點，預計到 2023 年，ACG 終端市場將達到 620 億元人民幣。

As China's leading online Gen Z entertainment platform and the leader in the ACG field, we are well positioned to capitalize this market boom and grow our position.

作為中國領先的在線 Z 世代娛樂平台和 ACG 領域的領導者，我們有能力利用這一市場繁榮並擴大我們的地位。

First, let's take a look at our game business.

首先，讓我們看看我們的遊戲業務。

Our game business is now accounting for 50% of our revenues.

我們的遊戲業務現在占我們收入的 50%。

As we further diversify and expand our game offerings, we continue to grow our market share in the high-quality and ACG game space.

隨著我們進一步多樣化和擴展我們的遊戲產品，我們將繼續增加我們在高質量和 ACG 遊戲領域的市場份額。

For the third quarter, revenues from our mobile games were up 25% year-over-year at RMB 933 million.

第三季度，我們的手機遊戲收入同比增長 25% 至 9.33 億元人民幣。

The enduring frequent order or FGO continue lead our growth, with growing revenue contribution from our jointly operated ACG-themed mobile game, Arknights, which was released in Q2.

持續的頻繁訂單或 FGO 繼續引領我們的增長，我們共同運營的 ACG 主題手機遊戲 Arknights 於第二季度發布的收入貢獻不斷增長。

FGO's fandom further grew in Q3.

FGO 的粉絲在第三季度進一步增長。

After the release of a major content update, FGO ranked #1 on China's iOS top grossing chart three times in September.

重大內容更新發布後，FGO 在 9 月份三度登上中國 iOS 暢銷榜第一名。

The game's enduring life cycle is an excellent showing of our ability to acquire premium content and our strong games distribution power.

遊戲的持久生命週期是我們獲取優質內容的能力和強大的遊戲發行能力的絕佳展示。

Our game community continues to be one of the largest in China.

我們的遊戲社區仍然是中國最大的遊戲社區之一。

We are excited to bring new titles to our massive audience.

我們很高興能為廣大觀眾帶來新遊戲。

We'll release a series of ACG titles including an exciting domestic RPG called Final Gear, and 2 high-rated Japanese female-based RPG title Untouchable Palms and A3!.

我們將發布一系列 ACG 遊戲，包括令人興奮的國產 RPG 名為 Final Gear，以及 2 款高收視率的日本女性 RPG 遊戲 Untouchable Palms 和 A3!。

All have been well received.

都受到了好評。

On the jointly operated game front, we launched a number of high-quality domestic titles, including Tencent's highly anticipated ACG mobile game, Fox Spirit Matchmaker, and Paper Game's Shining Nikki.

在聯營遊戲方面，我們推出了多款國產精品，包括騰訊備受期待的ACG手游《狐妖紅娘》、Paper Game的《閃靈奇蹟》等。

Looking at our content update and new game pipeline, we're excited to release a major content update for FGO planned for New Year's Day 2020.

看看我們的內容更新和新的遊戲管道，我們很高興能在 2020 年元旦發布 FGO 的主要內容更新。

With a total of 30 high-quality games in our pipeline, we have 8 titles that have acquired approval as scheduled to be released in the coming months.

我們共有 30 款優質遊戲正在籌備中，有 8 款遊戲已獲得批准，預計將在未來幾個月內發布。

This include today's release of Girl Cafe Gun 2, a highly anticipated domestic RPG that combines simulation and shooting gameplay.

其中包括今天發布的《少女咖啡館槍2》，一款集模擬和射擊玩法於一體的備受期待的國產RPG。

Over 1 million users have already preregistered for this title.

已有超過 100 萬用戶預註冊了此標題。

On top of that, the Furious Yama, (foreign language); Twelve Weapons of God, (foreign language); and Ayakashi Children, (foreign language); and a couple of other have also been approved and will be released in the coming months.

最重要的是，狂怒的閻王（外語）；十二神兵，（外文）；和 Ayakashi 兒童，（外語）；以及其他幾個也已獲得批准，並將在未來幾個月內發布。

Our platform is also slated to bring audiences jointly-operated game such as NetEase's Onmyoji: The Card Game, Re: Zero and more.

我們的平台還將為觀眾帶來網易的《陰陽師：紙牌遊戲》、《Re：零》等聯營遊戲。

In addition, we are excited to expand our game distribution outside of Mainland China with dozens of highly ranked titles to be released in Japan and Korea as well as the Greater China region.

此外，我們很高興將我們的遊戲發行擴展到中國大陸以外，將在日本和韓國以及大中華地區發行數十款排名靠前的遊戲。

A few of the planned international release at this time include titles such as the Furious Yama, Final Gear, Girl Cafe Gun 2 and Dark Boom.

目前計劃中的一些國際版本包括諸如 Furious Yama、Final Gear、Girl Cafe Gun 2 和 Dark Boom 等遊戲。

Turning to our live broadcasting and VAS business, revenues increased by 167% year-over-year, reaching RMB 453 million in the third quarter.

直播和增值服務業務方面，第三季度收入同比增長167%，達到人民幣4.53億元。

Also, we improved the revenue contribution for our live broadcasting premium memberships and Maoer in the content business.

此外，我們提高了直播高級會員和貓兒在內容業務中的收入貢獻。

We continue to enrich our game and entertainment content offering in live broadcasting and attracting new viewers with increasing demand in this area such as premium E-Sports content, building League of Legends S9 final, our peak concurrent user almost doubled compared with last year S8 finals.

我們繼續豐富我們在直播中的遊戲和娛樂內容提供，並吸引該領域需求不斷增長的新觀眾，例如優質電子競技內容，建設英雄聯盟 S9 決賽，我們的峰值並髮用戶與去年 S8 決賽相比幾乎翻了一番.

In addition, our featured VTuber and audio-related content remain our top verticals.

此外，我們的特色 VTuber 和音頻相關內容仍然是我們的主要垂直領域。

With access to additional and open exclusive content, members are highly incentivized to join our premium membership program.

通過訪問額外的和開放的獨家內容，會員被高度激勵加入我們的高級會員計劃。

Premium membership continue to bring in new subscriptions.

高級會員繼續帶來新的訂閱。

And by the end of September, we had 6.1 million valid premium members, up 129% year-on-year.

截至 9 月底，我們擁有 610 萬有效高級會員，同比增長 129%。

During the third quarter, we initiated a joint member program with Tencent Music, which has been a great win-win collaboration for both parties.

在第三季度，我們與騰訊音樂發起了聯合會員計劃，這對雙方來說是一個很好的雙贏合作。

As for our advertising business, we are seeing encouraging sign of settling macro environment.

就我們的廣告業務而言，我們看到宏觀環境穩定的令人鼓舞的跡象。

Revenues from advertising increased by 80% year-over-year to RMB 247 million.

廣告收入同比增長80%至人民幣2.47億元。

We continue to improve our performance ad efficiencies, yielding positive results with better click rates.

我們繼續提高我們的績效廣告效率，以更好的點擊率產生積極的結果。

The top 3 industry verticals for brand ads in the third quarter were food and beverage, games and e-commerce, and the top 3 verticals for performance-based ads were games, education and e-commerce.

第三季度品牌廣告排名前三的垂直行業為食品飲料、遊戲和電商，效果類廣告排名前三的垂直行業分別為遊戲、教育和電商。

I will now briefly update you on our partnership with Alibaba.

我現在將簡要介紹我們與阿里巴巴的合作關係。

During this year's 11.11 event, we launched an integrated marketing program with Tmall and Taobao.

今年11.11活動期間，我們推出了天貓和淘寶的整合營銷計劃。

The campaign include a number of e-commerce advertisement initiatives that combine Bilibili's vast ecosystem with Alibaba's extensive e-commerce ecosystem.

該活動包括一系列電子商務廣告計劃，將 Bilibili 龐大的生態系統與阿里巴巴廣泛的電子商務生態系統相結合。

To be more specific, the campaign allows e-commerce advertisers to complete one-stop-shop marketing on Bilibili.

具體來說，該活動允許電商廣告主在嗶哩嗶哩上完成一站式營銷。

They can, first, raise brand awareness through various display ads.

首先，他們可以通過各種展示廣告提高品牌知名度。

Secondly, influence user purchase decisions through native ads.

其次，通過原生廣告影響用戶購買決策。

And third, complete the transactions through performance-based ads that link to the merchandise.

第三，通過鏈接到商品的基於效果的廣告完成交易。

The initial result was very encouraging.

最初的結果非常令人鼓舞。

We look forward to work closely with Alibaba and bringing our partnership to the next level.

我們期待與阿里巴巴密切合作，將我們的合作夥伴關係提升到一個新的水平。

Finally, I would like to touch on our e-commerce business.

最後，我想談談我們的電子商務業務。

For the third quarter, our e-commerce and others business grew by 703% to RMB 226 million, largely driven by an increased number of paying users spending more on our e-commerce platform.

第三季度，我們的電子商務和其他業務增長了 703% 至人民幣 2.26 億元，這主要是由於付費用戶在我們的電子商務平台上的支出增加了。

We are pleased to announce that by the end of October, our year-to-date e-commerce GMV has achieved an exciting milestone of RMB 1 billion.

我們很高興地宣布，截至 10 月底，我們年初至今的電子商務 GMV 達到了令人振奮的 10 億元人民幣的里程碑。

In summary, we are excited by the momentum that we are seeing across our business.

總之，我們對我們在整個業務中看到的勢頭感到興奮。

Our solid Q3 results are a strong testimony of our ability to grow our user base while maintaining a healthy and engaged community.

我們穩健的第三季度業績有力地證明了我們在保持健康和參與社區的同時擴大用戶群的能力。

The abundant traffic we generated along the way quickly translated into top line expansion as our monetization power improve.

隨著我們貨幣化能力的提高，我們一路上產生的大量流量迅速轉化為收入擴張。

More importantly, as revenue expands, we see growing leverage with our gross margin, which give us more confidence to invest in our future growth.

更重要的是，隨著收入的增加，我們看到毛利率的槓桿作用越來越大，這讓我們更有信心投資於未來的增長。

Looking ahead, we plan to continue our active user growth strategy while enhancing our commercialization power.

展望未來，我們計劃繼續積極的用戶增長戰略，同時增強我們的商業化能力。

At the same time, we are committed to bringing our community more exceptional content that keeps young users engaged, connected and entertained.

同時，我們致力於為我們的社區帶來更多卓越的內容，讓年輕用戶保持參與、聯繫和娛樂。

That 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 third quarter of 2019.

我現在將簡要概述我們 2019 年第三季度的財務業績。

Our total net revenues increased by 72% year-over-year to RMB 1.86 billion, exceeding the high end of our guidance by 5%.

我們的總淨收入同比增長 72% 至人民幣 18.6 億元，超出我們指引的高端 5%。

Our non-game revenues made up nearly 50% of total revenues in the third quarter, up from 31% in the same period of last year.

第三季度我們的非遊戲收入佔總收入的近 50%，高於去年同期的 31%。

With almost half our revenues coming from multiple sources, we are pleased with our commercialization progress and the implications.

由於我們近一半的收入來自多個來源，我們對我們的商業化進展和影響感到滿意。

We are also converting more and more online traffic to paying users.

我們還將越來越多的在線流量轉化為付費用戶。

The average number of monthly paying users increased by 124% year-over-year, reaching 7.9 million in the third quarter.

月均付費用戶數同比增長 124%，第三季度達到 790 萬。

Cost of revenues increased by 71% year-over-year to RMB 1.5 billion.

收入成本同比增長 71% 至 15 億元人民幣。

Revenue-sharing cost, a key component of cost of revenue, were RMB 655 million, a 49% increase 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 6.55 億元，較 2018 年同期增長 49%。

Gross profit increased by 80% year-over-year to RMB 351 million.

毛利同比增長80%至人民幣3.51億元。

We are also starting to see operating leverage from our diversified revenue streams.

我們也開始從多元化的收入來源中看到經營槓桿。

With more revenue contribution from our higher-margin business, including advertising and cooperated games as well as additional income from paying users, our gross profit margin improved to 18.9% compared with 16.4% in the second quarter of 2019.

由於我們的高利潤業務（包括廣告和合作遊戲）的收入貢獻增加，以及來自付費用戶的額外收入，我們的毛利率從 2019 年第二季度的 16.4% 提高至 18.9%。

Total operating expenses increased to RMB 774 million, up 71% from the same period in 2018.

總營業費用增至人民幣 7.74 億元，較 2018 年同期增長 71%。

Selling and marketing expenses were RMB 364 million, representing an 85% increase year-over-year.

銷售及營銷費用為人民幣3.64億元，同比增長85%。

This increase was primarily from increased channel and marketing expenses associated with our app and brand during the summer holidays.

這一增長主要是由於暑假期間與我們的應用程序和品牌相關的渠道和營銷費用增加。

We also had additional promotion expenses for our mobile games and an increase in headcount in sales and marketing personnel as well as the higher fulfillment costs for our e-commerce-related products.

我們還為我們的手機遊戲增加了促銷費用，增加了銷售和營銷人員的人數，以及我們的電子商務相關產品的更高的履行成本。

G&A expenses were RMB 163 million, representing a 48% increase year-over-year.

G&A費用為人民幣1.63億元，同比增長48%。

This increase was primarily a result from additional G&A personnel-related expenses and increased amortization expenses related to the intangible assets acquired through business acquisitions and other increased G&A items.

這一增長主要是由於額外的 G&A 人員相關費用以及與通過業務收購獲得的無形資產和其他增加的 G&A 項目相關的攤銷費用增加。

R&D expenses were RMB 247 million, representing a 69% increase year-over-year.

研發費用2.47億元，同比增長69%。

The increase was primarily due to increased headcount in our R&D personnel, increased share-based compensation cost and others.

這一增長主要是由於我們的研發人員人數增加、股票薪酬成本增加等。

Net loss was RMB 406 million for the third quarter of [2019] (corrected by company after the call) compared to RMB 246 million in the same period of 2018.

[2019]第三季度淨虧損為人民幣4.06億元（由公司在電話會議後更正），而2018年同期為人民幣2.46億元。

Adjusted net loss, which was a non-GAAP measure that excludes share-based compensation expenses and amortization expenses related to the intangible assets acquired through business acquisitions, were RMB 343 million compared to RMB 203 million in the same period of 2018.

調整後的淨虧損為人民幣 3.43 億元，而 2018 年同期為人民幣 2.03 億元，這是一項非公認會計準則指標，不包括與通過業務收購獲得的無形資產相關的股權補償費用和攤銷費用。

Basic and diluted net loss per share were RMB 1.24.

每股基本及攤薄淨虧損為人民幣1.24元。

Adjusted basic and diluted loss per share were RMB 1.05.

調整後每股基本及攤薄虧損為人民幣1.05元。

As of September 2019, we had cash and cash equivalents, time deposits and short-term investments of RMB 8.4 billion.

截至 2019 年 9 月，我們的現金及現金等價物、定期存款和短期投資為人民幣 84 億元。

To further grow our business, we plan to improve our monetization by leveraging our profitable and growing traffic.

為了進一步發展我們的業務，我們計劃通過利用我們的盈利和不斷增長的流量來提高我們的盈利能力。

We are comfortable with a 50-50 split in revenues between game and non-game business, but see benefit in expanding our diverse revenue stream and improving revenue contribution for MAU even further.

我們對遊戲和非遊戲業務之間 50-50 的收入分配感到滿意，但看到擴大我們多樣化的收入來源和進一步提高 MAU 的收入貢獻的好處。

Creating additional operating efficiency also further improved our gross profit margin.

創造額外的運營效率也進一步提高了我們的毛利率。

Longer term, we believe our monetization efforts, higher-paying user conversion rates and the scale will yield and improve the bottom line.

從長遠來看，我們相信我們的貨幣化努力、更高的付費用戶轉化率和規模將產生並提高利潤。

With that in mind, we are currently projecting net revenues for the fourth quarter of this year to be between RMB 1.93 billion and RMB 1.98 billion.

考慮到這一點，我們目前預計今年第四季度的淨收入將在人民幣 19.3 億元至人民幣 19.8 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) Your first question today comes from the line of Jialong Shi from Nomura.

（操作員說明）您今天的第一個問題來自野村的家龍氏。

(foreign language) First of all, congratulations on a solid quarter and also congratulations on achieving the company's 120 million to 130 million MAU target ahead of schedule.

（外語）首先祝賀公司季度業績穩健，同時也祝賀公司提前實現了1.2億至1.3億的MAU目標。

So I just wonder if management can provide some colors on the profile of the new users acquired in the current quarter, in the past quarters?

所以我只是想知道管理層是否可以在本季度獲得的新用戶的資料上提供一些顏色，在過去的幾個季度？

And how are the new users compared to those of old users in terms of their profile and engagements?

新用戶在個人資料和參與度方面與老用戶相比如何？

And since the company has already achieved this year's MAU target ahead of schedule, so I was just wondering what is your new MAU target for the end of this year -- end of this and the next year?

由於公司已經提前實現了今年的 MAU 目標，所以我只是想知道你今年年底的新 MAU 目標是什麼——今年年底和明年？

And my second question is about the outlook of competition landscape.

我的第二個問題是關於競爭格局的前景。

We heard some of the game live broadcasting platforms are trying to diversify their content offering by adding more and more anime-related contents into their libraries.

我們聽說一些遊戲直播平台正在嘗試通過將越來越多的動漫相關內容添加到他們的庫中來使其內容多樣化。

So I just wonder what management think of the potential for these new entrants?

所以我只是想知道管理層如何看待這些新進入者的潛力？

(foreign language)

（外語）

[Interpreted] So Mr. Chen will first share his view on user growth and Carly will share colors on this quarter's new user profile.

【解讀】所以陳老師首先分享他對用戶增長的看法，卡莉將分享本季度新用戶簡介的顏色。

So Mr. Chen feels very optimistic about our future user growth trend.

所以陳總對我們未來的用戶增長趨勢感到非常樂觀。

He feels that we can upkeep the current speed of user growth or even achieve accelerated growth without compromising the quality of our users.

他認為，我們可以在不影響用戶質量的情況下，保持目前的用戶增長速度，甚至實現加速增長。

That quality translates to the engagement, the time spend, the retentions, and we are quite confident to keep up a very high-quality growth while achieving relatively higher growth rates.

這種質量轉化為參與度、時間花費、保留率，我們非常有信心保持非常高質量的增長，同時實現相對較高的增長率。

(foreign language)

（外語）

[Interpreted] The confidence comes within our more and more mature content creator ecosystem.

【解讀】信心來自於我們越來越成熟的內容創作者生態系統。

Over the past year, we have developed very mature and self-sustaining content ecosystem that attracts more and more content creators come to our platform creating high-quality content.

在過去的一年裡，我們已經發展了非常成熟和自我維持的內容生態系統，吸引了越來越多的內容創作者來到我們的平台創作高質量的內容。

At the same time, our improved AI content recommendation is pushing more high-quality content to meet with more mass audiences drive our -- also at the same time our community also help our content to spread faster through word-of-mouth, and that can be supported by, over the past few quarters, we can see our content category expanded to much wider categories.

同時，我們改進的 AI 內容推薦正在推動更多高質量的內容與更多的大眾受眾見面，這推動了我們——同時我們的社區也幫助我們的內容通過口碑更快地傳播，並且可以得到支持，在過去的幾個季度中，我們可以看到我們的內容類別擴展到更廣泛的類別。

At the same time, the new videos that achieved 1 million video views become much, much more.

與此同時，視頻播放量達到 100 萬次的新視頻變得越來越多。

(foreign language)

（外語）

[Interpreted] So in the past few quarters, we've seen reports from different third-parties suggesting that the benefit of the growing population of China is diminishing that more users -- they are less time spent, less active users in overall Internet space.

[解釋]所以在過去幾個季度，我們看到來自不同第三方的報告表明，中國人口增長帶來的好處正在減少，更多的用戶——他們花費的時間更少，在整個互聯網空間中的活躍用戶更少.

On the contrary, Bilibili's very unique content ecosystem and our unique user growth models will definitely help -- will definitely attract more and more attention in this field.

相反，嗶哩嗶哩非常獨特的內容生態和我們獨特的用戶增長模式肯定會有所幫助——一定會在這個領域引起越來越多的關注。

(foreign language)

（外語）

[Interpreted] I will now give a quick update on the [monthly active user] acquisition and the new user profiles.

[解釋] 我現在將快速更新 [每月活躍用戶] 獲取和新用戶配置文件。

(foreign language)

（外語）

[Interpreted] So first of all, organic growth still takes a big part of our user growth strategy.

[解讀]首先，有機增長仍然是我們用戶增長戰略的重要組成部分。

Given our current content ecosystem and community environment, this is very beneficial for word-of-mouth user growth.

鑑於我們目前的內容生態系統和社區環境，這對口碑用戶增長非常有利。

(foreign language)

（外語）

[Interpreted] At the same time, we'll also be more proactive in acquiring traffic that includes investment in different app stores and work with larger traffic platforms.

【解讀】同時，我們也會更加主動地獲取流量，包括投資不同的應用商店，與更大的流量平台合作。

(foreign language)

（外語）

[Interpreted] So for this part of growth, the acquired traffic, we will be very focused on the core user retention and time spent and engagement.

[解釋]所以對於這部分增長，即獲得的流量，我們將非常關注核心用戶保留以及花費的時間和參與度。

At the same time, our AI-powered recommendation system will continue to improve that in that direction to help to maintain a higher retention rate of the new users.

同時，我們的人工智能推薦系統將繼續朝著這個方向改進，以幫助保持更高的新用戶保留率。

(foreign language)

（外語）

[Interpreted] So we've observed that the new users paying ratio has gradually improved.

【解讀】所以我們觀察到新用戶付費比例逐漸提升。

The new users who are coming in 2017, paying ratio -- who come in, in 2018, paying ratio is significantly higher compared to 2017.

2017年新來的用戶，付費比例——2018年新進來的用戶，付費比例比2017年要高很多。

And we've seen the new user who come in, in the third quarter, paying ratio is also higher than previous quarters.

而且我們看到進來的新用戶，在第三季度，付費比例也高於前幾個季度。

(foreign language)

（外語）

[Interpreted] In addition, we'll also -- to invest in raising the brand awareness of Bilibili, we'll upgrade our overall branding campaign and this is prepared for 2020 user growth.

[解讀]此外，我們還將——為了提高 Bilibili 的品牌知名度，我們將升級我們的整體品牌推廣活動，為 2020 年的用戶增長做準備。

(foreign language)

（外語）

[Interpreted] So in terms of new user profile, there's no significant difference between the new users that we attracted in the previous quarters, still majority being young generation and first- and second-tier cities with a further penetration in the lower-tier cities.

【解讀】所以在新用戶構成方面，我們前幾個季度吸引的新用戶並沒有太大的區別，仍然以年輕一代和一二線城市為主，並在低線城市進一步滲透.

(foreign language)

（外語）

[Interpreted] So the overall platform's average age are still 21.5 years old.

【解讀】所以整個平台的平均年齡還是21.5歲。

(foreign language)

（外語）

[Interpreted] So in terms of their content preferences, still relatively the same with the old users.

【解讀】所以在他們的內容偏好上，還是和老用戶比較一致的。

They are into lifestyle, Chinese animation, PUGV and this is thanks -- this is beneficiary to our increasing content supply in lifestyle, specifically in vlog and other high-quality content verticals.

他們涉足生活方式、中國動畫、PUGV，這要歸功於我們在生活方式方面不斷增加的內容供應，特別是在 vlog 和其他高質量內容垂直領域。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So first of all, in terms of anime content supply, Bilibili was never the first one to do it, and we're not the only one who is providing that type of content.

【解讀】首先，在動漫內容供應方面，嗶哩嗶哩從來都不是第一個做的，我們也不是唯一提供這種內容的。

And as a matter of fact, there are a number of players, including some of the industry giants, supplying this type of content.

事實上，有很多玩家，包括一些行業巨頭，都在提供這類內容。

(foreign language)

（外語）

[Interpreted] But our results prove ourselves -- especially in the past 5 years, we have proven to be the most influential platform, and our partners across the industry also agree that Bilibili is the most powerful and most influential anime platform in China.

【解讀】但我們的成績證明了自己——尤其是過去5年，我們證明了自己是最有影響力的平台，我們的整個行業的合作夥伴也一致認為B站是中國最強大、最有影響力的動漫平台。

(foreign language)

（外語）

[Interpreted] So our advantage does not only include that we basically have all the anime fans gathering together on Bilibili, but also our pipeline, our preparation in terms of content IP as well as creation -- content creation teams has also been leading the industry.

【解讀】所以我們的優勢不僅在於我們基本上所有動漫迷都聚集在了嗶哩嗶哩上，還有我們的管道，我們在內容IP和創作方面的準備——內容創作團隊也一直處於行業領先地位.

(foreign language)

（外語）

[Interpreted] So we have full confidence to continue to be the leader in the anime field.

【解讀】所以我們有充分的信心繼續做動漫領域的佼佼者。

At the same time, while we see more and more competitors coming into the space, we think that, that is a positive sign showing this industry has very promising growth future.

同時，雖然我們看到越來越多的競爭對手進入該領域，但我們認為這是一個積極的信號，表明該行業具有非常廣闊的增長前景。

We are also delighted to see that.

我們也很高興看到這一點。

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

您的下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) I'll translate myself.

（外語）我自己翻譯。

My first question is related to advertising.

我的第一個問題與廣告有關。

We noticed very strong year-over-year growth acceleration to 80% in Q3.

我們注意到第三季度非常強勁的同比增長加速至 80%。

Given you have a lot of ad inventories, can you share with us what's your plan of releasing more ad products in the coming quarters?

鑑於您有大量廣告庫存，您能否與我們分享一下您在未來幾個季度發布更多廣告產品的計劃？

Especially, any spots on your platform that you have a lot of viewership but have not monetized properly yet?

特別是，您的平台上是否有任何收視率很高但尚未正確獲利的廣告？

As some companies have mentioned that the macro is bottoming out, do you expect to release more products and also expect this year-over-year trend to continue to accelerate?

正如一些公司提到的宏觀正在觸底反彈，您是否預計會發布更多產品，也預計今年同比趨勢將繼續加速？

My second question is related to live streaming.

我的第二個問題與直播有關。

Can you share a little bit more about the trends about paying users ARPU?

你能分享更多關於付費用戶 ARPU 的趨勢嗎？

And in terms of monetization and economics of scale of revenue, are you at a point where you can start negotiating down your revenue share ratio with [ad] agencies?

就收入規模的貨幣化和經濟學而言，您是否可以開始與 [ad] 代理商協商降低您的收入分成比例？

(foreign language)

（外語）

[Interpreted] Okay.

[解釋] 好的。

So the ad load for our business this quarter has remained at 5%.

因此，本季度我們業務的廣告負載保持在 5%。

This hasn't changed in many quarters, and we do not intend to raise that ad load in the short term.

這在許多季度都沒有改變，我們不打算在短期內提高廣告負載。

And my overview about our advertisement business is to first improve our commercialization efficiency and discover more advertising format better combines our content ecosystem with our commercialization capabilities.

我對我們廣告業務的概述是首先提高我們的商業化效率，並發現更多的廣告格式，更好地將我們的內容生態系統與我們的商業化能力相結合。

(foreign language)

（外語）

[Interpreted] And we think our advertisement team is growing stronger, and they are starting to find a way to improve our advertising efficiency without jeopardizing user experience and discovering more effective commercialization method.

[解讀]而且我們認為我們的廣告團隊正在變得越來越強大，他們開始尋找一種在不損害用戶體驗的情況下提高我們的廣告效率的方法，並發現更有效的商業化方法。

And we believe without us raising our ad load, we can achieve a faster overall advertisement growth rate.

我們相信，如果我們不提高廣告負載，我們可以實現更快的整體廣告增長率。

(foreign language)

（外語）

[Interpreted] So we do see some, at the macro, shipment in last year and this year.

[解釋]所以我們確實在宏觀上看到了去年和今年的一些出貨量。

However, under the unsettling environment, we're still able to achieve 80% year-on-year growth on our advertisement growth revenue.

然而，在不穩定的環境下，我們的廣告增長收入仍然能夠實現 80% 的同比增長。

(foreign language)

（外語）

[Interpreted] So first of all, we have overall improved and optimized our overall brand advertisement, improved our brand awareness and better merged our brand influence with our content ecosystem.

【解讀】首先，我們對整體品牌廣告進行了全面的提升和優化，提升了品牌知名度，更好地將品牌影響力與內容生態系統融合。

(foreign language)

（外語）

[Interpreted] So because we have further improved our community environment in brand advertisement, that we can better help to build brand awareness among our community, hence to further improve our brand advertisement efficiency.

【解讀】所以我們在品牌廣告方面進一步改善了社區環境，可以更好地幫助在社區中建立品牌知名度，從而進一步提高我們的品牌廣告效率。

(foreign language)

（外語）

[Interpreted] So we've come to relatively newer method of integrated marketing campaign that includes raising brand awareness through display ads to brand ads and influence users' purchasing decision through native ads with our content creators and last, complete the transaction through our various performance ads.

[解讀]所以我們採用了相對較新的整合營銷活動方法，包括通過展示廣告提高品牌知名度到品牌廣告，並通過與我們的內容創作者的原生廣告影響用戶的購買決策，最後通過我們的各種表現完成交易廣告。

(foreign language)

（外語）

[Interpreted] On the performance-based ads, we've done 3 major improvement to improve the efficiencies.

[解讀] 在基於效果的廣告方面，我們進行了 3 項重大改進以提高效率。

One is in terms of performance ads format, we are creating new formats to better present the advertisement.

一是在效果廣告格式方面，我們正在創建新格式以更好地展示廣告。

And second is to improve our overall algorithm to result in better click-through rate.

其次是改進我們的整體算法，以提高點擊率。

And third is to better -- further expand our customer base to higher-quality customers, higher-quality advertisers to improve our overall efficiencies.

第三是更好——進一步將我們的客戶群擴大到更高質量的客戶、更高質量的廣告商，以提高我們的整體效率。

(foreign language)

（外語）

[Interpreted] So looking ahead to 2020, we're still very confident to achieve a higher growth rate of advertisement business.

【解讀】所以展望2020年，我們仍然非常有信心實現廣告業務更高的增長速度。

At the same time, we're going to explore better ways to present our advertisement that combines our overall content ecosystem.

同時，我們將探索更好的方式來展示結合我們整體內容生態系統的廣告。

(foreign language)

（外語）

[Interpreted] And upkeep at least the current growth rate of Q3's advertisement.

[解讀] 並至少維持目前 Q3 廣告的增長率。

(foreign language)

（外語）

[Interpreted] So our live broadcasting business has upkeep -- has been upkeep-ing 100% year-on-year growth rate.

【解讀】所以我們的直播業務一直保持著——一直保持著100%的同比增長率。

(foreign language)

（外語）

[Interpreted] So in the past, a lot of people have asked Mr. Chen that China's live broadcasting industry is getting more and more competitive, how we're going to grow our position in this landscape.

【解讀】所以過去很多人問陳總，中國的直播行業競爭越來越激烈，我們要如何在這個格局中提升自己的地位。

Mr. Chen's response has always been we're not in a position to directly compete with other live broadcasting platform.

陳總的回應一直是我們無法與其他直播平台直接競爭。

On the contrary, Bilibili's live broadcasting is more of a natural extension of our current video platform.

相反，B站的直播更多是我們目前視頻平台的自然延伸。

As our user grow into a bigger scale, our live broadcasting categories have actually naturally expanded.

隨著我們的用戶規模越來越大，我們的直播品類其實也自然的擴大了。

That includes the VTuber content categories that we talked about and also games and other pan-entertainment live broadcasting categories.

這包括我們談到的 VTuber 內容類別以及遊戲和其他泛娛樂直播類別。

(foreign language)

（外語）

[Interpreted] So in the past, we haven't spent a lot of money in poaching big live broadcasting hosts or spending too much marketing dollars to promote our live broadcasting business.

【解讀】所以在過去，我們並沒有花很多錢去挖大直播主，也沒有花太多的營銷資金來推廣我們的直播業務。

However, we're still being able to achieve a relatively very sustainable live broadcasting growth.

但是，我們仍然能夠實現相對非常可持續的直播增長。

(foreign language)

（外語）

[Interpreted] So in terms of the guilds related to income, in the past, indeed a portion of that has been relatively faster growth.

【解讀】所以在與收入相關的公會方面，過去確實有一部分是相對較快的增長。

(foreign language)

（外語）

[Interpreted] So because Bilibili has a very healthy user ecosystem, that's the major reason that attracts more and more guilds to come to our platform to work with us.

【解讀】所以因為嗶哩嗶哩有一個非常健康的用戶生態，這也是吸引越來越多的公會來到我們的平台與我們合作的主要原因。

(foreign language)

（外語）

[Interpreted] So in terms of the revenue sharing with guilds, because in the very beginning, the reason that we are introducing or welcoming guilds is to achieve sustainable growth, not to drive our revenue to spike in the shorter-term.

【解讀】所以在與公會的收益分成方面，因為一開始，我們引入或歡迎公會的原因是為了實現可持續的增長，而不是為了推動我們的收入在短期內飆升。

So in the first, we set up our revenue split with guilds at a relatively healthy and sustainable level.

因此，首先，我們將與公會的收入分成設置在一個相對健康和可持續的水平。

(Operator Instructions) Your next question comes from the line of Daniel Chen from JPMorgan.

（操作員說明）您的下一個問題來自摩根大通的 Daniel Chen。

(foreign language) I will translate myself.

（外語）我會自己翻譯。

My question is on the game business outlook for 2020.

我的問題是關於 2020 年的遊戲業務前景。

So firstly, could management elaborate on what was our expectation for our key current games in 2020, including such as FGO?

那麼首先，管理層能否詳細說明我們對 2020 年當前主要遊戲的預期，包括 FGO 等？

And secondly, what's the key games we have in the pipeline?

其次，我們正在籌備的關鍵遊戲是什麼？

And what's the schedule for launch in the 2020?

2020 年的發射時間表是什麼？

Okay.

好的。

(foreign language)

（外語）

[Interpreted] So in terms of FGO, we're happy to share that FGO's still at a very healthy state.

[解釋] 所以在 FGO 方面，我們很高興分享 FGO 仍然處於非常健康的狀態。

As we mentioned during the earnings call that FGO in the third quarter has reached #1 in China's iOS top grossing chart, and we're delighted to see the full year 2019 FGO's grossing has maintained relatively stable level compared to last year.

正如我們在財報電話會議上提到的，FGO 在第三季度已經在中國 iOS 暢銷榜上排名第一，我們很高興看到 2019 年全年 FGO 的總收入與去年相比保持了相對穩定的水平。

(foreign language)

（外語）

[Interpreted] So in terms of the future performance of our game business, we remain very confident that is due to, number one, the macro environment.

[解讀]因此，就我們遊戲業務的未來表現而言，我們仍然非常有信心，這首先是由於宏觀環境。

First of all, there is still a lot of younger players couldn't find ideal titles that's suitable for their game play and their preferences.

首先，仍然有很多年輕玩家找不到適合自己遊戲玩法和喜好的理想遊戲。

And secondly, according to the latest iResearch report, China's ACG game market is forecast to reach RMB 62 billion by 2020.

其次，根據艾瑞最新報告，預計到2020年，中國ACG遊戲市場規模將達到620億元。

That is more than doubled compared to the market size we have this year.

與我們今年的市場規模相比，這增加了一倍多。

So we have the growth of the market and growth of the demand.

所以我們有市場的增長和需求的增長。

That's number one reason.

這是第一個原因。

(foreign language)

（外語）

[Interpreted] And according to our internal research, about half of our existing user will actively search for games that they wanted to play.

[解讀]根據我們的內部研究，我們現有用戶中約有一半會主動搜索他們想玩的遊戲。

And as we further expand our user base, we are very likely to get the largest audience of game lovers in China.

隨著我們進一步擴大用戶群，我們很可能會在中國獲得最大的遊戲愛好者受眾。

That is a very, very ideal user base best positioned for future game growth.

這是一個非常非常理想的用戶群，最適合未來的遊戲增長。

(foreign language)

（外語）

[Interpreted] So there are 2 things we're going to focus on.

[解釋] 所以我們要關注兩件事。

One is to increase our content supply, our games supply.

一是增加我們的內容供應，我們的遊戲供應。

Number two is quickly expand our user base.

第二是迅速擴大我們的用戶群。

As long as we're achieving that 2 steps, we're very confident about our future growth.

只要我們實現了這兩個步驟，我們就對我們未來的增長充滿信心。

(foreign language)

（外語）

[Interpreted] So as you may notice that we have over 30 exclusive license pipeline.

[解釋]所以你可能注意到我們有超過 30 個獨家許可管道。

And among those 30, 8 of those have -- already have permit to release, and that includes Girl Cafe Gun 2 that will be released today and Furious Yama that will be released in the next 2 months.

在這 30 個中，其中 8 個已經獲得了發布許可，其中包括將於今天發布的 Girl Cafe Gun 2 和將在未來 2 個月內發布的 Furious Yama。

(foreign language)

（外語）

[Interpreted] So both of the titles have gained very positive review internally.

[解釋] 所以這兩個標題在內部都獲得了非常積極的評價。

We believe these 2 titles will become a milestone of our future game revenue growth.

我們相信這兩款遊戲將成為我們未來游戲收入增長的里程碑。

(foreign language)

（外語）

[Interpreted] And another thing to notice, to call out is in terms of domestic game pipeline, we have [drastically] improved our pipeline in that category relatively compared to 2017 where majority of our pipelines are imported games.

[解釋] 另外需要注意的是，在國內游戲管道方面，與 2017 年我們的大部分管道是進口遊戲相比，我們在該類別中[大幅] 改進了我們的管道。

This is very positive for, number one, game approval perspective; and second, it's very beneficiary for us to further expand our overseas market.

這對於第一，遊戲認可的觀點是非常積極的；第二，對我們進一步拓展海外市場非常有利。

Outside of Mainland China, we can promote these titles in more regions.

在中國大陸以外，我們可以在更多地區推廣這些遊戲。

(foreign language)

（外語）

[Interpreted] So all above, that gives us very good confidence to further grow our game business.

[解釋] 綜上所述，這讓我們很有信心進一步發展我們的遊戲業務。

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 management for any additional or closing remarks.

我想將會議轉回管理層，以獲取任何補充或結束語。

Thank you once again for joining us today.

再次感謝您今天加入我們。

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

如果您還有其他問題，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 contact information for both IR in China and in the U.S. can be found in today's press release.

我們在中國和美國的 IR 聯繫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。

Ladies and gentlemen, this concludes today's conference call.

女士們，先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]