Bilibili Inc (BILI) 2019 Q4 法說會逐字稿

Ladies and gentlemen, good day, and welcome to the Bilibili 2019 Fourth Quarter and Full Year Earnings Conference Call.

女士們，先生們，美好的一天，歡迎來到 Bilibili 2019 年第四季度和全年收益電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

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

此時，我想將會議轉交給投資者關係高級總監 Juliet Yang。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線員。

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

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

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

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

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

A general discussion of the risk factors that could affect Bilibili's business and financial results is included in 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 forward-looking information except as required by law.

除法律要求外，公司不承擔任何更新前瞻性信息的義務。

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 a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2019 fourth quarter and full year financial results news release issued earlier today.

有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的對賬，請參閱今天早些時候發布的 2019 年第四季度和全年財務業績新聞稿。

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 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 senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms. Carly Li, 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；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.

現在我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.

謝謝你，朱麗葉。

And thank you, everyone, for participating in our fourth quarter and full year 2019 earnings conference call.

感謝大家參加我們的 2019 年第四季度和全年收益電話會議。

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。

2019 was a transformational year for Bilibili, with remarkable and diverse growth to our content and user base.

2019 年是 Bilibili 轉型的一年，我們的內容和用戶群實現了顯著且多樣化的增長。

We significantly enhanced our entertainment ecosystem and expanded our platform's offerings beyond ACGs.

我們顯著增強了我們的娛樂生態系統，並將我們平台的產品擴展到了 ACG 之外。

While we remain the leader in online entertainment for Generation Z users, our platform is also beginning to be recognized as a mass market product with offerings that appeal to people across different generations.

雖然我們仍然是 Z 世代用戶在線娛樂的領導者，但我們的平台也開始被公認為大眾市場產品，其產品吸引了不同世代的人們。

Meanwhile, we continue to foster friendly, active and sticky community with high engagement levels and retention rates, making Bilibili an extremely unique and a competitive player in China's fast-growing entertainment industry.

同時，我們繼續培養友好、活躍和粘性高的社區，具有較高的參與度和保留率，使 B站成為中國快速發展的娛樂行業中極具獨特性和競爭力的參與者。

During 2019, we affirmed user growth as our key strategic focus and raised our MAU target for the next 2 years to 220 million by 2021.

2019 年，我們確認用戶增長是我們的主要戰略重點，並將未來兩年的月活躍用戶目標提高到 2021 年的 2.2 億。

I'm pleased to say we are on the right track to meet this exciting goal.

我很高興地說，我們正走在實現這一激動人心目標的正確軌道上。

We closed the year on a high note with our fourth quarter results forming a solid foundation for our 2-year growth plan.

我們以高調結束了這一年，我們的第四季度業績為我們的 2 年增長計劃奠定了堅實的基礎。

MAUs grew by 40% year-over-year, reaching a record 130 million users compared with 93 million in the fourth quarter 2018.

MAU 同比增長 40%，達到創紀錄的 1.3 億用戶，而 2018 年第四季度為 9300 萬。

Mobile MAUs grew at an even faster pace of 46% year-over-year, reaching 116 million users by the end of Q4.

移動 MAU 的增長速度更快，同比增長 46%，到第四季度末達到 1.16 億用戶。

At the same time, community engagement is at all-time high.

與此同時，社區參與度空前高漲。

Our DAUs increased by 41% year-over-year to 38 million, higher than our MAU growth rate.

我們的 DAU 同比增長 41% 至 3800 萬，高於我們的 MAU 增長率。

And the users are spending an average of 77 minutes on our platform per day, excluding game play time.

用戶平均每天在我們的平台上花費 77 分鐘，不包括遊戲時間。

These statistics once again demonstrate the high-quality growth we always aim to deliver.

這些統計數據再次證明了我們始終致力於實現的高質量增長。

As part of our growth strategy and brand campaign, we rolled out our first ever New Year's Gala, The Most Beautiful Night of 2019 to mark December 31 the turn of the decade.

作為我們增長戰略和品牌活動的一部分，我們推出了有史以來的第一個新年晚會，即 2019 年最美麗的夜晚，以紀念 12 月 31 日十年之交。

The 4-hour entertainment showcase celebrated the coming of age for China's Gen Z, who are entering their 20s and 30s, deeply influencing our society and mainstream ideals.

4小時的娛樂節目慶祝中國Z世代的成熟，他們正進入20多歲和30多歲，深刻影響著我們的社會和主流理想。

The event was an immediate hit and quickly became the most talked about New Year's gala in China.

該活動一炮而紅，並迅速成為中國最受關注的跨年晚會。

The playbacks have been viewed over 90 million times, generating nearly 3 million bullet chats as well as massive media coverage.

這些回放已被觀看超過 9000 萬次，產生了近 300 萬次子彈聊天以及大量媒體報導。

The success of gala not only exemplified our profound understanding of young people's interests but also impressed older generation born in the 70s and 80s, opening Bilibili to a much wider audience group.

晚會的成功舉辦，不僅體現了我們對年輕人興趣的深刻理解，也給70、80後的老一輩留下了深刻的印象，讓B站向更廣泛的受眾群體敞開了大門。

With this far-reaching brand awareness of our company, 2020 is off to a good start, especially as we work to grow our brand on broader scale.

憑藉我們公司這種深遠的品牌知名度，2020 年有了一個良好的開端，尤其是在我們努力在更廣泛的範圍內發展我們的品牌之際。

With our platform increasing influences among multiple generations and mass media, we take our social responsibility very seriously, especially during the recent coronavirus outbreak.

隨著我們的平台在多代人和大眾媒體中的影響力越來越大，我們非常重視我們的社會責任，尤其是在最近的冠狀病毒爆發期間。

Following the outbreak, we took immediate action to support and defend against the pandemic, including a donation of RMB 10 million and the medical supplies to Wuhan, Hubei province.

疫情發生後，我們立即採取行動支援和抗擊疫情，包括向湖北省武漢市捐贈1000萬元人民幣和醫療物資。

We also believe that disseminating timely and accurate information is crucial.

我們還認為，及時、準確地傳播信息至關重要。

As such, we partnered with official media outlet CCTV News to provide 24/7 virus-related news and information.

因此，我們與官方媒體 CCTV News 合作，提供 24/7 病毒相關新聞和信息。

In addition, we have partnered with over 60 top universities and education groups, including Peking University, Tsinghua University and TAL Group to launch live and recorded open courses to support continued education for students who are unable to leave their homes.

此外，我們還與北京大學、清華大學、好未來集團等60多所頂尖大學和教育集團合作，推出直播和錄製公開課程，支持無法離開家的學生繼續教育。

We are also the designated live broadcasting channel appointed by Shanghai Municipal Education Commission for K-12 students to continue their schooling.

我們也是上海市教委指定的K-12學生繼續就學直播頻道。

As the event progresses, we will continue to evaluate ways we can support our users during this time.

隨著活動的進行，我們將繼續評估在此期間我們可以支持用戶的方式。

With the extension of the Chinese New Year holiday, hundreds of millions of people have stayed at home, spending more time on the Internet.

隨著春節假期的延長，數億人宅在家裡，上網的時間越來越多。

Bilibili has become many people's first choice for online entertainment.

嗶哩嗶哩已經成為很多人在線娛樂的首選。

At the same time, we are seeing an elevation in content supply as people now have more time to create content.

同時，隨著人們現在有更多時間來創建內容，我們看到內容供應量增加。

Based on the increased time spent on our platform and user momentum we have seen so far, Q1 is shaping up to be one of the strongest first quarters in our corporate history.

基於我們迄今為止看到的在我們平台上花費的時間增加和用戶動力，第一季度正在成為我們公司歷史上最強勁的第一季度之一。

We are also improving our ability to monetize our growing user traffic.

我們也在提高我們通過不斷增長的用戶流量獲利的能力。

In the fourth quarter, the number of paying users doubled year-over-year, reaching 8.8 million.

第四季度，付費用戶數量同比翻了一番，達到 880 萬。

Our paying ratio also increased to 6.8% compared with 1.6% for the same quarter 2 years ago.

我們的支付率也從 2 年前同一季度的 1.6% 增加到 6.8%。

Revenue per MAU was RMB 15.4 and the non-game revenue per MAU was RMB 8.7, marking 24% and 83% increases from the same period in 2018, respectively.

每 MAU 收入為 15.4 元人民幣，每 MAU 非遊戲收入為 8.7 元人民幣，分別較 2018 年同期增長 24% 和 83%。

We continue to see considerable potential to convert more traffic to paying users, bringing them into the fold of our active, sticky community.

我們繼續看到將更多流量轉化為付費用戶的巨大潛力，將他們帶入我們活躍的粘性社區。

Total revenue for the fourth quarter was also strong, once again beating the top end of our guidance.

第四季度的總收入也很強勁，再次超過了我們指引的上限。

Total net revenue for the fourth quarter were up 74% year-on-year, reaching RMB 2 billion, largely driven by our non-game business.

第四季度總淨收入同比增長 74%，達到人民幣 20 億元，主要受非遊戲業務的推動。

Through our increased monetization and the diversified revenue streams, our gross profit margin has also come a long way from 13.8% in Q1 to 19.8% in Q4.

通過增加貨幣化和多元化的收入來源，我們的毛利率也從第一季度的 13.8% 增長到第四季度的 19.8%。

As we move through 2020, we expect to continue expanding our top line and gross margin.

隨著我們進入 2020 年，我們預計將繼續擴大我們的收入和毛利率。

With that overview of our improvement across our primary business metrics, I'd like to review some of our activities and upcoming initiatives designed to further grow our content, community and commercialization capabilities in 2020 and beyond.

在概述了我們在主要業務指標方面的改進後，我想回顧一下我們的一些活動和即將推出的舉措，這些舉措旨在進一步發展我們在 2020 年及以後的內容、社區和商業化能力。

First, we will look at our content.

首先，我們將查看我們的內容。

PUGV is the root and the foundation of our business.

PUGV是我們業務的根基和基礎。

It's also the most effective way to generate high-quality content at a relatively low cost.

這也是以相對較低的成本生成高質量內容的最有效方式。

In the fourth quarter, PUGV continued to be our primary source for our growing content library, accounting for 91% of our total video views.

在第四季度，PUGV 繼續成為我們不斷增長的內容庫的主要來源，占我們總視頻瀏覽量的 91%。

Our increasing brand awareness, friendly community environment and improved platform services continue to attract more content creators to Bilibili.

我們不斷提高的品牌知名度、友好的社區環境和完善的平台服務不斷吸引更多內容創作者加入 Bilibili。

In the fourth quarter, about 1 million active content creators uploaded 2.8 million videos monthly, up 80% and 66% year-over-year, respectively.

第四季度，約有 100 萬活躍內容創作者每月上傳 280 萬條視頻，同比分別增長 80% 和 66%。

With the development of mobile devices and adaption of 5G technology, we believe the video industry will be one of the biggest beneficiaries across all sectors.

隨著移動設備的發展和 5G 技術的適應，我們相信視頻行業將成為所有行業的最大受益者之一。

Bilibili in particular is poised to be benefited with 5G potential to revolutionize the various ways of how people produce and consume content.

尤其是 Bilibili 有望受益於 5G 的潛力，以徹底改變人們生產和消費內容的各種方式。

In 2019, we saw a very clear trend of more diversity around content and content creators, helping us to attract more mass audience with varying tastes.

2019 年，我們看到內容和內容創作者更加多元化的趨勢非常明顯，這有助於我們吸引更多不同口味的大眾受眾。

While we remain the clear leader in games and anime-related content, we continue to grow our lifestyle and entertainment offerings.

雖然我們仍然是遊戲和動漫相關內容的明顯領導者，但我們繼續發展我們的生活方式和娛樂產品。

Along with this, we had witnessed many new star content creators rising in those verticals.

與此同時，我們見證了許多新的明星內容創作者在這些垂直領域崛起。

Vlog, foodie and technology continued to gain popularity in the fourth quarter.

Vlog、美食和科技在第四季度繼續流行。

We are also proactively expanding into other pan-entertainment verticals.

我們也在積極拓展其他泛娛樂垂直領域。

Music is one of them.

音樂就是其中之一。

With its universal appeal, music is welcomed by all generations of all different backgrounds.

憑藉其普遍的吸引力，音樂受到不同背景的所有世代的歡迎。

To further inspire our content creators and enrich our music content offerings, we have partnered with Tencent Music and most recently with renowned record label Sony Music, to bring new experiences to our growing viewership of music lovers.

為了進一步激勵我們的內容創作者並豐富我們的音樂內容產品，我們與騰訊音樂合作，最近還與知名唱片公司索尼音樂合作，為我們不斷增長的音樂愛好者帶來新的體驗。

We are also looking into other universally attractive categories, such as celebrity, fashion, study and information to reach even broader audience.

我們還在研究其他具有普遍吸引力的類別，例如名人、時尚、學習和信息，以接觸更廣泛的受眾。

Our smart content distribution continues to play a vital role in our content ecosystem, bringing discover high-quality content and talented content creators in a speedy fashion.

我們的智能內容分發繼續在我們的內容生態系統中發揮重要作用，以快速的方式帶來發現高質量的內容和有才華的內容創作者。

As our algorithm and operational capabilities improve, the number of videos that achieved 10 million views grew nearly 8-fold in 2019 compared with 2018.

隨著我們算法和運營能力的提升，2019 年突破 1000 萬次觀看的視頻數量比 2018 年增長了近 8 倍。

The motivation to showcase their work and attract loyal fans make Bilibili the ideal platform for content creators.

展示作品和吸引忠實粉絲的動機使 Bilibili 成為內容創作者的理想平台。

We continue to support and encourage our content creators on multiple levels.

我們將繼續在多個層面支持和鼓勵我們的內容創作者。

In January 2020, we hosted Bilibili Top 100 Content Creators Award Ceremony in Shanghai, where we celebrated outstanding achievements of leading content creators in various categories.

2020年1月，我們在上海舉辦了嗶哩嗶哩內容創作者100強頒獎盛典，表彰了各領域領先內容創作者的傑出成就。

Our cash incentive program continues to motivate our middle layer content creators.

我們的現金獎勵計劃繼續激勵我們的中間層內容創作者。

By the end of December 2019, over 220,000 content creators joined our program, where high quality and original content creation have been rewarded with cash bonuses based on the positive feedback from our users.

截至 2019 年 12 月，超過 220,000 名內容創作者加入了我們的計劃，根據用戶的積極反饋，高質量和原創內容創作獲得了現金獎勵。

We also provide an increased number of online and off-line tutoring sessions as well as fair access to our traffic to help newer content creators grow and flourish.

我們還提供更多的在線和離線輔導課程以及公平訪問我們的流量，以幫助新的內容創作者成長和繁榮。

Turning to our occupationally generated video, OGVs.

轉向我們的職業生成視頻，OGV。

Our OGV strategy has a dual focus: first, to form IP assets and second, to convert visitors to paying users.

我們的OGV戰略有兩個重點：第一，形成IP資產，第二，將訪問者轉化為付費用戶。

In 2019, our MAUs for Chinese anime surpassed Japanese anime for the first time, making Chinese anime the largest OGV vertical on Bilibili.

2019年，我們的中國動漫MAU首次超過日本動漫，使中國動漫成為B站最大的OGV垂直市場。

With a growing viewership and an audience group hungry for new content, we are excited to bring new titles and series to our community.

隨著觀眾人數的增長和渴望新內容的觀眾群體，我們很高興能為我們的社區帶來新的標題和系列。

In November, we hosted our annual Made By Bilibili event, highlighting our updates and the new launch plan for 40 Chinese anime titles throughout 2020 and 2021.

11 月，我們舉辦了一年一度的 Bilibili 製作活動，重點介紹了我們的更新以及 2020 年和 2021 年 40 部中國動漫作品的新發布計劃。

This includes 13 project updates, such as the world renowned sci-fi thriller, The Three-Body Problem, and 27 new titles including Heaven Official's Blessing (Foreign language), Legend of Mortal Ascension (foreign language) and The Daily Life of the Immortal King (foreign language).

其中包括世界知名科幻驚悚片《三體》等13個項目更新，以及天官賜福（外文）、神仙傳說（外文）、神仙日常生活等27部新作品。國王（外語）。

In addition, we see considerable synergy between anime and our comic business.

此外，我們看到動漫與我們的漫畫業務之間存在相當大的協同作用。

Many of the popular anime titles are also the top selling e-books on our comic platform.

許多流行的動漫作品也是我們漫畫平台上最暢銷的電子書。

In the documentary and variety show department, we're delighted to see our self-produced and IP-owned titles gaining traction.

在紀錄片和綜藝部門，我們很高興看到我們的自主製作和 IP 擁有的作品獲得了關注。

In the fourth quarter, we partnered with Shanghai Media Group and co-produced Police Stories - Shanghai Guardians.

第四季度，我們與上海文化傳媒集團合作，聯合製作了《警察故事-上海衛士》。

This documentary about local police in Shanghai quickly gained popularity among young people.

這部關於上海地方警察的紀錄片很快在年輕人中走紅。

The Hidden Kingdoms of China, a phenomenal documentary that we co-produced with National Geographic was also released in the fourth quarter and received positive [reviews] (corrected by company after the call).

我們與國家地理共同製作的非凡紀錄片《神州三國》也在第四季度上映，並獲得了好評（公司在電話會議後進行了更正）。

As we welcome more diversified OGV titles in our community, we are accumulating a library of valuable IP assets, while simultaneously [helping] (corrected by company after the call) us convert our growing traffic to paying users.

隨著我們在社區中歡迎更多樣化的 OGV 遊戲，我們正在積累有價值的 IP 資產庫，同時[幫助]（在電話會議後由公司更正）我們將不斷增長的流量轉化為付費用戶。

Our premium [memberships] (corrected by company after the call), which offer additional exclusive and advanced content to paid users, continued to flourish in the fourth quarter.

我們的高級 [會員]（在電話會議後由公司更正）為付費用戶提供額外的獨家和高級內容，在第四季度繼續蓬勃發展。

By the end of December, we had 7.6 million valid premium members, up 111% year-on-year.

截至 12 月底，我們擁有 760 萬有效高級會員，同比增長 111%。

While user grows at a tremendously high rate, our community density has not been diluted.

雖然用戶以極高的速度增長，但我們的社區密度並沒有被稀釋。

As a matter of fact, it continues to thrive with high engagement, high retention and tight bonds.

事實上，它以高參與度、高保留率和緊密聯繫繼續蓬勃發展。

In the fourth quarter, we had 710 million daily video views, up 63% year-on-year.

第四季度，我們的每日視頻觀看量為 7.1 億次，同比增長 63%。

In Q4, our users generated 2.4 billion monthly interactions through bullet chats, comments, likes and the Bilibili moment posts, up 141% year-on-year.

第四季度，我們的用戶每月通過彈幕、評論、點贊和嗶哩嗶哩發帖產生了 24 億次互動，同比增長 141%。

Each user, on average, follow 34 content creators compared with 26 for the same period last year.

每位用戶平均關注 34 位內容創作者，而去年同期為 26 位。

The unparalleled level of engagement and the connection among our users are making Bilibili the most unique and competitive video community in China.

無與倫比的參與度和用戶之間的聯繫使 Bilibili 成為中國最獨特和最具競爭力的視頻社區。

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 the fourth quarter, we had 68 million loyal official members who passed our 100-question exam, up 50% year-over-year.

在第四季度末，我們有 6800 萬忠實的官方會員通過了我們的 100 題考試，同比增長 50%。

This group of users' 12th-month retention rate remains high as well, at above 80%.

這組用戶的 12 個月留存率也很高，在 80% 以上。

This continued to be an excellent indicator of the quality of our user growth.

這仍然是我們用戶增長質量的一個很好的指標。

Turning to our commercialization progresses, let's first look at our games.

談到我們的商業化進展，我們先來看看我們的遊戲。

In the fourth quarter, revenue from mobile games were up 22% year-on-year to RMB 871 million, accounting for 43% of our total revenues.

第四季度，手游收入同比增長22%至人民幣8.71億元，佔總收入的43%。

We continued to expand our reach in games, covering different genres and gameplays.

我們繼續擴大遊戲範圍，涵蓋不同類型和遊戲玩法。

On the exclusively licensed games, Fate/Grand Order, or FGO, continued its popularity during its fourth year of operating in China.

在獨家授權遊戲中，Fate/Grand Order 或 FGO 在其在中國運營的第四個年頭中繼續流行。

In November, we also began operating the exclusively licensed title Girl Cafe Gun II, making a big splash in China's mobile game market.

11月，我們也開始運營獨家授權的遊戲《少女咖啡槍II》，在中國手游市場大放異彩。

The newly launched domestic ACG game the Furious Yama was also a hit among anime fans following its release in January this year.

新推出的國產ACG遊戲《狂怒之山》在今年1月發布後也受到了動漫迷的追捧。

As part of game business strategy, our jointly operated games also made meaningful progress in 2019.

作為遊戲業務戰略的一部分，我們共同運營的遊戲在 2019 年也取得了有意義的進展。

With increasing density of game lovers gathering on our platform, Bilibili has become a top channel to distribute ACG-themed or other high-quality games.

隨著越來越多的遊戲愛好者聚集在我們的平台上，B站已成為發行ACG主題或其他優質遊戲的頂級渠道。

During this year, we had multiple success with our jointly operated game projects, including Arknights, Gray Raven, Fox Spirit Matchmaker and Onmyoji: The Card Game.

在這一年裡，我們合作的遊戲項目取得了多項成功，包括方舟子、灰鴉、狐妖紅娘和陰陽師：紙牌遊戲。

Revenue generated by our jointly operated games now account for more than 25% of our total game revenue.

我們共同經營的遊戲產生的收入現在占我們遊戲總收入的 25% 以上。

Looking at our game pipeline, we have over 30 exclusively licensed games lined up for releases, 8 of which have already gained regulatory approvals.

從我們的遊戲渠道來看，我們有超過 30 款獨家授權遊戲等待發布，其中 8 款已經獲得監管部門的批准。

This includes 2 exciting Japanese role-playing games, Princess Connect (foreign language) and Animistic (foreign language), which we plan to roll out in the second quarter.

這包括我們計劃在第二季度推出的 2 款令人興奮的日本角色扮演遊戲，Princess Connect（外語）和 Animistic（外語）。

On the jointly operated game front, we will continue to work with leading game developers to bring our users premium games, such as MiHoYo's Genshin [Impact] (added by company after the call), Youzu's Shan Hai Jing Hua.

在聯營遊戲方面，我們將繼續與領先的遊戲開發商合作，為我們的用戶帶來優質遊戲，例如米霍遊的《原神》（公司在電話會議後添加）、遊族的山海經畫。

Additionally, leveraging our expertise and understanding of the ACG culture, we plan to expand our game distribution outside of Mainland China, further growing our revenue streams and increasing our global reach.

此外，利用我們的專業知識和對 ACG 文化的理解，我們計劃將我們的遊戲發行擴展到中國大陸以外，進一步增加我們的收入來源並擴大我們的全球影響力。

Turning to our live broadcasting and VAS business.

轉向我們的直播和增值服務業務。

We have seen excellent growth from this segment, and we believe there's a great deal of potential to broaden our offerings and attract new users, particularly in live broadcasting, where there is a natural crossover with our video business platform and our user base.

我們已經看到這一領域的出色增長，我們相信在擴大我們的產品和吸引新用戶方面有很大的潛力，特別是在直播領域，與我們的視頻業務平台和用戶群有著自然的交叉。

Revenues from live broadcasting and VAS increased by 183% year-over-year reaching RMB 571 million in the fourth quarter.

直播和增值服務收入在第四季度達到 5.71 億元人民幣，同比增長 183%。

Our growth was driven by increased contribution from live broadcasting, premium members, Maoer and the comic business.

我們的增長是由直播、高級會員、貓兒和漫畫業務的貢獻增加推動的。

We continue to build our games and entertainment content for live broadcasting where we see considerable room for growth in 2020.

我們繼續為直播打造遊戲和娛樂內容，我們認為 2020 年有相當大的增長空間。

China is the world's largest game market and e-sports is gaining more and more traction among young generations.

中國是全球最大的遊戲市場，電子競技在年輕一代中的吸引力越來越大。

Viewers' demand for premium e-sports content is high, and we are poised to deliver.

觀眾對優質電子競技內容的需求很高，我們已準備好提供。

Our 3-year exclusive license for live broadcasting rights for the world-renowned League of Legends World Championship places us in the center of the e-sports world.

我們為世界著名的英雄聯盟世界錦標賽提供 3 年的獨家直播權，使我們處於電子競技世界的中心。

With the S10 game being hosted in our home base, Shanghai, we believe we can maximize the impact of the game even further.

隨著 S10 比賽在我們的大本營上海舉辦，我們相信我們可以進一步擴大比賽的影響。

On the pan-entertainment front, we have secured a contract with one of the China's top entertainment hosts, Feng Timo, who has quickly won over Bilibili's users.

在泛娛樂方面，我們與中國頂級娛樂主持人之一馮提莫簽約，馮提莫迅速贏得了嗶哩嗶哩的用戶。

With top-level content and our new host additions, we have now completed our new live broadcasting pyramid and are working to grow this part of our business.

有了頂級內容和新的主持人，我們現在已經完成了新的直播金字塔，並正在努力發展這部分業務。

As for our advertising business, our community presents a considerably attractive audience for advertisers.

至於我們的廣告業務，我們的社區為廣告商提供了相當有吸引力的受眾。

Our brand awareness is on the rise, and we continue to be the go-to platform for the golden Gen Z consumer cohort.

我們的品牌知名度正在上升，我們將繼續成為黃金 Z 世代消費者群體的首選平台。

With these significant advantages, we are confident that Bilibili will remain as a top choice as our advertising partners look to allocate their budgets for the year.

憑藉這些顯著優勢，我們相信 Bilibili 將繼續作為我們的廣告合作夥伴希望分配他們今年的預算的首選。

For the fourth quarter, we saw increased sales in advertising despite the challenged macro environment.

在第四季度，儘管宏觀環境面臨挑戰，我們看到廣告銷售有所增長。

Revenues from advertising increased by 81% year-over-year to RMB 290 million, driven by our heightened brand awareness and efficient ad offerings.

廣告收入同比增長 81% 至人民幣 2.9 億元，這得益於我們提升的品牌知名度和高效的廣告服務。

The top 3 industry verticals for brand advertising in the fourth quarter were games, e-commerce and food and beverages, and the top 3 verticals for performance-based advertising were games, education and e-commerce.

第四季度品牌廣告排名前三的垂直行業分別是遊戲、電商和餐飲，而效果類廣告排名前三的垂直行業分別是遊戲、教育和電子商務。

On the heels of our successful integrated marketing program with Taobao and T-mall for 2019 Double 11 and Double 12 shopping events, we continued to deepen our partnership with Alibaba.

繼2019年雙11、雙12成功與淘寶、天貓進行整合營銷後，我們繼續深化與阿里巴巴的合作。

In the year-end, Taobao Juhuasuan sponsored Bilibili's New Year's Gala event.

年底，淘寶聚划算贊助了嗶哩嗶哩跨年晚會。

The Gala's wild success far exceeded Taobao's expectations, highlighting our deep understanding of our users and increasing awareness of Bilibili brand as a primary platform for advertisers.

晚會的巨大成功遠遠超出了淘寶的預期，凸顯了我們對用戶的深刻理解，以及 Bilibili 品牌作為廣告商主要平台的認知度不斷提高。

We look forward to further collaborating with BABA and other industry leaders that showcase the strength of our far-reaching platform.

我們期待與 BABA 和其他行業領導者進一步合作，展示我們影響深遠的平台的實力。

In summary, we have reached an exciting inflection point.

總之，我們已經到了一個令人興奮的拐點。

We have moved into the realm of mass market appeal.

我們已經進入大眾市場吸引力的領域。

For 2020, our strategy relies on key expansion initiatives that broaden our content offerings, grow our user base and improve our commercialization capabilities.

對於 2020 年，我們的戰略依賴於擴大我們的內容產品、擴大我們的用戶群和提高我們的商業化能力的關鍵擴張計劃。

At the same time, we are dedicated to putting our community first by [respecting] (corrected by company after the call) and valuing our users and content creators.

同時，我們致力於通過[尊重]（在電話會議後由公司更正）和重視我們的用戶和內容創作者，將我們的社區放在首位。

We will continue on this trajectory with goals of creating sustainable growth and long-term value for our community and our shareholders.

我們將繼續沿著這條軌跡前進，目標是為我們的社區和股東創造可持續增長和長期價值。

That concludes Mr. Chen's remarks, and I will now provide a brief overview of our financial results for the 2019 fourth quarter and full year.

陳先生的發言到此結束，我現在將簡要概述我們2019年第四季度和全年的財務業績。

Our total net revenue increased by 74% year-over-year to RMB 2 billion, exceeding the high end of our guidance.

我們的總淨收入同比增長 74% 至人民幣 20 億元，超過了我們指引的高端。

Our non-game revenue made up nearly 57% of our total revenues in the fourth quarter, up from 38% in the same period of 2018.

第四季度，我們的非遊戲收入佔總收入的近 57%，高於 2018 年同期的 38%。

With more than half of our revenues coming from multiple sources, we are pleased with our commercialization progress and the implications of this diversity.

由於我們一半以上的收入來自多個來源，我們對我們的商業化進展和這種多樣性的影響感到滿意。

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 100% year-over-year, reaching 8.8 million in the fourth quarter.

月均付費用戶數同比增長 100%，第四季度達到 880 萬。

Cost of revenue increased by 68% year-over-year to RMB 1.6 billion.

收入成本同比增長 68% 至人民幣 16 億元。

Revenue sharing cost, a key component of cost of revenues, was RMB 705 million, a 63% 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 7.05 億元，較 2018 年同期增長 63%。

Gross profit increased by 102% year-over-year to RMB 398 million.

毛利同比增長102%至人民幣3.98億元。

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 businesses, including advertising and co-operated games as well as additional income from premium users, our gross profit margin steadily improved throughout 2019, reaching 19.8% in the fourth quarter.

隨著我們的高利潤業務（包括廣告和合作遊戲）的收入貢獻增加，以及來自高級用戶的額外收入，我們的毛利率在整個 2019 年穩步提高，第四季度達到 19.8%。

Total operating expenses increased to RMB 818 million, up 68% from the same period in 2018.

總營業費用增至人民幣 8.18 億元，較 2018 年同期增長 68%。

Selling and marketing expenses were RMB 413 million, representing a 127% increase year-over-year.

銷售及營銷費用為人民幣4.13億元，同比增長127%。

The increase was primarily attributable to the increased channel and marketing expenses associated with Bilibili apps and brand, including promotional activities for off-line events, the 2020 New Year's Eve Gala event, for example, as well as promotional expenses for our mobile games.

增加的主要原因是與 Bilibili 應用程序和品牌相關的渠道和營銷費用增加，包括線下活動的促銷活動，例如 2020 年除夕晚會活動，以及我們的手機遊戲的促銷費用。

The increase was also attributed to the increased headcount in sales and marketing personnel and the increase in fulfillment costs associated with our e-commerce program.

這一增長還歸因於銷售和營銷人員人數的增加以及與我們的電子商務計劃相關的履行成本的增加。

G&A expenses were RMB 160 million, representing a 6% increase year-over-year.

G&A費用為人民幣1.6億元，同比增長6%。

R&D expenses were RMB 245 million, representing a 60% increase year-over-year.

研發費用2.45億元，同比增長60%。

The increase was primarily due to increased headcount in R&D personnel and increased share-based competition costs.

增加的主要原因是研發人員人數增加和基於股份的競爭成本增加。

Net loss was RMB 387 million for the fourth quarter of 2019 compared with RMB 191 million in the same period of 2018.

2019年第四季度淨虧損為人民幣3.87億元，而2018年同期為人民幣1.91億元。

Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses and amortization expenses related to intangible assets acquired through business acquisitions, was RMB 337 million compared with RMB 152 million in the same period of 2018.

調整後的淨虧損為人民幣 3.37 億元，而 2018 年同期為人民幣 1.52 億元。

Basic and diluted net loss per share were RMB 1.17.

每股基本及攤薄淨虧損為人民幣1.17元。

Adjusted basic and diluted net loss per share were RMB 1.01.

調整後的每股基本及攤薄淨虧損為人民幣1.01元。

For the full year of 2019, total revenue increased by 64% to RMB 6.8 billion.

2019年全年，總收入增長64%至人民幣68億元。

Revenue from mobile games increased 23% to RMB 3.6 billion.

手機遊戲收入增長23%至人民幣36億元。

Revenue from live broadcasting and VAS increased 180% to RMB 1.6 billion.

直播及增值服務收入增長180%至人民幣16億元。

Revenues from advertising increased 76% to RMB 817 million.

廣告收入增長76%至人民幣8.17億元。

Revenue from e-commerce and other increased 403% to RMB 722 million.

電子商務及其他收入增長403%至人民幣7.22億元。

Gross profit increased 39% to RMB 1.2 billion.

毛利增長39%至人民幣12億元。

Net loss for 2019 was RMB 1.3 billion compared to RMB 565 million in 2018.

2019 年的淨虧損為 13 億元人民幣，而 2018 年為 5.65 億元人民幣。

Adjusted net loss for 2019 was RMB 1.1 billion compared to RMB 377 million in 2018.

2019 年調整後的淨虧損為 11 億元人民幣，而 2018 年為 3.77 億元人民幣。

Basic and diluted net loss per share for 2019 were RMB 3.99 or USD 0.57 compared to RMB 2.64 in 2018.

2019 年每股基本和攤薄淨虧損為人民幣 3.99 元或 0.57 美元，而 2018 年為人民幣 2.64 元。

Adjusted basic and diluted net loss per share were RMB 3.30 or USD 0.47 compared to RMB 1.84 in 2018.

調整後的每股基本和攤薄淨虧損為人民幣 3.30 元或 0.47 美元，而 2018 年為人民幣 1.84 元。

As of December 31, 2019, we had cash and cash equivalents, term deposits as well as short-term investments of RMB 8.1 billion compared to RMB 5.2 billion as of December 31, 2018.

截至 2019 年 12 月 31 日，我們的現金及現金等價物、定期存款以及短期投資為人民幣 81 億元，而截至 2018 年 12 月 31 日為人民幣 52 億元。

To further grow our business, we plan to improve our monetization by leveraging our considerable 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可觀且不斷增長的流量來提高我們的盈利能力。

We also see benefit in further expanding our diverse revenue streams and continuing to improve revenue contribution per MAU.

我們還看到進一步擴大我們多樣化的收入來源和繼續提高每 MAU 的收入貢獻的好處。

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

從長遠來看，我們相信我們的貨幣化努力、高付費用戶規模和轉化率將帶來改善的底線。

With that in mind, we are currently projecting net revenues for the first quarter of 2020 to be between RMB 2.15 billion and RMB 2.20 billion.

考慮到這一點，我們目前預計 2020 年第一季度的淨收入將在人民幣 21.5 億元至人民幣 22.0 億元之間。

The above outlook is based on the current market conditions and reflects the company's preliminary estimates, which are all subject to change, particularly in light of the uncertainties related to how coronavirus develops.

上述展望基於當前的市場狀況，反映了公司的初步估計，這些估計都可能發生變化，特別是考慮到與冠狀病毒如何發展相關的不確定性。

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 Lei Zhang from Bank of America.

（操作員說明）您今天的第一個問題來自美國銀行的張磊一行。

(foreign language) My first question is about recent coronavirus outbreak.

（外語）我的第一個問題是關於最近的冠狀病毒爆發。

Wondering whether management could share your thoughts on how the outbreak may impact our business.

想知道管理層是否可以分享您對疫情可能如何影響我們業務的看法。

Related to that, can you give us more color on the user trend in the fourth quarter, especially after people are back to work and if any user slowing down?

與此相關，您能否為我們提供更多關於第四季度用戶趨勢的信息，尤其是在人們重返工作崗位之後以及是否有任何用戶放緩的情況？

And how should we look at our full year users target?

我們應該如何看待我們的全年用戶目標？

(foreign language)

（外語）

[Interpreted] Okay.

[解釋] 好的。

So taking the virus situation under consideration, we are currently projecting our Q1 total net revenue to be between CNY 2.15 billion to CNY 2.2 billion and -- which has considerable growth quarter-over-quarter and year-over-year.

因此，考慮到病毒情況，我們目前預計第一季度的總淨收入將在 21.5 億元人民幣至 22 億元人民幣之間，並且環比和同比都有相當大的增長。

And given that we have multiple business lines -- different business lines, e-commerce, because due to the logistic delays, there will be some impact related to the -- how much we can book the e-commerce revenue in the first quarter.

鑑於我們有多個業務線——不同的業務線，電子商務，因為由於物流延遲，第一季度我們可以預訂多少電子商務收入會受到一些影響。

However, compared to other business that's more related to our traffic growth such as live broadcasting and games, we do see some positive impacts of the extended traffic.

但是，與其他與我們的流量增長更相關的業務（例如直播和遊戲）相比，我們確實看到了擴展流量的一些積極影響。

Overall, in general, we don't see much of an impact to our overall business.

總體而言，總的來說，我們認為對我們的整體業務沒有太大影響。

(foreign language)

（外語）

[Interpreted] So given the extended holiday, people are staying at home for over a month, and Bilibili has become many people's first choice for online entertainment consumption.

【解讀】所以隨著假期的延長，人們在家待了一個多月，嗶哩嗶哩成為了很多人在線娛樂消費的首選。

And we've seen so far that user traffic, user engagement as well as time spent has been beyond our expectation.

到目前為止，我們已經看到用戶流量、用戶參與度以及花費的時間都超出了我們的預期。

So overall, this trend is quite positive.

所以總的來說，這個趨勢是相當積極的。

(foreign language)

（外語）

[Interpreted] So regarding your question about whether we see a decline in users after people are now going back to work, the answer is that user growth is our primary business focus for 2020.

[解釋]所以關於你關於人們現在復工後我們是否看到用戶下降的問題，答案是用戶增長是我們 2020 年的主要業務重點。

And we don't rely on incidents or occasions like the coronavirus outbreak.

而且我們不依賴於像冠狀病毒爆發這樣的事件或場合。

We do have designated thorough plans throughout the years to help us to achieve a steady user growth.

多年來，我們確實制定了周密的計劃，以幫助我們實現穩定的用戶增長。

(foreign language)

（外語）

[Interpreted] So after people are going back to work, for sure that the growth rate won't be as high as when people are staying at home, but it won't be a drastic up and down.

【解讀】所以大家復工後，肯定增速不會像居家時那麼高，但也不會大起大落。

Your next question comes from the line of Wendy Chen from Goldman Sachs.

您的下一個問題來自高盛的 Wendy Chen。

(foreign language) My question is about user growth outlook.

（外語）我的問題是關於用戶增長前景。

As we have achieved the 130 million MAU target this year, I'm wondering what's management's updated view on our user growth target for the full year 2020.

由於我們今年已經實現了 1.3 億月活躍用戶的目標，我想知道管理層對我們 2020 年全年用戶增長目標的最新看法是什麼。

And as we are targeting with mass market appeal this year, what is our outlook for our user growth addressable market for the longer term?

由於我們今年的目標是吸引大眾市場，從長遠來看，我們對用戶增長目標市場的前景如何？

(foreign language)

（外語）

[Interpreted] So as we communicated with the market before that we have set up our user growth goal for 2020 to be 180 million and 220 million for 2021.

【解讀】所以我們之前和市場溝通過，我們把2020年的用戶增長目標定為1.8億，2021年達到2.2億。

And we have done a lot of -- we have conducted a lot of efforts and -- to help us to achieve this goal.

我們已經做了很多 - 我們已經進行了很多努力 - 幫助我們實現這一目標。

And so far, it all looks like the progress is well on track.

到目前為止，一切看起來進展順利。

(foreign language)

（外語）

[Interpreted] So while we are quite optimistic about our user growth plans, at the same time, we also really value the quality of that growth.

【解讀】因此，雖然我們對用戶增長計劃相當樂觀，但同時，我們也非常看重這種增長的質量。

And the past historical data also suggests even though that we are on a very fast track of user growth, we have maintained a high quality of user growth as well as a very tight community environment.

而過去的歷史數據也表明，儘管我們處於用戶增長的非常快的軌道上，但我們一直保持著高質量的用戶增長以及非常緊張的社區環境。

Our users' time spent retention rate as well as the interaction levels have all been quite positive, sometime -- all faster than our MAU growth, indicating the high quality of our user growth.

我們用戶的時間留存率和互動水平都非常積極，有時——都快於我們的 MAU 增長，表明我們的用戶增長質量很高。

So this is the standard we are hoping to continue to maintain throughout the year.

所以這是我們希望全年繼續保持的標準。

(foreign language)

（外語）

[Interpreted] So at the same time, we are also focusing on improving our commercialization capabilities.

【解讀】所以同時，我們也在著力提升我們的商業化能力。

So there are several metrics that we've seen very positive trends from the paying user conversion rate as well as our traffic-related business such as our advertisement revenue growth.

因此，我們從付費用戶轉化率以及與流量相關的業務（例如我們的廣告收入增長）中看到了一些非常積極的趨勢。

They're all quite very positive.

他們都非常積極。

Our paying user growth more than doubled.

我們的付費用戶增長了一倍多。

Our advertisement revenue grew 81% year-on-year.

我們的廣告收入同比增長 81%。

So all these metrics are suggesting we're also making a very good progress on improving our commercialization capabilities.

所以所有這些指標都表明我們在提高商業化能力方面也取得了很好的進展。

(foreign language)

（外語）

[Interpreted] So in summary, that we are quite confident that to -- while maintaining a fast user growth trend, we'll continue to maintain a high quality of that growth, maintain a very friendly and tight community environment while simultaneously improve our commercialization capability.

[解釋] 總而言之，我們非常有信心——在保持快速用戶增長趨勢的同時，我們將繼續保持高質量的增長，保持非常友好和緊密的社區環境，同時提高我們的商業化程度能力。

Your next question comes from the line of Alex Liu from China Renaissance.

您的下一個問題來自華興資本的 Alex Liu。

(foreign language) My question is on advertising business.

（外語）我的問題是關於廣告業務的。

We note that fourth quarter advertising growth is very robust and also the first quarter guidance is also very solid.

我們注意到第四季度的廣告增長非常強勁，第一季度的指導也非常穩健。

Could the management share some color on our advertising business performance in the first quarter?

管理層能否對我們第一季度的廣告業務表現分享一些看法？

And also for full year 2020, could you share some updates on advertising business' new initiative?

對於 2020 年全年，您能否分享一些有關廣告業務新舉措的最新消息？

(foreign language)

（外語）

[Interpreted] So historically, Bilibili has been very strong in terms of converting customer -- converting to the related business.

[解讀]所以從歷史上看，B站在轉化客戶方面一直非常強大——轉化為相關業務。

And we've seen a very strong conversion in terms of many consumptions, including our games, live broadcasting and advertisement business.

而且我們在很多消費方面都看到了非常強勁的轉化，包括我們的遊戲、直播和廣告業務。

So we achieved very solid growth across all business lines in [2019] (corrected by company after the call), and we feel quite confident that we'll -- this business has great potential.

因此，我們在 [2019] 年的所有業務線都實現了非常穩健的增長（在電話會議後由公司更正），我們非常有信心——這項業務具有巨大的潛力。

And during the fourth quarter, even under this challenging -- very challenging macro environment, we were still able to deliver 81% year-on-year advertisement growth.

在第四季度，即使在這個充滿挑戰的宏觀環境下，我們仍然能夠實現 81% 的同比廣告增長。

(foreign language)

（外語）

[Interpreted] So as our brand awareness continues to grow, we have made quite big impression among our advertisers from a vertical content platform to a must-invest, must-have channels to reach young audiences.

[解讀]因此，隨著我們品牌知名度的不斷提高，我們在廣告商中留下了相當大的印象，從垂直內容平台到必須投資、必須擁有的渠道來接觸年輕受眾。

For example, this year, we've seen some very clear trends that Bilibili has become the first choice for a lot of new product launches, press -- online press conferences.

比如今年我們看到了一些非常明顯的趨勢，嗶哩嗶哩已經成為很多新品發布會、新聞——線上發布會的首選。

And all of that is -- we've seen that the advertisement -- advertisers' budget is shifting with the movement of our users.

所有這一切——我們已經看到廣告——廣告商的預算隨著我們用戶的移動而變化。

(foreign language)

（外語）

[Interpreted] So starting from Q1, we will adjust and continue to improve our advertisement overall strategy as well as pricing and efficiencies to achieve sustainable growth.

【解讀】所以從第一季度開始，我們將調整併繼續改進我們的廣告整體策略以及定價和效率，以實現可持續增長。

(foreign language)

（外語）

[Interpreted] So third and quite importantly is on the technology front, we'll continue to invest to improve and revolutionize our algorithm's efficiencies to improve our performance-based advertisement effectiveness and improve our click-through ratio.

[解釋] 所以第三點也是非常重要的一點是在技術方面，我們將繼續投資以改進和徹底改變我們算法的效率，以提高我們基於性能的廣告效果並提高我們的點擊率。

(foreign language)

（外語）

[Interpreted] So your question regarding our collaboration with Alibaba.

[翻譯]所以你關於我們與阿里巴巴合作的問題。

So in 2019, we have established quite a lot of new projects and collaborations during Double 11, Double 12 shopping festivals and Taobao's Juhuasuan also exclusively sponsored Bilibili's New Year's Gala, which the overall effect has exceeded Juhuasuan's expectation.

所以在2019年，我們在雙11、雙12購物節期間建立了相當多的新項目和合作，淘寶的聚划算還獨家贊助了B站的跨年晚會，整體效果超出聚划算的預期。

So, so far, we think that partnership between Alibaba has met or even exceeded our previous expectations, and we really look forward to deepening our relationship with Alibaba's overall e-commerce ecosystem in 2020.

所以，到目前為止，我們認為阿里巴巴之間的合作已經達到甚至超過了我們之前的預期，我們非常期待在 2020 年加深我們與阿里巴巴整個電子商務生態系統的關係。

(foreign language)

（外語）

[Interpreted] So we actually have developed a whole strategy of how we can better collaborate Bilibili's ecosystem with Alibaba's ecosystem in terms of integrated marketing campaign that includes the brand campaign, that increase the brand awareness and to influence users' purchasing decision through native ads and complete the transaction through performance-based ads.

[解釋] 所以我們實際上已經制定了一個整體策略，即我們如何更好地將 Bilibili 的生態系統與阿里巴巴的生態系統進行整合營銷活動，包括品牌活動，提高品牌知名度並通過原生廣告影響用戶的購買決策和通過基於效果的廣告完成交易。

And this strategy we can copy and paste and replicate that with many new advertisers in 2020.

這種策略我們可以在 2020 年復制粘貼並複制給許多新的廣告商。

And we believe we have a lot of potentials to further replicate the success stories between Alibaba and Bilibili to many others -- many other new advertisers.

我們相信我們有很大的潛力可以將阿里巴巴和 Bilibili 之間的成功故事進一步複製給許多其他人——許多其他新的廣告商。

(foreign language)

（外語）

[Interpreted] So as Rui Chen mentioned earlier that 2020's primary focus of our business is to grow our users.

【解讀】所以正如陳叡之前提到的，2020年我們業務的主要重點是增加我們的用戶。

And while we do so, they will -- the increased traffic will also serve [as fuel] for our advertisement business.

在我們這樣做的同時，他們將——增加的流量也將成為我們廣告業務的[燃料]。

So we are quite confident that in Q1 and 2020, our overall advertisement business will have a very good growth trajectory.

所以我們很有信心，在Q1和2020年，我們的整體廣告業務會有一個非常好的增長軌跡。

Your next question comes from the line of Thomas Chong from Jefferies.

您的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) I have 2 questions.

（外語）我有兩個問題。

My first question is about the GP margin trend.

我的第一個問題是關於 GP 保證金趨勢。

Given the solid GP margin over the past 3 quarters, can management comment about how we should think about the GP margin outlook in 2020?

鑑於過去三個季度的穩健 GP 利潤率，管理層能否評論我們應該如何看待 2020 年的 GP 利潤率前景？

And my second question is about the gala event that we hosted very successfully earlier this year.

我的第二個問題是關於我們今年早些時候非常成功地舉辦的盛大活動。

Can management comment about the positive impact to our platform after the success?

管理層能否評論成功後對我們平台的積極影響？

Okay, Thomas.

好的，托馬斯。

I will take your first question and Rui then will take -- will comment on your second question.

我會回答你的第一個問題，然後 Rui 會回答你的第二個問題。

Yes, you're right, our gross profit margin has recorded steady improvement throughout 2019 from like 13.8% in Q1 to like 19.8% in Q4.

是的，你是對的，我們的毛利率在整個 2019 年穩步提高，從第一季度的 13.8% 到第四季度的 19.8%。

In the future, we still see some room to further leverage between our high paying ratio and to increase the revenue per MAU to further improve the gross profit margin.

未來，我們仍然認為在我們的高支付率和增加每 MAU 收入以進一步提高毛利率之間存在一定的空間。

That leverage will come from the cost component like bandwidth cost as well as the revenue sharing cost.

這種影響將來自帶寬成本和收益分享成本等成本組成部分。

So we will work on that, and we'll see that in the coming quarters.

所以我們會努力解決這個問題，我們會在接下來的幾個季度看到這一點。

(foreign language)

（外語）

[Interpreted] So the success of the gala -- well, the gala itself is part of our user growth plan as well as part of our brand campaign.

[解釋] 所以晚會的成功——嗯，晚會本身就是我們用戶增長計劃的一部分，也是我們品牌活動的一部分。

And we don't think this is an isolated event that Bilibili New Year's gala is a success.

而且我們認為B站跨年晚會的成功並不是一個孤立的事件。

That it actually is a testimony of how Bilibili understand young people's interest.

這其實是B站了解年輕人興趣的一個見證。

And as we accumulated our understanding for the past 10 years, this has made a material impact in the mainstream ideals.

隨著我們在過去 10 年中積累的理解，這對主流理想產生了重大影響。

(foreign language)

（外語）

[Interpreted] So this gala is a landmark event as Bilibili moved into the realms of mass market appeal.

[解讀]所以這次晚會是B站進入大眾市場吸引力的里程碑事件。

And the success of the gala actually -- the content of the gala actually attracts many users from different background and different generations and make them get to know Bilibili from their perspective, from what they have -- the perspective or content verticals that they are familiar with.

而晚會的成功其實——晚會的內容其實吸引了很多不同背景、不同年代的用戶，讓他們從自己的角度，從他們所擁有的——他們熟悉的角度或者內容垂直領域去了解B站。和。

And this is a quite -- we would think this is a quite eventful campaign that made the Bilibili brand accessible -- much accessible to wider generations and audiences.

這是一個相當 - 我們認為這是一個讓 Bilibili 品牌易於使用的非常多事的活動 - 更廣泛的世代和觀眾可以訪問。

(foreign language)

（外語）

[Interpreted] So far, the playback of the event has been viewed over 90 million times.

【解讀】截至目前，該事件的播放量已超過9000萬次。

And we have accumulated 5 billion media exposures and that we think it has 4 major points that will impact our business.

我們已經積累了 50 億次媒體曝光，我們認為它有 4 大點會影響我們的業務。

(foreign language)

（外語）

[Interpreted] So first of all it's definitely laid a very solid foundation for our 2020 overall user growth plans and second of all has further increased our brand awareness among users and make them to perceive a little bit more clear about what Bilibili is and what Bilibili has to offer.

【解讀】所以首先肯定為我們2020年的整體用戶增長計劃奠定了非常堅實的基礎，其次進一步提升了我們在用戶中的品牌知名度，讓他們對什麼是嗶哩嗶哩、什麼是嗶哩嗶哩有了更清晰的認知。必須提供。

And thirdly, as we mentioned earlier, on the advertisement front, it definitely also has a very positive impact.

第三，正如我們前面提到的，在廣告方面，它肯定也有非常積極的影響。

Like we said, Juhuasuan's sponsorship, the overall effect has exceeded their expectations and also made a very good example of how Bilibili's events and campaigns can influence to -- and reach much wide audiences groups.

正如我們所說，聚划算的讚助，整體效果超出了他們的預期，也很好地說明了 Bilibili 的活動和活動如何影響——並接觸到更廣泛的受眾群體。

And last but not least is, once again, it's a strong testimony of how Bilibili has the determination and ability to produce high-quality content and will continue -- and we're committed to continue to produce more high-quality content.

最後但並非最不重要的一點是，這再次有力地證明了 Bilibili 有決心和能力製作高質量內容並將繼續下去——我們致力於繼續製作更多高質量的內容。

The next question comes from the line of Jialong Shi from Nomura.

下一個問題來自野村的石家龍一行。

(foreign language) My question for management is about the competition landscape.

（外語）我的管理問題是關於競爭格局的。

We saw some of Bilibili's peers, Chinese Internet peers talking about ramping up investments this year in either anime or PUGV content.

我們看到 Bilibili 的一些同行，中國互聯網同行談論今年加大對動漫或 PUGV 內容的投資。

We understand these peers -- this move by peers may show the huge potential in this market, but the entry of these newcomers may also fewer the competition in this segment.

我們了解這些同行——同行的這一舉動可能顯示出這個市場的巨大潛力，但這些新人的進入也可能會減少該領域的競爭。

So my questions are 2. First of all, I just wonder how management think of the potential impacts it may have on the company's assets to retain talented content creators and the audience.

所以我的問題是 2。首先，我只是想知道管理層如何看待它可能對公司資產產生的潛在影響，以留住有才華的內容創作者和觀眾。

Will Bilibili, at certain point, be forced to pay more to some of the top content creators in order to retain them?

Bilibili 是否會在某個時候被迫向一些頂級內容創作者支付更多費用以留住他們？

And secondly, what are the company's strategies to maintain fast user growth in a more competitive environment?

其次，公司在競爭更加激烈的環境中保持用戶快速增長的策略是什麼？

Is there any risk that Bilibili may have to spend more in marketing dollars to hit the user growth target?

是否存在 Bilibili 可能不得不花費更多營銷資金來實現用戶增長目標的風險？

(foreign language)

（外語）

[Interpreted] So as regards the overall video industry, actually, it's fast growing and a very big market.

[解讀]所以就整個視頻行業來說，其實它發展很快，市場很大。

According to third-party research data, that the current video user has already reached 750 million in China.

根據第三方研究數據，目前中國視頻用戶已達7.5億。

And we think as the adoption of 5G technology and the revolution of hardware and infrastructures, I'm projecting the overall video users can grow to 800 million or 900 million in the next few years.

我們認為隨著 5G 技術的採用以及硬件和基礎設施的革命，我預計未來幾年整體視頻用戶將增長到 8 億或 9 億。

(foreign language)

（外語）

[Interpreted] So as a matter of fact, video as an industry vertical on the Internet space is actually one of the largest verticals.

【解讀】所以事實上，視頻作為互聯網空間的垂直行業，其實是最大的垂直行業之一。

And for the past few years, you can -- you must have witnessed many new player -- many players in the video industry grow quite significantly, and that has also a very direct relation to the expansion of the market.

而在過去的幾年裡，你可以——你一定見證了很多新玩家——視頻行業的很多玩家成長非常顯著，這也與市場的擴大有非常直接的關係。

And we don't believe 1 or 2 new additional players entering this market will make a material impact or difference from this growth trajectory.

而且我們不相信 1 或 2 個新的額外參與者進入這個市場會對這個增長軌跡產生重大影響或改變。

(foreign language)

（外語）

[Interpreted] Okay.

[解釋] 好的。

So a lot of people have asked that for the past few years how those impact the overall industry.

所以在過去的幾年裡，很多人都在問這些對整個行業有何影響。

But as a matter of fact, we are able to maintain our fast growth while doing -- gaining the market share.

但事實上，我們能夠在保持快速增長的同時——獲得市場份額。

Many people would probably argue that it's the different -- there's a different lens in terms of short video and long-form video, but we believe we are actually the player who gives definition of PUGVs, and we have the most experience in terms of PUGV.

很多人可能會爭辯說是不一樣——短視頻和長視頻有不同的鏡頭，但我們相信我們實際上是給 PUGV 下定義的玩家，我們在 PUGV 方面擁有最多的經驗.

(foreign language)

（外語）

[Interpreted] So we are -- we have been putting PUGC as our primary business model for at least 5 years.

[解釋]所以我們 - 我們將 PUGC 作為我們的主要商業模式至少 5 年了。

And for the past 5 years, we have gained a lot of experience.

在過去的 5 年裡，我們獲得了很多經驗。

And actually, we kind of feel alone in this track, and now we have more players starting to pay more attention on this business model.

實際上，我們在這條賽道上有點孤單，現在我們有更多的玩家開始更加關注這種商業模式。

We believe this is another -- a different perspective on another side of the story, which means this track has great potential to grow.

我們相信這是另一個——故事另一面的不同視角，這意味著這條賽道有很大的發展潛力。

(foreign language)

（外語）

[Interpreted] And this business model requires unique expertise in terms of operation as well as running a platform.

[解讀]而且這種商業模式在運營和平台運行方面需要獨特的專業知識。

So for the newcomers, I think there's going to be a learning -- at least a learning curve for them and won't yield results in short terms.

所以對於新來的人，我認為會有一個學習——至少對他們來說是一個學習曲線，並且不會在短期內產生結果。

(foreign language)

（外語）

[Interpreted] So as for your question about the competitive cost related to more player joining in these verticals, we believe for this industry, we have long passed the phase that people have to burn cash to fight for content or KOLs.

[解讀]所以關於你的問題，關於更多玩家加入這些垂直領域的競爭成本，我們相信對於這個行業來說，我們早已度過了人們必須燒錢來爭奪內容或KOL的階段。

This is -- we have already entered a phase that we compete with each other in terms of the overall industry layout, the business operation capabilities as well as whether content creators are able to achieve their career goals on [your] platform to be able to grow their traffic on your platform.

這就是——我們已經進入了一個在整體產業佈局、業務運營能力以及內容創作者能否在[你的]平台上實現職業目標的競爭階段。在您的平台上增加他們的流量。

So it won't have a significant impact in terms of single costs, whether it's on content or sales and marketing.

因此，它不會對單一成本產生重大影響，無論是內容還是銷售和營銷。

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。

Well, thank you, once again, for joining us today.

好吧，再次感謝您今天加入我們。

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

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

Our contact information for IR in both China and U.S. can be found on 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。

[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。]