(BILI) 2022 Q4 法說會逐字稿

Good day, and welcome to Bilibili Fourth Quarter and Fiscal Year 2022 Financial Results and Business Update Conference Call. Today's conference is being recorded.

美好的一天，歡迎來到 Bilibili 第四季度和 2022 財年財務業績和業務更新電話會議。今天的會議正在錄製中。

At this time, I'd like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

現在，我想將會議轉交給投資者關係執行總監 Juliet Yang。請繼續。

Thank you, operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC and Hong Kong Stock Exchange.

謝謝你，運營商。在這次電話會議中，我們將討論我們的業務前景並做出前瞻性陳述。這些評論基於我們截至今天的預測和期望。由於存在許多風險和不確定性，包括我們最近向美國證券交易委員會和香港證券交易所提交的文件中提到的風險和不確定性，實際事件或結果可能與今天的新聞稿和本次討論中提到的事件或結果存在重大差異。

The non-GAAP financial measures we provide are for comparison purpose only. Definition of these measures and a reconciliation table are available in the news release we issued earlier today. As a reminder, this conference call is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the Bilibili IR website at ir.bilibili.com.

我們提供的非 GAAP 財務指標僅供比較之用。我們今天早些時候發布的新聞稿中提供了這些措施的定義和調節表。提醒一下，正在錄製此電話會議。此外，Bilibili IR 網站 ir.bilibili.com 還將提供投資者介紹和本次電話會議的網絡直播重播。

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

今天從 Bilibili 高級管理層加入我們的是董事會主席兼首席執行官陳睿先生；董事會副主席兼首席運營官 Carly Li 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.

我現在將電話轉給范先生，他將代表陳先生宣讀準備好的發言稿。

Thank you, Juliet. And thank you, everyone, for participating in our 2022 Fourth Quarter and Fiscal Year Financial and Operating Results Conference Call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

謝謝你，朱麗葉。感謝大家參加我們的 2022 年第四季度和財年財務和經營業績電話會議。我很高興代表陳先生髮表今天的開場白。

In 2022, we proactively adjusted our strategies and reprioritized ours goal to better align ourselves with the new industry paradigm. Specifically, we placed our focus on DAU growth and how to reach profitability.

2022年，我們主動調整戰略，重新調整目標，更好地適應新的行業範式。具體來說，我們將重點放在 DAU 增長以及如何實現盈利上。

Digging into our progress on these 2 fronts. First, our users and their daily engagement with our community remain the foundation of our business. By focusing on DAU growth, we are bringing higher-quality users to our platform, which ties in more closely to our monetization potential.

深入研究我們在這兩個方面的進展。首先，我們的用戶以及他們與我們社區的日常互動仍然是我們業務的基礎。通過專注於 DAU 的增長，我們正在為我們的平台帶來更高質量的用戶，這與我們的貨幣化潛力更緊密地聯繫在一起。

In Q4, our DAUs increased to 93 million, up 29% year-on-year. This brought our DAU to MAU ratio to 28%, a meaningful improvement from 26% in the same period last year. The average daily time spent per user on our platform reached 96 minutes, driving the total time spent on our platform, up by 51% year-on-year. We will continue to cultivate our DAUs with optimized product offerings and algorithms and further support our commercial prospects with controlled sales and marketing spending.

第四季度，我們的 DAU 增加到 9300 萬，同比增長 29%。這使我們的 DAU 與 MAU 之比達到 28%，較去年同期的 26% 有了顯著改善。每位用戶每天在我們平台上花費的平均時間達到 96 分鐘，推動我們平台上的總時間同比增長 51%。我們將繼續通過優化的產品供應和算法培養我們的 DAU，並通過控制銷售和營銷支出進一步支持我們的商業前景。

Second, we improved our commercialization efficiency and elevated our cost-reduction measures to bring us closer to our goal of profitability. Our total net revenues for 2022 were RMB 21.9 billion, and the total net revenues for Q4 were RMB 6.1 billion, up 6% year-on-year. Our gross margin improved to 20% in Q4 compared with 18% in the previous quarter.

二是提升商業化效率，加大降本力度，離盈利目標更近一步。我們2022年的總淨收入為人民幣219億元，第四季度的總淨收入為人民幣61億元，同比增長6%。我們的毛利率從上一季度的 18% 提高到第四季度的 20%。

We continue to take measures to control our expenses and improve our organization efficiency. Specifically, in the first quarter, we cut sales and marketing expenses by 28% year-on-year. Sales and marketing expenses as a percentage of total net revenues reduced from 30% in the same period last year to 21% in the fourth quarter. We have also streamlined our personnel and trimmed our noncore and underperforming business. As a result, our non-GAAP net loss in the first quarter narrowed by 21% year-on-year and 26% quarter-on-quarter.

我們繼續採取措施控制開支，提高組織效率。具體來說，在第一季度，我們將銷售和營銷費用同比削減了 28%。銷售和營銷費用佔總淨收入的百分比從去年同期的 30% 下降到第四季度的 21%。我們還精簡了人員並削減了我們的非核心和表現不佳的業務。因此，我們第一季度的非美國通用會計準則淨虧損同比收窄 21%，環比收窄 26%。

As we move through 2023, our operational goal is to become a more efficient company. We will centralize our resources to focus on less but more important tasks. Specifically, we plan to continue to grow our DAUs, improving our gross margin and tightening our expenses. And we are executing on these actions. We believe we are on the right track to achieve our breakeven target by 2024.

隨著 2023 年的到來，我們的運營目標是成為一家更有效率的公司。我們將集中資源，專注於次要但更重要的任務。具體來說，我們計劃繼續增加我們的 DAU，提高我們的毛利率並收緊我們的開支。我們正在執行這些行動。我們相信我們正走在正確的軌道上，到 2024 年實現盈虧平衡目標。

With that overview of our strategic approach and progress, I'd now like to provide a brief update on our 3 core pillars of content, community and commercialization.

通過對我們的戰略方法和進展的概述，我現在想簡要介紹一下我們的內容、社區和商業化這 3 個核心支柱。

Starting with content. Our ever-growing content ecosystem is our most valuable asset. In the fourth quarter, our platform hosted 3.8 million content creators, 25% more than the same period a year ago. Creators submit 17.6 million videos, up 62% year-on-year, both on a monthly basis.

從內容開始。我們不斷發展的內容生態系統是我們最寶貴的資產。第四季度，我們的平台接待了 380 萬內容創作者，比去年同期增長 25%。創作者每月提交 1760 萬部視頻，同比增長 62%。

To encourage more users to turn their ideas into creation, we will provide them with more easy-to-use tools to get would-be creators started. At the same time, more traffic will be led towards mid- and long-tail creators. Our goal is to turn more users into creators, driving both our content offerings and user engagement.

為了鼓勵更多的用戶將他們的想法轉化為創作，我們將為他們提供更易於使用的工具來幫助潛在的創作者入門。同時，將更多流量引向中長尾創作者。我們的目標是將更多用戶轉變為創作者，推動我們的內容產品和用戶參與度。

Expanded content scenarios are also attracting more traffic to Bilibili. For the fourth quarter, total daily videos views were up 77% year-on-year to 3.9 billion. In particular, Story Mode daily video views increased by 175% year-on-year while PUGV video views increased by 56% in the first quarter. Story Mode has allowed us to expand into the vertical video market, bolstering our DAUs, increasing user time spent on our platform and opening more commercial opportunities for us to pursue.

擴展的內容場景也為嗶哩嗶哩吸引了更多流量。第四季度，每日視頻總觀看次數同比增長 77% 至 39 億次。其中，故事模式每日視頻觀看量同比增長 175%，而 PUGV 視頻觀看量在第一季度增長了 56%。故事模式使我們能夠擴展到垂直視頻市場，增強我們的 DAU，增加用戶在我們平台上花費的時間，並為我們創造更多的商業機會。

To unlock our commercial potential, in 2022, we further integrated our commercial channels within our content ecosystem. The combination has created more immersive advertising opportunities and the various monetization channels for content creators. Over 1.3 million content creators earn income-ed through multiple channels on Bilibili in Q4, up 64% year-over-year.

為了釋放我們的商業潛力，我們在 2022 年進一步將我們的商業渠道整合到我們的內容生態系統中。這種結合為內容創作者創造了更多身臨其境的廣告機會和各種貨幣化渠道。超過 130 萬內容創作者在第四季度通過嗶哩嗶哩的多個渠道獲得收入，同比增長 64%。

Looking at our community. Our inclusive community environment and the [raise] interaction tools are creating tighter bonds between our users and our platform. In the fourth quarter, user's average daily time spend on Bilibili reached 96 minutes. Monthly interactions also increased by 35% year-on-year to 13.6 billion. And for the core members of our community, the number of official members reached 195 million in the fourth quarter, up 34% year-on-year, and their 12-month retention rate continued to exceed 80%.

看看我們的社區。我們包容的社區環境和 [raise] 交互工具正在我們的用戶和我們的平台之間建立更緊密的聯繫。第四季度，用戶平均每天在嗶哩嗶哩上的時長達到96分鐘。每月互動量也同比增長 35% 至 136 億次。而我們社區的核心成員，第四季度官方成員數量達到1.95億，同比增長34%，12個月留存率持續超過80%。

Now let's review our commercialization progress and how we think about it moving forward. For the fourth quarter, our total net revenues reached RMB 6.1 billion, up 6% year-over-year, and our full year revenue grew by 13% to RMB 21.9 billion. We are now more focused on improving our commercialization efficiency and specifically on improving our gross margin at the company level.

現在讓我們回顧一下我們的商業化進程以及我們如何看待它向前發展。第四季度，我們的總淨收入達到人民幣 61 億元，同比增長 6%，全年收入增長 13% 至人民幣 219 億元。我們現在更專注於提高我們的商業化效率，特別是提高我們在公司層面的毛利率。

Now I'd like to share more color on each of our commercial business lines. First, our VAS business. Revenues from VAS was RMB 2.3 billion for the fourth quarter and RMB 8.7 billion for the year, up 24% and 26% year-on-year, respectively. Live broadcasting in particular has shown solid growth. For 2022, revenues from live broadcasting increased by over 30%.

現在我想分享更多關於我們每個商業業務線的顏色。首先，我們的增值服務業務。第四季度增值服務收入為人民幣23億元，全年為人民幣87億元，分別同比增長24%和26%。尤其是直播顯示出穩健的增長。 2022年，直播收入增長超30%。

Our strategy to integrate live broadcasting within our video ecosystem has prompted more creators to tap into live broadcasting universe. This has helped to penetrate more video users, converting paying users and optimize our revenue-sharing structure organically. In the fourth quarter, the number of monthly active live broadcasting hosts increased by over 70% and MPUs for live broadcasting grew by over 40%, both on a year-on-year basis.

我們將直播整合到我們的視頻生態系統中的策略促使更多創作者進入直播領域。這有助於滲透更多的視頻用戶，轉化付費用戶並有機地優化我們的收入分成結構。四季度，直播月活躍主播同比增長超70%，直播MPU同比增長超40%。

Looking ahead, live broadcasting will continue to be one of our primary revenue growth drivers. We expect to optimize our revenue-sharing ratio and further improve live broadcasting gross margin. By the end of the fourth quarter, we had added nearly 1 million premium members from the prior period, reaching a total of 21.4 million premium memberships.

展望未來，直播將繼續成為我們主要的收入增長動力之一。我們期望優化我們的收入分成比例並進一步提高直播毛利率。截至第四季度末，我們比上一期間增加了近 100 萬高級會員，高級會員總數達到 2140 萬。

We launched multiple Chinese anime titles during the period, including the highly anticipated sci-fi thriller, The Three-Body Problem. In January 2023, our co-produced traditional Chinese style graphic anime, Yao-Chinese Folktale, Zhongguo Qi Tan, become a smash hit, generating over 200 million video views on our platform.

在此期間，我們推出了多部中國動漫作品，包括備受期待的科幻驚悚片《三體》。 2023 年 1 月，我們聯合製作的傳統國風動漫《中國瑤族奇譚》一炮而紅，在我們的平台上產生了超過 2 億的視頻播放量。

As for our advertising arm. We continue to gain market share in 2022. Advertising revenues were up by 12%, reached RMB 5.1 billion in 2022 and RMB 1.5 billion in Q4. Our top-performing verticals in the first quarter were mobile games, e-commerce, digital products and home appliances, automotive and skin care and cosmetics. In 2022, we'll further open up our ecosystem to embrace more advertising opportunities across various video viewing scenarios.

至於我們的廣告部門。我們在 2022 年繼續獲得市場份額。廣告收入增長 12%，2022 年達到 51 億元人民幣，第四季度達到 15 億元人民幣。我們在第一季度表現最好的垂直行業是手機遊戲、電子商務、數碼產品和家用電器、汽車和護膚品以及化妝品。 2022 年，我們將進一步開放我們的生態系統，以在各種視頻觀看場景中擁抱更多廣告機會。

The newest scenarios we introduced in Story Mode and improved sales conversion modules has proven our success in performance-based ads and carry higher ROIs. In the fourth quarter, our performance-based ad revenue grew by over 50% year-on-year. In addition, as our users getting mature and into new life stages, their new consumption needs, such as automotive and home appliance, also attract more advertisers, and their ad budgets have been allocated to our platform.

我們在故事模式中引入的最新場景和改進的銷售轉化模塊證明了我們在基於效果的廣告方面的成功並帶來了更高的投資回報率。第四季度，我們基於效果的廣告收入同比增長超過 50%。此外，隨著我們的用戶逐漸成熟並進入新的生活階段，他們的汽車、家電等新的消費需求也吸引了更多的廣告主，他們的廣告預算已經分配到我們的平台上。

Moving into 2023. We will continue to invest in and improve our ad infrastructure and further integrate our ad capabilities within our content ecosystems.

進入 2023 年。我們將繼續投資和改進我們的廣告基礎設施，並進一步將我們的廣告功能整合到我們的內容生態系統中。

Turning into games. Revenues for the year were RMB 5 billion and RMB 1.1 billion for the fourth quarter. We are committed to the strategy of development in-house, distribute globally. In Q4, we restructured our game development to effectively align with this goal. Specifically, we eliminate underperforming self-developed projects and centralized our resources to focus on genres where we are already experts.

變身遊戲。全年收入為人民幣 50 億元，第四季度收入為人民幣 11 億元。我們致力於內部發展，全球佈局的戰略。在第四季度，我們重組了遊戲開發，以有效地實現這一目標。具體來說，我們淘汰表現不佳的自研項目，集中資源專注於我們已經精通的類型。

In 2022, our self-development games contributed 5% of our total game revenues. We expect this ratio will continue to expand in 2023 as we roll out more self-development games.

2022年，我們的自主研發遊戲貢獻了我們遊戲總收入的5%。隨著我們推出更多自研遊戲，我們預計這一比例將在 2023 年繼續擴大。

Looking at our pipeline. We are planning to launch 2 self-development games, [Soldier] and [Elysia], as well as 6 exclusively licensed titles, in the second quarter of this year. As game license approvals have gradually resumed in China, we expect to engage in more opportunities in the domestic market.

看看我們的管道。我們計劃在今年第二季度推出兩款自研遊戲【士兵】和【極樂世界】，以及6款獨家授權遊戲。隨著遊戲牌照審批在中國逐漸恢復，我們預計將在國內市場獲得更多機會。

In summary, the new industry dynamics call for more efficient operations. In 2023, we will continue to centralize our resources to grow our DAUs, increase our gross margin and narrow our losses. Throughout this process, we will continue to strengthen our execution and tighten our spending while selectively investing R&D, will improve our commercialization efficiency.

總之，新的行業動態要求更高效的運營。 2023年，我們將繼續集中資源，提升DAU，提升毛利率，縮小虧損。在這個過程中，我們將繼續加強執行力和收緊開支，同時有選擇地投入研發，提高我們的商業化效率。

With these measures in place, we believe we are on the right track to reach our financial goals and become a stronger, more resilient and efficient organization. This concludes Mr. Chen's remarks.

有了這些措施，我們相信我們正走在正確的軌道上，可以實現我們的財務目標，並成為一個更強大、更有彈性和更高效的組織。陳先生的發言到此結束。

I will now provide a brief overview of our financial results for the fourth quarter of 2022 and outlook for the fiscal year of 2023. For a review of our fiscal year 2022 results, please see our press release issued earlier today.

我現在將簡要概述我們 2022 年第四季度的財務業績和 2023 財年的展望。有關我們 2022 財年業績的回顧，請參閱我們今天早些時候發布的新聞稿。

Total net revenues for the fourth quarter were RMB 6.1 billion, up 6% from the same period of 2021. Our total net revenues breakdown by revenue streams were approximately 38% VAS, 25% advertising, 19% mobile games and 18% for our e-commerce and other business.

第四季度總淨收入為人民幣 61 億元，比 2021 年同期增長 6%。我們按收入流劃分的總淨收入約為 38% 增值服務、25% 廣告、19% 手機遊戲和 18% 的電子遊戲-商業和其他業務。

Cost of revenues increased by 4% year-over-year to RMB 4.9 billion. Our gross profit in the first quarter were RMB 1.2 billion, and our gross margin was 20.3%, up 2.1 percentage points sequentially. With our tightly controlled cost structure, we expect to show continued margin improvement throughout 2023.

收入成本同比增長 4% 至人民幣 49 億元。我們第一季度的毛利為人民幣 12 億元，毛利率為 20.3%，環比上升 2.1 個百分點。憑藉我們嚴格控制的成本結構，我們預計整個 2023 年的利潤率將持續改善。

Total operating expenses were RMB 3.6 billion, up 15% from the same period in 2021. As we work on increasing our commercial prospects, we are also keeping a lean cost structure. We cut sales and marketing expenses in Q4 by 28% year-on-year to RMB 1.3 billion, while DAU grew by 29% year-over-year. Sales and marketing expenses as a percentage of total revenues was also down to 21% compared to 30% in the same period last year. We will continue to control our sales and marketing expenses while delivering solid DAU growth in 2023.

總運營費用為人民幣 36 億元，比 2021 年同期增長 15%。在我們努力提高商業前景的同時，我們也保持了精簡的成本結構。我們在第四季度將銷售和營銷費用同比削減 28% 至人民幣 13 億元，而 DAU 同比增長 29%。銷售和營銷費用佔總收入的百分比也從去年同期的 30% 降至 21%。我們將繼續控制我們的銷售和營銷費用，同時在 2023 年實現 DAU 的穩健增長。

G&A expenses were RMB 870 million, up 52% year-over-year. The increase was primarily due to the one-off severance pay of RMB 252 million related to our organizational restructuring.

G&A 費用為人民幣 8.7 億元，同比增長 52%。增加的主要原因是與組織重組相關的一次性遣散費人民幣 2.52 億元。

R&D expenses was RMB 1.5 billion, representing an 87% increase year-over-year, which was primarily due to increased R&D personnel and a one-off consolidation cost of RMB 470 million related to our certain game projects.

研發費用為人民幣 15 億元，同比增長 87%，這主要是由於研發人員的增加以及與我們某些遊戲項目相關的一次性整合成本人民幣 4.7 億元。

As we move through 2023, we will take additional actions to reduce our operational expenses. We think our overall operating expenses peaked in 2022 and will start to decline in 2023.

隨著 2023 年的到來，我們將採取更多行動來減少運營費用。我們認為我們的整體運營費用在 2022 年達到頂峰，並將在 2023 年開始下降。

Net loss and adjusted net loss was RMB 1.5 billion and RMB 1.3 billion, narrowing by 29% and 21% year-on-year, respectively. Our net loss ratio in the fourth quarter was 24%, a very notable improvement from 36% for the same period a year ago. We expect to continue to narrow our losses in 2023.

淨虧損和調整後淨虧損分別為人民幣15億元和人民幣13億元，同比分別收窄29%和21%。我們第四季度的淨虧損率為 24%，與去年同期的 36% 相比有了非常顯著的改善。我們預計 2023 年將繼續收窄虧損。

Turning to our capital allocation and liability management. we are keenly aware of our cash reserves and have taken steps to improve our balance sheet, which gives us the flexibility we need to reach our breakeven target by 2024. We are actively managing our liabilities and to improve our balance sheet.

轉向我們的資本配置和負債管理。我們敏銳地意識到我們的現金儲備，並已採取措施改善我們的資產負債表，這為我們提供了到 2024 年實現盈虧平衡目標所需的靈活性。我們正在積極管理我們的負債並改善我們的資產負債表。

In the fourth quarter, we repurchased and retired a total principal amount of USD 547 million notes for a total cash consideration of USD 420 million. As a part of our liability management plan, in January 2023, we completed USD 409 million equity offerings and note exchange program. We retired a principal amount of USD 385 million of convertible notes for a consideration of USD 331 million cash funded by this offering. The remaining USD 69 million in proceeds were used to replenish our cash reserves. After these transactions, we currently have 3 outstanding CBs that totaled USD 1.6 billion.

第四季度，我們回購併收回了本金總額為 5.47 億美元的票據，總現金對價為 4.2 億美元。作為負債管理計劃的一部分，我們於 2023 年 1 月完成了 4.09 億美元的股權發行和票據交換計劃。我們收回本金 3.85 億美元的可轉換票據，換取本次發行融資的 3.31 億美元現金。剩餘的 6900 萬美元募集資金用於補充我們的現金儲備。在這些交易之後，我們目前有 3 個未償還的可轉換債券，總額為 16 億美元。

As of December 31, 2022, we had a cash and cash equivalents, time deposits and short-term investments of RMB 19.6 billion or USD 2.8 billion. We believe this amount is sufficient to cover all of our remaining convertible bonds and fund our future operations while we take further action to narrow our losses and reach non-GAAP breakeven by 2024. With that in mind, we are currently projecting net revenues for the full year of 2023 to be between RMB 24 billion and RMB 26 billion.

截至 2022 年 12 月 31 日，我們擁有現金及現金等價物、定期存款和短期投資 196 億元人民幣或 28 億美元。我們認為這一數額足以支付我們所有剩餘的可轉換債券並為我們未來的運營提供資金，同時我們將採取進一步行動以縮小虧損並在 2024 年之前實現非 GAAP 盈虧平衡。考慮到這一點，我們目前預計淨收入為2023 年全年將在 240 億元至 260 億元之間。

Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

感謝您的關注。我們現在想打開您的問題的電話。接線員，請繼續。

(Operator Instructions) Our first question comes from the line of Daniel Chen from JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Daniel Chen。

(foreign language) So my question is on the 2023 outlook. So with the macro economy gradually recovering, so what's our core business strategy in 2023? And what are the key focus point from a management point of view?

（外語）所以我的問題是關於 2023 年的展望。那麼隨著宏觀經濟逐漸復蘇，那麼我們2023年的核心業務戰略是什麼？從管理的角度來看，重點是什麼？

(foreign language)

（外語）

[Interpreted] Starting from last year, we've noticed that the Internet industry has entered into a new era. Every company is more focused on the quality of the growth, the quality of revenue as well as improving gross margin and focus on cash flow. Not just Chinese Internet company, we noticed many U.S. companies are doing the same thing.

【解讀】從去年開始，我們注意到互聯網行業進入了一個新時代。每家公司都更關注增長質量、收入質量以及提高毛利率和現金流。不僅僅是中國互聯網公司，我們注意到很多美國公司也在做同樣的事情。

(foreign language)

（外語）

[Interpreted] As for us, our key objective for 2023 would be to grow our top line and narrow our losses and focus to achieve higher quality of user growth.

[解讀]至於我們，我們 2023 年的主要目標是增加我們的收入並減少我們的損失，並專注於實現更高質量的用戶增長。

(foreign language)

（外語）

[Interpreted] This will be our long-term strategy. It will not changing because the change of the environment. But of course, as you mentioned, the recovery of the overall economy will help us better executing on this strategy.

[解讀]這將是我們的長期戰略。它不會因為環境的改變而改變。當然，正如你所說，整體經濟的複蘇將有助於我們更好地執行這一戰略。

(foreign language)

（外語）

[Interpreted] Overall, our business will be more focused. There will be 2 important tasks. One is to increase our top line and narrow our loss. Number two is to increase our DAU.

【解讀】總體來說，我們的業務會更加專注。將有2個重要任務。一是增加我們的收入並縮小我們的損失。第二是增加我們的 DAU。

(foreign language)

（外語）

[Interpreted] Number one task, increase our top line. When I say increase our top line, I'm referring to the increase of top line as well as our gross profit. We'll be focusing on improving our gross margin and narrowing our losses.

[解讀] 第一項任務，增加我們的收入。當我說增加我們的收入時，我指的是增加收入以及我們的毛利潤。我們將專注於提高毛利率和縮小虧損。

In the fourth quarter, we've achieved gross margin improvement from a year-over-year and quarter-over-quarter basis. We also narrowed our net loss by 29% year-over-year. We expect that, in 2023, our overall net loss will narrow more meaningfully and to achieve our breakeven target by 2024.

在第四季度，我們實現了毛利率同比和環比的改善。我們還將淨虧損同比收窄了 29%。我們預計，到 2023 年，我們的整體淨虧損將進一步收窄，並在 2024 年實現盈虧平衡目標。

(foreign language)

（外語）

[Interpreted] On the user aspect, we will no longer just pursue the absolute number of MAU, but rather to focus on the growth of our DAU, as well as the sales conversion of each DAU that can bring to the company.

【解讀】在用戶方面，我們不再只追求MAU的絕對數量，而是關注我們DAU的增長，以及每個DAU能給公司帶來的銷售轉化。

(foreign language)

（外語）

[Interpreted] In 2023, we are expecting our DAU-to-MAU ratio will continue to improve. Currently, we're at 28%. We expect to increase to 30% level.

[解讀] 2023 年，我們預計我們的 DAU 與 MAU 比率將繼續改善。目前，我們的比例為 28%。我們預計會增加到 30% 的水平。

(foreign language)

（外語）

[Interpreted] This will mean better engagement, better stickiness of our company as well as higher commercialization potential.

[解讀]這將意味著更好的參與度、更好的公司粘性以及更高的商業化潛力。

(foreign language)

（外語）

[Interpreted] I still want to emphasize that our community and content ecosystem is the cornerstone of our business. No matter what kind of strategy, the community and the content ecosystem is the foundation of the business.

[解讀]我還是要強調，我們的社區和內容生態系統是我們業務的基石。無論哪種策略，社區和內容生態系統都是業務的基礎。

(foreign language)

（外語）

[Interpreted] In this year, we'll be celebrating our 14th anniversary. And in the past 14 years, we have experienced 3 industry cycle, which is the mobile PC era, mobile era, and as we're going through the AI-powered era. No matter how the technology industry is evolving, for Bilibili, the community and the PUGV content ecosystem aspect is what has kept us going while others come and go.

[解讀] 今年，我們將慶祝成立 14 週年。在過去的14年裡，我們經歷了3個行業周期，即移動PC時代、移動時代，以及我們正在經歷的人工智能時代。無論科技行業如何發展，對於嗶哩嗶哩來說，社區和 PUGV 內容生態系統是我們前進的動力，而其他人則來來去去。

(foreign language)

（外語）

[Interpreted] We believe the value of high-quality content. We also believe in the value of the high-talented content creator can bring. That is the biggest moat for our business. It is also the biggest competitive advantage that we own in this ever-changing landscape.

[解讀]我們相信高質量內容的價值。我們也相信才華橫溢的內容創作者可以帶來的價值。這是我們業務的最大護城河。這也是我們在這個不斷變化的環境中擁有的最大競爭優勢。

(foreign language)

（外語）

[Interpreted] We believe in that our unique content ecosystem can continuously generate high-quality content and talented content creator. And the value of this content that bring to Bilibili is our core competitiveness. We'll continue to cultivate that and continue to build on that and bring high-quality growth to our company.

[解讀]我們相信，我們獨特的內容生態系統可以不斷產生高質量的內容和有才華的內容創作者。而這些內容帶給嗶哩嗶哩的價值，就是我們的核心競爭力。我們將繼續培養這一點，並繼續以此為基礎，為我們的公司帶來高質量的增長。

Next question comes from the line of Xueqing Zhang from CICC.

下一個問題來自中金張雪慶的專線。

(foreign language) My question in regards to financial outlook. As Rui mentioned before, we see the company's gross margin has continued to increase in the past few quarters. So how does management think about the trend of margin in 2023? And since we view the full year revenue guidance, what's the growth of each segment does it imply? And lastly, on the bottom line, what's the outlook for the net loss narrowing in detail?

（外語）我關於財務前景的問題。正如 Rui 之前提到的，我們看到公司的毛利率在過去幾個季度持續增長。那麼管理層如何看待2023年的利潤率趨勢呢？由於我們查看了全年收入指引，這意味著每個細分市場的增長情況如何？最後，最重要的是，淨虧損收窄的前景如何？

Yes, this is Sam. I will take your question. As Mr. Chen mentioned, the key objective of the company for this year is to improve our gross margin and narrow our loss. So that's why for 2023 revenue guidance, we are cutting down low-margin business, such as e-sports content, [licensing] revenue business and certain low-margin e-commerce business.

是的，這是山姆。我會回答你的問題。正如陳總所說，公司今年的主要目標是提高毛利率，縮小虧損。這就是為什麼對於 2023 年收入指導，我們正在削減低利潤業務，例如電子競技內容、[許可] 收入業務和某些低利潤電子商務業務。

As a result, we expect our e-commerce and other revenue line for 2023 to decline by mid 20% to 30%. However, we expect the gross margin and the gross profit for e-commerce and other business to improve year-over-year. And for the non-e-commerce business revenue, including our games, VAS and advertising, if we combine these together, we still expect to grow by 20%-plus year-over-year in 2023.

因此，我們預計 2023 年我們的電子商務和其他收入線將下降 20% 至 30% 中期。然而，我們預計電子商務和其他業務的毛利率和毛利潤將同比提高。對於非電子商務業務收入，包括我們的遊戲、增值服務和廣告，如果我們將這些結合在一起，我們仍然預計 2023 年將同比增長 20% 以上。

And in regarding to the gross profit. Overall, the increase of the revenue will drive the increase of the gross margin, especially for certain fixed costs, such as server and bandwidth, staff costs and content costs. In 2023, as I mentioned, we will be more selective and ROI-focused in terms of the content investment. We also expect the percentage of the server and bandwidth cost start to decline.

而在毛利方面。總體而言，收入的增加將推動毛利率的增加，尤其是某些固定成本，如服務器和帶寬、員工成本和內容成本。正如我提到的，在 2023 年，我們將在內容投資方面更具選擇性和關注投資回報率。我們還預計服務器和帶寬成本的百分比將開始下降。

In terms of the revenue-sharing costs, we expect each business line's gross margin will improve year-over-year. As high-margin business gradually increase their contribution, there will be more meaningful improvement on revenue-sharing cost.

在收入分成成本方面，我們預計各業務線的毛利率將同比提高。隨著高毛利業務的貢獻逐漸增加，收益分成成本將有更有意義的改善。

For OpEx, total OpEx had peaked in 2022. We expect OpEx will start to decline in 2023. We cut sales and marketing expenses by 15% in 2022. We expect further cost cuts down for sales and marketing in 2023. Meanwhile, G&A and R&D expenses in terms of the absolute dollar amount will also decline slightly in 2023. We expect our gross margin to gradually improve to mid 20s throughout 2023, and we also expect meaningfully narrowed our non-GAAP operating loss in 2023.

對於 OpEx，總 OpEx 在 2022 年達到頂峰。我們預計 OpEx 將在 2023 年開始下降。我們將 2022 年的銷售和營銷費用削減 15%。我們預計 2023 年將進一步削減銷售和營銷成本。同時，G&A 和 R&D 2023 年，按絕對美元金額計算的費用也將略有下降。我們預計我們的毛利率將在整個 2023 年逐步提高至 20 多歲，我們還預計 2023 年我們的非 GAAP 營業虧損將大幅收窄。

The next question comes from the line of Yiwen Zhang from China Renaissance.

下一個問題來自華興資本張藝文的台詞。

(foreign language) So my question is on the advertisement. Can you discuss about the outlook of ad market in 2023? And what kind of change are we seeing?

（外語）所以我的問題是關於廣告的。能否談談2023年廣告市場的前景？我們看到了什麼樣的變化？

And secondly, on the product side, can you give us the latest update on the Story Mode? And what kind of development should we expect on our ad business on the product side?

其次，在產品方面，能給我們介紹一下故事模式的最新進展嗎？我們在產品端的廣告業務應該期待什麼樣的發展？

(foreign language)

（外語）

[Interpreted] Firstly, on the Story Mode, our multiscreen and multi-scenario is one of our key strategy that's driving Bilibili's user growth. The 28% DAU-to-MAU ratio and 96 minutes daily user time spend means the strategy is working effectively.

[解讀]首先，在故事模式上，我們的多屏多場景是我們推動嗶哩嗶哩用戶增長的關鍵戰略之一。 28% 的 DAU 與 MAU 比率和 96 分鐘的每日用戶時間花費意味著該策略正在有效運作。

(foreign language)

（外語）

[Interpreted] Story Mode as a newly added scenario is an important supplement to our existing PUGV, OGV, like broadcasting and big screen OTT scenario. We noticed that since the launch of Story Mode, it has played a vital role in terms of increasing user engagement, especially for users who are not as active. It has also helped us to attract new content creators across the video industry. At the same time, it has driven better-than-expected increase in terms of video views as well as user time spend. Story Mode has essentially allowed users to access their favorite Bilibili content anytime, anywhere.

【解讀】故事模式作為新增的場景，是對我們現有的PUGV、OGV等直播、大屏OTT場景的重要補充。我們注意到，自故事模式推出以來，它在提高用戶參與度方面發揮了至關重要的作用，尤其是對於不太活躍的用戶而言。它還幫助我們吸引了整個視頻行業的新內容創作者。與此同時，它在視頻觀看次數和用戶時間花費方面的增長都好於預期。故事模式實質上讓用戶可以隨時隨地訪問自己喜歡的嗶哩嗶哩內容。

(foreign language)

（外語）

[Interpreted] Bilibili has always put high quality content and content creator at top priority. Since inception, PUGV ecosystem has maintained a very healthy growth. When we are mentioning the store mode grow at a fast pace, don't forget that PUGV also grew by 50% year-on-year and maintained a very healthy growth rate.

【解讀】嗶哩嗶哩一直將優質內容和內容創作者放在首位。自成立以來，PUGV 生態系統一直保持著非常健康的增長。當我們提到門店模式的快速增長時，別忘了PUGV也同比增長了50%，保持著非常健康的增長速度。

(foreign language)

（外語）

[Interpreted] Whether as creator or content consumer, their need for high-quality content will evolve, so will their sense of style. We think that Story Mode has served a very good vessel to carry PUGV content to support our ever-growing ecosystem. In addition, the combination of Story Mode traffic and our existing ecosystem has helped us to increase our ad efficiency, and this has also brought new commercial opportunity for live broadcasting and advertising.

[解讀]無論是作為創作者還是內容消費者，他們對高質量內容的需求都會發生變化，他們的風格感也會發生變化。我們認為故事模式是承載 PUGV 內容以支持我們不斷發展的生態系統的非常好的載體。此外，故事模式流量與我們現有生態的結合，幫助我們提升了廣告投放效率，這也為直播和廣告帶來了新的商業機會。

(foreign language)

（外語）

[Interpreted] As you may already aware, it has been a very challenging market for advertising in 2022. The overall ad market only had low single-digit growth. And under this challenging market, we are continuing to gain market share. For Bilibili's full year advertising revenue, we have reached RMB 5 billion.

【解讀】你可能已經知道，2022年的廣告市場是一個非常具有挑戰性的市場。整個廣告市場只有較低的個位數增長。在這個充滿挑戰的市場下，我們正在繼續獲得市場份額。嗶哩嗶哩全年廣告收入達到50億元人民幣。

(foreign language)

（外語）

[Interpreted] As for 2023, there has been a recovery of confidence for advertisers. Maybe overall industry can achieve a double-digit growth, we will see that. However, we also noticed that for all advertisers, they will be more conscious and we'll be focusing more on the core value of their ads investment and their ads investment efficiency.

[解讀]至於2023年，廣告商的信心有所恢復。也許整個行業可以實現兩位數的增長，我們會看到的。但是，我們也注意到，對於所有的廣告主來說，他們會更加自覺，我們會更加關注他們廣告投資的核心價值和他們的廣告投資效率。

(foreign language)

（外語）

[Interpreted] The key reason for advertisers to invest in ads, we have categorized for 3 main areas. One is new product launch, number two is brand rejuvenation, number three is continuously to increase their brand perception and drive sales conversion. The advantage for Bilibili advertising is that we can cover all above 3 core needs, and we are confident our ads growth rate will beat the industry growth rate.

[解讀]廣告商投資廣告的主要原因，我們歸類為3個主要領域。一是新品發布，二是品牌年輕化，三是不斷提升品牌知名度，帶動銷售轉化。嗶哩嗶哩廣告的優勢在於我們可以覆蓋以上三個核心需求，我們有信心我們的廣告增長率將超過行業增長率。

(foreign language)

（外語）

[Interpreted] In 2023, we will be looking to upgrade our sales model for different industry verticals. We believe the integrated marketing will continue to be our long-term growth driver. For our leading industry verticals, we'll continue to build high barriers and upgrade full ad product matrix, such as for games, 3C and digital product.

[解讀] 2023 年，我們將針對不同的垂直行業尋求升級我們的銷售模式。我們相信整合營銷將繼續成為我們的長期增長動力。對於我們領先的垂直行業，我們將繼續構建高壁壘併升級全廣告產品矩陣，例如游戲、3C 和數字產品。

Take games for an example. Bilibili has the largest gamer and game content community in China, and with near-90 million unique users consume content, game content, on a monthly basis. We think the recent regularization of [bang hao] is also a favorable tailwind for us.

以遊戲為例。嗶哩嗶哩擁有中國最大的遊戲玩家和遊戲內容社區，每月有近 9000 萬獨立用戶消費遊戲內容。我們認為最近 [bang hao] 的正規化對我們來說也是一個有利的順風。

In Q1, we have unified the OKRs for 3 key game teams, including game distribution, game ads and game content in order to provide a more comprehensive service to game companies and improve the efficiency for game distribution. Our goal is to enable every game company to reach their target audiences in time and also achieve long operation cycle and higher conversion rate on Bilibili.

Q1我們統一了遊戲發行、遊戲廣告、遊戲內容3個重點遊戲團隊的OKR，為遊戲公司提供更全面的服務，提高遊戲發行效率。我們的目標是讓每個遊戲公司都能及時觸達目標受眾，同時在嗶哩嗶哩上實現長運營週期和高轉化率。

(foreign language)

（外語）

[Interpreted] Secondly, we expect to further gain market share and attract larger budget from areas like e-commerce, automotive and general FMCGs.

[解讀]其次，我們預計將進一步獲得市場份額，並從電子商務、汽車和一般快速消費品等領域吸引更多預算。

Take e-commerce, for example. Bilibili is --

以電子商務為例。嗶哩嗶哩是——

Hello? Hello, operator?

你好？你好，接線員？

Please carry on.

請繼續。

Yes, we were disconnected for a second.

是的，我們斷開了一秒鐘。

We were saying that Bilibili is the only video community who is open about e-commerce collaboration. Last year, together with Alibaba, Pinduoduo and JD, we have optimized our brand-feeding conversion model on top of our traditional brand and performance ads. In 2022, over 1,000 new brands and over 10,000 SKUs have debuted on Bilibili through (foreign language) function, which also recorded better-than-expected performance-based ads revenue.

我們說嗶哩嗶哩是唯一一個開放電商合作的視頻社區。去年，我們與阿里巴巴、拼多多和京東一起，在傳統品牌和效果廣告的基礎上優化了品牌饋送轉化模型。 2022年，嗶哩嗶哩通過（外語）功能新上線品牌超過1000個，SKU超過10000個，效果廣告收入也好於預期。

We will continue to integrate video and e-commerce -- live broadcasting e-commerce system and explore Bilibili's unique open loop transaction model. We also expect to quickly expand our market share in e-commerce ads and their budgets this year.

我們將繼續融合視頻與電商——直播電商系統，探索嗶哩嗶哩獨有的開環交易模式。我們還希望在今年迅速擴大我們在電子商務廣告和預算方面的市場份額。

(foreign language)

（外語）

[Interpreted] On top of all that, we are also working to improve our algorithm infrastructure and invest in AIGC application and also improve our data capacity to provide our customers with more scientific marketing data point. Also, we'll continue to explore more ad scenario, [intense] ad-friendly atmosphere in our community. All of which are the right thing to do, and we have -- that's what we have done in 2022 and will continue to carry into 2023.

[解讀]除此之外，我們也在努力完善我們的算法基礎設施，投資AIGC應用，提升我們的數據能力，為我們的客戶提供更科學的營銷數據點。此外，我們將繼續探索更多的廣告場景，在我們的社區中[強烈的] 廣告友好氛圍。所有這些都是正確的做法，我們已經——這就是我們在 2022 年所做的，並將繼續延續到 2023 年。

Our next question comes from the line of Lei Zhang from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的張磊。

(foreign language) My question is mainly about your game business. Can you share with us your in-house game strategy and outlook? And any new game we can expect after the resume of game licensing?

（外語）我的問題主要是關於你們的遊戲業務。您能與我們分享您的內部遊戲戰略和前景嗎？恢復遊戲授權後，我們可以期待什麼新遊戲？

(foreign language)

（外語）

[Interpreted] We have entered a new era for game business last year. [bang hao] is one of the reasons. Another reason was the increasing penetration rate for mobile gamers in China. And also, gamers' evolving taste and their increasing demand for higher-quality games are also shaping the overall games industry. As production cost rises, the success rate for games is declining.

【解讀】去年我們進入了遊戲業務的新時代。 [bang hao]是原因之一。另一個原因是中國移動遊戲玩家的滲透率不斷提高。此外，遊戲玩家不斷變化的品味和他們對更高質量遊戲的日益增長的需求也在塑造整個遊戲行業。隨著製作成本的上升，遊戲的成功率正在下降。

(foreign language)

（外語）

[Interpreted] In the era of lower gamer penetration rate, it's easy to make money for game company as long as they have good quality of titles. However, we believe in this new era, there will only be 2 kinds of games can make money and succeed. One is the super mega titles, number two would be the #1 title in a segment/genre because it will have a longer life cycle. And only the two kinds of games will be able to gain market share and survive in this new era.

【解讀】在遊戲滲透率較低的時代，遊戲公司只要遊戲質量好，賺錢就輕而易舉。但是，我們相信在這個新時代，只有兩種遊戲能夠賺錢並取得成功。一個是超大型遊戲，第二個是細分/類型中排名第一的遊戲，因為它的生命週期更長。只有這兩種遊戲才能在這個新時代獲得市場份額並生存下來。

(foreign language)

（外語）

[Interpreted] Bilibili's game strategy is designed to serve the market -- the next market trend -- the market trend in the next few years. We will be firmly executing the strategy of develop in-house and distribute globally. This will be the must-to-dos for the next industry cycles because only global distribution can cover the increase in production cost, and only the highest quality of games have -- will have more operation cycle, hence, to achieve higher ROI.

【解讀】嗶哩嗶哩的遊戲策略是為市場——下一個市場趨勢——未來幾年的市場趨勢服務的。我們將堅定執行自主研發、全球佈局的戰略。這將是下一個行業周期必須做的事情，因為只有全球發行才能覆蓋生產成本的增加，只有最高質量的遊戲才會有更多的運營週期，從而獲得更高的投資回報率。

(foreign language)

（外語）

[Interpreted] In terms of genre, we will be more focused. Whether it's a jointly operated game or our self-development game, we will be focused on the area that we hold the most advantage. The ACG card game will be one of the key game genres we'll be focusing on. And also, we'll be looking to cut down the number of projects we will be developing and focus our best resources on limited cost.

【解讀】在類型上，我們會更加專注。無論是共同運營的遊戲還是我們自己開發的遊戲，我們都會專注於我們最有優勢的領域。二次元卡牌遊戲將是我們重點關注的遊戲類型之一。而且，我們希望減少我們將要開發的項目數量，並將我們最好的資源集中在有限的成本上。

(foreign language)

（外語）

[Interpreted] But from a results perspective, the investment we made in self-development games is starting to bear fruit. In 2022, our self-development games revenue is already contributing about 5% of total game revenue. We expect this ratio will continue to increase in 2023.

【解讀】但從結果來看，我們在自研遊戲上的投入開始見效。 2022年，我們的自研遊戲收入已經貢獻了遊戲總收入的5%左右。我們預計這一比例將在 2023 年繼續增加。

(foreign language)

（外語）

[Interpreted] As for the [bang hao], we believe the releasing bang hao has already been normalized. There has been quite regular for domestic bang hao to be released on a monthly basis. We have also noticed that in the imported titles, there has also been a batch that's been approved. So we believe that this has been an industry tailwind favorable to Bilibili. Not only our self-developed games, it's also being -- it will also be favorable for our game jointly operation, as well as for our game advertising business.

[解讀]至於[bang hao]，我們相信釋放bang hao已經常態化了。國內的棒棒包月發已經很規律了。我們也注意到，在導入的片名中，也出現了一批通過審核的片名。因此，我們認為這一直是有利於嗶哩嗶哩的行業順風。不僅是我們自主開發的遊戲，它還有利於我們的遊戲聯合運營，以及我們的遊戲廣告業務。

(foreign language)

（外語）

[Interpreted] Also, we are looking to launch 2 self-development titles in the second quarter this year (technical difficulty)

[解讀] 另外，我們希望在今年第二季度推出 2 款自主開發的遊戲（技術難度）

Please remain on the line. Your conference will resume shortly.

請保持在線。您的會議將很快恢復。

(technical difficulty)

（技術難度）

Hello? Operator, next question, please. Can you hear me?

你好？接線員，請問下一個問題。你能聽到我嗎？

Our next question comes from Lincoln Kong from Goldman Sachs.

我們的下一個問題來自高盛的 Lincoln Kong。

(foreign language) So my question is about AIGC. So basically, this is a pretty hot theme for this year. Can management elaborate a bit more, how we think Bilibili can apply in the whole AIGC front? And the potential on the product and monetization opportunity?

（外語）所以我的問題是關於 AIGC。所以基本上，這是今年非常熱門的主題。管理層能否詳細說明一下，我們認為 Bilibili 如何應用於整個 AIGC 前端？以及產品和貨幣化機會的潛力？

(foreign language)

（外語）

[Interpreted] I believe that the opportunity that AIGC can bring is a mega event, not only for the industry players, but for the whole society to pay attention. We believe it will bring a huge productivity increase in terms of content generation.

【解讀】我相信AIGC能帶來的機遇是一件大事，不僅是業內人士，更值得全社會關注。我們相信它將在內容生成方面帶來巨大的生產力提升。

First, an analogy would be the invention of the mobile phone camera. It has allowed everyone to record video anytime, anywhere. And the AIGC can help to increase the productivity of those content and significantly lower the production cost.

首先，類比手機攝像頭的發明。它讓每個人都可以隨時隨地錄製視頻。而 AIGC 可以幫助提高這些內容的生產率並顯著降低生產成本。

(foreign language)

（外語）

[Interpreted] We believe it has brought a very big opportunity for Bilibili as well as for many other players in this industry. But especially so for Bilibili is because, for one, we are a massive content platform. Number two, we are a UGC platform.

[解讀]我們相信這為嗶哩嗶哩以及該行業的許多其他參與者帶來了非常大的機會。但對嗶哩嗶哩來說尤其如此，一方面是因為我們是一個龐大的內容平台。第二，我們是一個 UGC 平台。

(foreign language)

（外語）

[Interpreted] First aspect would be on the search front. The ChatGPT-similar experience will help users to find the video that they want more efficiently, such as product reviews.

[解釋] 第一個方面是在搜索方面。類似 ChatGPT 的體驗將幫助用戶更高效地找到他們想要的視頻，例如產品評論。

Let's say people want to look for a new Airpods review. For Bilibili, who has our own data, we can easily accumulate and find and organize and structure the useful information and present to the user. And whether it's in the format of video clips or in the format of text, it will largely enhance the user experience when they use the search function.

假設人們想要尋找新的 Airpods 評論。對於擁有自己數據的嗶哩嗶哩來說，我們可以很容易地積累、查找、組織和結構化有用的信息並呈現給用戶。並且無論是視頻剪輯的格式還是文本的格式，都將在很大程度上提升用戶使用搜索功能時的體驗。

(foreign language)

（外語）

[Interpreted] As for Bilibili, because we have a massive amount of knowledge-related content and knowledge content in a constructive way, it has more time value. Even after a few years back, we can still find that historical videos that continues to generate views and bring value to users. The ChatGPT-like search experience will help us to enlarge the value of our historical video content, at the same time, to improve the consumption efficiency for our users.

【解讀】至於嗶哩嗶哩，因為我們有海量的知識相關內容和知識內容的建設性，所以更具有時間價值。即使在幾年後，我們仍然可以找到那些持續產生瀏覽量並為用戶帶來價值的歷史視頻。類ChatGPT的搜索體驗將幫助我們放大歷史視頻內容的價值，同時提高用戶的消費效率。

(foreign language)

（外語）

[Interpreted] In terms of content creation tools, we believe the AIGC can bring revolutionary experience that allow more users to start creating content. For example, the same material can be presented in different formats in different videos. And also allow many users, who used to just be content consumers, now they can easily create content like a professional.

【解讀】在內容創作工具方面，我們相信AIGC可以帶來革命性的體驗，讓更多的用戶開始創作內容。例如，相同的材料可以在不同的視頻中以不同的格式呈現。也讓很多以前只是內容消費者的用戶，現在可以像專業人士一樣輕鬆創建內容。

(foreign language)

（外語）

[Interpreted] Lastly, on virtual content creators. As you may know, Bilibili is already currently the largest virtual content creator platform in China. We have tens of thousands virtual content creator, virtual live broadcasters on Bilibili. AIGC can bring more automatic and more efficiency, more -- higher user experience to the virtual characters.

[解讀] 最後，關於虛擬內容創作者。眾所周知，嗶哩嗶哩已經是目前國內最大的虛擬內容創作者平台。我們在嗶哩嗶哩上有數以萬計的虛擬內容創作者、虛擬直播主。 AIGC可以為虛擬角色帶來更自動化、更高效、更高的用戶體驗。

For example, our virtual content host, Luo Tianyi, what AIGC can bring is transform her to a real person. And that will bring revolutionary experience for people who are a fan. And this is -- this has a massive imaginary space that what we can do with it. So we believe AIGC will serve very positive effects in terms of the virtual content creator, virtual live broadcasting host and the virtual idols that Bilibili can offer.

比如我們的虛擬內容主播洛天依，AIGC能帶來的就是把她變成一個真人。這將為粉絲帶來革命性的體驗。這就是——它有一個巨大的想像空間，我們可以用它來做些什麼。所以我們相信AIGC在嗶哩嗶哩可以提供的虛擬內容創作者、虛擬直播主播和虛擬偶像方面會起到非常積極的作用。

(foreign language)

（外語）

[Interpreted] As a platform who's connecting content creator with users, the evolution of production tool will serve very positive, bring very positive change to our platform. The change probably will be similar to the PC-to-mobile era. That's allowing more people to access the Internet, allow more users to be able to create content easily. And that's why our user has increased by tenfold in the past few years.

【解讀】作為一個連接內容創作者和用戶的平台，生產工具的進化將起到非常積極的作用，給我們的平台帶來非常積極的變化。這種變化可能類似於 PC 到移動時代。那就是讓更多的人訪問互聯網，讓更多的用戶能夠輕鬆地創建內容。這就是為什麼我們的用戶在過去幾年中增加了十倍。

And I'm personally very looking forward to the evolvement of AIGC tool in terms of improving the video production efficiency, allowing more people to create content more easily that will definitely serve Bilibili as a content platform the most.

而我個人非常期待AIGC工具在提高視頻製作效率方面的進化，讓更多人更輕鬆地創作內容，這絕對是最能為嗶哩嗶哩這個內容平台服務的。

Okay. I think that's the time we have for today. Operator, we can wrap up the call.

好的。我想這就是我們今天的時間。接線員，我們可以結束通話了。

Thank you. I'd now like to turn the conference back to management for any additional or closing comments.

謝謝。我現在想將會議轉回管理層，徵求任何其他或結束意見。

Well, thank you, everyone, for joining us today. If you have further questions, please feel free to contact our IR team or TPG Investor Relations. Our contact information was presented in the news released earlier -- that we issued earlier today.

好吧，謝謝大家今天加入我們。如果您還有其他問題，請隨時聯繫我們的 IR 團隊或 TPG 投資者關係部。我們的聯繫信息在我們今天早些時候發布的早些時候發布的新聞中有介紹。

Thank you, everyone, and have a great day. Bye-bye.

謝謝大家，祝你有美好的一天。再見。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。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]

[此記錄中標記為 [Interpreted] 的部分由現場通話中的口譯員口述]