Bilibili Inc (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.

大家好，歡迎參加嗶哩嗶哩2022財年第四季及全年業績及業務更新電話會議。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，我想將會議交給投資者關係執行總監Juliet Yang。請您發言。

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.

謝謝接線生。在本次電話會議中，我們將討論我們的業務前景並做出前瞻性陳述。這些評論是基於我們今天的預測和預期。由於一系列風險和不確定因素，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因素，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情況存在重大差異。

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.

我們提供的非公認會計準則 (Non-GAAP) 財務指標僅供比較之用。這些指標的定義及對帳表可在我們今天稍早發布的新聞稿中找到。溫馨提示：本次電話會議正在進行錄音。此外，投資人簡報和本次電話會議的網路直播回放將在嗶哩嗶哩投資者關係網站 ir.bilibili.com 上提供。

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.

今天與我們一起出席的嗶哩嗶哩高層管理人員包括董事會主席兼首席執行官陳睿先生、董事會副主席兼首席營運官李凱莉女士以及首席財務官範志軍先生。

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

現在我將把電話轉給范先生，他將代表陳先生宣讀準備好的演講稿。

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.

謝謝朱麗葉！也感謝大家參加我們2022年第四季及全年財務及營運業績電話會議。我很高興代表陳先生致今天的開場白。

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，我們主動調整策略，重新設定目標，以便更好地適應新的產業格局。具體來說，我們將重點放在DAU的成長和利潤上。

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.

深入探討我們在這兩方面的進展。首先，我們的用戶以及他們與社群的日常互動仍然是我們業務的基礎。透過專注於DAU的成長，我們正在為我們的平台帶來更高品質的用戶，這與我們的獲利潛力更加緊密地聯繫在一起。

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，我們的每日活躍用戶 (DAU) 增至 9,300 萬，較去年同期成長 29%。這使得我們的每日活躍用戶與每月活躍用戶之比達到 28%，較去年同期的 26% 顯著提升。平台平均每用戶每日使用長達 ​​96 分鐘，帶動平台總使用時間成長 51%。我們將繼續透過優化產品組合和演算法來提升每日活躍用戶，並透過控制銷售和行銷支出來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.

其次，我們提升了商業化效率，並加強了成本削減措施，使我們更接近獲利目標。 2022年，我們的總淨收入為人民幣219億元，第四季的總淨收入為人民幣61億元，較去年同期成長6%。第四季的毛利率從上一季的18%提升至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.

我們持續採取措施控制費用並提升組織效率。具體而言，第一季度，我們比去年同期削減了28%的銷售和行銷費用。銷售和行銷費用佔總淨收入的比重從去年同期的30%降至第四季的21%。我們也精簡了人員，並削減了非核心業務和業績不佳的業務。因此，第一季的非公認會計準則淨虧損較去年同期收窄21%，較上季收窄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.

邁入2023年，我們的營運目標是成為一家更有效率的公司。我們將集中資源，專注於規模較小但更重要的任務。具體來說，我們計劃繼續增加每日活躍用戶 (DAU)，提高毛利率，並縮減開支。我們正在積極落實這些措施。我們相信，我們正朝著正確的方向前進，並有望在2024年實現損益平衡。

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.

在概述了我們的策略方針和進展之後，我現在想簡要介紹我們的三大核心支柱：內容、社群和商業化。

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.

首先從內容開始。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，我們的平台擁有380萬名內容創作者，較去年同期成長25%。創作者提交的影片數量為1760萬個，年增62%，這兩個數據均按月計算。

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.

為了鼓勵更多用戶將想法轉化為創作，我們將提供更多易於使用的工具，幫助潛在創作者起步。同時，更多流量將流向中長尾創作者。我們的目標是將更多用戶轉化為創作者，從而推動我們的內容供應和用戶參與。

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.

內容場景的拓展也為嗶哩嗶哩帶來了更多流量。第四季度，每日影片總觀看量較去年同期成長77%，達到39億次。其中，故事模式每日影片觀看量較去年同期成長175%，PUGV影片觀看量在第一季成長了56%。故事模式幫助我們拓展了垂直影片市場，提升了每日活躍用戶（DAU），增加了用戶在平台上的停留時間，並為我們帶來了更多商業機會。

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.

為了釋放商業潛力，我們在2022年進一步整合了商業通路與內容生態系統。這項整合為內容創作者創造了更多沉浸式廣告機會和豐富的變現管道。第四季度，超過130萬名內容創作者透過嗶哩嗶哩的多種管道獲得收入，較去年同期成長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。我們包容的社群環境和不斷提升的互動工具正在讓使用者與平台之間的聯繫更加緊密。第四季度，用戶在嗶哩嗶哩的平均每日使用時長長達96分鐘。月互動量年增35%，達到136億次。對於我們社群的核心成員而言，第四季正式會員數達到1.95億，年增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展以及我們對未來的展望。第四季，我們的總淨收入達到人民幣61億元，年增6%，全年營收成長13%，達到人民幣219億元。我們現在更專注於提高商業化效率，特別是提升公司層面的毛利率。

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，我想進一步介紹一下我們各商業業務線的情況。首先是加值服務業務。第四季增值服務收入為人民幣23億元，全年營收為人民幣87億元，較去年同期成長24%和26%。尤其是直播業務，成長穩健。 2022年，直播收入成長超過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.

我們將直播融入視訊生態系統的策略，吸引了更多創作者進入直播領域。這有助於我們滲透更多視訊用戶，實現付費用戶轉化，並有機優化我們的收入分成結構。第四季度，每月活躍主播數量較去年同期成長超過70%，直播月付費用戶成長超過40%，兩者皆較去年同期成長。

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成長動力之一。我們預計將優化收入分成比例，進一步提升直播毛利率。截至第四季末，我們的高級會員較上一季新增近100萬，總會員數達到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.

期內，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，我們共同製作的中國傳統風格圖畫動漫《中國奇譚》大獲成功，在我們平台上的影片觀看次數超過2億次。

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年持續提升市場佔有率。廣告收入成長了12%，達到人民幣51億元，第四季達到人民幣15億元。第一季度，我們表現最佳的垂直領域包括手機遊戲、電商、數位產品及家電、汽車以及保養品和化妝品。 2022年，我們將進一步開放我們的生態系統，在各種影片觀看場景中抓住更多廣告機會。

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以及改進的銷售轉換模組，證明了我們在效果廣告方面的成功，並帶來了更高的投資報酬率。第四季度，我們的效果廣告收入年增超過50%。此外，隨著用戶日漸成熟併步入新的人生階段，他們的新消費需求（例如汽車和家電）也吸引了更多廣告主，他們的廣告預算也已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善我們的廣告基礎設施，並進一步將我們的廣告能力融入我們的內容生態系統。

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.

轉型遊戲。全年收入為人民幣50億元，第四季營收為11億元。我們致力於自主開發、全球發行的策略。第四季度，我們重組了遊戲開發架構，以有效實現這一目標。具體而言，我們淘汰了表現不佳的自研項目，並將資源集中在我們已具備優勢的遊戲類型。

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，我們的自研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年繼續提升。

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.

回顧我們的產品線。我們計劃在今年第二季推出兩款自主研發的遊戲《士兵》和《艾莉西亞》，以及六款獨家授權的遊戲。隨著中國遊戲版號審批的逐步恢復，我們預計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.

總而言之，新的產業格局要求更有效率的營運。 2023年，我們將持續集中資源，提升日活躍用戶數，提高毛利率，並縮小虧損。在此過程中，我們將繼續加強執行力，縮減開支，並選擇性地投入研發，以提高商業化效率。

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.

透過這些措施，我們相信，我們正朝著實現財務目標的正確方向前進，並成為一個更強大、更具韌性、更有效率的組織。陳先生的演講到此結束。

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.

現在，我將簡要概述我們 2022 年第四季的財務表現以及 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.

第四季總淨收入為人民幣 61 億元，較 2021 年同期成長 6%。我們的總淨收入按收入來源細分為：增值服務約 38%，廣告約 25%，手機遊戲約 19%，電商及其他業務約 18%。

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.

營業成本較去年同期成長4%，至人民幣49億元。第一季毛利為人民幣12億元，毛利率為20.3%，季增2.1個百分點。憑藉我們嚴格控制的成本結構，我們預計2023年全年利潤率將持續提升。

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.

總營運費用為人民幣36億元，較2021年同期成長15%。在致力於提升商業前景的同時，我們也維持了精簡的成本結構。第四季度，我們的銷售和行銷費用較去年同期下降28%，至人民幣13億元，每日活躍用戶（DAU）較去年同期成長29%。銷售和行銷費用佔總收入的比例也從去年同期的30%降至21%。我們將繼續控制銷售和行銷費用，同時在2023年實現穩健的每日活躍用戶成長。

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.

一般及行政費用為人民幣8.70億元，較去年成長52%。此成長主要由於與組織架構調整相關的一次性離職補償人民幣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，年增 87%，主要由於研發人員增加以及與某些遊戲項目相關的一次性合併成本人民幣 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.

邁入2023年，我們將採取更多措施降低營運支出。我們認為，我們的整體營運支出在2022年達到峰值，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，較去年同期分別收窄29%和21%。第四季淨虧損率為24%，較去年同期的36%顯著改善。我們預計2023年淨虧損將持續收窄。

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.

談到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，我們回購並贖回了本金總額為5.47億美元的票據，總現金對價為4.2億美元。作為負債管理計畫的一部分，我們於2023年1月完成了4.09億美元的股票發行和票據交換計畫。我們贖回了本金總額為3.85億美元的可轉換票據，對價為本次發行提供的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。完成這些交易後，我們目前有3張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，我們的現金及現金等價物、定期存款及短期投資為人民幣196億元（約28億美元）。我們相信，這筆資金足以涵蓋我們所有剩餘的可轉換債券，並為未來營運提供資金，同時我們將採取進一步措施，縮小虧損，並在2024年前實現非公認會計準則損益平衡。考慮到這一點，我們目前預計2023年全年淨收入將在人民幣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.

謝謝您的關注。現在我們開始回答您的問題。接線員，請繼續。

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

（操作員指示）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）我的問題是關於2023年的展望。隨著宏觀經濟逐漸復甦，我們2023年的核心業務策略是什麼？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，我們注意到網路產業進入了一個新時代。每家公司都更重視成長品質、營收質量，以及提升毛利率和關注現金流。不只是中國網路公司，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] 對我們來說，2023 年的主要目標是增加收入、縮小虧損，並專注於實現更高品質的用戶成長。

(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.

[翻譯] 這將是我們的長期策略。它不會因為環境的改變而改變。當然，正如您所說，整體經濟的復甦將有助於我們更好地執行這項策略。

(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] 整體而言，我們的業務將更加專注。主要有兩項重要任務。一是增加營收，縮小虧損。二是增加每日活躍用戶 (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.

[翻譯] 首要任務是提高我們的營收。我所說的提高營收，指的是營收和毛利的成長。我們將專注於提高毛利率並縮小虧損。

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.

第四季度，我們的毛利率年比和季比均有所提升。淨虧損年減29%。我們預計，2023年整體淨虧損將進一步收窄，並在2024年實現損益平衡的目標。

(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]在使用者方面，我們不再僅僅追求MAU的絕對數量，而是關注我們DAU的成長，以及每個DAU能為公司帶來的銷售轉換。

(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] 我們預計，2023 年我們的每日活躍用戶與每月活躍用戶之比將持續提升。目前，該比率為 28%。我們預計該比率將提升至 30%。

(foreign language)

（外語）

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

[解讀]這意味著我們公司的參與度更高、黏性更強，商業化潛力也更高。

(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】我還是想強調一下，我們的社群和內容生態是我們業務的基石。無論什麼樣的策略，社區和內容生態都是業務的根基。

(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，我們將迎來成立14週年。過去14年，我們經歷了三個產業週期：行動PC時代、行動時代，以及我們正在經歷的AI時代。無論科技產業如何發展，對嗶哩嗶哩來說，社群和PUGV內容生態系統是我們在眾多競爭對手來來去去時得以持續發展的關鍵。

(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] 我們相信高品質內容的價值。我們也相信高素質內容創作者所能帶來的價值。這是我們業務最大的護城河，也是我們在這個瞬息萬變的產業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能夠持續產出高品質的內容和才華洋溢的內容創作者。這些內容為嗶哩嗶哩帶來的價值正是我們的核心競爭力。我們將繼續深耕並在此基礎上繼續發展，為公司帶來高品質的成長。

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

下一個問題來自中金公司的張學慶。

(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）我的問題是關於財務前景的。正如芮之前提到的，我們看到公司的毛利率在過去幾季持續上升。那麼管理階層如何看待2023年的利潤率趨勢呢？我們來看全年營收指引，這意味著每個部門的成長情況如何？最後，關於淨虧損收窄的具體前景如何？

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，我是 Sam。我來回答你的問題。正如陳先生所提到的，該公司今年的主要目標是提高毛利率並縮小虧損。因此，在 2023 年的收入預期中，我們削減了低利潤率的業務，例如電競內容、[授權] 收入業務以及某些低利潤率的電商業務。

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年電商及其他業務的收入將下降20%至30%。不過，我們預期電商及其他業務的毛利率和毛利將較去年同期提升。至於非電商業務的收入，包括遊戲、加值服務和廣告，如果將這些收入合併計算，我們仍預計2023年將年增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.

關於毛利，整體而言，收入的成長將推動毛利率的上升，尤其是某些固定成本，例如伺服器和頻寬、員工成本以及內容成本。正如我之前提到的，2023年，我們將在內容投資方面更加謹慎，並更加重視投資報酬率。我們預計伺服器和頻寬成本的佔比將開始下降。

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.

就收益分成成本而言，我們預期各業務線的毛利率將較去年同期提升。隨著高利潤業務的貢獻度逐步提升，收益分成成本將有更顯著的改善。

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.

對於營運支出，總營運支出在 2022 年達到高峰。我們預計營運支出將在 2023 年開始下降。我們在 2022 年將銷售和行銷費用削減了 15%。我們預計 2023 年銷售和行銷成本將進一步下降。同時，以絕對美元金額計算的一般及行政管理費用和研發費用在 2023 年也將小幅下降。我們預計我們的毛利率將在 2023 年逐步提高到 25% 左右，我們也預計 2023 年非 GAAP 營運虧損將大幅收窄。

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

下一個問題來自華興資本的張一文。

(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）我的問題是關於廣告的。能談談2023年廣告市場的前景嗎？我們又會看到什麼樣的改變？

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，您能告訴我們故事模式的最新進展嗎？我們的廣告業務在產品方面會有什麼發展？

(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，就故事模式而言，我們的多螢幕多場景策略是推動嗶哩嗶哩用戶成長的關鍵策略之一。 28%的每日活躍用戶與每月活躍用戶比率以及96分鐘的每日用戶使用時長表明，該策略正在有效發揮作用。

(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] 故事模式作為新增場景，是我們現有PUGV、OGV、直播和大螢幕OTT場景的重要補充。我們注意到，自從故事模式上線以來，它在提升用戶參與度方面發揮了至關重要的作用，尤其對那些不太活躍的用戶而言。它還幫助我們吸引了影片產業新的內容創作者。同時，它推動了影片觀看量和用戶使用時間長度的成長，超出了預期。故事模式讓使用者隨時隨地存取他們喜愛的嗶哩嗶哩內容。

(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】B站始終將優質內容和內容創作者放在第一位。自成立以來，PUGV 生態系統一直保持著非常健康的成長。當我們提到商店模式的快速成長時，別忘了 PUGV 也比去年同期成長了 50%，維持了非常健康的成長率。

(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] 無論是創作者或內容消費者，他們對高品質內容的需求都會不斷演變，他們的風格品味也會隨之改變。我們認為故事模式是承載PUGV內容的絕佳載體，能夠支援我們不斷發展的生態系統。此外，故事模式流量與我們現有生態系統的結合，幫助我們提升了廣告效率，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] 您可能已經知道，2022 年的廣告市場充滿挑戰。整體廣告市場僅實現了低個位數成長。在如此充滿挑戰的市場環境下，我們的市佔率仍在持續成長。嗶哩嗶哩全年廣告收入已達 50 億元。

(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] 展望2023年，廣告主的信心有所恢復。或許整個產業能夠實現兩位數的成長，我們拭目以待。然而，我們也注意到，所有廣告主的廣告意識都會增強，我們會更重視廣告投資的核心價值和廣告投資效率。

(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] 我們將廣告主投入廣告的主要原因歸結為三大面向：一是新品發布，二是品牌年輕化，三是持續提升品牌知名度並推動銷售轉換。嗶哩嗶哩廣告的優勢在於，我們能夠覆蓋以上三大核心需求，並且我們有信心我們的廣告成長率將超過行業平均水平。

(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，我們將著重於升級不同垂直產業的銷售模式。我們相信整合行銷將繼續成為我們長期的成長動力。對於我們領先的垂直產業，我們將繼續建立高壁壘，並升級全廣告產品矩陣，例如遊戲、3C和數位產品。

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，每月近9,000萬獨立用戶消費遊戲內容。我們認為，最近「幫好」的正規化對我們來說也是一個有利的推動力。

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.

第一季度，我們統一了遊戲發行、遊戲廣告、遊戲內容三個關鍵遊戲團隊的OKR，旨在為遊戲公司提供更全面的服務，提升遊戲發行效率。我們的目標是讓每家遊戲公司都能及時觸及目標受眾，並在B站實現更長的營運週期和更高的轉換率。

(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.

[翻譯] 其次，我們希望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大的預算。

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

以電子商務為例。嗶哩嗶哩是－

Hello? Hello, operator?

餵？餵，接線生？

Please carry on.

請繼續。

Yes, we were disconnected for a second.

是的，我們斷線了一會兒。

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.

我們之前說過，嗶哩嗶哩是唯一一個對電商合作持開放態度的視訊社群。去年，我們與阿里巴巴、拼多多和京東合作，在傳統的品牌廣告和成效廣告的基礎上，優化了品牌回饋轉換模式。 2022年，超過1000個新品牌和超過10000個SKU透過（外語）功能在嗶哩嗶哩上線，效果廣告收入也超出預期。

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.

我們將持續深耕視訊與電商的融合－打造直播電商體系，探索B站獨特的開放循環交易模式。我們也期待今年在電商廣告市場及廣告預算上能快速提升市場佔有率。

(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，我們也正在努力改善演算法基礎設施，投資 AIGC 應用，並提升數據能力，以便為客戶提供更科學的行銷數據點。此外，我們將繼續探索更多廣告場景，並在社區中營造[濃厚的]廣告友善氛圍。所有這些都是正確的做法，我們也在 2022 年這樣做了，並將在 2023 年繼續堅持下去。

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雷。

(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）我的問題主要關於你們的遊戲業務。能否分享一下你們的內部遊戲戰略和前景？遊戲授權恢復後，我們能期待哪些新遊戲推出？

(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.

[翻譯] 去年，我們進入了遊戲產業的新時代。 [bang hao] 就是原因之一。另一個原因是中國手遊玩家的普及率不斷提高。此外，玩家品味的不斷提升以及他們對更高品質遊戲日益增長的需求也在影響整個遊戲產業。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，只要遊戲品質好，遊戲公司就很容易賺錢。然而，我們認為在這個新時代，只有兩款遊戲能夠獲利並取得成功。一是超級熱門遊戲，二是某個細分市場/類型中排名第一的遊戲，因為它有更長的生命週期。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] Bilibili 的遊戲策略旨在服務市場—下一個市場趨勢—未來幾年的市場趨勢。我們將堅定執行「自主研發，全球發行」的策略。這將是下一個產業週期的必經之路，因為只有全球發行才能彌補製作成本的成長，而只有最高品質的遊戲才能擁有更長的營運週期，從而實現更高的投資回報率。

(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] 在遊戲類型方面，我們將更專注。無論是連動營運的遊戲還是自主研發的遊戲，我們都會專注於我們最有優勢的領域。 ACG卡牌遊戲將是我們重點關注的遊戲類型之一。此外，我們將減少開發專案的數量，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] 但從業績來看，我們在自研遊戲的投入已開始取得成效。 2022年，我們的自研遊戲收入已佔遊戲總收入的5%左右。我們預計這一比例在2023年將持續上升。

(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.

[翻譯] 至於[爆豪]，我們認為爆豪的發布已常態化。國產爆豪每月發布已經相當規律。我們也注意到，進口遊戲中也有一批已經獲準。因此，我們相信這對嗶哩嗶哩來說是一股利好行業順風。這不僅有利於我們自主研發的遊戲，也有利於我們的遊戲共同運作以及遊戲廣告業務。

(foreign language)

（外語）

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

[翻譯] 另外，我們計劃在今年第二季推出 2 款自主開發的遊戲（技術難度）

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

請保持通話。您的會議即將恢復。

(technical difficulty)

（技術難度）

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

餵？接線員，請問下一個問題。聽得見嗎？

Our next question comes from Lincoln Kong from Goldman Sachs.

我們的下一個問題來自高盛的林肯孔。

(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）我的問題是關於AIGC的。基本上，這是今年非常熱門的主題。管理階層能否詳細闡述一下，我們認為B站可以如何在整個AIGC領域發揮作用？以及在產品和獲利機會方面有哪些潛力？

(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帶來的機會是一場盛事，不僅對產業參與者，也值得全社會關注。我們相信它將帶來內容生產效率的巨大提升。

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，可以類比手機相機的發明。它讓每個人都能隨時隨地錄製影片。 AIGC 可以幫助提高這些內容的生產力，並顯著降低製作成本。

(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，這為嗶哩嗶哩以及業內許多其他參與者帶來了巨大的機會。尤其對嗶哩嗶哩而言，這尤其重要，因為：首先，我們是一個海量內容平台；其次，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.

[解讀] 第一個面向是搜尋方面。類似 ChatGPT 的體驗將幫助用戶更有效率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.

假設人們想搜尋新的 Airpods 評測。對於擁有自主資料的嗶哩嗶哩來說，我們可以輕鬆地累積、尋找、組織和建立有用的信息，並將其呈現給使用者。無論是影片還是文本，這都能大幅提升用戶使用搜尋功能的體驗。

(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] 對於嗶哩嗶哩而言，由於我們擁有大量的知識相關內容以及建設性的知識內容，這些內容更具時間價值。即使過了幾年，我們仍然可以找到那些持續產生觀看量並為用戶帶來價值的歷史影片。類似 ChatGPT 的搜尋體驗將幫助我們放大歷史影片內容的價值，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能帶來革命性的體驗，讓更多使用者能夠開始創作內容。例如，相同的素材可以以不同的格式呈現在不同的影片中。同時，許多過去只是內容消費者的用戶，現在也能像專業人士一樣輕鬆創作內容。

(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。大家可能知道，B站目前是中國最大的虛擬內容創作者平台。 B站上有數萬名虛擬內容創作者和虛擬主播。 AIGC可以為虛擬角色帶來更自動化、更有效率的體驗，以及更高的使用者體驗。

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.

例如我們的虛擬內容主播洛天依，AIGC 可以將她打造成一個真實的人。這將為粉絲帶來革命性的體驗。這為我們提供了巨大的想像空間。因此，我們相信 AIGC 將對 Bilibili 的虛擬內容創作者、虛擬直播主播和虛擬偶像產生非常積極的影響。

(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] 作為一個連結內容創作者和使用者的平台，創作工具的演進將帶來非常正面的改變。這種變化可能類似於PC到行動時代的轉變。這將使更多人能夠存取互聯網，讓更多用戶能夠輕鬆創作內容。這也是為什麼我們的用戶在過去幾年成長了十倍。

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.

我個人非常期待AIGC工具在提升影片製作效率方面的發展，讓更多人能夠更輕鬆地創作內容，這無疑將最有利於嗶哩嗶哩作為內容平台。

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

好的。我想我們今天的通話時間就到這裡了。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。現在，我想把會議交還給管理階層，請大家補充意見或結語。

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.

好的，感謝各位今天的參與。如果您還有其他問題，請隨時聯絡我們的投資者關係團隊或TPG投資者關係部門。我們的聯絡方式已在今天早些時候發布的新聞稿中公佈。

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

謝謝大家，祝大家有美好的一天。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。現在可以掛斷電話了。

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

[本記錄中標記為[已翻譯]的部分由現場翻譯人員朗讀]