Bilibili Inc (BILI) 2024 Q1 法說會逐字稿

Good day, and welcome to Bilibili First Quarter 2024 Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

大家好，歡迎參加嗶哩嗶哩2024年第一季財務業績及業務更新電話會議。今天的會議正在錄製中。現在，我想將會議交給投資者關係執行總監楊麗君。請開始。

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 the 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 measure we provide are for comparison purpose only. The definition of these measures and a reconciliation table are available in the news release we issued earlier today.

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。

As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the Bilibili's IR website at ir.bilibili.com.

溫馨提示：本次電話會議正在錄製中。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。

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 first quarter 2024 conference call to discuss our financial and operating results. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

謝謝朱麗葉，也謝謝大家參加我們2024年第一季的電話會議，討論我們的財務和營運表現。我很高興代表陳先生致今天的開場白。

2024 will be a turning point in our journey towards profitability. We are already steadily on this path, advancing both our financial profile and community growth in the first quarter.

2024年將是我們邁向獲利的轉捩點。我們已穩步邁向獲利之路，第一季的財務狀況和社區成長均有所提升。

Total revenues for the quarter came in at RMB 5.7 billion, up 12% year-over-year. Growth in our advertising and VAS revenues, in particular, accelerated at 31% and 17% year-over-year, respectively. With increasing revenue contribution from the higher-margin ad business and our continued efficient operations, we achieved a notable 45% year-over-year increase in our gross profit. And our gross profit margin reached 28.3% in the first quarter, compared with 21.8% in the same period last year, marking the seventh consecutive quarter of margin improvement. As a result， in the first quarter, our adjusted operating loss and adjusted net loss meaningfully narrow by 52% and 56% year over year, respectively. Meanwhile, we generated RMB 638 million in operating cash flow in the first quarter. The solid progress we have made is placing us firmly on track to reach our profitability goal this year.

本季總收入達人民幣57億元，年增12%。廣告收入和增值服務收入的成長速度尤其顯著，分別較去年同期成長31%和17%。由於高利潤率廣告業務的收入貢獻不斷增長，以及我們持續高效的運營，我們的毛利同比大幅增長45%。第一季我們的毛利率達到28.3%，而去年同期為21.8%，這標誌著我們的毛利率連續第七個季度改善。因此，第一季我們的調整後營運虧損和調整後淨虧損分別較去年同期大幅收窄52%和56%。同時，我們在第一季實現了6.38億元的營運現金流。我們所取得的紮實進展正使我們堅定地朝著實現今年獲利目標的方向前進。

While we focus on improving our commercialization capabilities, we continue to attract more users and foster a vibrant community. In the first quarter, our DAUs increased by 9% year-over-year to 102 million, and our MAUs grew by 8% year-over-year to a new high of 341.5 million. User engagement in the first quarter was also strong. Users are spending more time with us than ever, bringing our DAUs' average daily time spent to a record 105 minutes. As a result, users' total time spent on our platform increased by 19% year-over-year.

在專注於提升商業化能力的同時，我們持續吸引更多用戶，並打造充滿活力的社群。第一季度，我們的每日活躍用戶 (DAU) 年比成長 9%，達到 1.02 億；每月活躍用戶 (MAU) 年成長 8%，達到 3.415 億的新高。第一季的用戶參與度也十分強勁。用戶在我們平台上花費的時間比以往任何時候都多，每日活躍用戶的平均每日使用時長達到創紀錄的 105 分鐘。因此，用戶在我們平台上的總使用時長年增了 19%。

As we advance through the year, we will continue to dedicate our resources to enhancing our commercialization capabilities, particularly in our high-margin revenue streams. First, we are working to advance our advertising infrastructure and efficiency to sustain the positive momentum of our ad business. Second, we will bring more high-quality games to our users. Our highly anticipated licensed game, San Guo: Mou Ding Tian Xia is scheduled for launch on June 13. This is the first SLG game that caters to our expanding gamer base.

隨著新一年的推進，我們將持續投入資源，提升商業化能力，尤其是在高利潤率的收入來源。首先，我們正在努力提升廣告基礎設施和效率，以保持廣告業務的正面動能。其次，我們將為用戶帶來更多優質遊戲。我們備受期待的授權遊戲《三國：謀定天下》預計6月13日上線。這是首款迎合我們不斷成長的玩家群的SLG遊戲。

In addition, we will continue to increase and diversify our VAS content offering to convert more paying users and improve margins. We believe these initiatives, together with our ongoing efficient operating leverage, will naturally lead to improved financial results.

此外，我們將持續豐富並擴展加值服務內容，以轉換更多付費用戶並提高利潤率。我們相信，這些舉措加上我們持續且有效率的營運槓桿，將自然帶來財務績效的提升。

As we approach profitability, we remain committed to our core mission, building a stage for content creators to shine, fostering a healthy, vibrant community for users to enjoy and bringing value to our shareholders and partners over the long term.

在接近獲利的同時，我們依然致力於我們的核心使命，為內容創作者搭建一個閃耀的舞台，為用戶創造一個健康、充滿活力的社區，並為我們的股東和合作夥伴帶來長期價值。

With that overview, let's discuss some details of our core pillars of content, community and commercialization.

透過這個概述，讓我們討論一下內容、社群和商業化這些核心支柱的一些細節。

Beginning with content and community. In the first quarter, our leading top content kept thriving, with video views in games, entertainment and tech and knowledge categories all increasing by over 20% year over year. Among these leading verticals, we have emerged as the go-to platform for AI-related content and discussion in China. In the first quarter, daily active content creators and view videos of AI-related content grew by over 60% and over 80% year-over-year, respectively, driving a surge in AI-related ads and making it one of our fastest-growing ad verticals.

首先從內容和社群開始。第一季度，我們領先的熱門內容持續蓬勃發展，遊戲、娛樂以及科技和知識類別的影片觀看量較去年同期成長均超過20%。在這些領先的垂直領域中，我們已成為中國人工智慧相關內容和討論的首選平台。第一季度，人工智慧相關內容的每日活躍內容創作者和影片觀看量分別年增超過60%和超過80%，推動了人工智慧相關廣告的激增，使其成為我們成長最快的廣告垂直領域之一。

Also, we continuously bolstered our support to emerging content categories, providing customized operational and traffic assistance for high-quality content creation. During the quarter, video views in automotive, home appliance and decoration, fashion and the baby and maternity grew rapidly, all up by over 40% year over year. These categories meet our users' evolving content needs as they enter new life stages while also inherently possessing strong consumer appeal.

此外，我們持續加強對新興內容品類的支持，為優質內容創作提供客製化的營運與流量助力。本季度，汽車、家電家居、時尚和母嬰等品類的影片觀看量快速成長，較去年同期成長均超過40%。這些品類滿足了使用者在踏入新人生階段後不斷變化的內容需求，同時也具備強大的消費吸引力。

In many cases, good content can also be a good commercial, attracting more advertisers and incentivizing more creators to join our platform. For instance, ad revenues from home appliance and decoration increased notably by over 70% year over year in Q1 and daily active content creators in this category grew by 30% year-over-year.

很多時候，好的內容也能成為好的廣告，吸引更多廣告主，激勵更多創作者加入我們的平台。例如，家電和裝飾類廣告收入在第一季同比增長超過70%，該類別的每日活躍內容創作者數量較去年同期成長30%。

As such, our community metrics in the first quarter are encouraging. Our average daily video views increased by 22% year over year to nearly 5 billion. Our user spent a record-setting 105 minutes on platform daily in the first quarter, compared with 96 minutes in the same period last year. Meanwhile, monthly interactions exceeded 16.4 billion, up 15% year over year. At the end of the quarter, we had over 236 million official members, which increased by 15% year over year, and their 12-month retention rate remained around 80%.

因此，我們第一季的社區指標令人鼓舞。我們每日平均影片觀看量年增22%，達到近50億次。第一季度，我們的用戶每日在平台上的長度創紀錄地達到105分鐘，而去年同期為96分鐘。同時，每月互動量超過164億次，較去年同期成長15%。截至本季末，我們的正式會員超過2.36億，年增15%，其12個月留存率維持在80%左右。

In terms of recent community events, our sponsored eSports team, BLG, won their further championship of League of Legends Pro League 2024 spring season and the second place on Mid-Season Invitational 2024, drawing more eSports enthusiasts to our platform.

近期社群活動方面，我們贊助的電競戰隊BLG再奪2024英雄聯盟職業聯賽春季賽冠軍，以及2024季中邀請賽亞軍，吸引了更多電競愛好者加入我們的平台。

What's more, our extensive content library and the user base gave us a natural advantage to pioneer AI exploration. We are launching various AI-related applications to benefit all stakeholders in our community, including our users, content creators and advertisers.

此外，我們豐富的內容庫和使用者基礎，賦予我們開拓人工智慧探索的天然優勢。我們正在推出各種與人工智慧相關的應用程序，以惠及我們社區的所有利益相關者，包括我們的用戶、內容創作者和廣告商。

With our AI assistance in searching and video-watching scenarios, users can gather information more efficiently and receive more personalized content recommendations. On the creator front, we launched the AI content creation tool, B-cut studio and enabled content creators to customize their digital human and voice, improving creative efficiency. As for advertisers, we are launching a creative center, which will enable advertisers to easily generate headlines and edit materials for their ads. More importantly, with our AI-enabled algorithms, our content and ads can be more effectively matched with our users' consumption needs.

透過我們在搜尋和觀看影片場景中的人工智慧輔助，用戶可以更有效率地收集訊息，並獲得更個人化的內容推薦。在創作者方面，我們推出了人工智慧內容創作工具B-cut Studio，使內容創作者能夠自訂他們的數位人形和語音，從而提高創作效率。在廣告主方面，我們正在推出一個創意中心，使廣告主能夠輕鬆產生標題並編輯廣告素材。更重要的是，借助我們人工智慧演算法，我們的內容和廣告能夠更有效地匹配用戶的消費需求。

Now I would like to talk about our commercialization progress and how we achieve margin expansion and reach profitability.

現在我想談談我們的商業化進展以及我們如何實現利潤率的擴大和利潤。

For the first quarter, our total revenues increased by 12% year overyear to RMB 5.7 billion. As our biggest topline growth driver, revenues from our advertising business were up by 31% year-over-year to RMB 1.7 billion.

第一季度，我們的總營收年增12%，達到人民幣57億元。作為我們最大的營收成長動力，廣告業務收入年增31%，達到人民幣17億元。

Performance-based ads continued to be the primary growth contributor, up over 50% year over year in the first quarter. We are encouraged by the results we achieved in Q1 and expect the growth momentum to continue. For the first quarter, our top-5 advertising verticals were mobile games, digital products and home appliance, e-commerce, automotive and skin care and cosmetics.

效果廣告持續成為主要成長動力，第一季較去年同期成長超過50%。我們對第一季的業績感到鼓舞，並預期成長動能將持續。第一季度，我們前五的廣告垂直領域分別是手機遊戲、數位產品及家電、電商、汽車以及保養品及化妝品。

As I mentioned in our last quarter's earnings call, we are allocating more resources to integrate ad products within our content ecosystem in a more native, natural and seamless way. We have made some remarkable progress in the first quarter. We integrated and upgraded our ad platforms with visualized data analysis and more user-friendly tools, empowering advertisers to bid more efficiently. In addition, as we deepen our understanding of users' consumption profiles, we are further improving our ad-matching algorithms to be more accurate and targeted. Collectively, these enhancements in efficiency as well as our increasing traffic enabled us to secure more advertising budgets from our ad customers.

正如我在上季財報電話會議上提到的，我們正在投入更多資源，以更原生、更自然、更無縫的方式將廣告產品整合到我們的內容生態系統中。我們在第一季取得了顯著進展。我們整合並升級了廣告平台，引入了視覺化數據分析和更人性化的工具，使廣告主能夠更有效率地競價。此外，隨著我們對用戶消費特徵的深入了解，我們正在進一步改進廣告匹配演算法，使其更加精準、更具針對性。這些效率的提升以及流量的增加，使我們能夠從廣告客戶那裡獲得更多的廣告預算。

In addition, our video and live commerce ad products with direct sales conversion tools continue to yield results. These transaction-based ads enable advertisers to effectively transition users from product viewing to making purchases.

此外，我們配備直銷轉換工具的影片和直播電商廣告產品持續取得成效。這些基於交易的廣告能夠幫助廣告主有效地將用戶從產品瀏覽轉換為實際購買。

As of last week, our total video and live commerce GMV in women's fashion and clothing has exceeded the responding total GMV for the entire year of 2023. In addition, our video and live commerce products provide a great way to unleash commercial value for our content creators. The number of content creators who earned income by video and live commerce more than doubled year over year in the first quarter.

截至上週，我們女性時尚服飾類影片和直播的GMV已超過2023年全年GMV。此外，我們的影片和直播產品為內容創作者提供了釋放商業價值的絕佳途徑。第一季度，透過視訊和直播獲得收入的內容創作者數量年增了一倍以上。

On top of the progress we made in the first quarter, we are working on more product upgrades, some of which are ready to be applied in the upcoming 618 shopping festival. We will unveil better ad placement and analysis tools, allow more flexible ad formats and expand additional ad scenarios. This empowers advertisers to achieve smarter, more creative and integrated advertisement across our content ecosystem, leading to better branding and conversion results.

在第一季取得的進展的基礎上，我們正​​在進行更多產品升級，其中一些升級已準備好在即將到來的618購物節中應用。我們將推出更優質的廣告投放和分析工具，支援更靈活的廣告格式，並擴展更多廣告場景。這將使廣告主能夠在我們的內容生態系統中投放更聰明、更具創意和更整合的廣告，從而實現更好的品牌塑造和轉換效果。

Turning to our VAS business. Driven by the growth of our live broadcasting, revenues from our VAS business increased by 17% year over year to RMB 2.5 billion in the first quarter. We continue to strengthen the synergies between our live broadcasting content offerings and our PUGV ecosystem, especially in our advantageous content categories like games, v-tubers and entertainment. Moreover, through refined operational measures, we also improved our gross margin while increasing the supply of high-quality live broadcasting content.

談到我們的加值服務業務。受直播業務成長的推動，第一季增值服務業務營收年增17%，達到人民幣25億元。我們持續加強直播內容產品與PUGV生態系統之間的綜效，尤其是在遊戲、主播和娛樂等優勢內容類別。此外，透過精細化的營運措施，我們也正在增加優質直播內容供應的同時，提升了毛利率。

The number of premium membership remained steady at 21.9 million as of the end of quarter, with over 80% of premium members on annual subscription or auto-renewal packages. Users are also showing a growing propensity for spending on our other VAS products, including our premium online courses, exclusive fan charging video product and virtual community accessories. We will continue to actively explore these unique community features to provide users with products and experiences they love.

截至本季末，高級會員數穩定在2,190萬，超過80%的高級會員選擇包年或自動續費套餐。用戶在我們其他加值服務產品上的消費意願也不斷增強，包括我們的高級線上課程、專屬粉絲充電影片產品以及虛擬社群配件。我們將繼續積極探索這些獨特的社群功能，為使用者提供他們喜愛的產品和體驗。

Turning to our game business. Our revenues were RMB 983 million for the first quarter. In April, we launched an exclusive licensed game, Artifacters, Wuhua Mixin. This creative card game was well received by game lovers. Looking at our game pipeline, we expect to release our highly anticipated SLG game, San Guo: Mou Ding Tian Xia, on June 13. Over 2 million players have already pre-registered as of today. We also plan to launch a Japanese RPG title, Heaven Burns Red, Chi Yan Tian Qiong, in the third quarter.

談到我們的遊戲業務。第一季度，我們的收入為人民幣9.83億元。 4月，我們推出了獨家授權遊戲《神器·物語混心》。這款創意卡牌遊戲廣受遊戲愛好者好評。展望我們的遊戲產品線，我們預計在6月13日發布備受期待的SLG遊戲《三國：謀定天下》。截至目前，已有超過200萬名玩家進行事前註冊。我們也計劃在第三季推出日式RPG遊戲《赤焰天穹》。

Last but not least, as we make progress on commercialization front, we are actively shouldering our social responsibilities as a cultural enterprise. We published our 2023 annual ESG report last month, outlining our efforts in creating and bringing value to young generations in China. Collaborating with content creators, employees and industry partners, we strive to explore more technological innovation and engage in social welfare activities to positively impact society at large.

最後，同樣重要的是，在商業化進程不斷推進的同時，我們也積極履行文化企業的社會責任。上個月，我們發布了2023年度ESG報告，概述了我們為中國年輕一代創造和帶來價值的努力。我們攜手內容創作者、員工和產業夥伴，致力於探索更多技術創新，並積極投入社會公益事業，為社會帶來正面影響。

This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the first quarter of 2024.

陳總的發言到此結束。接下來，我將簡要介紹我們2024年第一季的財務表現。

I'd now like to review our first quarter financial highlights. For a closer look at our financial results, we encourage you to refer to our press release issued earlier today. Our commercialization and operational efficiency enhancement initiatives continued to yield great results in the first quarter. We improved the quality of our revenues, expanded our margins for the seventh consecutive quarter and significantly narrowed our losses based largely on our revenue growth and platform efficiency.

現在，我想回顧一下我們第一季的財務亮點。如果您想更詳細地了解我們的財務業績，建議您參閱我們今天早些時候發布的新聞稿。我們的商業化和營運效率提升措施在第一季持續取得優異的業績。我們提高了收入質量，連續第七個季度提高了利潤率，並顯著縮減了虧損，這主要得益於收入成長和平台效率的提升。

Total revenues for the first quarter were RMB 5.7 billion, up 12% yearover year. Our total revenues breakdown by revenue stream for Q1 was approximately 45% VAS, 29% advertising, 17% mobile games and 9% of our IP derivatives and other businesses.

第一季總營收為人民幣57億元，較去年同期成長12%。依收入來源劃分，我們第一季的總收入組成如下：增值服務約佔45%，廣告約佔29%，手機遊戲約佔17%，IP衍生性商品及其他業務約佔9%。

Our cost of revenues increased by 2% year-over-year to RMB 4.1 billion in the first quarter, while our gross profit rose 45% year over year to RMB 1.6 billion. Our gross profit margin reached 28.3% in Q1, up from 21.8% in the same period last year.

第一季度，我們的營業成本年增2%至人民幣41億元；毛利年增45%至人民幣16億元。第一季度，我們的毛利率達到28.3%，高於去年同期的21.8%。

Our total operating expenses were down 2% year over year to RMB 2.4 billion in the first quarter. Sales and marketing expenses increased by 5% year over year to RMB 927 million, mainly due to early promotion expenses related to the release of our upcoming SLG game. G&A expenses was RMB 532 million, down 7% year over year. R&D expenses were RMB 965 million, down 6% year over year.

第一季度，我們的總營運費用年減2%至人民幣24億元。銷售及市場推廣費用年增5%至人民幣9.27億元，主要由於即將發布的SLG遊戲相關的前期推廣費用。一般及行政費用為人民幣5.32億元，較去年同期下降7%。研發費用為人民幣9.65億元，較去年同期下降6%。

We cut our adjusted operating loss and adjusted net loss to RMB 512 million and RMB 456 million in the first quarter, narrowing these losses by 52% and 56% year over year, respectively. Our adjusted net loss ratio in the first quarter improved to 8% from 20% in the same period a year ago.

第一季度，我們調整後營業虧損和調整後淨虧損分別降至人民幣5.12億元和人民幣4.56億元，年比分別下降52%和56%。第一季調整後淨虧損率從去年同期的20%改善至8%。

For the first quarter, we also generated RMB 638 million in positive operating cash flow, demonstrating our business's ongoing healthy path for sustainable development. We expect to reach positive non-GAAP operating profit in the third quarter of 2024 through our sustained topline growth and gross profit margin improvement.

第一季度，我們也實現了人民幣6.38億元的正營運現金流，彰顯了我們業務持續健康永續發展的態勢。我們預計，憑藉持續的營收成長和毛利率提升，我們將在2024年第三季實現非公認會計準則下的正營運利潤。

As of March 31, 2024, we had cash and cash equivalents, time deposits and short-term investments of RMB 12.9 billion or USD 1.8 billion.

截至 2024 年 3 月 31 日，我們擁有現金及現金等價物、定期存款及短期投資 129 億元或 18 億美元。

In March this year, we completed the repurchase rights offer for our April 2026 notes. After completion of this transaction, the aggregate outstanding principal amount of April 2026 Notes, 2027 Notes and the December 2026 Notes was USD 433 million. We believe our cash position is sufficient to cover all of our remaining convertible bonds.

今年3月，我們完成了2026年4月到期票據的回購權要約。此次交易完成後，2026年4月到期票據、2027年到期票據及2026年12月到期票據的未償本金總額為4.33億美元。我們相信，我們的現金狀況足以涵蓋所有剩餘的可轉換債券。

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 Thomas Chong of Jefferies.

（操作員指示）我們的第一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My question is about our online advertising business. Given advertising growth exceed our expectation, can management comment about the key growth driver, One of the areas that we have strength in our ad product offerings and our ad technology upgrade? On the other hand, if we look into the Q2, in particular, for 618, can management comment about the advertising trend and how we should think about 2024 advertising outlook?

(外語) 我的問題是關於我們的網路廣告業務的。鑑於廣告成長超出預期，管理階層能否談關鍵的成長動力？我們的廣告產品和廣告技術升級的優勢之一是什麼？另一方面，如果我們回顧第二季度，特別是618，管理層能否談談廣告趨勢，以及我們應該如何看待2024年的廣告前景？

(foreign language)

（外語）

[Interpreted] Our ad revenue in Q1 reached RMB 1.67 billion, up 31% year-over-year. Among them, performance-based advertising saw strong growth, exceeding 50% year-over-year. Speaking of the key driver, one of the drivers is that, while maintaining a good user experience, which we care a lot, we increased our overall advertising inventory. We further expanded our ad scenarios such as moment and search. And in addition, by mixing the natural and commercial traffic, high-quality advertising content can gain more organic traffic resulting in an increase in effective ad inventory.

【解讀】我們第一季的廣告收入達到人民幣16.7億元，較去年同期成長31%。其中，效果廣告成長強勁，較去年同期成長超過50%。說到關鍵驅動力，其中一個驅動力是，在保持良好用戶體驗（我們非常重視用戶體驗）的同時，我們增加了整體廣告庫存。我們進一步拓展了朋友圈、搜尋等廣告場景。此外，透過融合自然流量和商業流量，優質廣告內容可以獲得更多自然流量，從而增加有效廣告庫存。

Having said that, as we increase our effective ad inventory, our ad load is still low and have significant room to expand compared to other platforms.

話雖如此，隨著我們有效廣告庫存的增加，我們的廣告負載仍然較低，與其他平台相比還有很大的擴展空間。

(foreign language)

（外語）

[Interpreted] Second growth driver is that we have integrated our Sparkle ads in our advertising system as well as to improve our ad placement tools. We have enabled and achieved smart ad placement in different ad scenarios. In Q1, over 50% of the Sparkle ads also purchased our content promotional service, AKA project takeoff (Qi Fei). We also launched a creative center to enable bulk processing of ad materials. And also, we believe the continuous exploration of AIGC-related functions can help us to improve our ad efficiency.

[解讀] 第二個成長動力是，我們將Sparkle廣告整合到我們的廣告系統中，並改進了我們的廣告投放工具。我們已在不同廣告場景中啟用並實現了智慧廣告投放。第一季度，超過50%的Sparkle廣告客戶也購買了我們的內容推廣服務－AKA project takeoff（齊飛）。我們也推出了一個創意中心，用於大量處理廣告素材。此外，我們相信，持續探索AIGC相關功能將有助於我們提升廣告效率。

(foreign language)

（外語）

[Interpreted] And secondly, on our content creator side, we've launched our content promotional tools for content creator. Project takeoff now has been officially upgraded to a new product called Bi Huo, which was made available to all content creators in Q1. The function allows content creator with one-stop service to promote their content through paid traffic amplification, they can also increase fans and improve their monetization capabilities. The number of clients who purchased our content promotional service in Q1 increased by 190% year-over-year, while the repurchase rate and the satisfaction rate continues to improve.

[解讀] 其次，在內容創作者方面，我們推出了內容創作者的內容推廣工具。 Project Takeoff 現已正式升級為名為「幣活」的新產品，並於第一季向所有內容創作者開放。此功能為內容創作者提供一站式內容推廣服務，協助他們透過付費流量放大、增加粉絲並提升變現能力。第一季購買我們內容推廣服務的客戶數量年增 190%，復購率和滿意度持續提升。

(foreign language)

（外語）

[Interpreted] And thirdly, we have optimized our marketing data infrastructure and improved our algorithm efficiency. We refined various commercial tag to provide advertisers with more comprehensive measurement and guidance on branding and marketing outcome. Currently, we have already launched a trial version of our B Data and Z Index for advertisers in games, mobile phones and cosmetics. We expect in Q3 and Q2, we'll push it out to more industry verticals.

[解讀] 第三，我們優化了行銷資料基礎設施，提升了演算法效率。我們優化了各種商業標籤，為廣告主提供更全面的品牌和行銷成效衡量和指導。目前，我們已經為遊戲、手機和美妝領域的廣告主推出了B數據和Z指數的試用版。我們預計在第三季和第二季度，我們將把B數據和Z指數推廣到更多垂直產業。

(foreign language)

（外語）

[Interpreted] And the fourth growth driver is that we have deepened our vertical industry solutions. In Q1, games, digital products and home appliances and e-commerce platform are our top 3 growth factors with growth around high double-digit year-over-year. In the gaming sector, we have focused on high-quality games covering all stages in their game operation from pre-launch to long-term operations. Notably, we have captured incremental shares in mini games market resulting a 50% increase in daily ad spending. And on digital and home appliances, we already took over about 10% of the market share in smartphone app market. And in the future, we believe there is still significant growth potential for other digital products and home appliances.

[解讀] 第四個成長動力是我們深化了垂直產業解決方案。第一季度，遊戲、數位家電和電商平台是我們三大成長點，較去年同期成長均約兩位數。在遊戲領域，我們專注於優質遊戲，涵蓋從上線前到長期營運的各個營運階段。值得注意的是，我們在小型遊戲市場獲得了增量份額，每日廣告支出增加了50%。在數位家電領域，我們已經佔據了智慧型手機應用市場約10%的份額。未來，我們相信其他數位家電產品仍具有巨大的成長潛力。

And we move on to the e-commerce platforms. For this quarter, we have achieved diversified customer structure. Besides the traditional partner, Taobao, JD, Tmall and Pinduoduo, we have expanded our collaboration with VIPShop, Dewu and Xianyu. We improved our ARPU during our non-shopping festival period and introduced additional budget with other key active merchants. And we do expect those advertising budget from merchants will continue to drive our advertising growth.

我們接下來討論電商平台。本季度，我們實現了客戶結構的多元化。除了傳統的合作夥伴淘寶、京東、天貓和拼多多之外，我們還擴大了與唯品會、得物和閒魚的合作。在非雙十一期間，我們的每位用戶平均收入 (ARPU) 有所提升，並與其他主要活躍商家增加了廣告預算。我們預計這些來自商家的廣告預算將繼續推動我們的廣告成長。

As to sum up, we do expect we can replicate that solution and apply to more additional verticals, including automotive, Internet services, health care and education industries. Meanwhile, we will continue to expand to more clients with more industries.

總而言之，我們確實希望能夠複製該解決方案，並將其應用於更多垂直行業，包括汽車、互聯網服務、醫療保健和教育行業。同時，我們將持續拓展服務範圍，服務更多產業客戶。

(foreign language)

（外語）

[Interpreted] And you asked about our 618 performance, we do expect or we estimate the growth during 618 shopping festival this year will be over 30% year-over-year. And we have further increased our shares of advertising budget at this significant shopping festival. This year, we'll continue to execute our open-loop strategy, establishing deep partnership with Alibaba, JD, Pinduoduo, VIPShop and others.

[翻譯] 您問到我們618的業績，我們預計今年618購物節的年增率將超過30%。我們在這個重要的購物節上進一步增加了廣告預算份額。今年，我們將繼續執行開環策略，與阿里巴巴、京東、拼多多、唯品會等建立深度合作關係。

Additionally, we also have 2 upgrades in our strategy. First is that we will upgrade our partnership from pure traffic collaboration to traffic plus content collaboration. Brand advertising revenue is expected to increase by 40% year-over-year during this period. This year, Taobao also introduced a new budgeting targeting total GMV from purchasing Sparkle plus content promotion. And JD is also actively engaging in our integrated marketing activities combining both traffic and content value strategies.

此外，我們的策略還有兩點升級。首先，我們將從單純的流量合作升級為流量+內容的合作。品牌廣告收入預計在此期間將年增40%。今年，淘寶也推出了新的預算方案，目標是購買Sparkle+內容推廣的總GMV。京東也積極開展流量和內容價值結合的整合行銷活動。

Secondly is that we will transition from platform collaboration to platform plus merchant collaboration. Platform budget for 618 will be expected to increase by 30% year-over-year, while the merchant budget is expected to increase significantly, over 250% year-over-year. We will strengthen the collaboration with more vertical industries that encourage more consumption-related behavior from product seeding to purchasing transition during the period.

第二，我們將從平台合作轉向平台+商家合作。 618平台預算預計年增30%，商家預算預計大幅成長，年增超過250%。我們將加強與更多垂直產業的合作，鼓勵更多消費行為從產品種草到購買的轉變。

(foreign language)

（外語）

[Interpreted] Speaking of the 618 shopping festival, let me briefly touch on some of the data points that reflects the current situation on Bilibili. So first of all as that we've noticed the consumption willingness among Bilibili users have further improved. In Q1, the number of users have watched transaction-related content has reached over 37 million, nearly doubling year-over-year. And we believe our users have more mindset and perception towards watching commercial or e-commerce-related content on our platform.

[解讀] 說到618購物節，我想簡單談談一些反映嗶哩嗶哩現況的資料。首先，我們注意到嗶哩嗶哩用戶的消費意願進一步提升。第一季度，觀看交易類內容的用戶數量超過3,700萬，較去年同期成長近一倍。我們相信，使用者在平台上觀看商業或電商類內容的心態和感知度都有所提升。

At the same time, our content creator are benefiting from this improvement. Content creator has received income or generate revenue through live and video commerce also increased over 100% year-over-year. And we believe there's a lot more potential for us to further get into. And for the transaction-related advertising sectors, the top 4 industries in terms of transaction volumes are digital products and home appliances, food and beverage, apparel and beauty and cosmetics.

同時，我們的內容創作者也受益於此改進。內容創作者透過直播和視訊商務獲得的收入年增超過100%。我們相信，我們還有更大的潛力可以進一步拓展。就交易相關的廣告領域而言，交易量排名前四的行業分別是數位產品和家電、食品飲料、服飾以及美妝。

And to sum up, we remain very confident to maintain a high growth rate for our advertising for the full year.

總而言之，我們仍然非常有信心全年保持較高的廣告成長率。

Next question comes from the line of Lei Zhang from Bank of America.

下一個問題來自美國銀行的張雷。

(foreign language) Congrats on a strong advertising growth. My question is mainly about the game business. Can you give us some update on overall game outlook for this year? And also your expectation about the upcoming new game San Guo: Mou Ding Tian Xia.

（外語）恭喜廣告業務強勁成長。我的問題主要關於遊戲業務。您能否介紹一下今年遊戲產業的整體前景？以及您對即將推出的新遊戲《三國：謀定天下》的期待。

(foreign language)

（外語）

[Interpreted] So Bilibili hasalways had the largest and the most high-quality game-related content library, at the same time, we have the highest density in terms of high-quality gamers. This gives us a great advantage in the gaming business.

[解讀] 所以B站一直擁有最大、最優質的遊戲內容庫，同時，我們也擁有最高的優質玩家密度。這讓我們在遊戲業務上擁有巨大的優勢。

(foreign language)

（外語）

[Interpreted] For the full year, when we think about our game business, there's 2 words to sum up of our direction: One is stable; and two is we're looking for new things.

[解讀] 就全年而言，當我們考慮我們的遊戲業務時，有兩個詞可以概括我們的方向：一是穩定；二是我們正在尋找新的東西。

(foreign language)

（外語）

[Interpreted] Stable is referring to that Bilibili is paying a lot of attention to our legacy classic games, expect to achieve a very long-term operation, maintaining the stickiness of our gamers and also to see continuous innovation in terms of content. We have witnessed that for the gamers in our legacy games, their retention level and engagement level has increased continuously at the same time showing a very robust longevity.

[解讀] 穩定是指嗶哩嗶哩非常重視我們經典的老遊戲，希望能夠實現長期運營，保持玩家的粘性，並在內容方面持續創新。我們已經看到，我們經典遊戲的玩家留存率和參與度持續提升，同時展現出非常強勁的生命週期。

(foreign language)

（外語）

[Interpreted] FGO, one of our most popular legacy games, has already been launched for 8 years. And for this year, during its April content upgrade, this game has returned to the top iOS grossing chart. As for Azur Lane, it's also a 7-year-old game. And for the 7th-year anniversary, happened just now in May, this game once again returning to the top 10 grossing charts on iOS as well.

[翻譯] 我們最受歡迎的經典遊戲之一《FGO》已經上線八年了。今年四月，在內容升級的推動下，這款遊戲重返 iOS 暢銷榜榜首。至於《碧藍航線》，它也是一款七年老遊戲。而就在五月份，恰逢七週年紀念日，這款遊戲再次重返 iOS 暢銷榜前十名。

(foreign language)

（外語）

[Interpreted] And from Bilibili perspective, to operate these tested games for a longer period of time, its return for us is even better than thinking new games. So what we plan to do is continue to refine our operation, maintaining a long life cycle. As an FGO player myself, I can see that FGO has become part of my life, and I will continue to play it if the game is there. So we're confident we can continue to operate this game towards its 10th-year anniversary or even longer.

[解讀] 從B站的角度來看，長期運作這些經過測試的遊戲，其回報甚至比開發新遊戲更好。因此，我們計劃繼續精進運營，保持較長的生命週期。身為FGO玩家，我能夠感受到FGO已經成為我生活的一部分，只要它還在，我就會繼續玩下去。因此，我們有信心能夠繼續經營這款遊戲，直到它十週年甚至更久。

(foreign language)

（外語）

[Interpreted] And speaking of new games, we actually launched a new game in April called Artifacters. It's Chinese style ACG game. The artistic style can be classified as a ACG title. But the story and the plot and the gameplay is actually very traditional Chinese. It was based on cultural relics as its own persona, very creative. We've noticed this type of game has opened a new demographic to us, the traditional Chinese cultural lovers. So we'll continue to look for new opportunities with the ACG plus new categories to help us to expand to more gamer demographics. As for this game Artifacters, we think its performance so far has met our expectations and will contribute to our game revenue in the second quarter.

[翻譯] 說到新遊戲，我們實際上在四月推出了一款名為《Artifacters》的新遊戲。這是一款中國風的二次元遊戲。它的藝術風格可以歸類為二次元遊戲。但其故事、情節和玩法實際上非常具有中國傳統特色。它以文化遺產為主題，非常有創意。我們注意到，這類遊戲為我們開啟了一個全新的受眾群體，即中國傳統文化愛好者。因此，我們將繼續在二次元遊戲和新類別中尋找新的機會，以幫助我們擴展到更多的玩家群。至於《Artifacters》，我們認為它目前的表現符合我們的預期，並將在第二季為我們的遊戲收入做出貢獻。

(foreign language)

（外語）

[Interpreted] As for another game, I would like to make an example of San Guo: Mou Ding Tian Xia, you were asking. For this game, we already set the launch date at June 13.

[翻譯] 至於另一款遊戲，我想舉個例子，例如你問的《三國：謀定天下》。這款遊戲我們已經設定在6月13日上線。

(foreign language)

（外語）

[Interpreted] And for this game, who already has over 2 million pre-registration users, and we have done multiple rounds of nonpaid beta testing as it has received a very good feedback from the gamers.

[解釋] 這款遊戲目前已經擁有超過200萬的預註冊用戶，我們已經進行了多輪免費beta測試，因為它得到了玩家們的非常好的回饋。

(foreign language)

（外語）

[Interpreted] I will elaborate a little bit how we plan to explore into new fields. For this SLG San Guo: Mou Ding Tian Xia game, actually, we have signed this game the year before last year. The reason behind that is not a spur of moment but is that we have discovered on Bilibili there's a big demographic who are interested in topics in history, military, political knowledge. As you know, that knowledge has been a very big content categories on Bilibili. So to satisfy this group of users or potential gamers' needs, we have signed this SLG game. So far, the feedback has been very positive and showing that the strategy is working.

[翻譯] 我稍微解釋一下我們計劃如何探索新領域。對於這款SLG遊戲《三國志：謀定天下》，實際上我們在前年就簽下了這款遊戲。這背後的原因並非一時興起，而是我們發現B站上有許多使用者對歷史、軍事、政治知識等主題感興趣。如你所知，這些知識在B站上的內容類別中佔比很高。因此，為了滿足這群用戶或潛在玩家的需求，我們簽下了這款SLG遊戲。到目前為止，反饋非常積極，表明我們的策略正在發揮作用。

(foreign language)

（外語）

[Interpreted] So as we set up the target on SLG strategy, we have worked together with the game developer to conduct many innovations in the games. As you know, that we have a massive Gen-Z users. For this group of users, their preferences towards SLG has evolved compared to the older generation. They value a lot of the gameplay and the fun in the gameplay over the competition, the battle itself. And also, they care about whether it requires to top up a lot of money and spend a lot of time on the game. So on this field, we we have targeted solutions and to improve this gameplay. So far, the user feedback has been very positive.

[解讀] 在我們設定SLG戰略目標的同時，我們與遊戲開發商合作，在遊戲中進行了許多創新。如你所知，我們擁有龐大的Z世代用戶。對於這群用戶來說，他們對SLG的偏好與老一代相比已經改變了。他們更重視遊戲玩法和遊戲樂趣，而不是競技和戰鬥本身。此外，他們也更在意是否需要儲值和投入大量時間。因此，我們在這方面提出了有針對性的解決方案，並致力於改善遊戲玩法。到目前為止，用戶的回饋非常積極。

(foreign language)

（外語）

[Interpreted] And those 2 examples show our strategy and thinking in terms of the game business innovation and long-term strategy. As a matter of fact, Bilibili is the biggest game content community, has the largest game-related library. So we'll continue to focus on this track and aim to bring more high-quality games to our users.

[解讀] 這兩個例子展現了我們在遊戲業務創新和長期策略方面的策略和思考。事實上，B站是最大的遊戲內容社區，擁有最大的遊戲相關庫。因此，我們將繼續專注於這個賽道，致力於為用戶帶來更多優質遊戲。

Our next question comes from the line of Xueqing Zhang from CICC.

我們的下一個問題來自中金公司的張學慶。

(foreign language) My question is about user engagement. The company's first quarter time spent hit a new high and the average daily UV really also achieved good growth. So what's the main driver behind that? And which content categories are expected to have great potential in the future?

（外語）我的問題是關於使用者參與度的。公司第一季的用戶使用時長創下新高，日均用戶量也確實實現了不錯的成長。這背後的主要驅動力是什麼？哪些內容類別預計未來會有巨大的潛力？

(foreign language)

（外語）

[Interpreted] So as a matter of fact, Bilibili has its own content categories that are very advantageous compared to other platforms and users have a strong mindset of looking for that type of content on Bilibili. This includes knowledge, ACG, tech and digital products and et cetera. And for this type of content categories, users have hardcore needs. They naturally want to watch this type of content. As long as we stay competitive, they continue to enhance our leadership in this category, we will experience natural traffic growth. For example, this year, we are looking at the tech, knowledge and game sector, for this sector's VV has increased 37%, 28% and 24%, respectively.

[解讀] 事實上，B站擁有自己的內容類別，相較於其他平台而言非常有優勢，用戶在B站上尋找這類內容的意願很強。這些類別包括知識、二次元、科技和數位產品等等。而對於這類內容類別，使用者有著核心需求，他們自然而然地想要觀看這類內容。只要我們保持競爭力，他們繼續鞏固我們在這一類別的領先地位，我們的流量自然就會成長。例如，今年我們專注於科技、知識和遊戲板塊，這些板塊的訪問量分別成長了37%、28%和24%。

(foreign language)

（外語）

[Interpreted] As we enhance our leadership content categories, we're also actively exploring new categories. For example, the average age of Bilibili users is already 24 years sold. For some of the demographics, by theory, their children could be around 1 year old. So we've seen naturally seeing those content consumption needs rises, including baby and maternity, automotive and home appliances, et cetera. For example, in Q1, video views in baby and maternity grew by over 100%, and we're also seeing strong growth for automotive and home appliances, home decorations.

[解讀] 在強化領先內容品類的同時，我們也積極探索新的品類。例如，嗶哩嗶哩用戶的平均年齡已達24歲。理論上，部分使用者的孩子可能在1歲左右。因此，我們自然而然地看到這些內容消費需求的成長，包括母嬰、汽車和家電等等。例如，第一季母嬰類影片觀看量成長超過100%，汽車、家電和家居裝飾類影片觀看量也呈現強勁成長。

(foreign language)

（外語）

[Interpreted] At the same time, for this emerging content categories, we are naturally attracting more content creators to join our platform, forming a virtuous cycle.

[解讀]同時，對於這個新興的內容類別，我們自然而然地吸引更多的內容創作者加入我們的平台，形成良性循環。

(foreign language)

（外語）

[Interpreted] So in the first quarter, our overall community has delivered a strong growth. Our DAU grew by 9%, and our video views grew by 22%. The daily average user time spent has reached a historical high of 105 minutes. This all demonstrating our strategy of content development and community operation is very effective, and we will continue to execute this strategy and to achieve sustainable growth going forward.

[解讀] 第一季度，我們整體社區實現了強勁成長。日活躍用戶成長了9%，影片觀看量增加了22%。每日平均使用者使用時長到了105分鐘的歷史新高。這一切都表明我們的內容開發和社群營運策略非常有效，我們將繼續執行這項策略，並在未來實現永續成長。

Our next question comes from Felix Liu from UBS.

下一個問題來自瑞銀的 Felix Liu。

(foreign language) Congratulations on the good GP margin performance in the first quarter. May I check what specific areas you did well in cost control? How do you see the mid-, long-term margin outlook as well as the third quarter profitability target, if any, update to that?

（外語）恭喜您第一季的毛利率表現良好。請問您在成本控制方面具體做得好的領域有哪些？您如何看待中長期利潤率前景以及第三季的獲利目標（如有），請更新一下？

Thanks Felix, this is Sam, I will take this question. In Q1, our total revenue grew by 12% when cost of revenue only increased by 2% year-over-year. So our gross profit increased by 45%. Thanks for the improved operational efficiency, our non-GAAP operating expenses decreased by 2% year-over-year and 8% quarter-over-quarter, which lead to further loss reduction.

謝謝Felix，我是Sam，我來回答這個問題。第一季度，我們的總營收成長了12%，而營收成本僅較去年同期成長2%。因此，我們的毛利成長了45%。由於營運效率的提升，我們的非GAAP營運費用年減了2%，季減了8%，這進一步減少了虧損。

Our path to profitability is mainly driven by the revenue growth and the continuous gross profit improvement, which we believe is more sustainable. Specifically, the gross profit margin has increased, reaching like 28% in Q1. The main reason for this improvement contributed by the high-margin business, such kind of our ad revenue, which increased by 31% increase year-over-year. And now the sales mix has come to like 29%.

我們的獲利之路主要得益於收入成長和毛利率的持續提升，我們相信這更具可持續性。具體來說，毛利率有所提升，第一季達到28%左右。這項提升主要得益於高利潤率業務，例如我們的廣告收入，較去年同期成長了31%。目前，銷售收入佔比已達29%左右。

Based on the current business development trends, we expect that in Q2 and Q3, with the continuous rapid growth of the advertising business and the recovery of our game business, we'll resume year-over-year growth. Our gross profit margin will further improve quarter-over-quarter and to reach 30% gross profit margin in Q3, and we will achieve non-GAAP operating breakeven in Q3. We are quite confident to achieve that.

基於目前的業務發展趨勢，我們預計第二季和第三季度，隨著廣告業務的持續快速成長以及遊戲業務的復甦，我們將恢復年成長。毛利率將進一步環比提升，第三季毛利率將達到30%，並實現非美國通用會計準則下的營運盈虧平衡。我們對實現這一目標充滿信心。

In the longer term, the gross profit margin will depend on the scale of the revenue and the mix of the each business line. We still believe there is great potential there. Meanwhile, achieving breakeven is just our first step, we will allocate more resources on enhancing our commercialization efficiency while continuing to refine the operational strategies to achieve sustained improvements in both of the gross profit margin and the net profit margin. Thanks for the question.

從長遠來看，毛利率將取決於收入規模和各業務線的組成。我們仍然相信這方面有巨大的潛力。同時，實現損益平衡只是我們的第一步，我們將投入更多資源來提升商業化效率，同時持續優化營運策略，以實現毛利率和淨利率的持續提升。感謝您的提問。

Our last question comes from the line of Lincoln Kong from Goldman Sachs.

我們的最後一個問題來自高盛的林肯孔。

(foreign language) So my question is about the paying users business. So we see the company is now close to 30 million paying users. So on top of the traditional subscription membership, we have also successfully launched the value-added service such as content creator charging, paid courses or community decoration. So how does the company think about the prospects of this community-based content payment business?

（外語）我的問題是關於付費用戶業務的。我們看到公司目前有近3000萬付費用戶。除了傳統的訂閱會員制之外，我們還成功推出了增值服務，例如內容創作者收費、付費課程或社群裝飾。那麼，公司如何看待這種以社群為基礎的內容付費業務的前景呢？

(foreign language)

（外語）

[Interpreted] So Bilibili has always been an interest-based video community and Bilibili user has 3 key characters: high retention level, high engagement level and high ARPU. And because all the users have strong sense of belonging towards our community and also have a sense of belonging towards the community. It all makes pay for content is a natural monetization method for Bilibili.

[解讀] Bilibili 一直以來都是一個基於興趣的視訊社區，Bilibili 用戶擁有三大關鍵特徵：高留存率、高參與度和高 ARPU。而且，由於所有使用者都對我們的社群有著強烈的歸屬感，並且他們對社群本身也抱有歸屬感。這一切都使得內容付費成為 Bilibili 的自然獲利方式。

[Interpreted]

[口譯]

[Interpreted] And on our premium membership business, at end of first quarter, we have close to 22 million premium paid members. And this interesting number is that 80% of them chose a long-term commitment payment, AKA the monthly automated subscription or yearly subscription. This is what sets us apart from the regular content platforms.

[翻譯] 在我們的高級會員業務方面，截至第一季末，我們擁有近2200萬高級付費會員。一個有趣的數字是，其中80%的會員選擇了長期承諾付費，也就是按月自動訂閱或按年訂閱。這正是我們與一般內容平台的不同之處。

(foreign language)

（外語）

[Interpreted] So on top of the traditional live broadcast and premium membership, we have continuously explore more business model to better combine our community and content. This includes the premium courses, charging station for our content creators as well as the cosmetic costume business. And users generally will gain more experience and feel better after paying for this type of service. At the same time, they can also express their liking, appreciation towards their favorite content creator or their favorite IP. At the same time, our content creator can gain a new avenue of monetization. This is forming a virtuous growth cycle for our community.

[解讀] 因此，除了傳統的直播和高級會員之外，我們不斷探索更多商業模式，以便更好地結合我們的社區和內容。這包括高級課程、內容創作者充電站以及美妝業務。用戶在付費購買此類服務後，通常會獲得更多體驗和更好的體驗。同時，他們也可以表達對喜愛的內容創作者或IP的喜愛和欣賞。同時，我們的內容創作者也可以獲得新的獲利途徑。這正在為我們的社區形成一個良性成長循環。

(foreign language)

（外語）

[Interpreted] In Q1, the premium membership, premium courses, charging as well as the community costumes, combined together, their total revenue is already close to RMB 1 billion. First is on the premium courses. On top of the traditional professional courses, our courses cover a wider category including life skill set, interest-based knowledge, even relationships is more diversified. And the premium courses has already become a primary and important avenue for our content creator in the knowledge sector to monetize.

[解讀] 第一季度，我們的高級會員、高級課程、收費以及社群服飾等業務加起來，總收入已經接近10億元人民幣。首先是高級課程。除了傳統的專業課程之外，我們的課程涵蓋了更廣泛的類別，包括生活技能、興趣知識，甚至人際關係也更加多樣化。高級課程已成為我們知識領域內容創作者變現的主要重要途徑。

In Q1, the number of content creators that gain revenue from the premium courses has grown by over 450%. And the overall revenue also increased by 45% year-over-year.

第一季度，透過優質課程獲得營收的內容創作者數量成長超過450%，整體營收也較去年同期成長45%。

(foreign language)

（外語）

[Interpreted] And secondly is that we have upgraded our charging program recently to extend it to exclusive fan charging videos. In Q1, the number of content creators that received income from the charging project has increased 47% year-over-year. And the total GMV of the charging program has increased 125% year-over-year.

[解讀] 其次，我們近期升級了收費項目，擴展至粉絲專屬收費影片。第一季度，從收費項目獲得收入的內容創作者數量較去年同期成長47%。收費項目的總GMV年增125%。

An example would be one of our content creator named (Shipindao), over the past 6 months, he released 4 episodes of high-quality documentaries. And at end of the first half of May, his GMV has exceeded RMB 10 million. And from this case, we do think that, in many new areas, such as the short play, short documentaries and short movies actually has great potential, and we are quite excited about on Bilibili.

舉個例子，我們的一位內容創作者（詩品道），在過去的六個月裡，他發布了4集高品質的紀錄片。截至5月上半月，他的GMV已突破1,000萬元。從這個案例來看，我們確實認為，在短劇、短紀錄片和短電影等許多新領域，B站確實潛力巨大，我們對B站的前景充滿期待。

(foreign language)

（外語）

[Interpreted] In the second half of this year, we plan to systematically review and upgrade our value-added services, including those content services. We are quite confident that this part of the business will continue to bring additional revenue and help our content creator to gain more revenue.

[解讀] 今年下半年，我們計劃系統性地檢視並升級我們的加值服務，包括內容服務。我們非常有信心，這部分業務將繼續帶來額外收入，並幫助我們的內容創作者獲得更多收入。

Thank you. Operator, that concludes this question.

謝謝。接線員，這個問題到此結束。

And that concludes the question-and-answer session. Thank you once again for joining Bilibili's First Quarter 2024 Financial Results and Business Update Conference Call today.

問答環節到此結束。再次感謝大家參加嗶哩嗶哩2024年第一季財務業績及業務更新電話會議。

If you have any further questions, please contact Juliet Yang, Bilibili's Executive IR Director or Piacente Financial Communications. Contact information for IR in both China and the U.S. can be found on today's press release. Thank you and have a great day.

如果您還有其他問題，請聯絡嗶哩嗶哩投資者關係執行總監Juliet Yang或Piacente Financial Communications。中國和美國投資者關係的聯絡方式請參閱今天的新聞稿。謝謝，祝您有美好的一天。