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.

美好的一天，歡迎參加 Bilibili 2024 年第一季財務業績和業務更新電話會議。今天的會議正在錄製中。現在，我想把會議交給投資者關係執行董事朱麗葉·楊（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 the Hong Kong Stock Exchange.

謝謝你，接線生。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。這些評論是基於我們今天的預測和期望。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存在重大差異。

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

我們提供的非公認會計準則財務指標僅供比較之用。這些措施的定義和我們的調節表可在我們今天早些時候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.

提醒一下，本次會議正在錄製中。此外，投資者介紹和本次電話會議的網路直播重播將在 Bilibili IR 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.

今天加入我們的還有 Bilibili 董事會主席兼執行長陳銳先生；李嘉莉女士，董事會副主席兼營運長；范先生，財務長。

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

我現在把電話轉給范先生，由范先生代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，謝謝大家參加我們的 2024 年第一季電話會議，討論我們的財務和營運表現。我很高興能代表陳先生致今天的開幕詞。

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. Total revenues for the quarter came in at RMB 5.7 billion, up 12% year-over-year. Growth in advertising and VAS revenues, in particular, accelerated at 31% and 17% year-over-year, respectively.

2024 年將是我們獲利之路的轉捩點。我們已經在這條道路上穩步前進，在第一季提高了我們的財務狀況和社區發展。該季度總收入為人民幣 57 億元，年增 12%。尤其是廣告和增值服務收入較去年同期分別成長 31% 和 17%。

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.

隨著利潤率較高的廣告業務收入貢獻不斷增加以及我們持續高效的運營，我們的毛利同比大幅增長45%，第一季毛利率達到28.3%，而去年同期為21.8%。利潤率連續第七個季度改善。因此，第一季度，我們調整後的營運虧損和調整後的淨虧損年減 52% 和 56%。同時，第一季我們實現營運現金流6.38億元。我們取得的堅實進展使我們堅定地走上實現今年獲利目標的軌道。

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, user total time spent on our platform increased by 19% year-over-year.

在我們專注於提高商業化能力的同時，我們不斷吸引更多用戶並培養一個充滿活力的社群。第一季度，我們的 DAU 年增 9% 至 1.02 億，MAU 年增 8% 至 3.415 億，創下新高。第一季的用戶參與度也很高。用戶花在我們身上的時間比以往任何時候都多，讓我們的 DAU 每日平均花費時間達到創紀錄的 105 分鐘。因此，用戶在我們平台上花費的總時間年增了 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.

隨著今年的進展，我們將繼續投入資源來增強我們的商業化能力，特別是在我們的高利潤收入流方面。首先，我們正在努力提升廣告基礎設施和效率，以維持廣告業務的正面動能。第二，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》計劃於 6 月 13 日推出。

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

此外，我們將繼續增加加值服務內容並使其多樣化，以轉換更多付費用戶並提高利潤率。我們相信，這些措施加上我們持續有效的營運槓桿，自然會帶來財務表現的改善。在我們接近盈利的同時，我們仍然致力於我們的核心使命，為內容創作者搭建一個發光的舞台，培育一個健康、充滿活力的社區供用戶享受，並為我們的股東和合作夥伴帶來長期價值。

With that overview, let's discuss in details our core pillars of content, community and commercialization, beginning with content and community. In the first quarter, our leading top content keeps 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 a go-to platform for AI-related content and the discussion in China. In the first quarter, daily active content creators and the video views 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.

有了這個概述，讓我們從內容和社群開始詳細討論我們的內容、社群和商業化的核心支柱。一季度，我們領先的熱門內容持續火爆，遊戲、娛樂和科技知識類影片播放量較去年同期增幅均超過20%。在這些領先的垂直行業中，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，AI相關內容的每日活躍內容創作者和影片觀看量較去年同期分別成長超過60%和80%以上，帶動了AI相關廣告的激增，使其成為我們成長最快的廣告之一-不斷成長的廣告垂直領域。

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.

同時，我們不斷增加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和流量幫助。本季度，汽車、家電裝飾、時尚、母嬰等產業影片觀賞量成長較快，年增幅均超過40%。這些類別滿足了用戶在進入新生活階段時不斷變化的內容需求，同時也固有地具有強大的消費者吸引力。

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 the daily active content creators in this category grew by 30% year-over-year. As such, our community metrics in the first quarter are encouraging.

很多時候，好的內容也可以成為好的商業廣告，吸引更多的廣告商，激勵更多的創作者加入我們的平台。例如，家電、裝飾類廣告收入第一季年增幅超70%，該品類日活躍內容創作者較去年同期成長30%。因此，我們第一季的社區指標令人鼓舞。

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%.

我們的日均影片觀看次數較去年同期成長 22%，達到近 50 億次。第一季度，我們的用戶每天在平台上花費的時間達到創紀錄的 105 分鐘，而去年同期為 96 分鐘。同時，月互動量超過164億，年增15%。截至季末，我們的正式會員超過2.36億，年增15%，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. What's more, our extensive content library and the user base gives 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.

在近期的社群活動方面，我們贊助的電競戰隊BLG再次奪得英雄聯盟職業聯賽2024年春季賽冠軍以及2024年中季邀請賽第二名，吸引了更多的電競愛好者來到我們的平台。更重要的是，我們廣泛的內容庫和用戶群為我們開拓人工智慧探索提供了天然的優勢。我們正在推出各種與人工智慧相關的應用程序，以使社區中的所有利益相關者受益，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 get 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.

透過我們在搜尋和影片觀看場景中的AI輔助，使用者可以更有效率地獲取資訊並獲得更個人化的內容推薦。在創作者方面，我們推出了AI內容創作工具B-cut studio，讓內容創作者可以客製化數位人和聲音，提高創作效率。對於廣告商來說，我們正在推出一個創意中心，這將使廣告主能夠輕鬆地為他們的廣告產生標題和編輯資料。更重要的是，透過我們的人工智慧演算法，我們的內容和廣告可以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. For the first quarter, our total revenues increased by 12% year-over-year to RMB 5.7 billion, as our biggest top line growth driver, revenues from our advertising business were up by 31% year-over-year to RMB 1.7 billion.

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擴張並實現盈利。第一季度，我們的總營收年增12%至人民幣57億元，作為我們最大的營收成長動力，廣告業務收入較去年同期成長31%至人民幣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.

基於效果的廣告仍然是主要的成長貢獻者，第一季年增超過 50%。我們對第一季的業績感到鼓舞，並預期成長動能將持續下去。第一季度，我們前五名的廣告垂直領域是手機遊戲、數位產品和家電、電子商務、汽車、護膚和化妝品。

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 algorithm to be more accurate and targeted.

正如我在上季度的財報電話會議中提到的，我們正在分配更多資源，以更原生、自然和無縫的方式將廣告產品整合到我們的內容生態系統中。第一季我們取得了一些顯著進展。我們將廣告平台整合升級，提供視覺化的數據分析和更人性化的工具，幫助廣告主更有效率地競價。此外，隨著我們對用戶消費概況的深入了解，我們正在進一步改進廣告匹配演算法，使其更加準確和有針對性。

Collectively, these enhancements in efficiency as well as our increasing traffic enabled us to secure more advertising budgets from our ad customers. 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.

總的來說，這些效率的提高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。此外，我們的影片和直播商務廣告產品以及直銷轉換工具也持續取得成效。這些基於交易的廣告使廣告商能夠有效地將用戶從查看產品轉變為進行購買。

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，我們在時尚女裝領域的視訊和直播總 GMV 已經超過了相應的 2023 年全年總 GMV。 。第一季度，透過視訊和直播商務賺取收入的內容創作者數量年增了一倍多。

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.

除了第一季的進展外，我們還在進行更多的產品升級，其中一些已準備好應用於即將到來的618購物節。我們將推出更好的廣告投放和分析工具，讓更靈活的廣告格式並擴展更多的廣告場景。這使廣告主能夠在我們的內容生態系統中實現更智慧、更具創意和整合的廣告，從而獲得更好的品牌推廣和轉換結果。

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, Vtubers and entertainment. Moreover, through refined operational measures, we are also improving our gross margin while increasing the supply of high-quality live broadcasting content.

轉向我們的加值服務業務。在直播成長的帶動下，第一季增值業務營收年增17%至人民幣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。尤其是我們的優勢內容類別，如遊戲、Vtuber 和娛樂。此外，透過精細化的營運措施，我們也在提高毛利率的同時增加優質直播內容的供應。

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 the 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，高級會員數量穩定在 2,190 萬，其中超過 80% 的高級會員採用年度訂閱或自動續訂套餐。用戶在我們的其他增值服務產品上的支出也表現出越來越大的傾向，包括我們的優質線上課程、獨家粉絲充電影片產品和虛擬社群配件。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 had already pre-registered as of today. We also plan to launch a Japanese RPG title, Heaven Burns Red (foreign language), in the third quarter.

轉向我們的遊戲業務。第一季我們的收入為人民幣9.83億元。 4月，我們推出獨家授權遊戲《Artifacters》五花迷信。這款創意卡牌遊戲受到了遊戲愛好者的一致好評。從我們的遊戲儲備來看，我們預計將於 6 月 13 日發布備受期待的 SLG 遊戲《三國：謀定天下》。我們也計劃在第三季推出日本 RPG 遊戲《Heaven Burns Red》（外文）。

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，在商業化進程取得進展的同時，我們也積極承擔文化企業的社會責任。我們上個月發布了 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。我們與內容創作者、員工和產業合作夥伴合作，努力探索更多技術創新並參與社會公益活動，為整個社會帶來正面影響。

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

陳先生的發言到此結束。我現在將簡要概述我們 2024 年第一季的財務表現。

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 initiative continued to yield great results in the first quarter. We improved the quality of our revenues, expanded our margin for the seventh consecutive quarter and significantly narrowed our losses based largely on our revenue growth and platform efficiency.

為了更仔細地了解我們的財務業績，我們鼓勵您參考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良好成果。我們提高了收入質量，連續第七個季度擴大了利潤率，並顯著縮小了虧損，這主要取決於我們的收入成長和平台效率。

Total revenues for the first quarter were RMB 5.7 billion, up 12% year-over-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. 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.

第一季總營收為人民幣57億元，較去年同期成長12%。我們第一季的總收入按收入來源劃分約為 45% 的增值服務、29% 的廣告、17% 的手機遊戲以及 9% 的 IP 衍生品和其他業務。第一季度，我們的營收成本年增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. 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.

第一季我們的總營運費用年減 2% 至人民幣 24 億元。銷售及行銷費用年增5%至人民幣9.27億元，主要是因為與我​​們即將推出的SLG遊戲相關的早期推廣費用。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9.65億元，年減6%。第一季度，我們將調整後營運虧損和調整後淨虧損分別削減至人民幣5.12億元和人民幣4.56億元，年比分別收窄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 top line growth and gross profit margin improvement.

第一季度，我們也實現了人民幣6.38億元的正經營現金流，展現了我們業務持續健康的永續發展之路。我們預計，透過我們持續的營收成長和毛利率改善，將在 2024 年第三季實現正的非 GAAP 營業利潤。

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. In March this year, we completed the repurchase right 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.

截至2024年3月31日，我們的現金及現金等價物、定期存款及短期投資為129億元人民幣（18億美元）。今年3月，我們完成了2026年4月票據的回購權要約。本次交易完成後，2026年4月票據、2027年票據及2026年12月票據的未償還本金總額為4.33億美元。我們相信我們的現金狀況足以支付我們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.

感謝您的關注。我們現在想開始回答您的問題。接線員，請繼續。

(Operator Instructions) Our first question comes from the line of Thomas Chong of Jefferies.

（操作員說明）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, in our ad product offerings and our ad technology upgrade. On the other hand, if we look into the Q2, in particular, for June 18, 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線上廣告業務。鑑於廣告成長超出了我們的預期，管理層能否評論一下關鍵的成長動力。我們的優勢領域之一是我們的廣告產品供應和廣告技術升級。另一方面，如果我們研究第二季度，特別是 6 月 18 日，管理層能否評論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 driver 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】第一季我們的廣告收入達到16.7億元人民幣，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%。說到關鍵驅動因素，其中一個驅動因素是，在保持我們非常關心的良好用戶體驗的同時，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，透過混合自然流量和商業流量，高品質的廣告內容可以獲得更多的自然流量，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，隨著我們增加有效廣告庫存，我們的廣告負載仍然很低，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 (inaudible). 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以及改進我們的廣告投放工具。我們在不同的廣告場景中啟用並實現了智慧廣告投放。在第一季度，超過 50% 的 Sparkle 廣告也購買了我們的內容推廣服務，也就是專案起飛（聽不清楚）。我們還建立了一個創意中心，以實現廣告材料的批量處理。而且，我們相信對AIGC相關功能的不斷探索可以幫助我們提高廣告效率。

(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 [B-cut], 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，在我們的內容創作者方面，我們推出了針對內容創作者的內容推廣工具。 Project takeoff現已正式升級為名為【B-cut】的新產品，並於第一季向所有內容創作者開放。此功能讓內容創作者可以一站式服務，透過付費流量放大來推廣自己的內容，同時也能增加粉絲，提升變現能力。第一季購買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 [paths] 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 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，提高了演算法效率。我們完善了各種商業[路徑]，為廣告主提供更全面的品牌和行銷成果衡量和指導。目前，我們已經針對遊戲、手機、化妝品等領域的廣告主推出了試用版的【B數據和Z指數】。我們預計第三季和第二季度，我們將其推廣到更多的垂直行業。

(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 prelaunch 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垂直產業解決方案。第一季度，遊戲、數位產品和家電電商平台是我們的三大成長因素，比去年同期成長在兩位數左右。在遊戲領域，我們專注於優質遊戲，涵蓋遊戲營運從前期到長期營運的各個階段。值得注意的是，我們在小型遊戲市場的份額不斷增加，導致每日廣告支出增加了 50%。在數位和家電方面，我們已經佔據了智慧型手機應用市場約10%的市場。未來，我們相信其他數位產品和家電仍有巨大的成長潛力。

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

然後我們轉向電商平台，本季我們已經實現了多元化的客戶結構。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的合作，（聽不清楚）和（聽不清楚）。我們在非購物節期間提高了 ARPU，並針對其他主要活躍商家引入了額外預算。我們確實預期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應用於更多其他垂直行業，包括汽車、網路服務、醫療保健和教育行業。同時，我們將持續拓展更多產業的更多客戶。

(foreign language)

（外語）

[Interpreted] And you asked about our June 18 performance, as we do expect or we estimate the growth during June 18 shopping festival this year will be around -- 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.

[解讀]您問到了我們6月18日的表現，正如我們所預期或估計的那樣，今年6月18日購物節期間的增長將同比增長30%以上。在這個重要的購物節上，我們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，我們的策略還有兩次升級。首先是我們將合作關係從單純的流量合作升級為流量加內容的合作。品牌廣告收入預計在此期間年增40%。今年，淘寶也推出了新的預算——以購買 Sparkle plus 內容促銷的總 GMV 為目標。而京東也積極進行流量與內容價值策略結合的整合行銷活動。

Secondly is that we will transition from platform to -- 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.

其次，我們將從平台合作過渡到平台+商家合作。 618平台預算預計將年增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，鼓勵更多與消費相關的行為，從產品播種到購買過渡。

(foreign language)

（外語）

[Interpreted] Speaking of the June 18 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6月18日購物節，我簡單說一下反映B站現狀的一些數據點。首先，我們注意到嗶哩嗶哩用戶的消費意願進一步提高。第一季度，觀看交易相關內容的用戶數量已超過3,700萬，較去年同期成長近一倍。我們相信，我們的用戶對於在我們的平台上觀看商業或電子商務相關內容有更多的心態和看法。

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從這項改進中受益。內容創作者透過直播和視訊商務獲得的收入或創收也較去年同期成長超過100%。我們相信我們還有更多的潛力可以進一步進入。而在與交易相關的廣告業中，交易額排名前四的行業是數位產品及家電、食品飲料、服飾及美容化妝品。

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

綜上所述，我們仍然非常有信心維持全年廣告的高成長率。

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磊。

(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）祝賀廣告業務強勁成長。我的問題主要是關於遊戲業務。您能為我們介紹一下今年整體遊戲前景的最新情況嗎？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 has -- always has 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、最優質的遊戲相關內容庫，同時我們擁有最高密度的優質遊戲玩家。這為我們在遊戲業務上帶來了巨大的優勢。

(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】全年來看，我們思考我們的遊戲業務，有兩個字可以概括我們的方向：一是穩定；二是穩定。第二是我們正在尋找新事物。

(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的經典遊戲，希望能做到很長期的【營運】，保持玩家的黏性，同時也希望在內容上不斷創新。我們見證了舊版遊戲的玩家留存率和參與度不斷提高，同時顯示出非常強勁的壽命。

(foreign language)

（外語）

[Interpreted] FGO, one of our most popular legacy games, have entered -- has already launched -- 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 -- it's a 7-year-old game. And for the 7th-year anniversary, just -- happened just now in May, this game once again returning to the top 10 grossing charts on iOS as well.

[解讀]《FGO》是我們最受歡迎的傳統遊戲之一，已經推出 - 已經推出 - 已經推出 8 年了。今年，在 4 月的內容升級期間，這款遊戲重新回到了 iOS 暢銷榜的榜首。至於《碧藍航線》，它也是一款有 7 年歷史的遊戲。就在 5 月的 7 週年紀念日之際，這款遊戲也再次重返 iOS 暢銷榜前 10 名。

(foreign language)

（外語）

[Interpreted] And for -- from Bilibili perspective, to operate these tested games by -- for a longer period of time, its return for us, it's even better than thinking new games. So what we plan to do is continue to do -- refine our operation, maintain 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 came 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，對我們來說，它的回報甚至比思考新遊戲更好。所以我們計劃要做的是繼續做——完善我們的運營，保持較長的生命週期。身為FGO玩家，我可以看到FGO已經成為我生活的一部分，如果遊戲還在的話我會繼續玩下去。因此，我們有信心能夠在其成立十週年甚至更長時間之際繼續運作。

(foreign language)

（外語）

[Interpreted] And speaking of new games, we actually launched a new game in April called Artifacter. It's Chinese style ACG game. The artistic style is close -- 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 Artifacter, we think this game -- its performance so far has met our expectations and will contribute to our game revenue in the second quarter.

[解讀]說到新遊戲，我們其實在四月推出了一款新遊戲，叫做Artifacter。這是一款中國風的ACG遊戲。美術風格接近－可歸類為ACG作品。但故事情節和玩法其實是非常中國傳統的。它以文物為自己的角色，很有創意。我們注意到這種類型的遊戲為我們這些中國傳統文化愛好者打開了一個新的人群。因此，我們將繼續尋找 ACG 和新類別的新機會，以幫助我們擴展到更多的遊戲玩家群體。至於《Artifacter》這款遊戲，我們認為這款遊戲迄今為止的表現符合我們的預期，將為我們第二季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 is San Guo: Mou Ding Tian Xia, you were asking. For this game, we already set the launch date at June 13.

【解讀】另外一個遊戲，我想舉個例子，就是《三國志》：牟丁天下，你問的是。對於這款遊戲，我們已經將發布日期定在了 6 月 13 日。

(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 paid, nonpaid beta testing as it has received a very good feedback from the gamers.

【解讀】對於這款遊戲來說，已經擁有超過200萬的預註冊用戶，我們也做了多輪付費、非付費的Beta測試，得到了玩家非常好的回饋。

(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 signed this -- we have signed this game the year before last year. The reason behind that it's not a spur of moment 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.

【解讀】我會稍微闡述我們打算如何探索新的領域。這個SLG三國謀定天下這個遊戲，其實我們簽了這個——我們前年就簽了這個遊戲。這不是一時興起的原因是我們發現在嗶哩嗶哩上有一大群人對歷史、軍事、政治知識等話題感興趣，正如你所知，知識已經成為了一個非常大的內容類別。 。所以為了滿足這群用戶或潛在玩家的需求，我們簽約了這款SLG遊戲。到目前為止，反饋非常積極，表明該策略正在發揮作用。

(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 have -- we have targeted solutions and to improve this gameplay. So far, the user feedback has been very positive.

【解讀】所以我們在製定SLG戰略目標的同時，也和遊戲開發商一起在遊戲上進行了許多創新。如您所知，我們擁有大量 Z 世代用戶。對於這群用戶來說，他們對SLG的偏好相對於老一代來說已經改變了。他們更重視遊戲玩法和遊戲中的樂趣，而不是競爭和戰鬥本身。此外，他們還關心是否需要充值大量資金並花費大量時間在遊戲上。所以在這個領域，我們有針對性的解決方案並改進這個遊戲玩法。到目前為止，用戶的回饋非常積極。

(foreign language)

（外語）

[Interpreted] And those 2 examples shows 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】這兩個例子體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。所以我們會繼續關注這個賽道，旨在為我們的用戶帶來更多優質的遊戲。

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 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。該公司第一季的時長創下了新高，日均時長確實也取得了不錯的成長。那麼這背後的主要驅動力是什麼？哪些內容類別未來有望具有巨大潛力？

(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 users -- 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, that we are looking at the technology -- tech, knowledge and game sector, for this sector's VV has increased 37%, 28% and 24%, respectively.

【解讀】所以其實B站有自己的內容類別，相比其他平台來說是非常有優勢的，而且用戶在B站尋找此類內容的心態也很強烈。其中包括知識、二次元、科技、數位產品等。而使用者－對於此類內容類別，使用者有核心需求。他們自然想看這類內容。只要我們保持競爭力，他們繼續增強我們在這一類別中的領導地位，我們就會經歷自然的流量成長。例如今年我們看科技——科技、知識和遊戲板塊，這個板塊的VV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, our average age -- the average age of Bilibili user is already 24 years or so 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]在我們增強領導力內容類別的同時，我們也積極探索新的類別。比如說我們的平均年齡－嗶哩嗶哩用戶的平均年齡已經是24歲左右了，對於某些人群來說，理論上他們的孩子可能大約在1歲。因此，我們自然會看到這些內容消費需求的成長，包括母嬰、汽車和家電等。例如，第一季，母嬰影片播放量成長超過100%，汽車、家電、家居裝飾品也有強勁成長。

(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品類，我們自然也在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】所以第一季我們整個社區實現了強勁的成長。我們的 DAU 成長了 9%，影片觀看次數成長了 22%。日均用戶使用時長達105分鐘的歷史新高。這一切都顯示我們的內容開發和社群營運策略是非常有效的，我們將繼續執行這項策略，實現未來的永續成長。

Our next question comes from Felix Liu from UBS.

我們的下一個問題來自瑞銀集團的 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?

（外文）恭喜第一季毛利率表現良好。我可以查一下你們在成本控制方面具體哪些方面做得比較好？您如何看待中長期利潤前景以及第三季獲利目標（如果有）的更新？

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.

謝謝菲利克斯，我是山姆，我來回答這個問題。第一季度，我們的總收入成長了 12%，而營收成本則是年增了 2%。所以我們的毛利增加了45%。由於營運效率的提高，我們的非公認會計準則營運費用較去年同期下降了2%，季減了8%，虧損進一步減少。

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是由收入成長和毛利持續改善所推動的，我們認為這更具可持續性。具體來說，毛利率有所上升，第一季達到28%左右。這種改善的主要原因是高利潤業務，例如我們的廣告收入，年增 31%。現在銷售組合已達 29%。

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 -- achieving non-GAAP operating breakeven in Q3. We are quite confident to achieve that.

根據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和遊戲業務的復甦，我們將恢復同比成長。我們的毛利率將環比進一步提高，並在第三季度達到 30% 的毛利率，並且我們將在第三季度實現非 GAAP 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.

長期來看，毛利率將取決於收入規模和各業務線的組合。我們仍然相信那裡有巨大的潛力。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高商業化效率，同時持續改善營運策略，實現毛利率和淨利潤率的持續改善。謝謝你的提問。

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 Lincoln Kong。

(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）所以我的問題是關於付費用戶業務的。所以我們看到該公司現在有接近 3000 萬付費用戶。所以除了傳統的訂閱會員之外，我們還成功推出了內容創作者收費、付費課程或社群裝修等加值服務。那麼公司如何看待這個社群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: One, 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 content -- pay for content is a natural monetization method for Bilibili.

【解讀】所以B站一直是個基於興趣的視訊社區，B站用戶有3個關鍵特徵：一、高留存、高參與度、高ARPU。而且因為所有的使用者都對我們的社群有強烈的歸屬感，也對社群有歸屬感。這一切都創造了內容——內容付費是嗶哩嗶哩自然而然的變現方式。

[Interpreted]

[解讀]

[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.

[解讀]在我們的高級會員業務上，截至第一季末，我們擁有接近2,200萬高級付費會員。有趣的數字是，80% 的人選擇了長期承諾付款，又稱每月自動訂閱或每年訂閱。這就是我們與常規內容平台的區別。

(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】所以在傳統的直播和付費會員之外，我們不斷探索更多的商業模式，讓我們的社群和內容更能結合。這包括優質課程、為我們的內容創作者提供的充電站以及化妝服裝業務。用戶在付費購買此類服務後通常會獲得更多體驗並感覺更好。同時，他們也可以表達自己對自己喜歡的內容創作者或是自己喜歡的IP的喜歡、欣賞。同時，我們的內容創作者可以獲得新的獲利途徑。這正在為我們的社區形成良性成長循環。

(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 covers 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 avenues for our content creator in the knowledge sector to monetize.

【解讀】一季度，優質會員、優質課程、收費以及社區服飾加起來，總收入已接近10億元。首先是高級課程。除了傳統的專業課程外，我們的課程涵蓋範圍更廣，包括生活技能、興趣知識，甚至人際關係也更加多元化。而精品課程已成為我們知識領域內容創作者變現的首要且重要的途徑。

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

第一季度，從優質課程中獲得收入的內容創作者數量增加了 450% 以上。而他們的——整體收入也較去年同期成長了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】第二個是我們最近升級了充電程序，將其擴展到專屬粉絲充電影片。第一季度，從收費項目中獲得收入的內容創作者數量較去年同期成長47%。而充電項目總GMV年增125%。

An example would be one of our content creator named (inaudible), 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.

一個例子是我們的一位內容創作者（聽不清楚），在過去的 6 個月裡，他發布了 4 集高品質的紀錄片。截至5月上旬，其GMV已突破1,000萬元。而且從這個案例來看，我們確實認為，在很多新的領域，像是短劇、短紀錄片、短片其實是有很大的潛力的，我們對B站還是蠻興奮的。

(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 for 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，我們計劃對我們的增值服務，包括內容服務進行系統的梳理和升級。我們非常有信心這部分業務將繼續帶來額外的收入，並幫助我們的內容創作者獲得更多的收入。

Thank you. Operator, that concludes this question.

謝謝。運營商，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. 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.

問答環節到此結束。再次感謝您今天參加 Bilibili 2024 年第一季財務業績和業務更新電話會議。如果您還有任何疑問，請聯絡 Bilibili 執行投資者關係總監 Juliet Yang 或 Piacente Financial Communications。您可以在今天的新聞稿中找到中國和美國 IR 的聯絡資訊。謝謝您，祝您有美好的一天。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。