Bilibili Inc (BILI) 2024 Q2 法說會逐字稿

Good day, and welcome to Bilibili second 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 年第二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 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.

謝謝您，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期望。由於存在許多風險和不確定因素，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 a reconciliation table are available in the news release we issued earlier today. 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 IR website at ir.bilibili.com.

我們提供的非公認會計準則財務指標僅供比較之用。這些措施的定義和對帳表可在我們今天早些時候發布的新聞稿中找到。提醒一下，本次會議正在錄製中。此外，投資者簡報和本次電話會議的網路重播將在 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. I will now turn the call over to Mr. Fan, who will read the prepared remarks on behalf of Mr. Chen.

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。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 second 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. We delivered solid second quarter results with accelerated topline growth, improved margins and healthy community development. In the second quarter, our total revenues increased by 16% year-over-year to RMB6.13 billion. Our advertising business led this growth, with ad revenue growing by 30% year-over-year. Revenues from our games and value-added services also increased by 13% and 11% year-over-year, respectively. The momentum across our business lines is a strong testament to our execution in increasing our commercialization efficiency and unlocking the value of our community.

謝謝朱麗葉，也謝謝大家參加我們 2024 年第二季電話會議，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。我們第二季業績表現穩健，營收成長加速，利潤率提高，社區發展健康。第二季度，我們的總營收年增16%至人民幣61.3億元。我們的廣告業務引領了這一成長，廣告收入年增了 30%。我們的遊戲和增值服務收入也分別較去年同期成長13%和11%。我們各業務線的強勁發展勢頭有力地證明了我們在提高商業化效率和釋放社區價值方面的執行力。

Increased revenues from our higher-margin advertising and games business boosted our gross profit by 49% year-over-year. Gross profit margin rose to 29.9% in the second quarter, up from 23.1% in the same period last year, marking the eighth consecutive quarter of margin improvement. Consequently, we significantly narrowed our adjusted operating loss and adjusted net loss by 69% and 72%, respectively, year over year. Moreover, we generated a record RMB1.75 billion in operating cash flow in the second quarter. Our deferred revenue balance at the end of Q2 also increased by RMB738 million from the end of Q1. With this progress, we are confident that we can achieve our non-GAAP breakeven target in the third quarter of this year and continue to improve our profitability thereafter.

我們利潤率較高的廣告和遊戲業務的收入成長使我們的毛利年增了 49%。第二季毛利率由去年同期的23.1%上升至29.9%，這是毛利率連續第八個季度改善。因此，我們調整後的營業虧損和調整後的淨虧損年比分別大幅縮小了 69% 和 72%。此外，我們第二季的經營現金流創歷史新高，達到17.5億元。我們第二季末的遞延收入餘額也較第一季末增加了人民幣7.38億元。有了這些進展，我們有信心在今年第三季實現非公認會計準則損益平衡目標，並在此之後繼續提高獲利能力。

While we have been accelerating our financial performance, our community continued to strive. In the second quarter, our DAUs increased by 6% year over year, reaching 102 million, and MAUs grew to 336 million. Our community remains highly engaged, with users spending a daily average of 99 minutes on our platform. As we move into the summer season, we continue to see strong seasonality in terms of user engagement and the retention.

在我們不斷提高財務表現的同時，我們的社區也持續努力。第二季度，我們的DAU年增6%，達到1.02億，MAU成長至3.36億。我們的社群仍然保持著高度參與度，用戶每天平均在我們的平台上花費 99 分鐘。隨著進入夏季，我們繼續看到用戶參與度和保留率的強烈季節性。

On June 26, we celebrated Bilibili's 15th Anniversary. Over the past 15 years, our platform has become a regular destination for nearly 70% of China’s Gen Z plus population. This journey has brought us tremendous opportunities as these users have become a major consumer force in society. We have seen it in our advertising growth as we enhance our infrastructure to facilitate their evolving consumption needs. We have seen it in our game business as we reinvent strategy game to resonate more deeply with the preference of younger audiences. As we continue to unlock the value of our community, we remain committed to our founding vision: to build a welcoming home for talented creators and like-minded individuals to connect over shared interests and to satisfy their evolving needs for good content and service.

6月26日，我們慶祝嗶哩嗶哩成立15週年。在過去的15年裡，我們的平台已成為中國近70% Z世代人口的常用網站。這一歷程為我們帶來了巨大的機遇，因為這些用戶已經成為社會消費的主要力量。隨著我們加強基礎設施以滿足不斷變化的消費需求，我們在廣告成長中看到了這一點。我們在遊戲業務中看到了這一點，我們重新設計了策略遊戲，以便更深入地引起年輕觀眾的共鳴。在我們不斷釋放社區價值的同時，我們始終致力於我們的創始願景：為才華橫溢的創作者和志同道合的個人建立一個溫馨的家園，讓他們透過共同的興趣建立聯繫，並滿足他們對優質內容和服務不斷變化的需求。

With that overview, I would like to discuss our core pillars of content, community and commercialization in more detail.

透過這個概述，我想更詳細地討論我們的內容、社群和商業化的核心支柱。

Beginning with content and community. Our strategy to encourage more high-quality creators to generate content continues to prove beneficial. In the second quarter, average daily video views increased by 18% year over year to over 4.8 billion. Our leading content categories, such as games, knowledge and technology, continued to show solid growth in video views, all increasing by over 20% year over year. Meanwhile, users’ demand in consumption-related categories also continued to surge in the second quarter. Video views in home appliance and decoration, automotive and fashion and cosmetics all grew by more than 30% compared with the same period a year ago.

從內容和社群開始。我們鼓勵更多高品質創作者創作內容的策略繼續被證明是有益的。第二季度，日均影片觀看量較去年同期成長18%，超過48億次。我們的主要內容類別，例如遊戲、知識和科技，在影片觀看量方面持續呈現穩健成長，年成長均超過 20%。同時，第二季用戶在消費相關品類的需求也持續激增。家電裝飾、汽車、時尚美妝等類別的影片觀看量較去年同期均成長30%以上。

We continue to provide effective and diversified monetization channels to incentivize our content creators. In the first half of 2024, about 2.1 million content creators received income on Bilibili. Content creators' total income through our ads and VAS products increased by 30% year over year. Notably, our innovative content-based products, such as premium courses and the fan charging programs, are being well received by our users. In the first half of 2024, content creators’ total income from these two products increased by over 40% and over 430%, respectively, year over year.

我們持續提供有效且多樣化的獲利管道來激勵我們的內容創作者。2024年上半年，約有210萬個內容創作者在嗶哩嗶哩上獲得收入。內容創作者透過我們的廣告和增值服務產品獲得的總收入年增了30%。值得注意的是，我們創新的內容產品，如精品課程和粉絲充電計劃，受到了用戶的好評。2024年上半年，內容創作者從這兩款產品中獲得的總收入分別較去年同期成長40%以上和430%以上。

Looking at our community metrics in the second quarter, our DAUs spend an average of 99 minutes with us, compared with 94 million in the same period last year, driving up users’ total time spent by 11% year-over-year. Monthly interactions increased by 11% year over year, exceeding 16.5 billion in the second quarter. By the end of Q2, the number of our official members increased by 13% year over year to 243 million, and their 12-month retention rate remained strong at around 80%.

從第二季的社群指標來看，我們的每日活躍用戶平均在我們平台上花費 99 分鐘，而去年同期為 9,400 萬，用戶總使用時間年增 11%。月互動量年增11%，第二季突破165億次。截至第二季末，我們的正式會員數量年增13%，達到2.43億，12個月的留存率維持在80%左右的強勁水準。

Moreover, this July, we held our signature offline events, Bilibili World and Bilibili Micro Link once again bringing our community together in Shanghai. More than 250,000 people traveled across the country to participant in event, leading to a surge in Shanghai’s travel-related consumption. The growing enthusiasm at these events showed our unparalleled influence among the young generation.

此外，今年7月，我們舉辦了標誌性的線下活動嗶哩嗶哩世界和嗶哩嗶哩微連，再次將我們的社區聚集在上海。超過25萬人從全國各地前來參加活動，帶動上海旅遊消費激增。這些活動日益高漲的熱情表明了我們在年輕一代中無與倫比的影響力。

Now, I'd like to talk about our commercialization progress in each of our business lines. First on our advertising business. As our users mature with more disposable income, their commercial value unfolds as they seek more consumption-related content on Bilibili. The demand is there and all we need to do is to match the right ads with the right user. In the second quarter, we further improved our ad products and infrastructure to increase our ad efficiency. Specifically, we upgraded our ad placement system, featuring user-friendly placement tools and enhanced conversion capabilities, attracting and retaining more advertisers on Bilibili. In the first half of the year, the number of advertisers on our platform increased by over 50% year over year. Moreover, we continued to invest and improve our ad modeling capabilities to better understand our users' consumption behaviors and preferences, which enabled us to further enhance our ad matching efficiency. Meanwhile, we incorporated more native video-style ad content, allowing us to expand ad load while maintaining user experience. We plan to further advance these initiatives in the following quarters and help our advertisers create ad materials more easily and place advertisements more automatically.

現在我想講一下我們各個業務線的商業化進展。首先是我們的廣告業務。隨著我們的用戶日趨成熟，可支配收入也隨之增加，他們在 Bilibili 上尋求更多與消費相關的內容，其商業價值也隨之顯現。需求是存在的，我們需要做的就是將正確的廣告與正確的用戶配對。第二季度，我們進一步改善了廣告產品和基礎設施，以提高廣告效率。具體來說，我們升級了廣告投放系統，推出了用戶友好的投放工具和增強的轉換能力，從而吸引並留住了更多嗶哩嗶哩廣告商。上半年，我們平台的廣告主數量較去年同期成長超過50%。此外，我們不斷投入和改進我們的廣告建模能力，以更好地了解用戶的消費行為和偏好，這使我們能夠進一步提高廣告配對效率。同時，我們融入了更多原生影片風格的廣告內容，讓我們在擴大廣告負載的同時，也能確保使用者體驗。我們計劃在接下來的幾個季度進一步推進這些舉措，幫助我們的廣告商更輕鬆地創建廣告素材並更自動地投放廣告。

Industry-wise, our top five advertising verticals were mobile games, e-commerce, digital products and home appliance. food and beverage, and automotive in the second quarter. Our anchor verticals continued to deliver strong performance. During the 618 shopping festival, we not only secured more ad budgets from e-commerce platforms, but also directly from online merchants in different verticals. Total GMV from video and live commerce increased by over 140% year over year during the period. Besides our leading verticals, we also saw incremental ad revenue from emerging verticals. In the second quarter, ad revenues from internet services, AI and education all increased meaningfully.

從業界來看，第二季我們的五大廣告垂直產業分別是手機遊戲、電子商務、數位產品和家電、食品和飲料以及汽車。我們的主力垂直產業持續表現強勁。在618購物節期間，我們不僅從電子商務平台獲得了更多的廣告預算，還直接從不同垂直行業的線上商家獲得了更多的廣告預算。期內，視訊和直播商務總成交額 (GMV) 年比成長超過 140%。除了我們領先的垂直行業之外，我們還看到來自新興垂直行業的增量廣告收入。第二季度，網路服務、人工智慧和教育領域的廣告收入均有顯著成長。

Turning to our game business. Game revenues resumed growth by 13% year over year in the second quarter to RMB1.01 billion, led by the excellent performance of our recently launched strategy game, San Guo: Mou Ding Tian Xia (San Mou) and ACG game, Articrafter. Our legacy titles also contributed steady game revenues and demonstrated remarkable longevity. As FGO celebrated its eighth anniversary, it returned to the top 10 on the iOS game grossing chart in July. As for Azur Lane, monthly active users reached a new peak in June with the celebration of its 7-year anniversary. These trends strengthened our commitment to the long-term operation of high-quality games.

轉向我們的遊戲業務。遊戲收入在第二季度恢復同比增長 13% 至人民幣 10.1 億元，這得益於我們新推出的策略遊戲《三國：謀定天下》（三謀）和 ACG 遊戲《匠心工匠》的出色表現。我們的傳統遊戲也貢獻了穩定的遊戲收入，並展現出非凡的長壽性。在《FGO》迎來八週年之際，在7月重返iOS遊戲暢銷榜前十名。至於《碧藍航線》，隨著上線七週年的到來，6月月活躍用戶數再創新高。這些趨勢增強了我們對長期經營優質遊戲的決心。

We were delighted to see our first strategy game, San Mou, become an immediately blockbuster. On the first day of its launch, it ranked in the Top 3 on the iOS game-grossing chart, attracting millions of gamers to the three kingdoms’ battlefields. San Mou also set a new record in our operating history, being the fastest title that hits RMB1 billion game grossing mark. With the launch of the second game season on August 3, San Mou returned to the Top 3 on the iOS game grossing chart. The decent size of the SLG market, the early success of San Mou and the long-life cycle nature of SLG games give us confidence that it will become one of our flagship games within enduring longevity.

我們很高興看到我們的第一款策略遊戲《三謀》立即成為暢銷遊戲。上線首日即位列iOS遊戲暢銷榜前三，吸引數百萬玩家加入三國戰場。《三謀》也創下了公司營運史上最快突破10億元人民幣遊戲收入紀錄。隨著8月3日第二季遊戲的上線，《三某》重返iOS遊戲暢銷榜Top3。SLG 市場的可觀規模、《三謀》的早期成功以及 SLG 遊戲的長生命週期特性使我們相信，它將在長久的時間內成為我們的旗艦遊戲之一。

Over the years, our community has expanded exponentially and so has our gamer base. San Mou's success marks a breakthrough in our general diversification strategy and shows the vast potential of our game business. We will continue leveraging our leading role as a top gaming community and capitalization our significant opportunities to reinvent games for the new generation of gamers.

多年來，我們的社群和玩家群都呈指數級增長。三謀的成功標誌著我們多元化策略的突破，彰顯了我們遊戲業務的巨大潛力。我們將繼續發揮我們作為頂級遊戲社群的領導作用，並利用我們的重要機會為新一代遊戲玩家重塑遊戲。

Turning to our VAS business. Revenues from VAS business increased by 11% year over year to RMB2.57 billion. We continued to add more live broadcasting content offerings, reinforcing the synergies between our live broadcasting and PUGV ecosystem to better cater to users’ diverse interests.

轉向我們的增值業務。增值業務收入年增11%至人民幣25.7億元。我們持續增加更多的直播內容產品，加強直播和PUGV生態系統之間的協同作用，以更好地滿足用戶的多樣化興趣。

We will also further explore opportunities in our other VAS business as our Gen Z plus users have demonstrated and increasing willingness to directly pay for the content they love. Our premium members continued to increase, reaching 22.3 million by the end of second quarter, with over 80% of them subscribing annually or under auto-renewal packages, showing their continued loyalty and trust in our platform. Users spending our other VAS products also grew rapidly in the second quarter, particularly in premium courses, our fan charging program and avatar decoration. We expect these products to open more monetization potential across our massive PUGV content universe in the future.

由於我們的 Z 世代用戶已經表現出越來越願意為他們喜愛的內容直接付費，我們也將進一步探索其他增值服務業務的機會。我們的高級會員數量持續增加，截至第二季末已達到 2,230 萬，其中超過 80% 的會員為年度訂閱或自動續訂套餐，表明他們對我們的平台持續忠誠和信任。我們其他加值服務產品的用戶支出在第二季也迅速成長，尤其是高級課程、粉絲充電方案和頭像裝飾。我們預計這些產品將來能夠在我們龐大的 PUGV 內容世界中釋放更多的獲利潛力。

We believe good content and community can bring people together, and the value of our users is just starting to show its potential. Our community is striving, and our solid second quarter results place us just one step away from profitability. We are excited to move forward and take Bilibili to the next level.

我們相信好的內容和社群可以把人們聚集在一起，而我們用戶的價值才剛開始展現其潛力。我們的社區正在努力奮鬥，我們第二季度的穩健業績使我們距離盈利僅一步之遙。我們很高興能夠繼續前進，並將 Bilibili 提升到一個新的水平。

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

陳先生的發言到此結束。現在我將簡要概述我們 2024 年第二季的財務表現。

For a closer look at our financial results, we encourage you to refer our press release issued earlier today. As a reminder, all amounts are in RMB unless otherwise noted.

為了更深入地了解我們的財務業績，我們建議您參閱我們今天早些時候發布的新聞稿。提醒一下，除非另有說明，所有金額均以人民幣計算。

In the second quarter, we further advanced our commercialization capabilities, delivering accelerated year-over-year revenue growth across our core business. At the same time, we continued to expand our margins and considerably narrowed our losses. All of these financial improvements were founded on our topline growth with increased efficiency.

第二季度，我們進一步提升了商業化能力，核心業務收入較去年同期成長加速。同時，我們的利潤率持續提高，虧損也大幅減少。所有這些財務改善都建立在我們收入成長和效率提高的基礎上。

Total revenues for the second quarter were RMB6.13 billion, up 16% year over year. Our total revenue breakdown by revenue stream for Q2 was approximately 42% VAS, 33% advertising, 17% mobile games and 8% of our IP derivatives and other business.

第二季總營收為人民幣61.3億元，年增16%。我們第二季的總收入按收入來源劃分約為：增值服務 42%、廣告 33%、手機遊戲 17% 以及 IP 衍生品和其他業務 8%。

Our cost of revenues increased by 5% year over year to RMB4.3 billion in the second quarter, while our gross profit rose 49% year over year to RMB1.8 billion. Our gross profit margin reached 29.9% in Q2, up from 23.1% in the same period last year.

我們第二季的營業成本年增5%至人民幣43億元，而毛利較去年同期成長49%至人民幣18億元。我們第二季的毛利率達到29.9%，高於去年同期的23.1%。

Our total operating expenses were down 3% year over year to RMB2.4 billion in the second quarter. Sales and marketing expenses increased by 13% year over year to RMB1 billion, mainly due to increased marketing expenses for the new game launch. G&A expenses were RMB488 million, down 10% year over year. R&D expenses was RMB895 million, down 15% year over year, both related to reduced headcount expenses.

我們第二季的總營運費用年減 3% 至人民幣 24 億元。銷售及行銷費用年增13%至人民幣10億元，主要由於新遊戲推出的行銷費用增加。一般及行政開支為人民幣4.88億元，較去年同期下降10%。研發費用為人民幣8.95億元，年減15%，均與員工支出減少有關。

We narrowed our adjusted operating loss and adjusted net loss to RMB284 million and RMB271 million in the second quarter, reducing our losses by 69% and 72% year over year, respectively. Our adjusted net loss ratio in the second quarter come down to 4% from 18% in the same period a year ago.

我們第二季調整後營業虧損和調整後淨虧損分別收窄至人民幣2.84億元和人民幣2.71億元，年比分別減少虧損69%和72%。我們第二季的調整後淨虧損率從去年同期的 18% 下降至 4%。

Cash flow-wise, we generated a record RMB1.75 billion in positive operating cash flow in the second quarter, and a total of RMB2.4 billion in positive operating cash flow in the first half of the year. As I mentioned earlier, driven by the strong performances from our games and ad business, our deferred revenue balance at the end of Q2 also increased by RMB738 million from the end of Q1, paving a solid path to achieve our non-GAAP breakeven target next quarter, and a sustainable profitability thereafter.

現金流方面，第二季我們實現了創紀錄的17.5億元正經營現金流，上半年累計實現了24億元正經營現金流。正如我之前提到的，受遊戲和廣告業務強勁表現的推動，我們第二季度末的遞延收入餘額也較第一季末增加了7.38億元人民幣，為我們下季度實現非公認會計準則盈虧平衡目標以及此後的可持續盈利鋪平了堅實的道路。

As of June 30, 2024, we had cash and cash equivalents, term deposits and short-term investments of RMB13.9 billion or USD1.9 billion. Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

截至 2024 年 6 月 30 日，我們的現金及現金等價物、定期存款及短期投資為人民幣 139 億元或 19 億美元。感謝您的關注。我們現在想開始回答你們的問題。接線員，請繼續。

(Operator Instructions) Daniel Chen, JPMorgan.

（操作員指示）摩根大通的 Daniel Chen。

(spoken in foreign language) So my question is on the advertising. We see that the advertising growth in the second quarter was very robust, growing about 30% year-over-year, which is very strong. So could you maybe share the key driver behind? And also, how should we expect the advertising growth for the second half?

（用外語說）所以我的問題是關於廣告的。我們看到第二季的廣告成長非常強勁，年成長約30％，這是非常強勁的。那麼，您能否分享背後的關鍵驅動因素？另外，我們對下半年的廣告成長有何預期？

(spoken in foreign language)

（用外語說）

(interpreted) In a challenging macro environment, Bilibili's second quarter advertising business achieved a 30% year-on-year growth with quarterly revenue exceeded RMB2 billion for the very first time and contributing about one-third of the company's total revenue.

(解讀) 在充滿挑戰的宏觀環境下，嗶哩嗶哩第二季廣告業務年增30%，季度營收首次突破20億元人民幣，貢獻了公司總收入的約三分之一。

As you can see that our advertising revenue has grown for several consecutive quarters and the fundamental reason behind that is one that Bilibili's traffic is growing very healthily and secondly is that we are continuously unlocking the commercial value of our users.

大家可以看到，我們的廣告收入已經連續幾季成長，根本原因一是B站的流量成長非常健康，二是我們不斷釋放用戶的商業價值。

Bilibili's DAU grew by 6% year-over-year in the second quarter, while our video views increased by 18% year-over-year, showing continued growth in our commercial traffic.

Bilibili第二季的DAU年增了6%，而我們的影片觀看量較去年同期成長了18%，顯示我們的商業流量持續成長。

Over 70% of China's young generations are using Bilibili, and the average age of our user has reached 25. This is a stage where their consumption needs and spending power are rapidly growing and being released.

中國超過70%的年輕一代都在使用嗶哩嗶哩，用戶平均年齡已達25歲。這是他們的消費需求和消費能力快速成長和釋放的階段。

This is evident from the booming growth in our consumption-related content categories. In Q2, video views in the categories such as home decor and real estate, automotive, fashion and beauty all increased by over 30% year-over-year, while daily video views in baby & maternity experienced a year-over-year growth of over 80%.

從我們消費相關內容類別的蓬勃發展就可以看出這一點。第二季度，家居房產、汽車、時尚美妝等類別的影片觀看量較去年同期成長均超過30%，母嬰類目每日影片觀看量較去年同期成長超過80%。

On top of that fundamental reason, what we need to do is to match the demand between advertiser and users with better infrastructure in the industry-based marketing solutions. And the one horizontal refers to the enhancement of platform infrastructure and the multiple verticals refers to the vertical industry-based ad solutions.

除了這個根本原因之外，我們需要做的是在基於行業的營銷解決方案中透過更好的基礎設施來匹配廣告主和用戶的需求。其中一橫是指平台基礎設施的增強，多縱是指基於垂直產業的廣告解決方案。

In the first half of this year, we implemented comprehensive upgrades to several of our advertising infrastructure modules. For example, we upgraded the placement platform on our PC and provide a one-stop placement tools for KA accounts. And as such, in the first half of this year, the number of performance-based KA advertisers increased by 50% year-over-year.

今年上半年，我們對多個廣告基礎設施模組進行了全面升級。例如，我們升級了PC端投放平台，為KA帳戶提供一站式投放工具。今年上半年，效果類KA廣告主數量較去年同期成長50%。

In terms of ad materials, our newly launched creative center and active application of AIGC technologies helps our advertisers to diagnose and improve their ad materials. After optimization, the CVR achieved over 30% year-over-year improvement.

在廣告素材方面，我們新上線的創意中心以及AIGC技術的積極應用，幫助我們的廣告主診斷和改進他們的廣告素材。優化後，CVR年增30%以上。

Now let's take a look at our industry verticals in Q2, our top five advertisers came from mobile games, e-commerce, digital products & home appliances, food & beverage and automotive sectors, [of which e-commerce and digital products & home appliances were two of the biggest drivers of ad growth in the second quarter] (added by company after the call).

現在讓我們來看看第二季的產業垂直情況，我們的前五大廣告主分別來自手機遊戲、電子商務、數位產品和家電、食品飲料和汽車產業。[其中電子商務和數位產品及家電是第二季廣告成長的兩大驅動力]（公司在電話會議後補充）。

I'll take a closer look at the e-commerce and transaction-based sectors. With our consistent open loop strategy during this year's June 18th shopping festival, we have deepened the integrated marketing and advertising collaborations with e-commerce platforms as well as secured a larger share of e-commerce merchants budget.

我將仔細研究電子商務和基於交易的領域。今年618購物節我們一貫堅持開放循環策略，深化了與電商平台的整合行銷和廣告合作，並爭取到了更大的電商商家預算份額。

During the June 18th period, the number of advertisers on Bilibili increased by over 300% year-over-year and our GMV from live and video commerce increased by over 140% year-over-year. 50% of the customers that we brought to the merchants in different verticals were new customers and specifically for baby & maternity sector, we bought over 70% of the new users to them.

6·18期間，嗶哩嗶哩廣告主數量較去年同期成長超過300%，直播及視訊交易GMV較去年同期成長超過140%。我們為各垂直領域的商家帶來的客戶50%都是新客戶，尤其是在母嬰領域，我們為他們帶來了超過70%的新用戶。

On our transaction-based advertising, in the second quarter, that nearly 40 million users have watched our live and video e-commerce-related content, and this number increased by 70% year-over-year.

在我們的交易型廣告方面，第二季度，近4000萬用戶觀看了我們的直播和視訊電商相關內容，這一數字同比增長了70%。

In Q2, the average daily content creator engaged in live and video e-commerce increased by over 130% year-over-year. And the number of commerce-related videos grew by over 330% year-over-year. And the number of live e-commerce sessions rose by 270% year-over-year.

第二季度，直播及視訊電商領域日均內容創作者數量較去年同期成長超過130%。商業相關影片數量較去年同期成長超過330%。電商直播場次年增270%。

The consumption potential of Bilibili's female users, which constitutes near half of our community, is also gradually unlocked. GMVs in apparels increased over 4 times year-over-year in the second quarter.

佔B站用戶近一半的女性用戶的消費潛力也逐漸釋放。第二季服飾類商品交易總額年增逾4倍。

We've talked about the second quarter and its driver behind -- and if we take a look into the second half of this year, we're quite confident in maintaining an above-industry average advertising growth rate.

我們已經討論了第二季度及其背後的驅動因素——如果我們展望今年下半年，我們非常有信心保持高於行業平均水平的廣告成長率。

On one hand, the outcome of product infrastructure optimization is being proved, and will continue to show its effect. And on other hand, by enhancing our vertical industry solutions, we not only expand our market share in key industries, but we are also looking to achieve incremental growth in emerging industry verticals such as online services, education, healthcare and baby and maternity.

一方面，產品基礎設施優化的成果正在驗證，並將持續顯現效果。另一方面，透過增強垂直行業解決方案，我們不僅擴大了重點行業的市場份額，還希望在線上服務、教育、醫療保健、母嬰等新興垂直行業中實現增量增長。

Lastly, I wanted to emphasize that because we have our unique community aspect, Bilibili's revenue growth was never just been relied on advertisement growth. We can pursue B2B and B2C parallel strategy in our commercialization efforts, meaning that we can not only earn money from advertisers, we can also earn money directly from our consumers. Because we are a community, our users are more inclined to spend on content or spend on content creators that they love to show their support and appreciation.

最後我想強調的是，由於我們擁有獨特的社群優勢，Bilibili 的收入成長從來不僅僅依賴廣告成長。我們在商業化上可以採取B2B和B2C並行的策略，也就是說我們不僅可以從廣告主賺錢，還可以直接從消費者身上賺錢。因為我們是一個社區，我們的用戶更傾向於在內容上花錢，或在自己喜歡的內容創作者身上花錢，以表達自己的支持和欣賞。

To sum up, we will be pursuing a B2B and B2C parallel strategy on the one hand. We'll continue to reinforce our advertising platforms to drive the advertising growth. At the same time, we still believe there is great potential in our B2C business, meaning on mobile games, premium membership, live broadcasting, combining together will support our sustainable revenue growth.

總結一下，一方面我們會推行B2B和B2C並行的策略。我們將繼續加強我們的廣告平台以推動廣告成長。同時，我們仍然相信我們的B2C業務具有巨大的潛力，這意味著手機遊戲、高級會員、直播等業務的結合將支持我們可持續的收入成長。

Operator, next question please.

接線員，請問下一個問題。

Felix Liu, UBS.

瑞銀的 Felix Liu。

(spoken in foreign language) Let me translate myself. Congratulations on the strong quarter and your successful launch of San Guo: Mou Ding Tian Xia. Could management share more drivers for the game's successful launch? And what are your expectations of the game's lifetime cycle? And looking ahead, what are the future genres that you plan to further expand or invest in the future?

（外語）讓我自己翻譯一下。恭喜本季業績強勁以及《三國：謀定天下》成功發行。管理階層能否分享更多推動遊戲成功發售的因素？您對這款遊戲的生命週期有何預期？展望未來，您計劃進一步擴展或投資哪些類型的遊戲？

(spoken in foreign language)

（用外語說）

(interpreted) The San Mou game indeed is a blockbuster in the first half of this year. We not only attracted millions of new players. We've also accumulated a very good user feedback and also have large influence among the game industry.

(翻譯)三某這場比賽確實是今年上半年的重磅比賽。我們不僅吸引了數百萬新玩家。我們也累積了非常好的用戶回饋，並且在遊戲產業中具有很大的影響力。

The game San Mou broke several records in our game operation history. Shortly after its launch, it quickly ranked among the Top 3 on the iOS game top grossing chart and maintained in Top 10 for the entire month afterwards. And San Mou also become the fastest game in Bilibili's operation history to reach RMB1 billion in revenue.

《三某》遊戲打破了我們遊戲營運史上的多項紀錄。上線後不久，遊戲迅速躋身iOS遊戲暢銷榜前三，並在之後的一個月內保持在Top 10。而《三謀》也成為嗶哩嗶哩營運史上最快突破10億收入的遊戲。

Since last year, we've been emphasizing the importance of operating one game in an extended time - for a longer period of time. And for San Mou, especially the SLG genre, is a perfect game genre for long-term operations. And starting from August 3rd, we launched the game's second season. As of now, the performance of Season 2 with vast gamers sustained enthusiast and good retention rate, and this has given us a very strong confidence to make this as an evergreen title.

自去年以來，我們一直在強調長期經營一款遊戲的重要性。而對於三昧來說，尤其是SLG類型，是一個非常適合長期運作的遊戲類型。並從8月3日開始，我們推出了遊戲的第二季。截至目前，第二季的表現得到了廣大玩家的持續喜愛和良好的留存率，這給了我們非常強烈的信心將其打造成一款常青遊戲。

Many people have asked me why San Mou would work, how we picked this game? I think this is a result of our continuous effort in the strategy of making new games, reinventing games to catering to the younger generation. We actually saw this game back in 2022. And we also invested in the development team in 2022. The success of the game is not by accident, it's under long period of time of thinking and strategy and decision-making.

很多人問我為什麼三昧會成功，我們為什麼選擇這個遊戲？我認為這是我們不斷努力製作新遊戲、重新發明遊戲以迎合年輕一代的策略的結果。我們實際上在 2022 年就看過這款遊戲了。而我們還在2022年投資了開發團隊。遊戲的成功並非偶然，而是經過長時間的思考、策略和決策。

Starting from 2019, our MAU grew by over 200%. And as we expand, our gamer circle also continue to expand. They included more than ACG gamers. They are gamers. They love multiple different categories.

從 2019 年開始，我們的 MAU 成長了 200% 以上。隨著我們的擴張，我們的玩家圈也不斷擴大。他們當中不乏 ACG 遊戲玩家。他們是遊戲玩家。他們喜歡多種不同的類別。

Five years ago, when we only have 100 million MAUs, the most condensed gamer profile would be ACG lovers. But as we evolve into a bigger community with 340 million MAUs, what we cover of our gamer community goes way beyond just ACG. They love SLG and many other gaming categories.

五年前，當我們的月活躍用戶只有1億的時候，最集中的遊戲玩家群就是ACG愛好者。但隨著我們逐漸發展成為一個擁有 3.4 億 MAU 的更大社區，我們所涵蓋的遊戲玩家社群遠遠超出了 ACG 的範圍。他們熱愛 SLG 和許多其他遊戲類別。

There are a large number of potential SLG players within the community who are generally interested in content categories such as history, militaries, social & science and art & knowledge. Those demographics fits perfectly with the SLG potential audiences.

社群內有大量潛在的SLG玩家，他們普遍對歷史、軍事、社會與科學、藝術與知識等內容類別感興趣。這些人口統計數據與 SLG 潛在受眾完美契合。

SLG is a very large market. Based on our observation of the existing products in the market, we estimate that there were tens of millions of users who have tried SLG games. And for this group of people, they are mostly dwell or active on Bilibili. As we discover those factors, we have established this project. We named this project code name as NSLG, meaning new SLGs.

SLG是一個非常大的市場。根據我們對市場上現有產品的觀察，我們估計有數千萬用戶嘗試過SLG遊戲。而對於這群人來說，他們大多停留或活躍在B站上。當我們發現這些因素時，我們就建立了這個計畫。我們將這個專案的代號命名為NSLG，意為「新型SLG」。

We've discovered that in the current market, there are many players pain points haven't been addressed. At the same time, the current SLG game offerings in the market does not fully satisfy the young generation's needs in SLG. So we believe as we're making more innovations and addressing their pain points, addressing their evolving needs, we could be successful. And the success launch of this game has proven that our strategy has been right.

我們發現在目前的市場上，有許多玩家的痛點還沒有被解決。同時，目前市面上的SLG遊戲產品還無法完全滿足年輕一代對SLG遊戲的需求。因此，我們相信，隨著我們不斷進行創新並解決他們的痛點、滿足他們不斷變化的需求，我們就能取得成功。而這款遊戲的成功推出也證明了我們的策略是正確的。

This success behind San Mou we will credit to the overall trend of the immense opportunity that lays behind reinventing games to catering the young generation’s needs. This not only adjusts to the SLG categories. It could apply to multiple categories, and we will continue to explore in that direction.

我們將三謀的成功歸功於重塑遊戲以滿足年輕一代需求背後蘊藏的巨大機會這一總體趨勢。這不僅適用於 SLG 類別。它可以適用於多個類別，我們將繼續朝這個方向探索。

As for the estimation on its life cycle, we believe that SLG by its nature has longer life cycles. We've noticed that there are SLG games in the market has been operating for eight years and five years. We have set the internal target of making San Mou at least a more-than-five-years game.

對於其生命週期的估計，我們認為SLG本質上具有較長的生命週期。我們注意到市場上有的SLG遊戲已經運作了八年，有的則運作了五年。我們內部設定的目標是，把《三昧》打造成一款至少五年以上的遊戲。

And it all boils down to whether the company is focused on making a game into a longer life cycle, longer operation. We have to focus on the longevity of the games. The industry has evolved rapidly. This is no longer a time where everybody can make fast money. We are committed to be the top game who respect our users the most, who listen to our users the most, and we hope to make this game an evergreen title.

而這一切都取決於公司是否專注於將遊戲打造成更長的生命週期、更長的營運時間。我們必須關注比賽的長久性。該行業發展迅速。這不再是人人都能賺快錢的時代。我們致力於成為最尊重用戶、最傾聽用戶心聲的頂級遊戲，並希望讓這款遊戲成為一款歷久不衰的遊戲。

Okay. Thank you. Next question please.

好的。謝謝。請問下一個問題。

Thomas Chong, Jefferies.

湯瑪斯‧張 (Thomas Chong)，傑富瑞 (Jefferies)。

(spoken in foreign language) My question is related to the trend in our content offerings. As average age for Bilibili ecosystem already reached 25 years old, can management share about the development of our content strategies and our content categories outlook as well as the consumption trend going forward?

（以外語說）我的問題與我們提供的內容趨勢有關。Bilibili生態系的平均年齡已達到25歲，管理階層能否分享我們的內容策略發展與內容類別展望以及未來的消費趨勢？

(spoken in foreign language)

（用外語說）

(interpreted) Last quarter, I've mentioned that the average age of Bilibili users have reached 25 years old. And that brought a lot of change in terms of the width and depth of our content offerings. As the users’ needs evolve, we've noticed that in our community there emerged many new content categories. And for Bilibili, we are not only a hub for young people's interest and hobbies, but also a commonplace for their lifestyle consumption.

(翻譯) 上個季度我提到B站用戶的平均年齡已經達到了25歲。這為我們提供的內容的廣度和深度帶來了很大的變化。隨著用戶需求的不斷發展，我們注意到我們的社群中出現了許多新的內容類別。對嗶哩嗶哩來說，我們不僅是年輕人興趣嗜好的聚集地，更是年輕人生活方式消費的聚集地。

This is evident in the evolve of our content consumption data. As young generation enter new stages of life, content category related to their consumptions are growing rapidly on Bilibili. For example, in the second quarter, video views in the categories such as home decor and real estate, automotive, fashion beauty increased by 39%, 43% and 30% year-over-year, respectively.

這在我們的內容消費數據的發展中顯而易見。隨著年輕一代步入人生新階段，B站上與他們消費相關的內容類別正在快速成長。例如，第二季家居裝潢及房地產、汽車、時尚美容等類別的影片觀看量分別較去年同期成長39%、43%和30%。

As I mentioned in the advertising question, the daily video views for baby and maternity category experienced a year-over-year increase of 80%. And this is a natural outcome for our users' average age to evolve into 25. The average age of 25 meaning about half of our users are above 25. And those generations or those demographics naturally have wider interest and consumption needs, and they seek out on Bilibili.

正如我在廣告問題中提到的，嬰兒和孕婦類別的每日影片觀看量比去年同期增加了 80%。我們的用戶平均年齡演變為 25 歲，這是一個自然的結果。平均年齡為 25 歲，這意味著我們大約一半的用戶年齡在 25 歲以上。而這些世代或人群自然有更廣泛的興趣和消費需求，他們會在嗶哩嗶哩上尋找。

And because Bilibili has authentic and professional videos, and most of our videos are in the mid to longer form, it makes Bilibili the go-to destination for young generation before they make big purchases.

而且由於嗶哩嗶哩擁有真實、專業的視頻，並且我們的大多數視頻都是中長篇，這使得嗶哩嗶哩成為年輕一代進行大額購買前的首選目的地。

And the reason behind people looking to Bilibili for larger ticket items is because, first of all, the user has to trust the platform, trust the content creator in their view and professional judgment. And secondly is that you can hardly make the decision to purchase a vehicle over 15 seconds of videos.

而人們之所以選擇在嗶哩嗶哩上購買大額商品，首先是因為使用者必須信任這個平台，信任內容創作者的觀點和專業判斷。其次，您很難透過 15 秒的影片做出購買車輛的決定。

Speaking of automotive content, in the first half of this year, on average, every month, there are 73 millions of users are looking into automotive-related content. We can say that Bilibili has the best quality new car reviews among all platforms. I personally look at new car reviews. They're extremely professional and well made. And we think video as content format is perfect for this type of reviews and walkthroughs.

說到汽車內容，今年上半年，平均每月有7,300萬用戶瀏覽汽車相關內容。可以說，B站的新車點評品質是所有平台中最好的。我個人會看新車評論。他們非常專業，而且做工精良。我們認為影片作為內容格式非常適合這種類型的評論和演示。

We've talked about the emerging content categories. Now let's take a look at our traditional leading content categories and young generation's interest. In the second quarter, video views in the games, knowledge and tech categories, all saw over 20% year-over-year growth. which are 21%, 29%, 29% year-over-year growth rate, respectively.

我們已經討論了新興的內容類別。現在我們來看看我們傳統主導的內容類別和年輕一代的興趣。第二季度，遊戲類、知識類、科技類影片播放量較去年同期成長均超過20%，成長速度分別為21%、29%、29%。

This means we have established a very strong mindset among young generations where they seek out interest-based content. And speaking of games, two days ago, on the day of Black Myth: Wukong was released, there are tens of thousands of users are live streaming their game experience on Bilibili. This is quite spectacular across the game history.

這意味著我們已經在年輕一代中建立了一種非常強大的思維模式，他們會尋找基於興趣的內容。說到遊戲，兩天前，也就是《黑神話：悟空》上線當天，就有數萬用戶在嗶哩嗶哩上直播遊戲體驗。這在遊戲史上是相當壯觀的。

And on that day, we saw over 2 million peak concurrent user watching the Black Myth: Wukong related content. This number shows that we have continuously led the interest-based content verticals.

當天，我們看到有超過 200 萬的最高同時線上用戶觀看了《黑神話：悟空》的相關內容。這個數字表明我們一直引領基於興趣的內容垂直領域。

We've always said that the evidence to show a community's competitiveness is the ability to continuously produce good and new content. And we think we have already proved that over the past 15 years. Bilibili has the ability and the power to continuously expand its content offerings horizon and content categories. Thank you.

我們一直說，一個社區競爭力的體現就是能夠持續產出好的、新的內容。我們認為，過去 15 年我們已經證明了這一點。Bilibili有能力、有實力不斷拓展內容供給範圍、內容類別。謝謝。

Operator, next question please.

接線員，請問下一個問題。

Xueqing Zhang, CICC.

張學慶，中金公司。

(spoken in foreign language) My question regards financial outlook. The company delivered continued margin expansion and robust cash flow this quarter. And could management share with us the outlook for the financials in the second half of 2024? Looking at the third quarter, will we breakeven or make profit? And what is the mid- to long-term profitability outlook?

（以外語說）我的問題是關於財務前景的。本季該公司利潤率持續擴大，現金流強勁。管理階層能否與我們分享 2024 年下半年的財務前景？展望第三季度，我們能否達到損益兩平或獲利？中長期獲利前景如何？

This is Sam. Let me take your question. Our financial performance in the second quarter demonstrated our business model has great potential for increasing the gross profit margin. In Q2, our overall revenue grew by 16%, while gross profit increased significantly by 49% year-over-year. The gross profit margin increased nearly 7 percent points year-over-year from 23% to nearly 30% in the eight consecutive quarter of margin improvement. This was primarily due to our ability to control costs, while achieving rapid revenue growth.

這是薩姆。我來回答你的問題。我們第二季的財務表現表明，我們的商業模式具有提高毛利率的巨大潛力。第二季度，我們的整體營收成長了16%，毛利較去年同期大幅成長了49%。毛利率連續八個季度提高，年增近7個百分點，從23%增至近30%。這主要歸功於我們能夠控製成本，同時實現收入的快速成長。

With the continued growth of our high-margin advertising and game business, there is still substantial room for further improvement for our gross margin. Additionally, it is worth noting that our operating cash flow for the first half of the year was RMB2.4 billion, and our free cash flow reached RMB1.5 billion. This indicates that our business has entered into a positive cycle.

隨著我們高利潤的廣告和遊戲業務的持續成長，我們的毛利率仍有很大的提升空間。另外，值得注意的是，我們上半年的營運現金流為24億元人民幣，自由現金流達15億元。這標誌著我們的業務已經進入良性循環。

Looking ahead to our financial performance in Q3, we see that the deferred revenue balance increased by over [RMB738 million] (corrected by company after the call) quarter-over-quarter, laying a good foundation for the third quarter revenue growth. We expect the revenue from our games and advertising business to maintain strong growth momentum, along with a significant quarter-over-quarter growth in gross margin.

展望第三季的財務表現，我們看到遞延收入餘額環比增加了超過[人民幣7.38億元]（電話會議後公司已更正），為第三季度的收入增長奠定了良好的基礎。我們預期遊戲和廣告業務的營收將保持強勁的成長勢頭，毛利率也將實現季比大幅成長。

At the same time, in addition to achieving our initial goal of breakeven in Q3, we now aim to achieve meaningful operating profit on a non-GAAP basis. Meanwhile, we are delighted to see solid growth across our core business lines. Our growth momentum, along with the prudent cost and expense management will lead us to continue expanding our revenue scale and the profitability in 2025 and resulting in an ongoing improvement in our operating margins.

同時，除了實現第三季損益平衡的初步目標外，我們現在還致力於在非公認會計準則下實現有意義的營業利潤。同時，我們很高興看到我們的核心業務線實現了穩健成長。我們的成長勢頭，加上審慎的成本和費用管理，將使我們在2025年繼續擴大收入規模和盈利能力，並持續提高我們的營業利潤率。

Yiwen Zhang, China Renaissance.

張藝文，中國文藝復興。

(spoken in foreign language) My question is regarding AI application. Can management discuss about how can we apply AI in our multiple user scenario on Bilibili and its future potential? Thank you.

（外語）我的問題是關於人工智慧應用的。管理層能否討論如何在 Bilibili 的多用戶場景中應用 AI 及其未來的潛力？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) It is known that Bilibili has the most extensive and highest-quality AI content across the Internet. I think the reason behind that is most of our user received higher education background and they are based in the first and second-tier city, who are curious.

(翻譯)據了解，B站擁有全網最豐富、品質最高的AI內容。我認為這背後的原因是我們的大多數用戶都受過高等教育，並且居住在一線和二線城市，他們充滿好奇心。

And based on our internal data that for the first half of this year, a monthly average of over 80 million users are watching AI-related content on Bilibili. And for those AI-related content, not just one word or 15-second headlines, many of those content has extensive professional content in-depth discussion in AI.

根據我們的內部數據顯示，今年上半年，平均每月有超過8,000萬用戶在嗶哩嗶哩上觀看與AI相關的內容。而對於那些與AI相關的內容，不僅僅是一個字或15秒的標題，很多內容都有廣泛的專業內容對AI進行了深入的討論。

That results in three the most AI platform for Bilibili. First most is that we believe we have the most user who are genuinely interested in AI content. And second most is we have the most AI professionals active on Bilibili. Lastly, is over 90% of the domestic AI companies have set up accounts and get in touch with Bilibili users on Bilibili.

這使得 Bilibili 擁有了三個最具人工智慧的平台。首先，我們相信我們擁有最多真正對 AI 內容感興趣的用戶。其次，我們在嗶哩嗶哩上活躍的人工智慧專業人士最多。最後，國內超過90%的AI公司都在B站上建立帳號，並與B站用戶建立聯繫。

Because the high concentration and condensity of AI content and users gives us a natural advantage in exploring AI application and as a platform, generally, we see many of the users initiate their attempt in connecting AI with their content creation. Back in 2023, there was a user who used the AI tools to mimic a famous singer’s voice, singing song in her original voice. And that actually triggered the original singer to come out and say that she supports this type of creation and welcome user to use it.

因為AI內容和使用者的高度集中和凝聚，使得我們在探索AI應用方面有著天然的優勢，作為一個平台，我們總體上看到很多用戶開始嘗試將AI和他們的內容創作結合起來。早在2023年，就有一位用戶利用人工智慧工具模仿一位著名歌手的聲音，用她的原聲演唱歌曲。這實際上促使原創歌手站出來表示她支持這種創作並歡迎用戶使用它。

And for this year, we've noticed many AI-powered music creation, AI-powered animation, AI short-plays were being released on Bilibili. Our operations team has even made an AI short play competition and attracting a lot of users to participate.

今年，我們注意到許多人工智慧音樂創作、人工智慧動畫、人工智慧短劇都在嗶哩嗶哩上發布。我們的營運團隊也做了一個AI短劇比賽，吸引了許多用戶參與。

And in terms of our own content creation tools, we have leveraged and implement AI and our AI creation tools. We believe essentially the application will help to improve the content creation efficiencies for our existing content creators and also allowing regular users to leverage this tool to become a content creator themselves. And this is very beneficial from a content supply perspective.

就我們自己的內容創作工具而言，我們已經利用並實施了人工智慧和我們的人工智慧創作工具。我們相信，該應用程式將有助於提高現有內容創作者的內容創建效率，同時也允許一般用戶利用該工具自行成為內容創作者。從內容供應的角度來看，這是非常有益的。

And we also use AI directly to enhance our user experiences. As of now, we have opened the AI Assistant and AI Search to all of our users because we have a large amount of knowledge-based, review-based content. You can ask our AI Assistant or AI Search to summarize the keywords and key messages of videos, and this is very helpful and efficient for a user who wants to get a quick summary of our content.

我們也直接使用人工智慧來增強用戶體驗。目前，我們已經向所有用戶開放了AI助理和AI搜索，因為我們擁有大量基於知識、基於評論的內容。您可以要求我們的AI助理或AI搜尋總結影片的關鍵字和關鍵訊息，這對於想要快速了解我們內容的用戶非常有幫助且高效。

And there are two more examples of our AI tools. One is AI translations. Our AI translation tools can help to translate many different languages such as the content creator from Tibet. They spoke in their local language and our AI Assistant can help him to translate into Mandarin.

還有兩個我們的人工智慧工具的例子。一是AI翻譯。我們的人工智慧翻譯工具可以幫助翻譯許多不同的語言，例如來自西藏的內容創作者。他們用當地語言交談，我們的人工智慧助理可以幫助他翻譯成普通話。

And we also have a tool called AI Assistant. While playing a video if you don't have time to watch the whole thing, you call upon the AI Assistant, the AI Assistant will summarize into a short articles to tell you what this video is about and outline the key points of that video, all of which we believe will effectively help our users to improve their user experience.

我們還有一個工具叫AI Assistant。在播放視頻的時候如果你沒時間看完整個視頻，你可以調用AI助手，AI助手會總結成一篇短文告訴你這個視頻講的是什麼，概括視頻的要點，我們相信這些都會有效的幫助我們的用戶提升用戶體驗。

We always believe that AI should be a technology that benefits everyone, including users and platforms. And I believe that development of AI requires a joint efforts of multiple numerous companies to reach its full potential rather than a company doing the research in AI within itself in a closed loop.

我們始終相信人工智慧應該是一項讓所有人受益的技術，包括使用者和平台。我相信人工智慧的發展需要眾多公司的共同努力才能充分發揮其潛力，而不是一家公司在內部進行閉環的人工智慧研究。

So as a platform, we always take a very proactive and open attitude. We are already working with several leading domestic AI company on various fronts. And we believe that with our joint efforts, we can bring user better experience. And for those partners, they can also unleash their full potential and value with Bilibili and our users.

所以作為一個平台，我們始終採取非常積極主動和開放的態度。我們已經與國內多家領先的人工智慧公司在多個領域展開合作。我們相信，透過我們的共同努力，一定能為用戶帶來更好的體驗。對於那些合作夥伴來說，他們也可以與嗶哩嗶哩和我們的用戶一起充分發揮他們的潛力和價值。

And as many of you might notice that our AI generated video capabilities is through our partnership with a leading AI company and we expect to continue this collaboration with various partners. And through this partnership, we aim to bring better and more efficient and more creative experience to our users.

你們中的許多人可能已經注意到，我們的 AI 生成影片功能是透過與領先的 AI 公司合作實現的，我們希望繼續與各種合作夥伴進行這種合作。透過此次合作，我們旨在為用戶帶來更好、更有效率、更具創意的體驗。

Thank you. That concludes today's answering session.

謝謝。今天的答辯環節到此結束。

Thank you. Thank you once again for joining Bilibili second 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 US can be found on today's press release. Thank you, and have a great day.

謝謝。再次感謝大家今天參加嗶哩嗶哩2024年第二季財務業績及業務更新電話會議。如果您還有其他問題，請聯絡 Bilibili 的投資人關係執行總監 Juliet Yang 或 Piacente Financial Communications。今天的新聞稿中可以找到中國和美國 IR 的聯絡資訊。謝謝您，祝您有愉快的一天。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。