Bilibili Inc (BILI) 2024 Q2 法說會逐字稿

Good day, and welcome to the 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 Bilibili 2024 年第二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'll 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. As a reminder, this conference is being recorded.

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。提醒一下，本次會議正在錄製中。

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.

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 Lee, Vice Chairwoman of the Board and Chief Operating Officer; and Mr. Xan 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；範Xan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 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 top line growth. improved margins and healthy community development.

謝謝朱麗葉，謝謝大家參加我們的 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。我們第二季業績強勁，營收加速成長。提高利潤和健康的社區發展。

In the second quarter, our total revenues increased by 15% year-over-year to RMB6.13 billion. Our advertising business led this growth with ad revenue growing by 30% year-over-year, revenue from our games and value-added services also increased by 13% and 11% year-over-year, respectively.

第二季度，我們的總營收年增15%至人民幣61.3億元。我們的廣告業務引領了這一成長，廣告收入較去年同期成長30%，遊戲和增值服務收入也分別較去年同期成長13%和11%。

The momentum across business lines is a strong testament to our execution in increasing our commercialization efficiency and unlocking the value of our community. Increased revenues from our higher-margin advertising and games business boosted our gross profit by 49% year-over-year.

跨業務線的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。利潤率較高的廣告和遊戲業務收入增加，使我們的毛利年增 49%。

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.

第二季毛利率上升至29.9%，高於去年同期的23.1%，標誌著利潤率連續第八個季度改善。因此，我們的調整後營業虧損和調整後淨虧損年減 69% 和 72%。此外，第二季我們創造了創紀錄的17.5億元人幣經營現金流。

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.

第二季末的遞延收入餘額也較一季末增加了7.38億元。憑藉這一進展，我們有信心在今年第三季度實現非公認會計準則盈虧平衡目標，並在此後繼續提高獲利能力。

While we have been accelerating our financial performance, our community continues to strive. In the second quarter, our DAUs increased by 6% year-over-year, reaching 102 million and the MAUs grew to 336 million.

在我們不斷加快財務表現的同時，我們的社區也持續努力。第二季度，我們的 DAU 年比成長 6%，達到 1.02 億，MAU 成長至 3.36 億。

Our community remains highly engaged with user spending at 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.

我們的社群仍然高度參與用戶在我們平台上的平均每日花費 99 分鐘。隨著進入夏季，我們繼續看到用戶參與度和保留率方面存在著強烈的季節性。

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 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.

6月26日，我們慶祝了嗶哩嗶哩成立15週年。在過去的 15 年裡，我們的平台已成為近 70% 的中國 Z 世代以上人口的常規目的地。這個過程為我們帶來了巨大的機遇，因為這些用戶已經成為社會的主要消費力量。隨著我們加強基礎設施以滿足他們不斷變化的消費需求，我們在廣告成長中看到了這一點。

We have seen it in our game business as we reinvent strategy to resonate more deeply with the preference of younger audience. 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 interest and to satisfy their evolving needs for good content and service.

我們在遊戲業務中看到了這一點，因為我們重新制定了策略，以更深入地與年輕受眾的偏好產生共鳴。在我們不斷釋放社區價值的同時，我們仍然致力於實現我們的創始願景，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，讓他們透過共同的興趣進行聯繫，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.

有了這個概述，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 continue 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.

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，日均影片觀看次數較去年同期成長 18%，超過 48 億次。遊戲、知識科技等主導內容類別的影片播放量持續呈現穩健成長，年增幅均超過20%。

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. 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.

同時，消費相關品類的用戶需求在第二季也持續激增。家電及裝潢、汽車及時尚、化妝品等領域的影片觀看量較去年同期成長均超過30%。我們持續提供有效且多元化的變現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處獲得收入。

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 franchising programs have been well received by our users. In the first half of 2024, content creator total income from these two products increased by over 40% and over 430%, respectively, year-over-year.

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30%。值得注意的是，我們基於內容的創新產品（例如優質課程和特許經營計劃）受到了用戶的好評。 2024年上半年，這兩款產品的內容創作者總收入較去年同期分別成長超過40%和超過430%。

Looking at our community matrix in the second quarter, our DAU spend an average of 99 minutes with us compared with 94 million in the same period last year, driving up user total time spent by 11% year-over-year.

從我們第二季的社群矩陣來看，我們的 DAU 平均花費 99 分鐘，而去年同期為 9,400 萬分鐘，帶動用戶總花費時間年增 11%。

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%.

第二季月度互動量年增 11%，超過 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, in this slide we showed our signature off-line events, Bilibili World and Bilibili MicroLink 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 travel-related consumption. The growing enthusiasm at events shows our unparalleled influence among the young generation.

此外，在這張幻燈片中，我們再次展示了我們的標誌性線下活動，嗶哩嗶哩世界和嗶哩嗶哩微鏈接，將我們的社區聚集在上海。超過25萬人次全國參與活動，帶動上海旅遊消費激增。人們對活動的熱情日益高漲，顯示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 ad with the right user. In the second quarter, we further improved our ad products and infrastructure to increase our ad efficiency.

現在我想談談我們各個業務線的商業化進展。首先，關於我們的廣告業務。隨著用戶的成熟和可支配收入的增加，當他們在嗶哩嗶哩上尋求更多與消費相關的內容時，他們的商業價值就會顯現出來。需求就在那裡，我們要做的就是將正確的廣告與正確的用戶相匹配。第二季度，我們進一步完善廣告產品和基礎設施，提高廣告效率。

Specifically, we upgraded our ad placement system, featuring user-friendly placement tools and enhance 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 continue 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.

具體來說，我們升級了廣告投放系統，提供人性化的投放工具並增強轉換能力，吸引並留住了嗶哩嗶哩上更多的廣告商。上半年，平台廣告主數量較去年同期成長超過50%。此外，我們不斷投資和改進廣告建模能力，以更好地了解用戶的消費行為和偏好，從而進一步提高廣告匹配效率。

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 add materials more easily and place advertisement more automatically. 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.

同時，我們融入了更多原生影片風格的廣告內容，使我們能夠在保持用戶體驗的同時擴大廣告負載。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添加材料並更自動地投放廣告。從業界來看，前五名的廣告垂直產業是手機遊戲、電子商務、數位產品和家電。第二季的食品和飲料以及汽車。

Our anchor verticals continue to deliver strong performance. During the 618 shopping festival, we not only secured more ad budget from e-commerce platforms, but also directly from online merchants in different verticals.

我們的主力垂直領域持續提供強勁的業績。在618購物節期間，我們不僅從電商平台獲得了更多的廣告預算，還直接從不同垂直領域的線上商家獲得了更多的廣告預算。

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 revenues from emerging verticals. In the second quarter, ad revenue from Internet services, AI and education were increased meaningfully.

視訊和直播電商總 GMV 年成長超過 140%。除了我們領先的垂直行業外，我們還看到新興垂直行業的廣告收入不斷增加。第二季度，網路服務、人工智慧、教育等領域的廣告收入大幅成長。

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 and ACG game, Articrafter.

轉向我們的遊戲業務。第二季遊戲營收年減13%至人民幣10.1億元，主要得益於我們最近推出的策略遊戲《三國謀定天下》和二次元遊戲《工匠》的優異表現。

Our flagship titles also contributed the 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 a 7-year anniversary. This trend strengthened our commitment to the long-term operation of high-quality games.

我們的旗艦遊戲也貢獻了穩定的遊戲收入，並表現出非凡的壽命。在慶祝《FGO》八週年之際，《FGO》在 7 月重返 iOS 遊戲暢銷榜前十名。 《碧藍航線》在 6 月迎來了 7 週年紀念日，每月活躍用戶數再創新高。這一趨勢更加堅定了我們對優質遊戲長期營運的承諾。

We were delighted to see our first strategy game San Mou become an immediately blockbuster. On the first day of first launch ranking the Top 3 on the iOS game grossing chart, attracting millions of gamers to the three kingdoms battlefield. San Mou also set a new record in our operating history being the fastest title that has hit RMB1 billion game grossing mark.

我們很高興看到我們的第一款策略遊戲《三謀》立即引起轟動。先發首日就躋身iOS遊戲暢銷榜前三，吸引了數百萬玩家來到三國戰場。三謀也創造了我們營運史上最快突破10億元大關的遊戲新紀錄。

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.

隨著8月3日遊戲第二季的上線，《三謀》重返iOS遊戲流水榜前三名。 SLG市場的規模、《三謀》的早期成功以及SLG遊戲的長生命週期特性，讓我們有信心它將成為我們長盛不衰的旗艦遊戲之一。

Over the years, our community has expanded exponentially as so as 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整體多元化策略的突破，展現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 continue to add more live broadcasting content offerings, reinforcing the synergies between our live broadcasting and the PUGV ecosystem to better cater to use diverse interest.

轉向我們的加值服務業務。增值服務業務收入年增11%至人民幣25.7億元。我們將繼續添加更多直播內容，加強直播與 PUGV 生態系統之間的協同效應，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.

我們還將進一步探索其他增值服務業務的機會，因為我們的 Z 世代以上用戶已經表現出越來越願意直接為他們喜歡的內容付費。我們的高級會員持續增加，截至第二季末達到 2,230 萬人，其中超過 80% 是按年訂閱或自動續訂套餐，這表明他們對我們平台的持續忠誠和信任。

Users spending our other VAS product 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.

我們的其他增值服務產品的用戶在第二季度也快速成長，特別是在高級課程、我們的粉絲收費計劃和頭像裝飾方面。我們預計這些產品未來將為我們龐大的 PUGV 內容領域帶來更多的獲利潛力。

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.

我們相信好的內容和社群可以將人們聚集在一起，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，第二季的穩健業績使我們距離獲利僅一步之遙。

We are excited to move forward and take Bilibili to the next level. This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the second quarter of 2024. 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.

我們很高興能夠繼續前進，並將 Bilibili 提升到一個新的水平。陳先生的發言到此結束。現在，我將簡要概述我們 2024 年第二季的財務業績。請注意，除非另有說明，所有金額均以人民幣為單位。

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 continue to expand our margins and considerably narrowed our losses. All of these financial improvements were funded in our top line growth with increased efficiency.

第二季度，我們進一步提高了商業化能力，使我們的核心業務收入較去年同期加速成長。同時，我們持續擴大利潤並大幅縮減虧損。所有這些財務改進都是透過我們的收入成長和效率提高來資助的。

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 42% 的增值服務、33% 的廣告、17% 的手機遊戲以及 8% 的 IP 衍生品和其他業務。

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.

第二季度，我們的營收成本年增5%至人民幣43億元，毛利年增49%至人民幣18億元。第二季我們的毛利率達到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.

第二季我們的總營運費用年減 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，主要是因為新遊戲推出的行銷費用增加。一般及行政費用為人民幣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%，均與人員費用減少有關。

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.

第二季度，我們將調整後經營虧損和調整後淨虧損收窄至人民幣2.84億元和人民幣2.71億元，虧損年比分別減少69%和72%。我們第二季調整後的淨虧損率從去年同期的 18% 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, driving 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17.5億元人民幣的正經營現金流，上半年總計實現了24億元人民幣的正經營現金流。正如我之前提到的，在遊戲和廣告業務強勁表現的推動下，我們二季度末的遞延收入餘額也較一季度末增加了人民幣7.38 億元，為下一步實現非GAAP 盈虧平衡目標奠定了堅實的基礎。

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139億元人民幣（19億美元）。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) Daniel Chen, JPMorgan.

（操作員指示）Daniel Chen，摩根大通。

(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?

（用外語發言）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，較去年同期成長約30%。這非常強大。那麼能否分享一下背後的關鍵驅動因素？另外，我們該如何預期下半年的廣告成長？

(spoken in foreign language) 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.

（外語）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，約占公司總營收的三分之一。

As you can see that our advertising revenue has grossed 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，我們的廣告收入連續幾季獲利，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.

第二季嗶哩嗶哩的 DAU 年比成長 6%，影片觀看量較去年同期成長 18%，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 the consumption needs and spending power are rapidly growing and being released.

中國超過70%的年輕一代在使用嗶哩嗶哩，用戶平均年齡已達25歲。

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%.

這從第二季消費相關內容類別的蓬勃成長就可以看出。家居、地產、汽車、時尚、美容等品類的影片觀看量較去年同期成長超過30%，孕產婦的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 solutions.

除了這個根本原因之外，我們需要做的就是透過基於行業的營銷解決方案中更好的基礎設施來匹配廣告主和用戶之間的需求。一橫是指平台基礎設施的增強，多縱是指基於垂直產業的解決方案。

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 key accounts. And as such, in the first half of this year, the number of performance-based key 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端的投放平台，為大客戶提供一站式投放工具。今年上半年，效果型重點廣告主數量較去年同期成長50%。

In terms of app 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.

在應用素材方面，我們新推出的創意中心和AIGC技術的積極應用幫助廣告主診斷和改進優化後的廣告素材，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 and home appliances, food and beverage and automotive sectors.

現在我們來看看第二季度我們的行業垂直領域，我們排名前五的廣告主分別來自手機遊戲、電子商務、數位產品和家電、食品飲料和汽車行業。

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 18 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。憑藉今年6月18日購物節期間一貫的開環策略，我們深化了與電商平台的整合行銷和廣告合作，並獲得了更大的電商預算份額。

During the June 18 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 with new customers and specifically for baby and material sector, we bought over 60% of the new users to them.

6月18日期間，嗶哩嗶哩廣告主數量較去年同期成長超過300%，直播和視訊商務GMV較去年同期成長超過140%。我們為不同垂直行業的商家帶來了50%的新客戶，特別是嬰童和材料產業，我們為他們購買了超過60%的新用戶。

On our transaction-based advertising, in the first -- 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.

在我們的交易廣告方面，第一、第二季度，有近4000萬用戶觀看了我們的直播和視訊電商相關內容，這個數字同比增長了70%。

In Q2, the average daily content creator engaged in life 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，從事生活、視訊電商的日均內容創作者較去年同期成長超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 communities, is also gradually unlocked. GMVs in apparel increased over 4 times year-over-year in the second quarter.

佔B站社群近一半的女性用戶的消費潛力也逐漸被釋放。第二季服裝的 GMV 年成長超過 4 倍。

We've talked about the second quarter and its driver behind -- and if we look -- 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，如果我們看看今年下半年，我們對保持高於行業平均水平的廣告成長率非常有信心。

On one hand, the outcome of product infrastructure optimization is being improved, 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，產品基礎設施優化成果正在不斷改進，並將持續顯現效果。另一方面，透過增強垂直行業解決方案，我們不僅擴大在重點行業的市場份額，而且我們也希望在線上服務、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，由於我們有獨特的社群屬性，嗶哩嗶哩的收入成長從來不是僅僅依靠廣告成長。我們在商業化上可以採取B2B和B2C並行的策略，這意味著我們不僅可以從廣告商賺錢，還可以直接從消費者身上賺錢。因為我們是一個社區，所以我們的用戶更傾向於在內容上花錢，或在他們喜歡的內容創作者身上花錢，以表達他們的支持和讚賞。

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.

綜上所述，我們一方面會推行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業務有巨大的潛力，這意味著手機遊戲、高級會員、直播的結合將支持我們的永續收入成長。

Operator, next question please.

接線員，請下一個問題。

Felix Liu, UBS.

劉菲利克斯，瑞銀。

(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?

（用外語發言）我自己翻譯。恭喜季度業績強勁，並成功推出《三國：謀鼎天下》。管理階層能否分享更多推動遊戲成功推出的因素？您對遊戲生命週期的期望是什麼？展望未來，您計劃進一步拓展或投資的未來類型有哪些？

(spoken in foreign language) 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 gaming industry.

（外語）今年上半年的三謀遊戲確實是一鳴驚人。我們不僅吸引了數百萬新玩家。我們也累積了很好的用戶回饋，在遊戲產業也有很大的影響力。

The game San Mou broke several records in our game operation history. Surely 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.

三謀遊戲打破了我們遊戲營運史上的多項紀錄。果然上線之後，就迅速躋身iOS遊戲暢銷榜前三，並在之後整個月保持在前十名。而《三謀》也成為B站營運史上收入最快達到10億元的遊戲。

Since last year, we've been emphasizing the importance of operating one game in a 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 3, we launched the game's second season. As of now, the performance of Season 2 with flat gamers sustained enthusiast and good retention rate and this has given us a very strong confidence to make this as a evergreen title.

從去年開始，我們就一直在強調長時間經營一款遊戲的重要性。而對於三謀來說，尤其是SLG類型，就是一個適合長期營運的完美遊戲類型。從8月3日開始，我們推出了遊戲的第二季。截至目前，第二季的表現依然平淡，玩家的熱情和良好的留存率讓我們有強烈的信心將其打造成常青遊戲。

Many people have asked me why San Mou 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. This -- the success of the game is not by accident, it's under long period of time of thinking and strategy and decision-making.

很多人問我三謀為什麼要工作，我們是如何挑選這款遊戲的？我認為這是我們在製作新遊戲、重塑遊戲以迎合年輕一代的策略上不斷努力的結果。其實我們早在2022年就看到了這款遊戲，而且我們也在2022年對開發團隊進行了投資。

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，我們的每月活躍用戶數成長了 200% 以上。而且隨著我們擴大我們的玩家圈子，也不斷擴大。其中不只包括二次元遊戲玩家。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 convinced 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 an ACG. They love SLG and many other gaming categories.

五年前，當我們只有一億的月活躍用戶時，最有說服力的玩家群就是二次元愛好者。但隨著我們發展成為擁有 3.4 億月活躍用戶的更大社區，我們所涵蓋的遊戲玩家社群遠遠超出了 ACG 範疇。他們喜歡 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 and science and art and knowledge. Those are very like -- those demographics fits perfectly with the SLG potential audiences.

社群內存在大量潛在的 SLG 玩家，他們普遍對歷史、軍事、社會科學、藝術知識等內容類別感興趣。這些非常相似——這些人口統計數據非常適合 SLG 的潛在受眾。

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 there -- and for this group of people, they are mostly dual 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，我們估計有幾千萬的用戶嘗試過SLG遊戲——而對於這部分人來說，他們大多是雙重或活躍的在嗶哩嗶哩上。當我們發現這些因素時，我們建立了這個計畫。我們將這個專案代號命名為NSLG，意思是新的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 our strategy has been right.

我們發現，目前市面上還有很多玩家痛點沒有解決。同時，目前市面上的SLG遊戲產品並不能完全滿足年輕一代對SLG的需求。因此，我們相信，隨著我們進行更多創新並解決他們的痛點，滿足他們不斷變化的需求，我們可以取得成功，而這款遊戲的成功發布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 immersive, immense opportunity that lays behind reinventing games to catering the young generation needs. This not only adjusts to the SLG categories. It could apply to multiple categories, and we will continue to explore in that direction.

《三謀》的成功歸功於沉浸式的整體趨勢，巨大的機會背後蘊含著重塑遊戲以滿足年輕一代需求的背後。這不僅針對 SLG 類別進行調整。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 circles. 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 five years -- more than five years game.

對於生命週期的預估，我們認為SLG本質上具有更長的生命週期。我們注意到──市場上有已經營運了八年、五年的SLG遊戲。我們設定了內部目標，讓三謀至少五年——五年以上的比賽。

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 a evergreen title.

而這一切都歸結於公司是否專注於將一款遊戲打造為更長的生命週期、更長的營運時間。我們必須關注遊戲的壽命。該行業發展迅速。現在已經不是一個人人都能賺快錢的時代了。我們致力於成為最尊重用戶、最傾聽用戶聲音的頂級遊戲，我們希望讓這款遊戲成為常青遊戲。

Okay. Thank you. Next question please.

好的。謝謝。請下一個問題。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(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?

（用外語發言）我的問題與我們內容提供的趨勢有關。由於嗶哩嗶哩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、我們的內容類別展望以及未來的消費趨勢？

(spoken in foreign language) 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 wealth 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.

（外語）上個季度，我提到Bilibili用戶的平均年齡已經達到25歲。這為我們提供的內容的豐富性和深度帶來了很大的變化。隨著使用者需求的變化，我們注意到我們的社群裡出現了許多新的內容類別，對於B站來說，我們不僅是年輕人興趣愛好的聚集地，也是他們生活消費的常態。

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, Bilibili is in the category such as home decor and real estate, automotive, fashion beauty increased by 39%, 43% and 30% year-over-year, respectively.

隨著年輕一代進入人生的新階段，我們的內容消費數據的演變證明了這一點，與他們的消費相關的內容類別在嗶哩嗶哩上正在迅速增長。例如，第二季度，嗶哩嗶哩在家居裝飾及地產、汽車、時尚美妝等品類比分別增長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，母嬰類別的每日影片觀看次數較去年同期增加 80%。這是我們用戶的平均年齡發展到 25 歲的自然結果。嗶哩嗶哩上。

And because the 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，而且我們的視頻大部分都是中長篇視頻，這使得嗶哩嗶哩成為年輕一代購買大件商品前的首選目的地。

And the reason why behind -- or 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 50 seconds of videos.

而背後的原因——或者說人們在嗶哩嗶哩上尋找大件商品的原因是因為，首先，用戶必須信任這個平台，信任內容創作者的觀點和專業判斷。其次，超過50秒的影片你很難做出買車的決定。

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 the all 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.

說到今年上半年的汽車內容。平均每個月有 7,300 萬用戶正在查看與汽車相關的內容。可以說，嗶哩嗶哩的新車評論是所有平台中品質最好的。我個人會看所有新車評論。他們非常專業而且製作精良。我們認為影片作為內容格式非常適合此類評論和演練。

We've talked about the emerging content category. Now let's take a look at our traditional leading content categories and young generation's interest. In the second quarter, videos 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.

我們已經討論過新興的內容類別。現在我們來看看我們傳統的主導內容類別和年輕一代的興趣。第二季度，遊戲、知識科技類影片年增均超過20%。年比成長率分別為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.

這意味著我們在年輕一代中建立了一種非常強烈的心態，他們會尋求基於興趣的內容。而說到遊戲，前兩天，《黑神話：悟空》發售當天，就有數以萬計的用戶在嗶哩嗶哩上直播自己的遊戲體驗。這在整個遊戲史上都是相當壯觀的。

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，觀賞《黑神話：悟空》相關內容的峰值並髮用戶數超過 200 萬。這個數字顯示我們持續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，一個社群競爭力的體現就是能夠持續產出好新的內容。我們認為過去 15 年我們已經證明了這一點。嗶哩嗶哩有能力、有能力不斷拓展內容的視野和內容類別。謝謝。

Operator, next question please.

接線員，請下一個問題。

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, we're breakeven on profit and what is the mid- to long-term profitability outlook?

（用外語發言） 我的問題是關於財務前景的。該公司本季實現了持續的利潤率擴張和強勁的現金流。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，我們的利潤已達到損益平衡，中長期獲利前景如何？

This is Fan. 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% 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, where actual rapid revenue growth.

這是范。讓我回答你的問題。我們第二季的財務表現顯示我們的業務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49%。毛利率年增近7個百分點，從23%增至近30%，利潤率連續八個季度提高。這主要是由於我們控製成本的能力，其中實際收入正在迅速增長。

With the continued growth of our high-margin advertising in the 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.

隨著遊戲業務高毛利廣告業務的持續成長，毛利率仍有較大的進一步提升空間。此外，值得注意的是，我們上半年的營運現金流為人民幣24億元，自由現金流達15億元人民幣。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 RMB770 million 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，遞延收入餘額較上季增加超過7.7億元人民幣，為第三季營收成長奠定了良好的基礎。我們預期遊戲和廣告業務收入將維持強勁成長勢頭，毛利率較上季大幅成長。

At the same time, in addition to achieving our initial growth 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，除了在第三季實現損益平衡的初步成長之外，我們現在的目標是在非公認會計原則的基礎上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穩步成長。我們的成長動力，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獲利能力，從而導致我們的營業利潤率持續改善。

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 here via multiple user scenario at Bilibili and is there future potential? Thank you.

（外語）我的問題是關於人工智慧的應用。管理階層能否討論我們如何透過嗶哩嗶哩的多用戶場景來應用人工智慧，以及未來的潛力嗎？謝謝。

(spoken in foreign language) It is known that Bilibili has the most extensive and highest-quality AI content across the Internet. I think the reason behind that is a most user received higher education background and they are based in the first- and second-tier city.

（外語發言） 據了解，嗶哩嗶哩擁有全網路最廣泛、品質最高的人工智慧內容。我認為背後的原因是大多數用戶都受過高等教育，而且他們都在一二線城市。

And based on our internal data that for the first half of this year, on average -- a monthly average over 80 million users are watching AI-related content on Bilibili. And for those AI-related content, not just 1 word or 15-second headlines, many of those content have extensive professional content in-depth discussion in AI?

根據我們的內部數據，今年上半年，平均每月有超過 8,000 萬用戶在 Bilibili 上觀看 AI 相關內容。而那些與AI相關的內容，不只是1個字或15秒的標題，很多內容都有對AI進行廣泛的專業內容深入討論？

That results in 3 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, as over 90% of the domestic AI companies have set up accounts and get in touch with Bilibili users on Bilibili.

這使得 Bilibili 成為 3 個最具人工智慧的平台。首先，我們相信我們擁有最多對人工智慧內容真正感興趣的用戶。其次是我們在 Bilibili 上活躍的人工智慧專業人士最多。最後，國內90%以上的人工智慧公司都在嗶哩嗶哩上開設了帳號並與嗶哩嗶哩用戶取得聯繫。

Because the high concentration and condensity of AI content and user gives us a natural advantage and explore 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 famous singers voice singing song in their -- in her original voice and that actually triggered the original singer to come out and say that, she support 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密集，給了我們探索AI應用的天然優勢。作為一個平台，我們看到許多用戶早在 2023 年就開始嘗試將人工智慧與他們的內容創作聯繫起來，有一個用戶使用人工智慧工具模仿著名歌手的聲音——用她原來的聲音唱歌這實際上引發了原唱站出來表示，她支持這種創作，歡迎用戶使用。

And for this year, we've noticed many AI-powered music creation, AI-powered animation, I short-play 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、短劇都在嗶哩嗶哩上發布。我們的營運團隊也專門做了一場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 -- we have leveraged and implement AI and our AI creation tools. We believe essentially the application will help to improved concentration 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建工具而言，我們利用並實施了人工智慧和我們的人工智慧創建工具。我們相信，該應用程式本質上將有助於提高現有內容創作者的集中效率，並允許普通用戶利用此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 at the AI assistant and AI search to all of our users because we have a large amount of (inaudible) based, review-based content. You can ask our AI assistant or AI search to summarize the keywords and key messaging 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我們的用戶體驗。截至目前，我們已向所有用戶開放人工智慧助理和人工智慧搜索，因為我們有大量（聽不清楚）基於評論的內容。您可以要求我們的人工智慧助理或人工智慧搜尋來總結影片的關鍵字和關鍵訊息，這對於想要快速總結我們的內容的用戶來說非常有幫助和高效。

And there are 2 more examples of our AI tools. One is AI translations. Our AI translation tools can help to translate many different languages such as the Tibet, a content creator from Tibet. He spoke in the local language and our AI assistant can help him to translate into Mandarin. 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 up on the AI assistant the AI assistant will summarize into a short articles to tell you what this video is about and the overlay outlined the key points of that video. All of which we believe will effectively help our users to improve their user experience.

我們的人工智慧工具還有另外 2 個範例。一是人工智慧翻譯。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西藏語。他用當地語言說話，我們的人工智慧助理可以幫助他翻譯成普通話。我們還有一個叫做AI助手的工具，在播放視頻時如果你沒有時間看整個視頻，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是關於什麼的疊加層概述了該視頻的要點。我們相信所有這些都將有效幫助我們的用戶改善他們的用戶體驗。

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 effort of multiple numerous companies to reach its full potential rather than a company doing the research in AI with and itself in the closed loop. So as a platform, we will always (inaudible) 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.

我們始終認為，人工智慧應該是一項造福所有人的技術，包括使用者和平台。我認為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，而不是一個公司自己在閉環中進行人工智慧的研究。所以作為一個平台，我們將始終（聽不清楚）非常積極和開放的態度。我們已經與國內幾家領先的人工智慧公司在各個領域進行合作。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。對於這些合作夥伴來說，他們還可以與嗶哩嗶哩和我們的用戶一起釋放他們的全部潛力和價值。

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 risk 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會注意到，我們的人工智慧生成視訊功能是透過我們與領先的人工智慧公司的合作實現的，我們希望繼續與各個合作夥伴進行風險合作。透過此次合作，我們旨在為用戶帶來更好、更有效率、更有創意的體驗。

Thank you. That concludes today's answering session.

謝謝。今天的答疑會到此結束。

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 (inaudible) Financial Communications. Content 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.

謝謝。再次感謝您今天參加 Bilibili 2024 年第二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 IR 總監或（聽不清楚）財經傳播總監 Juliet Yang。有關中國和美國 IR 的內容資訊可在今天的新聞稿中找到。謝謝您，祝您有美好的一天。