(BILI) 2021 Q3 法說會逐字稿

Good day, and welcome to the Bilibili 2021 Third Quarter Financial Results and Business Update Conference Call.

美好的一天，歡迎參加 Bilibili 2021 年第三季度財務業績和業務更新電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time, I would like to turn the conference over to Juliet Yang, Executive Director of Investor Relations.

在這個時候，我想把會議交給投資者關係執行董事 Juliet Yang。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線員。

During this call, we'll discuss our business outlook and make forward-looking statements.

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。

These comments are based on our predictions and expectations as of today.

這些評論是基於我們今天的預測和期望。

Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC and Hong Kong Stock Exchange.

由於存在許多風險和不確定性，包括我們最近提交給美國證券交易委員會和香港聯交所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有重大差異。

The non-GAAP financial measures we provide are for comparison purpose only.

我們提供的非公認會計原則財務指標僅用於比較目的。

Definition of these measures and our reconciliation tables are available in the news release we issued earlier today.

我們今天早些時候發布的新聞稿中提供了這些措施的定義和我們的調節表。

As a reminder, this conference call is being recorded.

提醒一下，正在錄製此電話會議。

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，Bilibili IR 網站 ir.bilibili.com 上將提供投資者介紹和本次電話會議的網絡重播。

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. Sam Fan, Chief Financial Officer.

今天加入我們的還有B站董事長兼首席執行官陳睿先生；董事會副主席兼首席運營官Carly Lee女士；以及首席財務官 Sam Fan 先生。

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

我現在將把電話轉給范先生，范先生將代表陳先生宣讀準備好的講話。

Thank you, Juliet.

謝謝你，朱麗葉。

Thank you, everyone, for participating in our 2021 third quarter results conference call.

感謝大家參加我們的 2021 年第三季度業績電話會議。

I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

我很高興代表陳先生髮表今天的開幕詞。

Our strong third quarter results once again demonstrated our ability to execute and deliver our growth strategy.

我們強勁的第三季度業績再次證明了我們執行和交付增長戰略的能力。

In our peak summer season, we added over 30 million MAUs to our Bilibili community, bringing our total MAUs to 267 million, up 35% year-over-year.

在我們的夏季高峰期，我們為 Bilibili 社區增加了超過 3000 萬的 MAU，使我們的總 MAU 達到 2.67 億，同比增長 35%。

Mobile MAUs also rose to 250 million, and the DAUs came in at 72 million, representing growth of 36% and 35%, respectively, both on a year-over-year basis.

移動 MAU 也升至 2.5 億，DAU 為 7200 萬，同比分別增長 36% 和 35%。

This solid growth makes us more confident than ever that we can reach our MAU growth target by 2023.

這種穩健的增長使我們比以往任何時候都更有信心，我們可以在 2023 年之前實現我們的 MAU 增長目標。

Importantly, our community is becoming more engaged and even sticker.

重要的是，我們的社區正變得越來越投入，甚至越來越貼近標籤。

Expanded video content across formats and some scenarios drove an increase in users' daily time spent on Bilibili, which reached 88 minutes in Q3, the highest we have ever seen in our operating history.

跨格式和部分場景的擴展視頻內容推動了用戶在 Bilibili 上的每日使用時間增加，在第三季度達到了 88 分鐘，這是我們運營歷史上見過的最高水平。

This is particularly impressive, and it really shows the quality of our old and new users given how fast we have grown.

這尤其令人印象深刻，並且考慮到我們的增長速度，它確實顯示了我們新老用戶的質量。

Other key operating metrics also grew substantially.

其他關鍵運營指標也大幅增長。

Daily video views were up 77% to 2.3 billion.

每日視頻觀看量增長 77% 至 23 億。

Monthly interactions were up 86% to 10 billion, and the monthly video submissions were up 80% to 10 million.

每月互動量增長 86% 至 100 億次，每月視頻提交量增長 80% 至 1000 萬次。

Each of these metrics represents all-time high and it reflects the health of our community as well as the strength of engine that powers our growth.

這些指標中的每一個都代表著歷史最高水平，它反映了我們社區的健康狀況以及推動我們增長的引擎的力量。

Our effort to grow our user base while maintaining a strong and a tight-knit community also had a very positive impact on our commercialization progress.

我們努力擴大用戶群，同時保持強大而緊密的社區，也對我們的商業化進程產生了非常積極的影響。

Total revenues in Q3 reached 5.2 billion, up 61% year-over-year, beating the high end of our previous guidance.

第三季度總收入達到 52 億美元，同比增長 61%，超過了我們之前指引的高端。

By matching the right content to our growing number of Bilibili users, more traffic was converted to paying users.

通過將正確的內容與我們不斷增長的 Bilibili 用戶匹配，更多的流量被轉化為付費用戶。

MPUs reached 24 million in the third quarter, up 59% year-on-year, and our paying ratio grew to 8.9%.

第三季度 MPU 達到 2400 萬個，同比增長 59%，我們的支付率增長到 8.9%。

Another factor driving our top line is our increasing appeal to business partners.

推動我們收入增長的另一個因素是我們對業務合作夥伴的吸引力越來越大。

This is particularly true for advertisers who are eager to gain visibility with the growing number of Gen Z+ users on our platform.

對於渴望在我們平台上越來越多的 Z+ 世代用戶中獲得知名度的廣告商來說尤其如此。

To reach an even broader number of users, last year, we redefined our brand proposition with the phrase All the Videos You Like.

為了覆蓋更廣泛的用戶，去年，我們用“所有你喜歡的視頻”這一短語重新定義了我們的品牌主張。

Today, more users recognize and view Bilibili as the go-to destination for high-quality video content.

如今，越來越多的用戶將 Bilibili 視為高質量視頻內容的首選目的地。

In a recent BrandZ Report, Bilibili was ranked as the #2 most-valuable brand name in China in terms of growth rate.

在最近的 BrandZ 報告中，Bilibili 被評為中國第二大最具價值品牌。

With the increasing recognition from advertisers across different industry verticals, our ad revenue grew by 110% year-on-year in the third quarter, even with macroeconomic challenges.

隨著不同行業垂直廣告客戶的認可度不斷提高，即使面臨宏觀經濟挑戰，我們的廣告收入在第三季度仍同比增長 110%。

Looking ahead, videolization trends continue to surge, rapidly emerging as the preferred and the new norm.

展望未來，視頻化趨勢繼續激增，迅速成為首选和新規範。

As a premier video platform with broad content and community appeal, we expect to see continued benefit from the increasing videolization movement.

作為具有廣泛內容和社區吸引力的一流視頻平台，我們預計將繼續受益於日益增長的視頻化運動。

Carrying out our solid strategy to expand our content, community and commercialization, we believe we are on the right path to becoming a valuable new gateway to the Internet.

執行我們擴大內容、社區和商業化的堅實戰略，我們相信我們正走在成為有價值的互聯網新門戶的正確道路上。

We have also strengthened our commitment to social responsibility.

我們還加強了對社會責任的承諾。

Using our public influence, we are further developing an inclusive community, promoting positive content and enacting better ESG practice.

利用我們的公眾影響力，我們正在進一步發展一個包容的社區，推廣積極的內容並製定更好的 ESG 實踐。

With that overview, I would now like to walk you through some details of our third quarter operations.

有了這個概述，我現在想向您介紹我們第三季度運營的一些細節。

I will begin with the first part of our 3C model, our content.

我將從我們的 3C 模型的第一部分開始，我們的內容。

The key to our user growth lies with our broad, unmatched PUGVs.

我們用戶增長的關鍵在於我們廣泛、無與倫比的 PUGV。

At the center of our video ecosystem, PUGVs continued to flourish, accounting for 93% of our video views in the third quarter.

在我們視頻生態系統的中心，PUGV 繼續蓬勃發展，在第三季度占我們視頻瀏覽量的 93%。

We have carefully created an extensive platform for high-quality content creators to be recognized, appreciated and valued.

我們精心打造了一個廣泛的平台，讓優質內容創作者得到認可、欣賞和重視。

We continue to improve our tool kits and services to lower barriers of creation, including our evolving video editing app, Bijian, as well as various creator support programs.

我們繼續改進我們的工具包和服務以降低創作障礙，包括我們不斷發展的視頻編輯應用程序 Bijian，以及各種創作者支持計劃。

In the third quarter, monthly video submission hit a milestone of 10 million, up 80% year-over-year.

第三季度，每月視頻提交達到 1000 萬的里程碑，同比增長 80%。

The number of monthly active content creators also accelerated to 2.7 million, up 61% year-on-year.

月活躍內容創作者數量也加速至 270 萬，同比增長 61%。

With our continuous efforts to improve our traffic distribution mechanism, content creators can flourish and attract fans more easily.

隨著我們不斷完善流量分配機制，內容創作者更容易蓬勃發展，更容易吸引粉絲。

In the third quarter, content creators with more than 10,000 followers grew by 42% year-over-year.

第三季度，擁有超過 10,000 名粉絲的內容創作者同比增長 42%。

We continue to optimize and create new venues for them to realize their commercial value.

我們不斷優化和創造新的場所，讓他們實現商業價值。

These include our advertising matching platform, Sparkle, and the live broadcasting platform, bringing more commercialization opportunities to content creators at all levels.

其中包括我們的廣告匹配平台Sparkle和直播平台，為各級內容創作者帶來更多的商業化機會。

Our ongoing cash incentive program is also motivating an increasing number of mid-layer creators, encouraging their continuous content creation.

我們正在進行的現金獎勵計劃也激勵了越來越多的中層創作者，鼓勵他們持續創作內容。

By the end of the third quarter, 481,000 creators had benefited from this plan.

截至第三季度末，已有 481,000 名創作者從該計劃中受益。

Bilibili is a home to thousands of interest-based content categories, and we are excited by our road map to keep building great new content experience for users.

Bilibili 擁有數千個基於興趣的內容類別，我們對我們的路線圖感到興奮，以繼續為用戶構建出色的新內容體驗。

In the third quarter, the top 5 popular PUGV categories of lifestyle, games, entertainment, ACG and knowledge continued to flourish.

第三季度，生活方式類、遊戲類、娛樂類、ACG類、知識類5大熱門PUGV品類繼續蓬勃發展。

As we welcome more users across various demographics as emerging verticals such as fitness, food and travel are also gaining increasing interest.

隨著我們歡迎更多不同人群的用戶，因為健身、食品和旅遊等新興垂直領域也越來越受到關注。

In addition to expanding content categories, we are also expanding our content formats to meet users' different needs.

除了擴展內容類別，我們也在擴展我們的內容格式，以滿足用戶的不同需求。

For example, Story-Mode, our short-form video content in our mobile app, offers quick on-the-go entertainment, which is designed to suit user fragmented and time.

例如，我們移動應用程序中的短視頻內容 Story-Mode 提供快速的移動娛樂，旨在適應用戶碎片化和時間。

Conversely, our Bilibili app on smart TV is a perfect solution for users seeking a high-quality, high-resolution, immersive video experience on a larger screen.

相反，我們在智能電視上的 Bilibili 應用程序是尋求在更大屏幕上獲得高質量、高分辨率、沉浸式視頻體驗的用戶的完美解決方案。

We are encouraged by the strong momentum in user growth and engagement and believe there is still a lot of room to grow ahead.

我們對用戶增長和參與度的強勁勢頭感到鼓舞，並相信仍有很大的增長空間。

For our OGV department, our OGV content reinforces our leading PUGV verticals and introduces new ones to broaden our reach and our community horizons.

對於我們的 OGV 部門，我們的 OGV 內容加強了我們領先的 PUGV 垂直領域，並引入了新的垂直領域以擴大我們的影響力和我們的社區視野。

Leveraging both our platform and production capabilities, our OGVs are helping drive created-in-China content.

利用我們的平台和生產能力，我們的 OGV 正在幫助推動中國創造的內容。

For example, Chinese anime can breathe new life into classic tales, helping Chinese culture resonate with young generations.

例如，中國動漫可以為經典故事注入新的活力，幫助中國文化與年輕一代產生共鳴。

In the second half of this year, we released multiple Bilibili-produced anime titles, including the second season of mega-hit Carp Reborn, Yuan Long and Hundred Monsters, Bai Yao Pu, as well as The Daily Life of the Immortal King, Xian Wang de Richang Shenghuo, all of which were immediately revered by anime lovers.

今年下半年，我們發布了多部由B站出品的動漫作品，包括重生之鯉魚第二季《元龍百怪》《白藥舖》，以及《仙王的日常》《仙》王德日昌生火，頓時受到動漫愛好者的推崇。

Similarly, our documentaries and the variety shows are echoing within areas of young Chinese interest.

同樣，我們的紀錄片和綜藝節目也在中國年輕人感興趣的領域產生了共鳴。

These have achieved great success in promoting the Bilibili brand and building influence within these content verticals.

這些在推廣 Bilibili 品牌和在這些內容垂直領域建立影響力方面取得了巨大成功。

Our self-produced matchmaking hit, 90 Hun Jie Suo, is a good example that deeply resonated with our Gen Z+ users and has given legs to discussions beyond the Bilibili community, trending on social media platforms for weeks.

我們自製的婚介熱播《90 魂結索》就是一個很好的例子，它在 Z+ 一代用戶中產生了深刻的共鳴，並在 Bilibili 社區之外引起了討論，在社交媒體平台上流行了數週。

We also released a music variety show, The Next Banger, Wo De Yin Yue Ni Ting Ma, in Q3.

第三季度，我們還推出了音樂綜藝節目《下一個棒子》我的音月你聽馬。

This show supplements our newer music content creations and appeals to music lovers in our community.

該節目補充了我們更新的音樂內容創作，並吸引了我們社區的音樂愛好者。

In addition, we launched a series of self-produced, widely welcomed food-themed documentary with more to come, including the upcoming third season of The Story of Chuaner, Ren Sheng Yi Chuan 3, which reflects the growing interest in Chinese cuisine as well as the lifestyle categories.

此外，我們推出了一系列廣受好評的自製美食題材紀錄片，包括即將播出的《川兒故事》第三季《任勝一傳3》，這也反映了人們對中國菜的興趣與日俱增。作為生活方式類別。

Turning to our community.

轉向我們的社區。

Our [thriving] (corrected by company after the call) community shows the quality of our user growth.

我們的[蓬勃發展]（在電話會議後由公司更正）社區顯示了我們用戶增長的質量。

In the third quarter, daily video views increased by 77% year-over-year to 2.3 billion, and the monthly interactions were up 86%, reaching over 10 billion.

第三季度，日視頻觀看量同比增長 77% 至 23 億，月互動量增長 86%，達到 100 億以上。

Both metrics grew much faster than expected, and our users showed increasing engagement across our community.

這兩個指標的增長速度都比預期快得多，而且我們的用戶在我們的社區中表現出越來越多的參與度。

These interactions are the essential elements that make Bilibili experience so unique.

這些互動是使 Bilibili 體驗如此獨特的基本要素。

At the same time, we are excited to see more casual users converting to official members by taking our unique community entrance exam.

同時，我們很高興看到更多的普通用戶通過參加我們獨特的社區入學考試轉換為正式會員。

By the end of the third quarter, we grew the number of official members by 38% year-on-year to 133.6 million.

截至第三季度末，我們的正式會員數量同比增長 38% 至 1.336 億。

For this core user cohort, the 12-month retention rate remained above 80% in the third quarter, once again showing the strength of our community.

對於這個核心用戶群，第三季度的 12 個月留存率保持在 80% 以上，再次顯示了我們社區的實力。

Now let's look at our commercialization progress.

現在讓我們看看我們的商業化進展。

Our diverse revenue streams have become more and more balanced.

我們多元化的收入來源變得越來越平衡。

While revenue from each of our segments grew in the third quarter, our advertising [services] (corrected by company after the call) have become our largest growth engine, followed by our VAS and e-commerce offering.

雖然我們每個部門的收入在第三季度都有所增長，但我們的廣告 [服務]（在電話會議後由公司更正）已成為我們最大的增長引擎，其次是我們的增值服務和電子商務產品。

Let's look at this in more detail.

讓我們更詳細地看一下。

Within our commercialization segments, starting with our games.

在我們的商業化領域，從我們的遊戲開始。

We see games as an advanced format of entertainment and the representation of cultural soft power.

我們將游戲視為一種先進的娛樂形式和文化軟實力的體現。

Believing the positive power of good games, our goal is to bring users more high-quality game growth domestically and internationally with a heightened focus on internal development.

相信好遊戲的積極力量，我們的目標是在國內和國際上為用戶帶來更多高質量的遊戲增長，同時更加註重內部開發。

Leveraging our deep understanding of user preference and our rich game operating experience, we are devoted to building our development capabilities for the new generation of players.

憑藉對用戶偏好的深刻理解和豐富的遊戲運營經驗，我們致力於為新一代玩家打造我們的開發能力。

At the same time, we are adamant for promoting exciting Chinese culture to large gaming world.

同時，我們堅持將精彩的中國文化推廣到大型遊戲世界。

Looking specifically at our third quarter game performance, revenues from our mobile games increased by 9% year-over-year to RMB 1.4 billion.

具體來看我們第三季度的遊戲表現，我們的手機遊戲收入同比增長 9% 至人民幣 14 億元。

We added 3 new titles domestically to a roster of exclusively licensed games or have been well received by their followers.

我們在國內獨家授權的遊戲名冊中增加了 3 款新遊戲，或者受到了他們的追隨者的好評。

We also celebrated the five-year anniversary of our legacy title, FGO, in September.

我們還在 9 月慶祝了我們的傳統遊戲 FGO 的五週年紀念。

Additionally, we successfully jointly published more premium games, including Tencent's League of Legends and the NetEase Harry Potter, continuing to expand game offerings in diverse genres.

此外，我們還成功聯合發行了更多優質遊戲，包括騰訊英雄聯盟、網易哈利波特等，持續豐富遊戲種類。

As for our domestic game pipeline, 9 games have acquired approval and are ready for domestic release in the coming quarters.

至於我們的國內游戲管道，有9款遊戲已獲得批准，並準備在未來幾個季度在國內發布。

In the meantime, we are rolling out more Chinese game masterpieces to global game market.

同時，我們正在向全球遊戲市場推出更多的中國遊戲大作。

Following our success of RE:Final Gear, Zhong Zhuang Zhan Ji, we continued to build our distribution capabilities with the successfully launch Figure Story, Gao Neng Shou Ban Tuan, in South Korea in September.

繼 RE:Final Gear 中裝戰記大獲成功後，我們於 9 月在韓國成功推出《人物物語》高能手辦團，繼續建立我們的分銷能力。

The game became an instant hit, and we plan to replicate this success with more games overseas by leveraging our deep understanding of ACG lovers' tastes, our game selection know-how and our strong distribution power.

該遊戲一炮而紅，我們計劃利用我們對 ACG 愛好者口味的深刻理解、我們的遊戲選擇知識和強大的發行能力，在海外更多遊戲中復制這一成功。

We are committed to operating responsibly to promote healthy game behaviors and protect teenagers from gaming addiction.

我們致力於以負責任的方式運營，以促進健康的遊戲行為並保護青少年遠離遊戲成癮。

As early as 2019, we launched anti-addiction measures for teen players and have continued to strengthen control mechanism.

早在2019年，我們就推出了針對青少年玩家的防沉迷措施，並不斷強化管控機制。

By the end of August, all Bilibili-operated games fully complied with the latest regulations on restricting minors' game play time in China.

截至8月底，B站旗下所有遊戲均完全符合中國境內限制未成年人遊戲時間的最新規定。

We would also like to note that revenues from players under 18 accounted for less than 1% of game revenues in September of 2021.

我們還想指出，2021 年 9 月，來自 18 歲以下玩家的收入佔遊戲收入的比例不到 1%。

Turning to our VAS business.

轉向我們的增值服務業務。

Our VAS business is the perfect illustration of our business-to-consumer, B2C, model.

我們的增值服務業務是我們企業對消費者 B2C 模式的完美例證。

It represents our users' trust in our brand and willingness to pay for Bilibili content and services.

它代表了我們的用戶對我們品牌的信任以及為 Bilibili 內容和服務付費的意願。

In the third quarter, our VAS business continued to be our largest earner, reaching RMB 1.9 billion, up 95% year-over-year.

第三季度，我們的增值業務繼續成為我們最大的收入來源，達到人民幣 19 億元，同比增長 95%。

Unlike any other live broadcasting platform, Bilibili live broadcasting has been uniquely integrated in our content ecosystem from day 1. As a natural extension of video content, it amplifies our leading content verticals as well as the influence of our content creators.

與任何其他直播平台不同，B站直播從第一天就獨特地融入了我們的內容生態系統。作為視頻內容的自然延伸，它放大了我們領先的內容垂直領域以及我們內容創作者的影響力。

We continued to enrich our live broadcasting content during the period, providing more tools to facilitate our virtual hosts' growth.

期內，我們不斷豐富直播內容，為虛擬主播的成長提供更多工具。

We are excited to see the increasing influence of various game live content for our community, including League of Legends, Honor of Kings and Genshin Impact.

我們很高興看到各種遊戲直播內容對我們社區的影響越來越大，包括英雄聯盟、王者榮耀和 Genshin Impact。

For example, we saw record-breaking level of popularity for this year's League of Legends World Championship S11 on Bilibili.

例如，我們在 Bilibili 上看到了今年英雄聯盟世界錦標賽 S11 的破紀錄受歡迎程度。

On the final game night, the peak concurrent viewers increased by over [160%] (corrected by company after the call) compared with S10.

在最後一場比賽之夜，與 S10 相比，最高並發觀眾人數增加了超過 [160%]（由公司在電話會議後更正）。

And we achieved the highest DAUs ever in our operating history.

我們實現了運營歷史上最高的 DAU。

We are also diversifying within more entertainment-related offerings, especially for virtual uploader or V-up- related content.

我們還在更多與娛樂相關的產品中實現多樣化，特別是虛擬上傳器或 V-up 相關的內容。

In Q3, we had triple digital year-over-year growth in both number of active V-ups and number of viewers in this category.

在第三季度，我們的活躍 V-ups 數量和該類別的觀眾數量均實現了三倍的數字同比增長。

We will continue to add and expand and strengthen our position as the world's leading virtual live broadcasting community.

我們將繼續增加、擴大和鞏固我們作為世界領先的虛擬直播社區的地位。

Thanks to our growing roster of high-quality OGV and the users' tendency to pay for content, our premium members grew to 18.2 million by the end of third quarter, an increase of 42% year-over-year.

得益於我們不斷增長的優質 OGV 名冊和用戶為內容付費的傾向，我們的高級會員到第三季度末增長到 1820 萬，同比增長 42%。

For ACG lovers, our comics and audio drama content continued to attract more paying users, again, showing the high willingness of our users to pay for content they want and the vast potential that offers as we add exciting new content.

對於 ACG 愛好者來說，我們的漫畫和有聲劇內容繼續吸引更多的付費用戶，這再次表明我們的用戶願意為他們想要的內容付費，以及隨著我們添加令人興奮的新內容而提供的巨大潛力。

As for our advertising services, advertising represents our business-to-business B2B model and is also thriving.

至於我們的廣告服務，廣告代表了我們的企業對企業 B2B 模式，並且也在蓬勃發展。

Despite macroeconomic fact, our advertising revenue continued to be robust in the third quarter, reaching total advertising revenues of RMB 1.2 billion, an increase of 110% year-over-year.

儘管存在宏觀經濟事實，但我們的廣告收入在第三季度繼續保持強勁，總廣告收入達到人民幣 12 億元，同比增長 110%。

Our enhanced brand influence and our growing number of quality user functions as the building blocks of sustainable growth.

我們增強的品牌影響力和不斷增長的優質用戶數量是可持續增長的基石。

As our integrated marketing campaign covers more industry customers, the creativity and the commercial value of our content creators is gaining wider recognition.

隨著我們的整合營銷活動覆蓋更多行業客戶，內容創作者的創意和商業價值正獲得更廣泛的認可。

More native ad videos went viral in Q3, making Bilibili the most sought-after platform in China for advertisers.

更多原生廣告視頻在第三季度走紅，使嗶哩嗶哩成為中國最受廣告商追捧的平台。

We continue to promote our integrated marketing campaign and introduce more ad products to our inventory, helping our content creators monetize their talent.

我們繼續推廣我們的整合營銷活動，並在我們的庫存中引入更多廣告產品，幫助我們的內容創作者將他們的才能貨幣化。

During the third quarter, our top 5 advertising verticals were mobile games, skin care and cosmetics, e-commerce, digital products and the food and beverage.

第三季度，我們排名前 5 的廣告垂直領域是手機遊戲、護膚品和化妝品、電子商務、數碼產品和食品飲料。

As we move forward, we will continue to advance our growth strategy and create value for our stakeholders.

隨著我們的前進，我們將繼續推進我們的增長戰略並為我們的利益相關者創造價值。

At the same time, we are committed to shouldering our social responsibility to make the world a better place, including supporting rural education, disaster relief, reducing our carbon footprint and furthering green initiatives.

同時，我們致力於承擔社會責任，讓世界變得更美好，包括支持農村教育、救災、減少碳足跡和推進綠色倡議。

Moreover, as a proud Chinese corporate citizen with increasing reach, we dream that one day, using art forms such as games, anime and PUGVs, we will be able to spread Chinese culture across the world.

此外，作為一個自豪的中國企業公民，我們夢想著有一天，我們能夠通過遊戲、動漫和PUGV等藝術形式，將中國文化傳播到世界各地。

This concludes Mr. Chen's remarks.

陳先生的發言到此結束。

I will now provide a brief overview of our financial results for the third quarter of 2021 and the outlook for the fourth quarter.

我現在將簡要概述我們 2021 年第三季度的財務業績和第四季度的前景。

Total net revenues for the third quarter were RMB 5.2 billion, up 61% from the same period of 2020.

第三季度總淨收入為人民幣 52 億元，較 2020 年同期增長 61%。

We continue to see a more balanced revenue mix driven by our diversified commercialization channels.

在多元化商業化渠道的推動下，我們繼續看到更加平衡的收入組合。

Our total net revenue breakdown by revenue stream was approximately 27% mobile games, 37% VAS, 23% advertising and 13% e-commerce and other business.

我們按收入來源劃分的總淨收入細分約為 27% 的手機遊戲、37% 的增值服務、23% 的廣告和 13% 的電子商務和其他業務。

Cost of revenues increased by 70% year-over-year to RMB 4.2 billion.

收入成本同比增長 70% 至 42 億元人民幣。

Revenue-sharing cost, a key component of cost of revenues, were RMB 2.2 billion, representing 83% increase from the same period in 2020.

收入分成成本是收入成本的重要組成部分，為人民幣 22 億元，較 2020 年同期增長 83%。

Gross profit increased by 34% year-over-year to RMB 1 billion, and our gross margin was 19.6% in the third quarter.

毛利潤同比增長 34% 至 10 億元人民幣，第三季度我們的毛利率為 19.6%。

Total operating expenses was RMB 2.9 billion, up 57% from the same period in 2020.

總營業費用為人民幣29億元，較2020年同期增長57%。

Selling and marketing expenses was RMB 1.6 billion, representing a 37% increase year-over-year.

銷售及營銷費用為人民幣16億元，同比增長37%。

The increase was primarily attributable to increased channel and marketing expenses to promote our app and brand as well as promotional expenses for our mobile games and an increase in our headcount in sales and marketing personnel.

增加的主要原因是推廣我們的應用程序和品牌的渠道和營銷費用增加，以及我們的手機遊戲的促銷費用以及我們的銷售和營銷人員人數增加。

Q3 is our peak season in brand marketing and user acquisition efforts.

第三季度是我們品牌營銷和用戶獲取工作的旺季。

We strategically allocated more resources and are pleased with the strong momentum showing in both user base growth, as well as the quality of our users in terms of engagement levels.

我們戰略性地分配了更多資源，並對用戶群增長的強勁勢頭以及用戶參與度方面的質量感到滿意。

G&A expenses was RMB 474.9 million, representing an 87% increase year-over-year.

G&A 費用為人民幣 4.749 億元，同比增長 87%。

The increase was primarily due to increased headcount in general and administrative personnel, increased share-based compensation expenses and higher rental expenses.

增加的主要原因是一般和行政人員的人數增加、股權激勵費用增加和租金費用增加。

R&D expenses were RMB 788.3 million, representing a 97% increase year-over-year.

研發費用為人民幣7.883億元，同比增長97%。

The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses.

這一增長主要是由於研發人員人數增加以及股權激勵費用增加所致。

Net loss was RMB 2.69 billion for the third quarter of 2021 compared with RMB 1.1 billion in the same period of 2020.

2021年第三季度淨虧損為人民幣26.9億元，而2020年同期為人民幣11億元。

Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses, amortization expense related to intangible assets acquired through business acquisition, income tax related to intangible assets acquired through business acquisitions and the loss on fair value change in publicly traded companies, was RMB 1.62 billion compared with RMB 0.97 billion in the same period of 2020.

調整後的淨虧損，這是一種非公認會計原則的衡量標準，不包括股權補償費用、與通過業務收購獲得的無形資產相關的攤銷費用、與通過業務收購獲得的無形資產相關的所得稅以及公開交易的公允價值變動損失2020 年同期為 16.2 億元人民幣，而 2020 年同期為 9.7 億元人民幣。

Basic and diluted net loss per share were each RMB 6.90.

每股基本及攤薄淨虧損分別為人民幣6.90元。

Adjusted basic and diluted net loss per share were each RMB 4.16.

調整後每股基本及攤薄淨虧損為人民幣4.16元。

As of September 30, 2021, we had cash and cash equivalents, time deposits as well as short-term investments of RMB 24.4 billion compared with RMB 12.8 billion as of December 31, 2020.

截至 2021 年 9 月 30 日，我們的現金及現金等價物、定期存款以及短期投資為人民幣 244 億元，而截至 2020 年 12 月 31 日為人民幣 128 億元。

Our sufficient cash reserves gives us great confidence in our ability to execute our growth strategy, which we believe will yield considerable returns in the long run.

我們充足的現金儲備使我們對執行增長戰略的能力充滿信心，我們相信從長遠來看，這將產生可觀的回報。

With that in mind, we are currently projecting net revenues for the fourth quarter of 2021 to be between RMB 5.7 billion and RMB 5.8 billion.

考慮到這一點，我們目前預計 2021 年第四季度的淨收入將在人民幣 57 億元至人民幣 58 億元之間。

Thank you for your attention.

感謝您的關注。

We would like now to open the call to your questions.

我們現在想打開您的問題的電話。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) Our first question comes from the line of Alex Poon from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Alex Poon。

(foreign language) My first question is regarding user growth.

（外語）我的第一個問題是關於用戶增長。

The user growth in Q3 has exceeded previous guidance of 260 million.

第三季度的用戶增長已經超過了之前 2.6 億的指導。

And also the record -- the time spent has reached a record high of 88 minutes per user per day.

還有記錄——每位用戶每天花費的時間達到了創紀錄的 88 分鐘。

So I wonder, management can explain, what have we done in Q3 to achieve these results?

所以我想知道，管理層可以解釋一下，我們在第三季度做了什麼來實現這些結果？

And in Q4 and next year, what are our expectations?

在第四季度和明年，我們的期望是什麼？

(foreign language)

（外語）

[Interpreted] So for all these years, the principle for Bilibili to grow our user has remained the same, which is driven by very healthy content ecosystem.

【解讀】所以這些年來，嗶哩嗶哩用戶增長的原則是不變的，這是由非常健康的內容生態驅動的。

And those content ecosystem will continuously produce high-quality content to attract users.

而這些內容生態系統將不斷產生高質量的內容來吸引用戶。

(foreign language)

（外語）

[Interpreted] So every year, we'll have evolved, emphasized area.

[解釋] 所以每年，我們都會發展，強調領域。

For example, last year, it was all about expansion in content categories.

例如，去年，一切都是關於內容類別的擴展。

And for this year, beside expansion of content categories, we also hope to achieve expansion of consumption scenarios.

而今年，除了內容品類的拓展，我們還希望實現消費場景的拓展。

Building a multi-scenario, multi-content category video community is our goal.

打造多場景、多內容品類的視頻社區是我們的目標。

(foreign language)

（外語）

[Interpreted] So I have always thought that video's main battlefield is beyond just mobile phones.

【解讀】所以我一直認為視頻的主戰場不僅僅是手機。

Although nowadays, mobile phone is the main consumption scenario.

雖然如今，手機是主要的消費場景。

However, I think as the technology evolves in such as the 5G adoption and the overall hardware's evolvement, in the future, more and more screen will carry the purpose of running a video, for example, on a larger screen.

但是，我認為隨著技術的演進，例如5G的採用和整體硬件的演進，未來越來越多的屏幕將承載播放視頻的目的，例如在更大的屏幕上。

(foreign language)

（外語）

[Interpreted] So right now, our OTT smart TV's MAUs have surpassed our MAUs on the PC side, becoming our #2 user component.

【解讀】所以現在，我們OTT智能電視的MAUs已經超過了我們PC端的MAUs，成為我們的#2用戶組成部分。

And I still think there's plenty of room for us to further expand in those areas.

而且我仍然認為我們在這些領域有足夠的空間進一步擴展。

(foreign language)

（外語）

[Interpreted] So not only that we have more users on the smart TV side, actually, the time spent on the smart TV is also much longer than the rest of the terminals.

【解讀】所以不僅我們在智能電視端的用戶比較多，實際上在智能電視上的使用時間也比其他終端要長很多。

(foreign language)

（外語）

[Interpreted] Bilibili probably has the most number of video status in 4K.

【解讀】嗶哩嗶哩大概是4K視頻狀態最多的吧。

And that is also the reason why Bilibili's content is most suitable for those larger screens.

而這也是為什麼嗶哩嗶哩的內容最適合那些大屏的原因。

(foreign language)

（外語）

[Interpreted] Another example would be our Story Mode.

[解釋] 另一個例子是我們的故事模式。

Within the Story Mode, our content creator can upload video stats in the horizontal mode, which was also well loved by our users.

在故事模式中，我們的內容創建者可以在水平模式下上傳視頻統計數據，這也深受我們用戶的喜愛。

And within the scenario, our users can enjoy those quick on-the-go entertainment content.

在場景中，我們的用戶可以享受那些快速移動的娛樂內容。

(foreign language)

（外語）

[Interpreted] Here, I wanted to point now that in the third quarter, we not only have a fast-growing number of user base, the quality of those users are also very, very good.

【解讀】這裡，我現在想指出的是，在第三季度，我們不僅擁有快速增長的用戶群，而且這些用戶的質量也非常非常好。

For example, the time spent, 88 minutes, is the highest we've seen in our operational history.

例如，花費的時間為 88 分鐘，這是我們在運營歷史上看到的最高時間。

And also, the user engagement number also experienced a very fast growth.

而且，用戶參與度也經歷了非常快速的增長。

All of those indicate that we have grown with quality.

所有這些都表明我們在質量上成長。

That's very important.

這是非常重要的。

(foreign language)

（外語）

[Interpreted] Our monthly user interactions -- average monthly user interaction in Q3 has reached a 10 billion milestone.

【解讀】我們的月用戶交互——第三季度的月平均用戶交互達到了100億的里程碑。

(foreign language)

（外語）

[Interpreted] And also on the paying conversion in Q3, our paying users reached 24 million, and our paying ratio continues to rise, reaching 8.9% in the third quarter.

【解讀】在第三季度的付費轉化上，我們的付費用戶達到了2400萬，我們的付費比例繼續上升，第三季度達到了8.9%。

(foreign language)

（外語）

[Interpreted] Back in 2017, I predicted that Bilibili's paying ratio could reach double digits, and I still believe that.

【解讀】早在2017年，我就預測過B站的付費率會達到兩位數，我還是相信的。

Even though our users growing extremely fast, the quality of the user is also extremely high.

儘管我們的用戶增長非常快，但用戶的質量也非常高。

Those users love our content and are very willing to pay for this content.

這些用戶喜歡我們的內容並且非常願意為此內容付費。

We believe at the end of the day, our -- the revenue generated from our users will be faster than the increase of our users number.

我們相信最終，我們的用戶產生的收入將快於我們用戶數量的增長。

(foreign language)

（外語）

[Interpreted] So as for Q4's outlook, similar with our traditional seasonality, we expect Q4's users base to be stable or a slight increase.

【解讀】Q4 的展望，與我們傳統的季節性相似，我們預計 Q4 的用戶群將保持穩定或略有增加。

As for our user target for 2022, we raised our 3-year MAU target of 400 million users by 2023.

至於我們 2022 年的用戶目標，我們提高了到 2023 年 4 億用戶的 3 年 MAU 目標。

And for next year, we will continue to execute on that strategy and to step-by-step achieving that target.

明年，我們將繼續執行該戰略並逐步實現該目標。

And we are still very, very confident to be able to achieve that user goal by 2023.

我們仍然非常非常有信心能夠在 2023 年之前實現這一用戶目標。

(foreign language)

（外語）

[Interpreted] One thing I would like to add is about our smart TV users.

[解釋] 我想補充的一件事是關於我們的智能電視用戶。

And originally, we thought this TV user versus our app user would have relatively higher overlap.

最初，我們認為這個電視用戶與我們的應用程序用戶會有相對較高的重疊。

As a matter of fact, the overlap is only about 20%.

事實上，重疊率只有 20% 左右。

And a lot of the smart TV users are users coming from third-, fourth- and fifth-tier cities.

而很多智能電視用戶是來自三四五線城市的用戶。

So these differences give us great confidence in terms of further penetrating our target cohort.

因此，這些差異使我們對進一步滲透我們的目標群體充滿信心。

And we believe with Bilibili's fast content library and evolving scenario, we should be able to achieve our user target.

我們相信，憑藉 Bilibili 快速的內容庫和不斷發展的場景，我們應該能夠實現我們的用戶目標。

Our next question comes from Daniel Chen from JPMorgan.

我們的下一個問題來自摩根大通的 Daniel Chen。

(foreign language) I will translate myself.

（外語）我會自己翻譯。

My question is related to advertising.

我的問題與廣告有關。

So we have seen such a strong growth in the third quarter, a triple-digit year-over-year growth.

因此，我們在第三季度看到瞭如此強勁的增長，同比增長了三位數。

So what's our expectation into the fourth quarter of this year and also 2020?

那麼我們對今年第四季度和 2020 年的預期是什麼？

And also, are we seeing the impact from like a weak macro environment and also like data security policies?

此外，我們是否看到了像弱宏觀環境和數據安全政策這樣的影響？

Are we seeing those implications to our advertising revenue?

我們是否看到這些對我們的廣告收入的影響？

(foreign language)

（外語）

[Interpreted] In Q3, our ad revenue reached CNY 1.17 billion, up over 110% year-on-year.

【解讀】第三季度，我們的廣告收入達到11.7億元，同比增長超過110%。

This is the 10th effective quarter of beating expectation level of growth.

這是超過預期增長水平的第 10 個有效季度。

(foreign language)

（外語）

[Interpreted] So we have repeatedly discussed the theory of Bilibili's ad business logic and our efforts in building our infrastructures as well as strategies in the past few quarters, which I would not go in further details at this time.

【解讀】所以我們在過去幾個季度反复討論了B站的廣告業務邏輯理論和我們在基礎設施建設方面的努力和策略，我在此不再贅述。

However, I will share some of the data and new changes we're seeing so far in the fourth quarter and also in the third quarter.

但是，我將分享我們在第四季度和第三季度迄今為止看到的一些數據和新變化。

(foreign language)

（外語）

[Interpreted] First of all, we see continuous improvement in our ad efficiency, thanks to our deep learning models' evolvement as well as the further adoption of more innovative ad scenarios, the click-through rate of our feed ads improved by 30%.

【解讀】首先，我們的廣告效率不斷提升，得益於深度學習模型的演進以及更多創新廣告場景的進一步採用，我們的Feed廣告點擊率提升了30%。

And we expect this will further drive our fourth quarter and next year ad revenue growth.

我們預計這將進一步推動我們第四季度和明年的廣告收入增長。

(foreign language)

（外語）

[Interpreted] Second is we further integrated multiple ad scenarios, as Rui mentioned, from our mobile app on our mobile phones to iPads, smart TV and PC.

【解讀】二是我們進一步整合了多個廣告場景，如芮所說，從我們手機上的移動應用程序到iPad、智能電視和PC。

We continue to add new ad inventory, including ad products like in-line stories and moments.

我們將繼續添加新的廣告資源，包括在線故事和時刻等廣告產品。

And as our users continue to expand, our ads can follow.

隨著我們的用戶不斷擴大，我們的廣告也會隨之而來。

(foreign language)

（外語）

[Interpreted] The third point is on the Sparkle ad platform, we have over [15,000] (corrected by company after the call) content creators joined.

【解讀】第三點，Sparkle廣告平台，我們有超過[15,000]（電話後公司更正）內容創作者加入。

This is up 25% year-on-year.

這比去年同期增長了 25%。

We also have repetitive ad customers, over 75%.

我們還有超過 75% 的重複廣告客戶。

And Bilibili's content creators produce more and more highly creative, native ad content and is becoming the new beacon in China ad market.

而嗶哩嗶哩的內容創作者製作出越來越多極具創意的原生廣告內容，正在成為中國廣告市場的新燈塔。

And we'll continue to build on that success and further to integrate our one-stop solution of native ads, brand ads, feed-outs, including our project takeoff, which all have been widely acknowledged in the ad industry.

我們將繼續在這一成功的基礎上進一步整合我們的原生廣告、品牌廣告、饋送的一站式解決方案，包括我們的項目起飛，這些都已在廣告行業得到廣泛認可。

(foreign language)

（外語）

[Interpreted] And the fourth point is during this year's Singles' Day, our daily ad GMV was over RMB 25 million, ranking #5 in terms of ad budget market share, and the overall conversion ROI ranked #1 in the space.

【解讀】第四點是今年雙十一，我們的日廣告GMV超過2500萬元，廣告預算市場份額排名第五，整體轉化ROI排名空間第一。

This further proves the high quality of our users and their potential consumption power.

這進一步證明了我們用戶的高素質和潛在的消費能力。

We expect next year in the overall consuming advertising -- consumers at the industry will continue to raise our performances and achieve greater success.

我們預計明年在整體消費廣告中——行業消費者將繼續提升我們的業績並取得更大的成功。

(foreign language)

（外語）

[Interpreted] And the fifth and the sixth point is, first of all, on our ad clients, besides our traditional strong vertical like game, food and beverage, 3C, skin care and cosmetics, we see emerging verticals such as automotive, handbag and apparel are also growing rapidly.

【解讀】第五點和第六點，首先在我們的廣告客戶上，除了遊戲、餐飲、3C、護膚、美妝等傳統的強垂直領域，我們還看到了汽車、手袋、服裝也在快速增長。

Last but not least is on our -- we see new format of video-based ads as also driving the improvement of our ad efficiency and forming one-stop ad solution on Bilibili.

最後但並非最不重要的是我們——我們認為基於視頻的新廣告格式也推動了我們廣告效率的提高，並在 Bilibili 上形成了一站式廣告解決方案。

Our Q3 number shows that our video-based ad is 2x more efficient than the traditional picture and text-based ads.

我們的第三季度數據表明，我們基於視頻的廣告比傳統的基於圖片和文字的廣告效率高 2 倍。

And we expect the eCPM will have the potential to further grow by 100%.

我們預計 eCPM 將有進一步增長 100% 的潛力。

(foreign language)

（外語）

[Interpreted] So lastly, on the -- whether there's going to be impact of the recent data security regulations, we don't think there will be any visible impact to our ad business.

[解釋] 最後，關於最近的數據安全法規是否會產生影響，我們認為不會對我們的廣告業務產生任何明顯的影響。

And we still have confidence to deliver healthy and fast growth in our ad segment in Q4 and in next year.

我們仍然有信心在第四季度和明年在我們的廣告領域實現健康和快速的增長。

The next question comes from the line of Brian Gong from Citi.

下一個問題來自花旗的 Brian Gong 的話。

(foreign language) I will translate myself.

（外語）我會自己翻譯。

Our ecosystem, our gaming, video, live streaming and, actually, we already have a virtual community, it seems to be among those key platforms in China that could explore metaverse opportunity.

我們的生態系統、我們的遊戲、視頻、直播，實際上，我們已經有一個虛擬社區，它似乎是中國可以探索元界機會的關鍵平台之一。

So my question is that how does management maybe positioning in these themes?

所以我的問題是，管理層如何定位這些主題？

And how will Bili to seize this opportunity?

而碧麗又將如何把握這個機會？

(foreign language)

（外語）

[Interpreted] As I mentioned in our investor conference earlier this year, metaverse is a concept.

[解釋] 正如我在今年早些時候的投資者會議上提到的，元界是一個概念。

It's not a product.

它不是一個產品。

And before this concept emerged, actually, many of the elements associated with metaverse already existed.

實際上，在這個概念出現之前，與元界相關的許多元素已經存在。

Whether it's virtual reality, a tight social community or a system, social system or a self-reinforcing ecosystem, it's already existed.

無論是虛擬現實、緊密的社交社區還是系統、社交系統還是自我強化的生態系統，它都已經存在。

And there are a lot of company is already developing product on those concepts, for example, Facebook and Tencent, and actually Bilibili is one of them.

並且有很多公司已經在開發這些概念的產品，例如 Facebook 和騰訊，實際上 Bilibili 就是其中之一。

(foreign language)

（外語）

[Interpreted] So that's why I think that if someone hears the concept of metaverse and decided to get into this business probably would be a little bit too late.

[解釋] 所以這就是為什麼我認為如果有人聽到元界的概念並決定進入這個行業可能會有點太晚了。

That is because those elements such as social system, self-reinforcing ecosystem, all of which cannot be done in a couple of months or even in years.

那是因為社會制度、自我強化的生態系統等要素，這一切都不是幾個月甚至幾年就能完成的。

(foreign language)

（外語）

[Interpreted] And I believe there are some very, very important elements within the metaverse concept, which is the self-reinforcing content ecosystem.

[解釋] 而且我相信元界概念中有一些非常非常重要的元素，即自我強化的內容生態系統。

When we talk about metaverse, we think this is not something can be done by a singular company.

當我們談論元界時，我們認為這不是一家單一公司可以完成的事情。

You need to have massive content production capability to produce another world.

你需要擁有海量的內容製作能力，才能製作出另一個世界。

So that's why we believe it requires someone deeply connected into this system.

所以這就是為什麼我們認為它需要有人深深地連接到這個系統中。

And through creating content, they will have achieved benefit, hence, bonding tighter, even tighter within the system itself.

通過創建內容，他們將獲得收益，因此，在系統本身內的結合更緊密，甚至更緊密。

(foreign language)

（外語）

[Interpreted] And Bilibili has a very large base of content creator or creating content in Bilibili system, and they are benefiting from this creation process that makes Bilibili the ideal platform to further explore in this metaverse concept.

【解讀】B站擁有非常龐大的內容創作者或在B站系統內創作內容的基礎，他們正從這個創作過程中受益，這使得B站成為在這個元界概念中進一步探索的理想平台。

Actually, this is something Bilibili has always been practicing and believed in.

其實，這是嗶哩嗶哩一直在踐行和信奉的。

And we have many examples linked to this concept, for example, virtual uploader.

我們有很多與這個概念相關的例子，例如虛擬上傳器。

Our content creator can leverage technology like motion capture, virtual reality, augmented reality, turning themselves into another character in another world and creating content such as singing and dancing, talking jokes, all of that, attracting users and make user fall in love with them.

我們的內容創作者可以利用動作捕捉、虛擬現實、增強現實等技術，將自己變成另一個世界的另一個角色，並創造出唱歌跳舞、講笑話等內容，吸引用戶，讓用戶愛上他們.

And itself, it is a perfect example of implementing the creation system into this metaverse concept.

而它本身，就是將創造系統應用到這個元節概念中的一個完美例子。

(foreign language)

（外語）

[Interpreted] When we're talking about metaverse, an independent separate universe that's attracting hundreds of millions of users who are getting attached to this, it requires way more than what we have now, those content creators to continuously create content and keep them attracted.

[解釋] 當我們談論元界，一個獨立的獨立宇宙，吸引著數億用戶，它需要比我們現在擁有的更多的東西，那些內容創建者不斷創造內容並保持他們的吸引力.

And that's the exact reason why we believe the metaverse requires a self-reinforcing, deep content creation ecosystem.

這就是為什麼我們認為元宇宙需要一個自我強化的深度內容創作生態系統的確切原因。

(foreign language)

（外語）

[Interpreted] And Bilibili has some very outstanding and healthy content creation ecosystem.

【解讀】B站有一些非常優秀和健康的內容創作生態系統。

And surrounded that ecosystem, we have already attracted a tight community of over 267 million MAUs.

圍繞這個生態系統，我們已經吸引了超過 2.67 億 MAU 的緊密社區。

And within that 267 million MAUs, a vast majority are the most creative, most energetic young Chinese.

而在這 2.67 億月活躍用戶中，絕大多數是最具創造力、最有活力的中國年輕一代。

So that's why I do think Bilibili is probably one of the best companies to practice or to get into the metaverse business.

所以這就是為什麼我認為 Bilibili 可能是實踐或進入元界業務的最佳公司之一。

(foreign language)

（外語）

[Interpreted] However, I do think metaverse is a concept in a long-time horizon and it's also a future objective.

[解釋] 然而，我確實認為元界是一個長期的概念，也是一個未來的目標。

We've must heard a lot of discussion about metaverse, but I think it's mostly on a capital level or on a media level.

我們一定聽過很多關於元界的討論，但我認為這主要是在資本層面或媒體層面。

I really heard anything on the product level because it does require breakthrough in product and technologies.

我真的聽到了產品層面的任何東西，因為它確實需要產品和技術的突破。

So that's why I do think this is still far ahead, but it's the future.

所以這就是為什麼我認為這仍然遙遙領先，但它是未來。

(foreign language)

（外語）

[Interpreted] I do believe this is a very, very beautiful vision in the future.

[解釋] 我相信這是一個非常非常美好的未來願景。

It brings elevated user experience.

它帶來了提升的用戶體驗。

The themes that we've seen in the movie Ready Player One or in the anime Sword Art Online, this metaverse concept does bring a very beautiful experience to users.

我們在電影《Ready Player One》或動漫《刀劍神域》中看到的主題，這個元界概念確實給用戶帶來了非常美妙的體驗。

(foreign language)

（外語）

[Interpreted] I read a recent report, a media report criticizing metaverse using examples like the movie Ready Player One, however, I disagree.

[解釋] 我閱讀了最近的一份報告，一份媒體報導使用電影《Ready Player One》等例子批評了虛擬世界，但是，我不同意。

I believe technology is tool.

我相信技術就是工具。

It's the person that matters to make this tool to be beneficial to the society or make bad influence on the society.

使這個工具對社會有益或對社會產生不良影響的人很重要。

And metaverse represents a new choice, not a replacement of the existing reality.

而元界代表了一種新的選擇，而不是替代現有的現實。

It's always good to have an additional choice such as the invention of television and the invention of mobile phones.

有額外的選擇總是好的，比如電視的發明和手機的發明。

It provides alternative for you to choose, not to replace the old thing.

它提供替代品供您選擇，而不是取代舊的東西。

And I recently visited the Shanghai [planetarium] (corrected by company after the call).

我最近參觀了上海[天文館]（電話後由公司更正）。

And actually, a lot of the things that in the museum can be achieved in a much greater effect in virtual reality or in the metaverse.

實際上，博物館中的很多東西都可以在虛擬現實或虛擬世界中以更大的效果實現。

Let us imagine all those things that you're seeing in [planetarium] (corrected by company after the call) and in the museum can be spread in the Internet, allowing all the children, all the kids in China to physically see, get a touch of how the sun is looking like, how this saturn is looking like.

讓我們想像一下，你在[天文館]（電話後由公司糾正）和博物館裡看到的所有東西都可以在互聯網上傳播，讓所有的孩子，所有中國的孩子都親眼看到，得到一個觸摸太陽的樣子，土星的樣子。

So I believe it will bring great benefit to the society.

所以我相信它會給社會帶來很大的好處。

It really depends on the people itself.

這真的取決於人本身。

The next question comes from the line of Lei Zhang from Bank of America Merrill Lynch.

下一個問題來自美銀美林的張磊的話。

(foreign language) My question is mainly regarding livestreaming business.

（外語）我的問題主要是關於直播業務。

I notice that we have a good performance in S11 recently.

我注意到我們最近在 S11 的表現不錯。

So looking forward, how should we look at your livestreaming business, especially in content and the monetization strategy?

那麼展望未來，我們應該如何看待您的直播業務，尤其是在內容和貨幣化策略方面？

(foreign language)

（外語）

[Interpreted] Indeed, for this year's S11, on the final game night, we have record high peak concurrent users.

【解讀】確實，今年的S11，在最後的比賽之夜，我們的同時在線人數創下了最高紀錄。

And our platform's DAU also reached record high in our operating history.

而我們平台的DAU也創下了我們運營歷史的新高。

I discussed this with our internal team, and we are predicting that the Bilibili's S11 final game night is probably -- has probably the highest peak concurrent users in China's live broadcasting history -- Internet live broadcasting history.

我和我們內部的團隊討論過這個問題，我們預測B站的S11決賽之夜可能是——可能是中國直播歷史上同時在線人數最高的——互聯網直播歷史。

(foreign language)

（外語）

[Interpreted] And at the same time, I want to emphasize that the S11 is not a one-way content output.

【解讀】同時我想強調一下，S11並不是單向的內容輸出。

Actually, during the S11, we have massive live broadcasting host is doing S game-related live broadcasting.

其實在S11期間，我們有大量的直播主在做S遊戲相關的直播。

We also have tons of content creator creating derivative content associated with S11.

我們還有大量內容創建者創建與 S11 相關的衍生內容。

For those videos alone, we have total video play over 2.8 billion times.

僅這些視頻，我們的視頻總播放量就超過 28 億次。

And all these data points support the argument that Bilibili's Live Broadcasting is a natural extension of our video community, and it is forming a self-reinforcing ecosystem or a positive feedback loop within our community.

所有這些數據點都支持這樣的論點，即B站的直播是我們視頻社區的自然延伸，它正在形成一個自我強化的生態系統或我們社區內的正反饋循環。

(foreign language)

（外語）

[Interpreted] And years ago, investor would ask me why Bilibili would do live broadcasting.

【解讀】幾年前，投資人會問我為什麼Bilibili會做直播。

My answer was live broadcasting is not a content vertical, rather a capability.

我的回答是直播不是內容垂直，而是一種能力。

And for Bilibili, it's an important component of our content ecosystem.

對於 Bilibili 來說，它是我們內容生態系統的重要組成部分。

With or without S11, our live broadcasting has already deeply embedded into our video community.

不管有沒有 S11，我們的直播已經深深融入了我們的視頻社區。

For example, we see tons of knowledge, lifestyle and entertainment-related live broadcasting provided by our content creators, and we believe this has really integrated in our community.

例如，我們看到內容創作者提供了大量與知識、生活方式和娛樂相關的直播，我們相信這已經真正融入了我們的社區。

And live broadcasting on Bilibili is spreading its wings and making multiple times of influence and impact to our content community.

嗶哩嗶哩直播正在展翅高飛，對我們的內容社區產生了多次影響和影響。

(foreign language)

（外語）

[Interpreted] Again that I think Bilibili's Live Broadcasting is actually breaking a lot of people's stereotypes about live broadcasting.

【解讀】再一次，我覺得嗶哩嗶哩的直播其實是在打破很多人對直播的刻板印象。

Well, in the past, when people start thinking about live broadcasting, it is showroom or e-sports.

嗯，在過去，當人們開始考慮直播時，它是展廳或電競。

However, for Bilibili's Live Broadcasting, our content category covers a wide array of verticals.

但是，對於嗶哩嗶哩的直播，我們的內容類別涵蓋了廣泛的垂直領域。

Basically, what content verticals we have on the video platform, we have it on live broadcasting.

基本上，我們在視頻平台上有哪些內容垂直，我們在直播上有。

And most importantly, we are forcing layers of positive feedback loop in terms of content verticals and as well as our content creators.

最重要的是，我們在內容垂直領域以及我們的內容創建者方面強制實施多層積極反饋循環。

For example, our content creator in games, they can also do games-related live broadcasting.

比如我們在遊戲中的內容創作者，他們也可以做遊戲相關的直播。

And we are also helping our content creator to expand their content creation category.

我們也在幫助我們的內容創作者擴展他們的內容創作類別。

For example, there's content -- there's a food content creator who's also very good at playing games.

例如，有內容——有一個美食內容創作者，他也非常擅長玩遊戲。

He's actually ranking the top live broadcasting host in the Genshin Impact content creator.

他實際上是Genshin Impact內容創建者中排名第一的直播主持人。

And most importantly, I do believe that live broadcasting is a very healthy mechanism to help our content creator to make money.

最重要的是，我確實相信直播是一種非常健康的機制，可以幫助我們的內容創作者賺錢。

For example, to charge people from watching videos, it's probably not the best monetization method.

例如，通過觀看視頻向人們收費，這可能不是最好的貨幣化方法。

But if you involve a content creator so much, you would be very willing to watching his live broadcasting, buying his recommended product or just simply tip him to showcase your appreciation.

但是如果你對一個內容創作者有這麼多的參與，你會非常願意看他的直播，購買他推薦的產品，或者只是簡單地給他打賞以表達你的感激之情。

And that's also the exact reason that we believe that live broadcasting is a very important component within Bilibili's community.

這也是我們認為直播是 Bilibili 社區中非常重要的組成部分的確切原因。

And this chemistry that is playing in the community is creating a very benefit -- is a very large benefit to all the participants.

這種在社區中發揮的化學作用正在創造一個非常好的好處——對所有參與者來說都是一個非常大的好處。

(foreign language)

（外語）

[Interpreted] And as we look ahead, we'll continue to implement our content ecosystem-driven business model.

[解釋] 展望未來，我們將繼續實施我們的內容生態系統驅動的商業模式。

We'll continue to integrate live broadcasting with our video business.

我們將繼續將直播與我們的視頻業務相結合。

We'll continue to penetrate the 2 user groups: content creator and live broadcasting host.

我們將繼續滲透到兩個用戶群：內容創作者和直播主。

And also, we do believe that all the video user could potentially become live broadcasting users.

而且，我們確實相信所有視頻用戶都有可能成為直播用戶。

Secondly is that will really to discover and develop Bilibili's unique live broadcasting categories.

其次是真正發現和發展B站獨有的直播品類。

I think one of the reasons that our video platform is so successful is that we have our own unique content category, such as auto to remix and knowledge sector.

我認為我們的視頻平台如此成功的原因之一是我們擁有自己獨特的內容類別，例如自動混音和知識領域。

Those content verticals has Bilibili's unique taste to it.

這些垂直內容具有 Bilibili 的獨特品味。

And so is what we plan for our live broadcasting business, we want to develop all unique content categories that has Bilibili flavor to it.

我們對直播業務的計劃也是如此，我們希望開發所有具有 Bilibili 風格的獨特內容類別。

And that concludes the question-and-answer session.

問答環節到此結束。

I would like to turn the conference back over to management for any additional or closing comments.

我想將會議轉回管理層，以獲取任何其他或結束意見。

Thank you once again for joining us today.

再次感謝您今天加入我們。

If you have any further questions, please contact me, Juliet Yang, Bilibili's Executive IR Director or TPG Investor Relations.

如果您還有任何問題，請聯繫我，Bilibili 執行 IR 總監或 TPG 投資者關係部 Juliet Yang。

Our contact information for IR in both China and the U.S. can be found on today's press release.

我們在中國和美國的 IR 聯繫信息可在今天的新聞稿中找到。

Have a great day.

祝你有美好的一天。

Bye-bye.

再見。