Bilibili Inc (BILI) 2021 Q2 法說會逐字稿

Good day and welcome to the Bilibili 2021 Second Quarter -- Second Financial Quarter Results and Business Update Conference Call. Today's conference is being recorded.

美好的一天，歡迎來到 Bilibili 2021 第二季度——第二財季業績和業務更新電話會議。今天的會議正在錄製中。

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

在這個時候，我想把會議轉給投資者關係執行董事 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 Hong Kong Stock Exchange.

謝謝你，接線員。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 provided are for comparison purpose only. Definition of these measures and the reconciliation table are available in today's news release issued earlier today.

我們提供的非公認會計原則財務指標僅用於比較目的。這些措施的定義和調節表可在今天早些時候發布的今天的新聞稿中找到。

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

提醒一下，本次會議正在錄製中。此外，本次電話會議的投資者介紹和網絡重播將在 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. 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發言。

Thank you, Juliet, and thank you, everyone, for participating in our 2021 second quarter results conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

謝謝朱麗葉，謝謝大家參加我們的 2021 年第二季度業績電話會議。我很高興代表陳先生髮表今天的開幕詞。

In August 2019, we announced our ambition to further grow our user base. Today, 2 years later, we find ourselves on the fast track to executing that strategy, achieving many great milestones along the way.

2019 年 8 月，我們宣布了進一步擴大用戶群的雄心。兩年後的今天，我們發現自己走上了執行該戰略的快車道，並在此過程中取得了許多重要的里程碑。

In the second quarter, we added 14 million MAUs sequentially, bringing our total MAUs to 237 million, up 38% year-over-year. Mobile MAUs also rose by 44% year-over-year, reaching 220 million. And the DAUs reached 63 million, marking a 24% increase year-over-year. Importantly, our users became even more engaged, spending an average of 81 minutes per day on our platform, marking the highest second quarter level in our operating history. As we move into the peak summer season, we are pleased with the increasing momentum we have seen so far, which places us firmly on track to achieve our growth target.

第二季度，我們連續增加了 1400 萬 MAU，使我們的總 MAU 達到 2.37 億，同比增長 38%。移動 MAU 也同比增長 44%，達到 2.2 億。 DAU 達到 6300 萬，同比增長 24%。重要的是，我們的用戶變得更加投入，平均每天在我們的平台上花費 81 分鐘，這是我們運營歷史上第二季度的最高水平。隨著我們進入夏季旺季，我們對迄今為止所看到的增長勢頭感到高興，這使我們堅定地走上了實現增長目標的軌道。

Our robust user growth also translated to strong top line expansion. In the second quarter, our total revenues reached RMB 4.5 billion, up 72% year-on-year, once again beating the high end of our guidance. Driven by improved products and services, MPUs were up 62% year-over-year to 21 million, and our paying ratio improved to 8.8% versus 7.5% in the same period last year.

我們強勁的用戶增長也轉化為強勁的收入擴張。第二季度，我們的總收入達到人民幣 45 億元，同比增長 72%，再次超過了我們的指引高端。在產品和服務改進的推動下，MPU 同比增長 62% 至 2100 萬，我們的支付率從去年同期的 7.5% 提高到 8.8%。

As the go-to destination for young Chinese, our platform has also gained wider recognition among advertisers across different industry verticals. In the second quarter, ad revenue grew by an impressive 201% year-over-year.

作為中國年輕人的首選目的地，我們的平台也獲得了不同垂直行業廣告商的廣泛認可。第二季度，廣告收入同比增長 201%，令人印象深刻。

Celebrating our 12th year anniversary on June 26, we honored the many years we have grown with our users. Over the past 12 years, we have remained true to our original aspirations to create an outstanding community for all of our users and content creators and to bring Chinese original content to users worldwide. With this mission in our hearts, we continue to uphold our public responsibility to our community. We insist on data authenticity, content positivity and investment in Made in China original content.

在 6 月 26 日慶祝我們的 12 週年紀念日，我們向我們與用戶一起成長的多年表示敬意。 12年來，我們不忘初心，為所有用戶和內容創作者打造一個優秀的社區，將中文原創內容帶給全球用戶。怀揣這一使命，我們將繼續履行對社區的公共責任。我們堅持數據真實性、內容正向性和對中國製造原創內容的投入。

In July of this year, we published our first ESG report. Here, we outlined our ESG policies and actions, keeping our commitment to being a responsible public company with a goal of bringing positive social and cultural impact to the world.

今年 7 月，我們發布了第一份 ESG 報告。在這裡，我們概述了我們的 ESG 政策和行動，履行我們作為負責任的上市公司的承諾，目標是為世界帶來積極的社會和文化影響。

Looking ahead, the transformative effects of videolization is creating an era of massive opportunities for us. Graphics and the texts are being reinterpreted into video-format to deliver information in more lively, vivid and powerful ways. As we see it, video-format platforms will be the new gateway for people to connect to the Internet and access the world. And Bilibili is on track to be one of them. The momentum from video trends, along with our solid strategic execution to expand our content, community and commercialization, give us great confidence in our future sustainable growth.

展望未來，視頻化的變革性影響正在為我們創造一個充滿機遇的時代。圖形和文本被重新解釋為視頻格式，以更生動、生動和有力的方式傳遞信息。正如我們所見，視頻格式平台將成為人們連接互聯網和訪問世界的新門戶。 Bilibili 有望成為其中之一。來自視頻趨勢的勢頭，以及我們在擴大內容、社區和商業化方面的穩健戰略執行，讓我們對未來的可持續增長充滿信心。

With that overview, I would now like to provide more granularity on our second quarter operations, beginning with content.

有了這個概述，我現在想提供更多關於我們第二季度運營的詳細信息，從內容開始。

Our PUGV ecosystem continues to thrive, representing 93% of our total video views in the second quarter. Over the past 12 years, we have cultivated our platform as a destination for young people to showcase their talents and realize their career goals as professional content creators. We continue to improve our services to attract content creators, launch more tools and modify on our apps to make content creation easier.

我們的 PUGV 生態系統繼續蓬勃發展，佔第二季度我們總視頻瀏覽量的 93%。在過去的 12 年裡，我們將我們的平台打造為年輕人展示才華和實現職業目標的專業內容創作者的目的地。我們將繼續改進我們的服務以吸引內容創作者，推出更多工具並修改我們的應用程序以使內容創作更容易。

In the second quarter, Bilibili was home to 2.4 million content creators, up 25% year-over-year. And monthly video submissions grew to 8.4 million in the second quarter, up 41% year-over-year. The increase in our metrics are no small feat given last year's high base.

第二季度，B站擁有240萬內容創作者，同比增長25%。第二季度每月視頻提交量增長至 840 萬，同比增長 41%。鑑於去年的高基數，我們指標的增長是不小的壯舉。

We continue to improve our traffic distribution mechanism to let high-quality content creators quickly match with their fans. In the second quarter, the number of content creators with more than 10,000 followers increased by 47% year-over-year. Our live broadcasting platform and the Sparkle advertising platform provide means of our content creators to unlock their commercial value while showcasing their talent.

我們不斷完善流量分配機制，讓優質內容創作者快速匹配粉絲。第二季度，擁有超過 10,000 名粉絲的內容創作者數量同比增長 47%。我們的直播平台和 Sparkle 廣告平台為我們的內容創作者提供了在展示他們的才華的同時釋放他們的商業價值的手段。

By the end of the second quarter, 409,000 content creators had also joined our ongoing cash incentive program. For the second quarter, our top 5 most populated verticals were the lifestyle, entertainment, games, tech and knowledge and anime. We see many new verticals on the rise, such as relationships, home decorations, fitness, beauty and cosmetics. The emerging popularity of these categories reflects the evolving content needs as we expand to wider demographics.

到第二季度末，409,000 名內容創作者也加入了我們正在進行的現金獎勵計劃。在第二季度，我們人口最多的 5 個垂直行業是生活方式、娛樂、遊戲、科技和知識以及動漫。我們看到許多新的垂直領域正在興起，例如人際關係、家居裝飾、健身、美容和化妝品。隨著我們擴展到更廣泛的人群，這些類別的新興流行反映了不斷變化的內容需求。

Being a hub for young minds to discover and explore various interests, we firmly believe the content we provide should have positive impact on people's lives. We actively promote content that's informative, engaging, fulfilling and helps our users to become their better selves. It could be a small pleasure, such as how to bake cookies or engage users in deeper thinking through a glance into the cosmos. In the past 12 months, over 113 million users accessed pan-knowledge content across a variety of subjects on our platform, further solidifying the mindshare among users of Learn on Bilibili.

作為年輕人發現和探索各種興趣的中心，我們堅信我們提供的內容應該對人們的生活產生積極的影響。我們積極推廣內容豐富、引人入勝、充實的內容，並幫助我們的用戶成為更好的自己。這可能是一種小小的樂趣，例如如何烤餅乾或通過一瞥宇宙讓用戶進行更深入的思考。在過去的 12 個月裡，超過 1.13 億用戶在我們的平台上訪問了跨多個主題的泛知識內容，進一步鞏固了 Learn on Bilibili 用戶的思想份額。

Turning to our OGV content. Augmenting our PUGVs and unlocking commercialization potential, our high-quality OGV content continues to attract new users and converting paying users on our platform. In addition, many of our self-produced titles have become valuable IP assets that we can build up as we leverage our network to further our IP's influence.

轉向我們的 OGV 內容。增強我們的 PUGV 並釋放商業化潛力，我們的高質量 OGV 內容繼續吸引新用戶並在我們的平台上轉換付費用戶。此外，我們的許多自行製作的作品已成為寶貴的 IP 資產，我們可以利用我們的網絡來擴大 IP 的影響力。

Representing Chinese culture and a part of China's soft power, Chinese animation has become increasingly popular domestically and internationally. And our investments in this category are paying off.

作為中國文化的代表和中國軟實力的一部分，中國動畫在國內外越來越受歡迎。我們在這一類別的投資正在獲得回報。

A primary example of our evolving IP creation and self-production capabilities is Link Click, Shíguang Dàilirén. Produced by our own anime studio, this Bilibili original IP asset become an immediate hit following its release in April, accumulating over 160 million video views. Partnering with Sony Funimation, Link Click was released in multiple countries and regions where it continues to be highly rated.

我們不斷發展的 IP 創造和自我生產能力的一個主要例子是 Link Click, Shiguang Dàilirén。由我們自己的動漫工作室製作，這部嗶哩嗶哩原創IP資產在4月份發布後立即大受歡迎，累計視頻播放量超過1.6億。與 Sony Funimation 合作，Link Click 在多個國家和地區發布，並繼續獲得高度評價。

Other popular Chinese anime titles have also helped us to attract many new young users and have been well received by overseas anime lovers. These titles further solidify our leading position in the ACG space, including the final chapter of Ling Cage, Ling Long; Legend of Hei, Luo Xiao Hei Zhan Ji; Season 2 of Carp Reborn, Yuan Long; and Heaven Official's Blessing, Tian Guan Ci Fu.

其他熱門的中國動漫作品也幫助我們吸引了許多新的年輕用戶，並受到海外動漫愛好者的好評。這些作品進一步鞏固了我們在 ACG 領域的領先地位，包括《靈籠》的最後一章《靈龍》；黑傳奇，洛小黑戰姬； 《重生之鯉魚》第二季元龍；還有天官賜福，天官賜福。

Our self-produced match-making variety show, 90 Hun Jie Suo, was launched last week. And the music variety show, The Next Banger, Wo De Yin Yue Ni Ting Ma, will be released in August. With these new OGV offerings, we hope to attract more young minds with relevant interests and stimulate even more discussion within our community.

我們自產的相親綜藝《90魂解鎖》上週開播。而音樂綜藝節目《下一個殺手》我的音悅你聽馬將於8月上映。通過這些新的 OGV 產品，我們希望吸引更多具有相關興趣的年輕人，並在我們的社區內激發更多的討論。

Turning to our community. Our community continues to be a vibrant one. Users are incredibly engaged and tightly bonded both to our content and with our platform. Over time, we have become a part of many people's regular daily routines. For the second quarter, average daily video views were up by 48% year-over-year, reaching 1.7 billion. Monthly interactions were also up by 39% year-over-year, with users generating 7.3 billion bullet-chats, comments, likes, Bilibili Moment posts and virtual gifting.

轉向我們的社區。我們的社區仍然是一個充滿活力的社區。用戶對我們的內容和我們的平台有著難以置信的參與和緊密的聯繫。隨著時間的推移，我們已經成為許多人日常生活的一部分。第二季度，日均視頻觀看量同比增長 48%，達到 17 億。每月互動量也同比增長 39%，用戶產生了 73 億條子彈聊天、評論、點贊、Bilibili Moment 帖子和虛擬禮物。

The number of official members on Bilibili are also increasing with high retention rates. By the end of second quarter, 121 million people were official Bilibili members, an increase of 35% from the end of the second quarter last year. And our 12-month retention rate remained around 80%. In fact, more than 50% of our registered users in 2011 still remain active to this day, 10 years later.

B站的正式會員數量也隨著高保留率而增加。截至二季度末，嗶哩嗶哩正式會員達1.21億人，較去年二季度末增長35%。我們的 12 個月保留率保持在 80% 左右。事實上，2011 年超過 50% 的註冊用戶在 10 年後的今天仍然保持活躍。

Over the years, we continue to evolve our community management system to ensure a friendly and welcoming community environment and inspiring positive social interactions. We strongly believe that the community is a place for people to reach consensus, not to create disputes. In addition to our official member mechanism, we continue to reinforce community member patrol and enhance our designated response team to protect the integrity of the community. With these efforts, we hope to create an enjoyable and loving place for all users and creators to share, learn and thrive.

多年來，我們不斷發展我們的社區管理系統，以確保一個友好和熱情的社區環境，並激發積極的社會互動。我們堅信社區是人們達成共識的地方，而不是製造爭議的地方。除了我們的官方會員機制外，我們繼續加強社區成員巡邏，並加強我們的指定響應團隊，以保護社區的完整性。通過這些努力，我們希望為所有用戶和創作者創造一個愉快和充滿愛的地方，讓他們分享、學習和茁壯成長。

Now let's look at our commercialization program. We continue to provide more products and services. As we execute on our commercialization strategy, we are further realizing the deep value of our high-quality users.

現在讓我們看看我們的商業化計劃。我們將繼續提供更多的產品和服務。隨著我們執行商業化戰略，我們正在進一步實現我們優質用戶的深層價值。

Starting with our games. In the second quarter, revenues from mobile games has remained relatively flat year-over-year at RMB 1.2 billion. Going into the second half of the year, our priorities are to expand our mobile game roster domestically and internationally. For our next stage of growth, we are committed to building on our internal development capabilities. We currently have 6 game studios with over 1,000 members working on a dozen projects. Leveraging our game operating experience, rich PUGV and live broadcasting ecosystem, strong distribution power and our deep understanding of users' preferences, we are confident we can bring exceptional internally developed games to our users.

從我們的遊戲開始。第二季度，手機遊戲收入同比保持相對平穩，為 12 億元人民幣。進入下半年，我們的首要任務是在國內和國際上擴大我們的手游陣容。對於我們下一階段的增長，我們致力於建立我們的內部開發能力。我們目前有 6 個遊戲工作室，擁有 1,000 多名成員，致力於十幾個項目。憑藉我們的遊戲運營經驗、豐富的 PUGV 和直播生態系統、強大的發行能力以及我們對用戶偏好的深刻理解，我們有信心為我們的用戶帶來卓越的內部開發遊戲。

We welcomed 3 new titles to our roster in the second quarter as the exclusive distributor in China. Employing user-centric game promotion techniques, such clever memes and PUGV content, players immediately embraced Guardian Tales, Kan Gong Qi Guan Jian, with the game ranking highly on China's iOS top grossing and top download charts for weeks following its release. Our exclusively licensed indie game, Dead Cells, Chong Sheng Xi Bao, was another primary example of Bilibili's distribution power. By the end of July, over 2 million copies had been sold.

作為中國獨家經銷商，我們在第二季度迎來了 3 款新遊戲加入我們的名冊。採用以用戶為中心的遊戲推廣技巧，巧妙的表情包和 PUGV 內容，玩家立即接受了《衛報》看公奇觀劍，該遊戲在發布後的幾週內均在中國 iOS 暢銷榜和下載榜上名列前茅。我們獨家授權的獨立遊戲《死亡細胞》重生戲寶是 Bilibili 發行能力的另一個主要例子。截至 7 月底，已售出超過 200 萬份。

Overseas markets present us with another growth opportunity. In May, we successfully launched RE: Final Gear Zhong Zhuang Zhan Ji in South Korea. Praised for its delicate art design and innovative game play, RE:Final Gear quickly won the hearts of like-minded ACG lovers. For 3 weeks after its release, RE:Final Gear continued to hover on Google Play's top 10 grossing chart in South Korea. This success story demonstrates our established capabilities in game selection and execution in overseas markets. We believe we can build on this success with the other titles in other regions.

海外市場為我們提供了另一個增長機會。 5月，我們在韓國成功推出RE：Final Gear中裝戰記。 RE:Final Gear因其精緻的美術設計和創新的遊戲玩法而備受讚譽，迅速贏得了志同道合的ACG愛好者的心。在發布後的 3 週內，RE:Final Gear 繼續徘徊在 Google Play 在韓國的前 10 名收入排行榜上。這個成功案例展示了我們在海外市場的遊戲選擇和執行能力。我們相信我們可以在其他地區的其他遊戲的成功基礎上再接再厲。

And for our games pipeline, we currently have 11 titles approved for domestic release and a number of ACG titles slated for international release in the coming quarters. During our recent Bilibili game press conference, Your Fantasy World, we introduced 16 brand-new titles, including 10 exclusively licensed games and 6 self-developed projects. Catering to a new generation of gamers, these titles cover a wide array of games, including sandbox, multi-player puzzle-solving, real person interactive RPG, simulation and MOBA. Each title features, unique graphic design and story settings, reflecting Bilibili's understanding of Gen Z+ gamers' taste and preferences.

對於我們的遊戲管道，我們目前有 11 款遊戲獲准在國內發布，還有一些 ACG 遊戲計劃在未來幾個季度在國際上發布。在我們最近的B站遊戲發布會《你的幻想世界》中，我們推出了16款全新遊戲，其中包括10款獨家授權遊戲和6款自研項目。這些遊戲面向新一代遊戲玩家，涵蓋沙盒、多人解謎、真人互動RPG、模擬和MOBA等多種遊戲。每款遊戲的特色、獨特的圖形設計和故事設定，都反映了 Bilibili 對 Z+ 世代遊戲玩家品味和喜好的理解。

Looking at our VAS business. Our VAS business remained strong with revenues reaching RMB 1.6 billion in the second quarter, up 98% year-over-year. Being a natural extension of our video ecosystem, live broadcasting is a vivid way to bring high-quality video content to our users. And for our content creators, it is also an important channel to engage with their followers and realize commercial value from their creations.

看看我們的增值服務業務。我們的增值服務業務保持強勁，第二季度收入達到人民幣 16 億元，同比增長 98%。作為我們視頻生態系統的自然延伸，直播是為我們的用戶帶來高質量視頻內容的生動方式。而對於我們的內容創作者來說，它也是與他們的追隨者互動並從他們的創作中實現商業價值的重要渠道。

For game lovers, we are a one-stop platform for game-related videos, e-sports tournaments and a place to engage with game KOLs. For ACG and entertainment enthusiasts, our content continues to expand with our huge anime library and our unique live broadcasting entertainment, particularly virtual streamer or VUP content. Over 60% of top global VUPs have now joined our Bilibili live broadcasting network, making us the largest VUP community in China.

對於遊戲愛好者來說，我們是遊戲相關視頻、電子競技比賽的一站式平台，也是與遊戲 KOL 互動的地方。對於 ACG 和娛樂愛好者來說，我們的內容隨著我們龐大的動漫庫和獨特的直播娛樂，特別是虛擬流媒體或 VUP 內容而不斷擴展。超過 60% 的全球頂級 VUP 加入了我們的 Bilibili 直播網絡，使我們成為中國最大的 VUP 社區。

Turning to our premium membership business. Our dominant Gen Z+ users continue to show growing propensity to pay for premium content. By the end of the second quarter, the number of premium memberships reached another record high of 17.4 million, an increase of 66% year-over-year.

轉向我們的高級會員業務。我們占主導地位的 Z+ 世代用戶繼續表現出日益增長的付費內容付費傾向。截至第二季度末，高級會員數量再創歷史新高，達到 1740 萬，同比增長 66%。

As for our advertising services, we are pleased with another quarter of explosive growth for our ad business. Revenues grew by 201% year-over-year to RMB 1.05 billion. More and more advertisers have recognized us as the must-invest platform to gain visibility from Gen Z+ demographics. For the second quarter, the top 5 advertising verticals were mobile games, digital and 3C products, skincare and cosmetics, e-commerce and food and beverage.

至於我們的廣告服務，我們對廣告業務又一個季度的爆炸性增長感到高興。收入同比增長201%至人民幣10.5億元。越來越多的廣告商已將我們視為從 Z+ 世代人口統計數據中獲得知名度的必投資平台。第二季度，排名前 5 的廣告垂直行業分別是手機遊戲、數字和 3C 產品、護膚和化妝品、電子商務和食品飲料。

Along with our increasing brand awareness, we continue to improve the efficiency of our ad-matching algorithm and strengthen our ad products, giving us confidence in our ability to secure continuous ad revenue growth.

隨著我們品牌知名度的提高，我們不斷提高廣告匹配算法的效率並加強我們的廣告產品，讓我們對確保廣告收入持續增長的能力充滿信心。

In summary, we are pleased with our business progress so far. We have set the bar high and aim to reach higher. Building on our content ecosystem-driven model, we will continue to grow our vibrant community and enhance our commercialization capabilities. At the same time, we place great importance on our social responsibility with a goal of spreading positivity to the world around us. Whether it be through our Bilibili-sponsored schools, disaster relief efforts or pandemic support, it is essential for us to always lead with integrity and give back to society.

總之，我們對迄今為止的業務進展感到滿意。我們已經設定了很高的標準，並致力於達到更高的目標。基於我們的內容生態系統驅動模型，我們將繼續發展我們充滿活力的社區並增強我們的商業化能力。同時，我們非常重視我們的社會責任，目標是向我們周圍的世界傳播正能量。無論是通過我們 Bilibili 贊助的學校、救災工作還是流行病支持，我們都必須始終以誠信領導並回饋社會。

This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the second quarter of 2021 and outlook for the third quarter.

陳先生的發言到此結束。我現在將簡要概述我們 2021 年第二季度的財務業績和第三季度的展望。

Total net revenues for the second quarter were RMB 4.5 billion, up 72% from the same period of 2020. We continue to see a more balanced revenue mix driven by our diversified commercialization channels. Our total net revenues breakdown by revenue streams was approximately 27% mobile games, 36% VAS, 23% advertising and 14% e-commerce and other business.

第二季度總淨收入為人民幣 45 億元，較 2020 年同期增長 72%。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。我們按收入流分類的總淨收入約為 27% 的手機遊戲、36% 的增值服務、23% 的廣告和 14% 的電子商務和其他業務。

Cost of revenues increased by 74% year-over-year to RMB 3.5 billion. Revenue sharing cost, a key component of cost of revenues, was RMB 1.7 billion, representing a 70% increase from the same period in 2020.

收入成本同比增長 74% 至人民幣 35 億元。收入分成成本是收入成本的重要組成部分，為人民幣 17 億元，較 2020 年同期增長 70%。

Gross profit increased by 64% year-over-year to RMB 989 million, and our gross margin was 22% in the second quarter.

毛利潤同比增長 64% 至人民幣 9.89 億元，第二季度我們的毛利率為 22%。

Total operating expenses was RMB 2.5 billion, up 107% from the same period in 2020.

總營業費用為人民幣25億元，較2020年同期增長107%。

Sales and marketing expenses were RMB 1.4 billion, representing a 107% increase year-over-year. The increase was primarily attributable to increased channel and marketing expenses to promote our app and brand as well as promotional expenses for mobile games and an increase in headcount in sales and marketing personnel.

銷售及營銷費用為人民幣14億元，同比增長107%。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手機遊戲的推廣費用以及銷售和營銷人員人數的增加。

G&A expenses were RMB 436 million, representing a 109% increase year-over-year. The increase was primarily due to increased headcount in general and administrative personnel, increased share-based compensation expenses and higher rental expenses.

G&A費用為人民幣4.36億元，同比增長109%。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 674 million, representing a 104% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel and increased share-based compensation expenses.

研發費用6.74億元，同比增長104%。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 1.1 billion for the second quarter of 2021 compared with RMB 571 million in the same period of 2020. Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses, amortization expenses, income tax related to intangible assets acquired through business acquisition, was RMB 858 million compared with RMB 476 million in the same period of 2020.

2021 年第二季度的淨虧損為人民幣 11 億元，而 2020 年同期為人民幣 5.71 億元。調整後的淨虧損，這是一項非公認會計原則的衡量標準，不包括股權激勵費用、攤銷費用、相關所得稅通過業務收購取得的無形資產為人民幣8.58億元，而2020年同期為人民幣4.76億元。

Basic and diluted net loss per share was RMB 2.91. Adjusted basic and diluted net loss per share was RMB 2.23.

每股基本及攤薄淨虧損為人民幣2.91元。調整後每股基本及攤薄淨虧損為人民幣2.23元。

As of June 30, 2021, we had cash and cash equivalents, time deposits as well as short-term investments of RMB 27.6 billion compared with RMB 12.8 billion as of December 31, 2020. Our sufficient cash reserves gives us more confidence in our ability to execute our growth strategy, which we believe will yield considerable return in the long run.

截至 2021 年 6 月 30 日，我們的現金及現金等價物、定期存款和短期投資為人民幣 276 億元，而截至 2020 年 12 月 31 日為人民幣 128 億元。充足的現金儲備讓我們對自己的能力更有信心執行我們的增長戰略，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 revenue for the third quarter of 2021 to be between RMB 5.1 billion and RMB 5.2 billion.

考慮到這一點，我們目前預計 2021 年第三季度的淨收入將在人民幣 51 億元至人民幣 52 億元之間。

Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.

感謝您的關注。我們現在想打開您的問題的電話。接線員，請繼續。

(Operator Instructions) We have the first question. This is coming from the line of Lei Zhang from Bank of America.

（操作員說明）我們有第一個問題。這是來自美國銀行的張磊的說法。

(foreign language) Congrats on strong set of results. My question is mainly on user growth. Can you give us more color as on the second quarter's user growth, which is typically a low season, but our growth number was pretty good? Then secondly, how should we look at the second half user trend and our long-term user target?

（外語）恭喜取得了不錯的成績。我的問題主要是關於用戶增長。您能否為我們提供更多關於第二季度用戶增長的信息，這通常是一個淡季，但我們的增長數字相當不錯？其次，我們應該如何看待下半年的用戶趨勢和我們的長期用戶目標？

(foreign language)

（外語）

[Interpreted] So the first half performance, we did a pretty good job. I think that's all thanks to our content ecosystem-driven business model. And this model's character is the longer term it develops, we think the more competitive it is because this is a truly healthy business model that's self driven and sustainable.

【解讀】所以上半場的表現，我們做得還不錯。我認為這都歸功於我們以內容生態系統驅動的商業模式。這種模式的特點是它發展得越長期，我們認為它就越有競爭力，因為這是一種真正健康的、自我驅動和可持續的商業模式。

(foreign language)

（外語）

[Interpreted] So I believe many of the participants for today's call is Bilibili users themselves. And I believe you might have the same feeling as I do while using Bilibili that the content on Bilibili is more and more diversified and more high quality. Sometimes, for my personal use on Bilibili, I will be surprised to find out the diversity, the vastness and depth of our content offering. So I believe the business model that we're running is very, very healthy, and we believe this model can bring our long-term, sustainable growth.

【解讀】所以我相信今天電話會議的很多參與者都是嗶哩嗶哩用戶自己。相信大家在使用嗶哩嗶哩的過程中可能會有和我一樣的感受，嗶哩嗶哩的內容越來越多樣化，越來越高品質。有時，出於我個人在 Bilibili 上的使用，我會驚訝地發現我們提供的內容的多樣性、廣度和深度。所以我相信我們正在運行的商業模式非常非常健康，我們相信這種模式可以為我們帶來長期、可持續的增長。

(foreign language)

（外語）

So as for our long-term user guidance, currently we have already experienced half of Q3. So far, what we have observed in Q3, that we see very good progress in terms of user growth for both quality and quantity. And early this year, we have give out a user forecast for this year that our MAU will reach 260 million. So far, we think we should be quite on track to achieve that goal or even surpass that goal.

所以對於我們長期的用戶指導，目前我們已經經歷了 Q3 的一半。到目前為止，我們在第三季度觀察到，我們看到用戶增長在質量和數量方面都取得了非常好的進展。而今年年初，我們已經給出了今年的用戶預測，我們的 MAU 將達到 2.6 億。到目前為止，我們認為我們應該在實現該目標甚至超越該目標的軌道上。

(foreign language)

（外語）

[Interpreted] As for our long-term goal of 400 million MAU by end of 2023, so far, we feel very confident to achieve that goal, well on track.

【解讀】至於我們2023年底4億MAU的長期目標，到目前為止，我們對實現這個目標非常有信心，而且進展順利。

(foreign language)

（外語）

[Interpreted] And one thing I want to emphasize, that Bilibili's user growth, the best of it is quality, that we have maintained very high quality of user growth. From our perspective, we're not only just attracting users to join Bilibili, but they actually really recognize the value of the platform, and they're willing to stay with us for long term. Even though that we have experienced a very fast, healthy user growth in the past, we've noticed that engagement level and the activeness of our users are still growing that in the second quarter, our daily user time spend reached 81 minutes. That is the best result we've seen compared with our previous second quarter time spend.

【解讀】還有一點我要強調的是，B站的用戶增長，最好的就是質量，我們一直保持著非常高的用戶增長質量。從我們的角度來看，我們不僅僅是在吸引用戶加入嗶哩嗶哩，他們實際上是真正認識到這個平台的價值，他們願意長期留在我們身邊。儘管過去我們經歷了非常快速、健康的用戶增長，但我們注意到用戶的參與度和活躍度仍在增長，在第二季度，我們的每日用戶時間花費達到了 81 分鐘。與之前的第二季度時間支出相比，這是我們看到的最好的結果。

(foreign language)

（外語）

[Interpreted] And additionally, we see the long-term engagement level for our user is also improving. Actually, we've seen that the registered user in 2018, '19 and 2020, their DAU-to-MAU engagement level in 2021 is actually improving on a year-on-year basis.

[解釋]此外，我們看到用戶的長期參與度也在提高。實際上，我們已經看到，2018 年、19 年和 2020 年的註冊用戶，他們在 2021 年的 DAU-to-MAU 參與度實際上是在逐年提高的。

(foreign language)

（外語）

[Interpreted] And every quarter, we release our daily VV and our monthly user engagement number, and that year-on-year growth rate is actually faster than our MAU growth rate.

[解讀]而且每個季度，我們都會發布我們的每日 VV 和每月的用戶參與度，這個同比增長率實際上比我們的 MAU 增長率要快。

(foreign language)

（外語）

[Interpreted] So all of those metrics show that we are not only being able to attract users to join our platform, they actually stay with us and become more engaged.

[解釋] 所以所有這些指標都表明，我們不僅能夠吸引用戶加入我們的平台，而且他們實際上與我們在一起並變得更加參與。

Okay.

好的。

(foreign language)

（外語）

We have the next question. This is coming from Alex Poon from Morgan Stanley.

我們有下一個問題。這來自摩根士丹利的 Alex Poon。

(foreign language) I'll translate my question. My question is regarding the advertising business. Congrats on very strong growth of over 200% for 2 quarters. Given that there are recently regulations around data privacy, flash screen ads, education, et cetera, how should we forecast and look at the second half growth? Where will the growth drivers come from?

（外語）我會翻譯我的問題。我的問題是關於廣告業務的。恭喜兩個季度超過 200% 的強勁增長。鑑於最近有關於數據隱私、閃屏廣告、教育等方面的規定，我們應該如何預測和看待下半年的增長？增長動力從何而來？

(foreign language)

（外語）

[Interpreted] So for second quarter, our quarter ad revenue has surpassed CNY 1 billion for the first time and achieving over 200% year-on-year growth. And this is the ninth consecutive quarter that we beat advertisement results.

【解讀】第二季度，我們的季度廣告收入首次突破10億元，同比增長超過200%。這是我們連續第九個季度超過廣告業績。

(foreign language)

（外語）

[Interpreted] As we look into the second half and for the next few years, we've done several things to continue to improve our ad efficiencies and lay solid foundation for our future ad growth.

【解讀】展望下半年和未來幾年，我們做了幾件事來繼續提高我們的廣告效率，為我們未來的廣告增長打下堅實的基礎。

(foreign language)

（外語）

[Interpreted] So first of all, we have continued to explore multiple scenario for our ad products based on our clients' needs. And we hope to help our clients to precisely reach their target audiences multiple times across various scenarios across Bilibili's product ecosystem and quickly build their brand image through just one campaign investment, and we have already achieved that within this quarter.

【解讀】首先，我們根據客戶的需求，不斷探索廣告產品的多種場景。我們希望幫助我們的客戶在整個 Bilibili 產品生態系統的各種場景中多次精確地接觸到他們的目標受眾，並通過一次活動投資快速建立他們的品牌形象，我們已經在本季度實現了這一目標。

(foreign language)

（外語）

[Interpreted] Secondly, we are also actively exploring new ad formats, including ad in a video format as well as connect advertising with content creators' creativity.

【解讀】其次，我們也在積極探索新的廣告形式，包括視頻形式的廣告，以及將廣告與內容創作者的創意聯繫起來。

The regulatory environment you mentioned, we believe that the foundation or the logic behind it is that the regulators hope our consumer will be notified it is advertisement. And what Bilibili has been practicing is, first of all, all of our advertisements will not be a blockage type of advertisement. We hope really to embed and connect and combine content with advertisement, make it more interchangeable. Good content could be a good commercial, and good commercial could be a good content. And from that perspective, our integrated marketing solution as well as our content creators' own creation, their own production towards native ads is a perfect solution towards our problem.

您提到的監管環境，我們認為其基礎或背後的邏輯是監管機構希望我們的消費者能夠被告知這是廣告。而嗶哩嗶哩一直在實踐的是，首先，我們所有的廣告都不會是封堵類型的廣告。我們希望真正將內容與廣告嵌入、連接和結合，使其更具可互換性。好的內容可以是好的廣告，好的廣告也可以是好的內容。從這個角度來看，我們的整合營銷解決方案以及我們的內容創作者自己的創作，他們自己的原生廣告製作是解決我們問題的完美解決方案。

(foreign language)

（外語）

[Interpreted] And secondly, our ad efficiency was also greatly improving this quarter, thanks to our ad tech and argo team. And we're also investing in frontier ad tech-related R&D.

[解讀]其次，本季度我們的廣告效率也有了很大的提高，這要歸功於我們的廣告技術和 argo 團隊。我們還投資於與前沿廣告技術相關的研發。

(foreign language)

（外語）

[Interpreted] And thirdly is that we will be focusing on our leading verticals and provide industry-based as solutions such as game, technology, education, e-commerce and food and beverage, et cetera. And as we expand our user base, we hope to further expand our new ad industry verticals and verticals with sufficient ad budgets, for example, such as automotive and new domestic consumer goods. And all of that has been reflected in our second quarter's performances.

【解讀】三是我們將專注於我們領先的垂直領域，並提供基於行業的解決方案，如游戲、技術、教育、電子商務和食品飲料等。並且隨著我們擴大用戶群，我們希望進一步擴大我們新的廣告行業垂直領域和有足夠廣告預算的垂直領域，例如汽車和新的國內消費品。所有這些都反映在我們第二季度的表現中。

(foreign language)

（外語）

[Interpreted] And most importantly, we have upgraded our organizational structure of our commercialization team. In the second quarter, we have integrated Bilibili commercialization middleware platform consists of commercial traffic management system, ad system and our Sparkle advertisement system. The purpose of doing so is to further optimize and allocate Bilibili's commercial resources and improve our commercialization efficiency.

【解讀】最重要的是，我們升級了商業化團隊的組織架構。第二季度，我們整合了嗶哩嗶哩商業化中間件平台，由商業流量管理系統、廣告系統和我們的Sparkle廣告系統組成。這樣做的目的是為了進一步優化和配置B站的商業資源，提高我們的商業化效率。

(foreign language)

（外語）

[Interpreted] And additionally, we have also regrouped our sales from integrated marketing team and our content creator-related sales team, forming one centralized cell center. The goal is to provide Bilibili featured integrated marketing solutions and help our clients to improve their brand equity and achieve self-reinforcing marketing circulation on Bilibili.

【解讀】此外，我們還對整合營銷團隊和內容創作者相關銷售團隊的銷售進行了重組，形成了一個集中的單元中心。目標是提供嗶哩嗶哩特色整合營銷解決方案，幫助客戶提升品牌資產，實現嗶哩嗶哩營銷循環的自我強化。

(foreign language)

（外語）

[Interpreted] So there's a saying that the platform's value equals the users' value on this platform, and Mr. Chen has repeatedly mentioned the value of the user. Our current average age of our user is around 22.8 years old. And 86% of our users are under age 35, and a majority of them are in first- and second-tier cities. And for this group of cohort, they are the main consumption groups in China, and they represent the highest value of demographics.

【解讀】所以在這個平台有一種說法，平台的價值等於用戶的價值，陳總也多次提到用戶的價值。我們目前用戶的平均年齡約為 22.8 歲。而我們 86% 的用戶年齡在 35 歲以下，其中大部分位於一二線城市。而對於這群人來說，他們是中國的主要消費群體，代表了人口統計的最高價值。

And building on that advantage, we'll continue to reinforce our infrastructure and continue to improve our ad profit. And for the second half of this year and 1 to 3 years ahead, we're still quite confident to maintain a healthy and fast growth for our ad business.

在這一優勢的基礎上，我們將繼續加強我們的基礎設施並繼續提高我們的廣告利潤。而對於今年下半年和未來1-3年，我們仍然有信心保持廣告業務的健康快速增長。

Thank you.

謝謝你。

The next question comes from the line of Alex Yao from JPMorgan.

下一個問題來自摩根大通的 Alex Yao。

(foreign language) So my question is about the regulatory impact on gaming and the live streaming operation given the changing regulatory environment in the space and potentially more policies coming out in the next couple of quarters. How should we think about the impact on our gaming and live streaming operation?

（外語）因此，鑑於該領域不斷變化的監管環境以及未來幾個季度可能出台的更多政策，我的問題是關於監管對遊戲和直播運營的影響。我們應該如何考慮對我們的遊戲和直播運營的影響？

(foreign language)

（外語）

[Interpreted] So actually, for 2021, what we have observed, there's no significant change of the regulatory environment towards games or towards live broadcasting. The speculation and discussion that's all over the Internet is just based on the media. It came from the media level. And as a company ourselves, we have kept a regular dialogue with different government authorities. And from the company's perspective, we actually haven't heard anything new.

[解釋]所以實際上，對於 2021 年，我們觀察到，遊戲或直播的監管環境沒有顯著變化。網絡上的各種猜測和討論都是基於媒體的。它來自媒體層面。作為一家公司，我們與不同的政府部門保持定期對話。從公司的角度來看，我們實際上沒有聽到任何新消息。

And the discussion is generally from the media or the Internet users. And it's just based on their own speculations or imagination, and there's no ground to those discussions. And from our perspective, we think that from a global perspective, the regulation towards Internet content, game or live broadcasting, it will be more and more standardized and rule based. And that hasn't changed.

而討論一般來自媒體或網民。這只是基於他們自己的猜測或想像，這些討論沒有任何根據。而從我們的角度來看，我們認為從全球的角度來看，對互聯網內容、遊戲或直播的監管會越來越規範化和規則化。而這並沒有改變。

(foreign language)

（外語）

[Interpreted] From our perspective, in the past, Bilibili has always responded very actively towards all kinds of regulations from the government. We believe for industry that's experiencing fast growth, certain regulation is actually beneficial for this industry's long-term and healthy growth.

【解讀】在我們看來，在過去，B站對於政府的各種規定都是非常積極的回應。我們認為，對於正在經歷快速增長的行業，某些監管實際上有利於該行業的長期健康發展。

(foreign language)

（外語）

[Interpreted] So we think as the industry's development, we have more influence and impact towards the society, it's a very natural process for the regulation to become more rule based and standardized. And I believe the video industry, it will be a multitrillion RMB worth of industry. And game will very likely become the mainstream format of entertainment. In the past, it probably is an emerging new vertical, and the details of those regulations were not mature. And as you grow bigger, it's just very natural for the regulator to form up a more standardized and rule-based regulatory environment.

【解讀】所以我們認為隨著行業的發展，我們對社會的影響力和影響力越來越大，監管越來越有章可循、規範化是一個很自然的過程。而我相信視頻產業，將會是一個價值數万億人民幣的產業。而遊戲很可能會成為主流的娛樂形式。過去，它可能是一個新興的新垂直領域，那些規定的細節還不成熟。而且隨著規模的擴大，監管機構形成一個更加標準化和基於規則的監管環境是很自然的。

(foreign language)

（外語）

[Interpreted] So we think that the government's regulation towards video content and game content has been very clear. And in general, they do hope this industry will develop and encourage the development of this industry. And they have been very specific on the things that they hope to regulate. One is on the minor protection. Two is the compliance of the content itself. And in the past and up to now, Bilibili has been very clear on those requirements and has followed and implement all the regulatory requirements.

【解讀】所以我們認為政府對視頻內容和遊戲內容的監管已經很明確了。總的來說，他們確實希望這個行業能夠發展並鼓勵這個行業的發展。他們對他們希望監管的事情非常具體。一是對未成年人的保護。二是內容本身的合規性。而在過去和現在，B站對這些要求都非常清楚，並遵循並執行了所有的監管要求。

(foreign language)

（外語）

[Interpreted] So generally, I think that the game industry will definitely move forward and experience better development. And as an Internet company, we'll be fully compliant with the key areas that the government has specifically required. One is on the minor protection and two is on the compliance of the content in itself. My personal view is we're still very optimistic. I believe that this industry will only become better and better under the supervision of the government.

【解讀】所以總的來說，我認為遊戲行業一定會向前發展，會有更好的發展。作為一家互聯網公司，我們將完全符合政府明確要求的關鍵領域。一是關於次要保護，二是關於內容本身的合規性。我個人的看法是我們仍然非常樂觀。我相信這個行業只有在政府的監管下才會越來越好。

(foreign language)

（外語）

[Interpreted] Generally, I think that this industry is quite different from 10 years ago. Probably, 10 years ago, it's still early stage. There's not a very precisely regulated. But 10 years later, this industry has become much more matured. The participants in this industry also gained more experience, over 10 years of experience.

【解讀】總的來說，我覺得這個行業和10年前有很大的不同。可能，10 年前，它還處於早期階段。沒有一個非常精確的規定。但10年後，這個行業變得更加成熟。這個行業的參與者也獲得了更多的經驗，超過10年的經驗。

I think we have already reached a consensus with the industry players and the industry needs to be regulated towards a healthy development path. And from Bilibili's perspective, we have strictly followed that rule. For example, on the minor protections, that the revenue generated from user that's below 18 years old, the game revenue only takes around 1% of our total game revenue. So we have seen implementing restrictions and rules to better protect our minors and follow the regulatory requirement. So I think, overall, industry is growing towards a more healthy and positive track. And I personally feel quite comfortable with the existing environment.

我想我們已經和業內人士達成了共識，需要規範行業走向健康發展的道路。而在嗶哩嗶哩看來，我們已經嚴格遵守了這條規則。例如，在次要保護方面，18 歲以下用戶產生的收入，遊戲收入僅占我們遊戲總收入的 1% 左右。因此，我們已經看到實施限制和規則以更好地保護我們的未成年人並遵守監管要求。所以我認為，總體而言，行業正在朝著更加健康和積極的軌道發展。而且我個人對現有的環境感覺很舒服。

(foreign language)

（外語）

[Interpreted] So to summarize, in the past few months, I personally don't believe there's a vast change of regulatory environment toward games or video. And we believe the existing practice and requirement from the government is very appropriate and scientific. And we believe our peers in this industry also agree with that and already reached the consensus that this industry needs to be moved towards a more healthy and regulated path.

[解釋]所以總結一下，在過去的幾個月裡，我個人認為遊戲或視頻的監管環境不會發生巨大變化。我們認為政府現有的做法和要求是非常恰當和科學的。我們相信這個行業的同行也同意這一點，並且已經達成共識，這個行業需要走向更加健康和規範的道路。

Okay.

好的。

The next question comes from the line of Felix Liu from UBS.

下一個問題來自瑞銀的Felix Liu。

(foreign language) Let me translate myself. So first, congratulations on the strong set of results. My question is on the GP margin. I noticed the GP margin of this quarter showed some weakness Q-on-Q and year-on-year. So may I know the reason? Or any color behind that? And what is the management's GP margin trend for rest of this year and for the longer-term potential?

（外語）讓我自己翻譯。因此，首先，祝賀您取得了強大的成果。我的問題是關於 GP 保證金。我注意到本季度的 GP 利潤率環比和同比都表現出一些疲軟。那我可以知道原因嗎？或者背後有什麼顏色？管理層今年剩餘時間和長期潛力的 GP 利潤率趨勢如何？

Okay. This is Sam. Let me take your question. You're right, the slight decrease of the margin in Q2, actually it's mainly due to the change of the sales mix. In Q2, we saw the contribution of our game revenue actually was decreased as a percentage of the whole revenue. And there were also lower contribution from our cooperation games. So and also for our network campaign revenue, the gross profit margin also declined a little bit because we launched a campaign in Q2 to offer higher revenue sharing ratio. It's like a performance-based incentive, and it's for those new hosts only.

好的。這是山姆。讓我回答你的問題。沒錯，第二季度利潤率略有下降，實際上主要是由於銷售組合的變化。在第二季度，我們看到我們的遊戲收入佔總收入的百分比實際上有所下降。我們合作遊戲的貢獻也較低。因此，對於我們的網絡廣告收入來說，毛利率也略有下降，因為我們在第二季度推出了一項活動以提供更高的收入分成比例。這就像一種基於績效的激勵措施，僅適用於那些新主人。

So actually, if we look at the short-term GP margin trend, we are still in the early stage on the monetization side. So it will be factored over the quarters.

所以實際上，如果我們看短期的毛利率趨勢，我們在貨幣化方面仍處於早期階段。因此，它將在季度中被考慮在內。

But before we get into the details of our long-term margin trends, I would like to emphasize on the strategic thinking on the profitability. Now while we have the opportunity to quickly expand our user base, our priority is always focused on user growth and top line expansion, rather than to limit our growth potential for the sake of the breakeven.

但在我們詳細了解我們的長期利潤率趨勢之前，我想強調對盈利能力的戰略思考。現在，雖然我們有機會快速擴大我們的用戶群，但我們的首要任務始終是關注用戶增長和收入擴張，而不是為了盈虧平衡而限制我們的增長潛力。

When we are thinking about the path to the profitability, actually we are thinking what's the sensible revenue level to achieve a healthy break-even status and whether it's sustainable to keep improving the profitability after the breakeven. So for example, a company with like a RMB 20 billion revenue and the same company with RMB 15 billion revenue, the bigger revenue side is surely more sustainable for long-term development.

當我們在思考盈利之路時，實際上我們在思考什麼是合理的收入水平才能達到健康的盈虧平衡狀態，以及在盈虧平衡後繼續提高盈利能力是否可持續。所以比如說一個收入200億的公司，和同一個收入150億的公司，收入大的一方肯定更具有長期發展的可持續性。

Over the past 12 months, actually we successfully achieved a quality revenue growth with the expansion of our user base. Our MAUs were up 38% year-over-year, and monetization efficiency per MAU was also increasing. Specifically, the nongame revenue per MAU actually increased by 72% year-on-year to around RMB 13.8 per quarter in Q2. We believe there are plenty of upside because we grew our user base and improved our monetization efficiency.

在過去的 12 個月裡，隨著用戶群的擴大，實際上我們成功實現了高質量的收入增長。我們的 MAU 同比增長 38%，每個 MAU 的貨幣化效率也在提高。具體而言，第二季度每季度非遊戲收入實際上同比增長 72% 至人民幣 13.8 元左右。我們相信有很多好處，因為我們擴大了用戶群並提高了貨幣化效率。

And also, on the cost side, our key relatively fixed operating costs, including the content, server and staff cost, decreased from like 34% of the total revenue in 2019 to 28% in Q2 this year. As we grow our top line and improve the efficiency, our revenue mix will also be more diversified, and our segment margin, such as live broadcasting and the online games, as I mentioned, still have room to improve. So that's we want to look at for the long term on gross profit margin trend.

此外，在成本方面，我們的關鍵相對固定運營成本，包括內容、服務器和員工成本，從 2019 年佔總收入的 34% 下降到今年第二季度的 28%。隨著我們的收入增長和效率的提高，我們的收入組合也將更加多元化，我們的細分市場利潤率，如我提到的直播和網絡遊戲，仍有提升的空間。這就是我們要長期關注毛利率趨勢的原因。

We have the next question from Yiwen Zhang from China Renaissance.

我們有來自華興資本的張藝文的下一個問題。

(foreign language) So my question is regarding gaming. So in the first half, our gaming revenue is pretty stable. How should we look here as the second half and also the longer-term gaming revenue growth? Additionally, when we do self-developed game, what the key factors we do have in mind?

（外語）所以我的問題是關於遊戲的。所以上半年，我們的遊戲收入相當穩定。我們應該如何看待下半年以及長期的博彩收入增長？另外，我們在做自研遊戲的時候，考慮的關鍵因素是什麼？

(foreign language)

（外語）

[Interpreted] Indeed, when we look at our game revenue, it has experienced some of the slowdown in the first half of this year. The main reason that we see is because lack of supply for both of our exclusively licensed game and jointly operated game. For the revenue to grow, we need to get more new games. And because of the overall planning issue popped to us in the past 6 months, that there has been some of the delay, and the supply has been slower than expected. And for the same reason, some of our projects have been delayed. And that was the main reason for the slowdown for our game revenue.

[解讀]確實，當我們查看我們的遊戲收入時，它在今年上半年經歷了一些放緩。我們看到的主要原因是我們的獨家授權遊戲和聯營遊戲都缺乏供應。為了收入增長，我們需要獲得更多新遊戲。而且由於過去 6 個月出現了總體規劃問題，因此出現了一些延遲，供應也比預期的要慢。出於同樣的原因，我們的一些項目也被推遲了。這也是我們遊戲收入放緩的主要原因。

(foreign language)

（外語）

[Interpreted] We also see some positive signs as we operate our business. Besides the supply issue, we've seen on the demand side there's many, many positive signs. First of all, on the user. The game-related user who watch game-related live broadcasting and video actually kept growing with our overall MAUs. Even with the undersupply for game titles for many new titles that we released in the first half of this year, including Guardian Tales and Sword Art Online, it's new addition, new downloads and new user has constantly break our single-game record.

[解釋] 在我們經營業務的過程中，我們也看到了一些積極的跡象。除了供應問題，我們在需求方面也看到了很多很多積極的跡象。首先，關於用戶。觀看遊戲相關直播和視頻的遊戲相關用戶實際上隨著我們的整體 MAU 不斷增長。儘管我們在今年上半年發布的許多新遊戲（包括《守護傳說》和《刀劍神域》）供不應求，但它的新增、新下載和新用戶不斷打破我們的單機記錄。

And on the other hand, for the old games, we are seeing its long operation cycle. Many of our games continue to grow in terms of revenue and users. For example, our exclusive licensed game, Azur Lane, and our jointly operated game, Genshin Impact, we're seeing more user joining and its grossing are continuously to grow year-over-year. So generally, we think on Bilibili, the gamers are growing, and their desire and need for high-quality games is also growing.

而另一方面，對於老遊戲，我們也看到了它漫長的運營週期。我們的許多遊戲在收入和用戶方面都在持續增長。例如，我們的獨家授權遊戲 Azur Lane 和我們聯合運營的遊戲 Genshin Impact，我們看到越來越多的用戶加入，並且其收入持續逐年增長。所以總的來說，我們認為在 Bilibili 上，遊戲玩家在增長，他們對高質量遊戲的渴望和需求也在增長。

(foreign language)

（外語）

[Interpreted] So as we see it, we think as long as we solve the supply problem, we should be able to solve the bottleneck that we've been seeing in the past quarters. And the solution towards the supply problem is while we continue to enhance our licensing business, we will start to invest in our self-developed games. And actually, in last year, we have already seen the trend of lack of supply in the market, and we started to invest in our self-developed game business. Currently, we have over 1,000 team members in our self-development team, and there's multiple titles and projects under development. And we'll be expecting to launch our own self-developed games in next year and the year after next year.

[解釋]所以在我們看來，我們認為只要解決供應問題，我們應該能夠解決我們在過去幾個季度看到的瓶頸。而供應問題的解決方案是在我們繼續加強我們的授權業務的同時，我們將開始投資於我們自主開發的遊戲。事實上，去年我們已經看到了市場供不應求的趨勢，我們開始投資自研遊戲業務。目前，我們的自主開發團隊有1000多名團隊成員，並且有多個遊戲和項目正在開發中。我們預計明年和後年會推出我們自己開發的遊戲。

Based on our existing business scale, we think our self-developed game will be our #1 priority. And I believe, in a few years later, our self-developed game should be contributing over half of our game revenue.

基於我們現有的業務規模，我們認為我們的自主開發遊戲將是我們的第一要務。而且我相信，幾年後，我們自主開發的遊戲應該會貢獻我們遊戲收入的一半以上。

(foreign language)

（外語）

[Interpreted] So to summarize, we believe as our users continue to expand, we should have more gamers and more demand for games. And to solve the supply problem, we'll continue to reinforce our licensing game business while investing in self-developed games. And in the past, we might have one engine for game revenue growth, which is the licensing. And in the next few years, we'll be dual-engine: self-development, licensing and joint operations. And we think that should power our game revenue growth.

【解讀】總而言之，我們相信隨著用戶的不斷擴大，我們應該會有更多的遊戲玩家和對遊戲的更多需求。為了解決供應問題，我們將繼續加強我們的授權遊戲業務，同時投資於自主開發的遊戲。而在過去，我們可能有一個遊戲收入增長的引擎，那就是授權。在接下來的幾年裡，我們將成為雙引擎：自主開發、許可和聯合運營。我們認為這應該會推動我們的遊戲收入增長。

Thank you. And that concludes our question-and-answer session for today. I would like to turn the conference back to the management for any additional or closing comments.

謝謝你。今天的問答環節到此結束。我想將會議轉回管理層，以獲取任何其他或結束意見。

Well, thank you again for joining us today. If you have any further questions, please contact me, Juliet Yang, Bilibili's IR Executive Director or TPG Investor Relations. Our contact information for IR in both China and the U.S. can be found on today's press release. Have a great day. Bye-bye.

好吧，再次感謝您今天加入我們。如果您還有任何問題，請聯繫我，Bilibili IR 執行董事或 TPG 投資者關係部 Juliet Yang。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。祝你有美好的一天。再見。