Bilibili Inc (BILI) 2020 Q3 法說會逐字稿

Good day, and welcome to the Bilibili 2020 Third Quarter Earnings Conference Call. Today's conference is being recorded.

美好的一天，歡迎來到 Bilibili 2020 年第三季度財報電話會議。今天的會議正在錄製中。

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

此時，我想將會議轉交給投資者關係高級總監 Juliet Yang。請繼續。

Thank you, operator. Please note the discussion today will contain forward-looking statements relating to the company's future performance and are intended to qualify for the safe harbor from liability as established by the U.S. Private Security Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect Bilibili's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update forward-looking information, except as required by law.

謝謝你，接線員。請注意，今天的討論將包含與公司未來業績相關的前瞻性陳述，旨在符合《美國私人證券訴訟改革法案》規定的免責安全港的條件。此類陳述不是對未來業績的保證，並受某些風險和不確定性、假設和其他因素的影響。其中一些風險超出了公司的控制範圍，可能導致實際結果與今天的新聞稿和本次討論中提到的結果大不相同。關於可能影響 Bilibili 業務和財務業績的風險因素的一般性討論包含在公司向證券交易委員會提交的某些文件中。除法律要求外，公司不承擔任何更新前瞻性信息的義務。

During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2020 third quarter financial results news release issued earlier today.

在今天的電話會議中，管理層還將討論某些非公認會計準則財務指標，僅供比較。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的對賬，請參閱今天早些時候發布的 2020 年第三季度財務業績新聞稿。

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

提醒一下，本次會議正在錄製中。此外，Bilibili 的投資者關係網站 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 on the call from Bilibili's senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer; and Mr. Sam Fan, Chief Financial Officer.

今天應Bilibili高級管理層的電話加入我們的是董事會主席兼首席執行官陳睿先生；副董事長兼首席運營官李嘉玲女士；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 2020 third quarter 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 2020 年第三季度電話會議。我很高興代表陳先生髮表今天的開幕詞。

We see a golden opportunity to expand our reach in today's market. To seize this window, we stepped up our approach to user growth with a focus on further growing our content, expanding our brand awareness and targeted channel acquisition. This was especially fruitful in our third quarter peak season. As a result, our user base hit a record high. In August, our MAUs exceeded 200 million milestone, marking a new monthly record. Total MAUs for the third quarter were up 54% to 197 million, and DAUs were up 42% to 53 million, both on a year-over-year basis.

我們看到了擴大我們在當今市場的影響力的黃金機會。為了抓住這個窗口，我們加強了用戶增長的方法，重點是進一步增加我們的內容、擴大我們的品牌知名度和有針對性的渠道獲取。這在我們的第三季度旺季尤其富有成效。結果，我們的用戶群創歷史新高。 8 月，我們的 MAU 突破 2 億里程碑，創下新的月度記錄。第三季度的總月活躍用戶數同比增長 54% 至 1.97 億，日活躍用戶數同比增長 42% 至 5300 萬。

Mobile users also continued to grow at a faster pace. Mobile MAUs were up 61% year-over-year to 184 million in the third quarter. Our users are highly engaged, spending an average of 81 minutes per day on our platform, making Bilibili one of the stickiest video communities in China.

移動用戶也繼續以更快的速度增長。第三季度移動 MAU 同比增長 61% 至 1.84 億。我們的用戶參與度很高，平均每天在我們的平台上花費 81 分鐘，使 Bilibili 成為中國最具粘性的視頻社區之一。

The quality growth of our users is not only reflected in the high engagement levels, but also in the paying user conversions. MPUs were up 89% year-over-year, reaching 15 million in the third quarter. And our paying ratio improved to 6 point -- sorry, 7.6% from 6.2% in the same period last year. These increase drove our top line expansion. And in the third quarter, revenue reached another record high of RMB 3.2 billion, up 74% year-over-year.

我們用戶的質量增長不僅體現在高參與度上，還體現在付費用戶轉化上。 MPU 同比增長 89%，第三季度達到 1500 萬。我們的支付率提高到 6 個百分點——抱歉，從去年同期的 6.2% 提高到 7.6%。這些增長推動了我們的收入擴張。第三季度，收入再創歷史新高，達到32億元人民幣，同比增長74%。

While we grew our top line, we also improved our gross margin. Gross margin was 23.6% in the third quarter, up from 18.9% in Q3 last year, and we are gaining even more operating leverage.

在我們增加收入的同時，我們也提高了毛利率。第三季度的毛利率為 23.6%，高於去年第三季度的 18.9%，我們正在獲得更多的經營槓桿。

While Bilibili has become a household name among young generations, there are large groups of potential users who are just beginning to learn about us. The Gen Z community acts as our anchor as we begin to cast an even wider net. Today, we are gaining traction with more diverse demographics than ever before. Marketing campaigns, such as our newly introduced slogan, Bilibili - All The Videos You Like, has helped us to define and promote our appeal to mass audiences. During the third quarter, we launched a series of online and offline campaigns to promote our brand proposition to an even broader audience across different demographics. This strategy is working, and we are carrying these efforts into the fourth quarter.

雖然 Bilibili 在年輕一代中已經家喻戶曉，但仍有大量潛在用戶剛剛開始了解我們。當我們開始撒下更大的網時，Z 世代社區充當了我們的錨。今天，我們正在獲得比以往任何時候都更加多樣化的人口統計數據。營銷活動，例如我們新推出的口號 Bilibili - All The Videos You Like，幫助我們定義並提升了我們對大眾觀眾的吸引力。在第三季度，我們推出了一系列線上和線下活動，向不同人群中更廣泛的受眾推廣我們的品牌主張。這一戰略正在奏效，我們正在將這些努力推進到第四季度。

Our industry partnerships are also strengthening our content offerings and brand. In August, we entered into a 5-year business cooperation agreement with Huanxi Media through a strategic equity investment, in which we gain exclusive broadcasting rights to Huanxi's existing and upcoming high-quality movies and TV drama series.

我們的行業合作夥伴關係也在加強我們的內容產品和品牌。 8月，我們通過戰略股權投資與歡喜傳媒簽訂為期5年的業務合作協議，獲得歡喜現有及即將上映的優質影視劇的獨家播放權。

We have also entered into a 3-year exclusive partnership with Riot Games for exclusive live broadcasting rights of League of Legends World Championship. This has significantly enhanced our position and brand in the important e-sports genre, especially during the S10 this year.

我們還與 Riot Games 達成了為期 3 年的獨家合作夥伴關係，以獲得英雄聯盟世界錦標賽的獨家直播權。這顯著提升了我們在重要電子競技領域的地位和品牌，尤其是在今年的 S10 期間。

And in October, we deepened our partnership with Sony by signing a strategic agreement with its subsidiary, Aniplex, to bring more premium anime content and mobile games to our users. These expanding alliances not only enrich our content offering, but also demonstrate that both domestic and international industrial leaders have common recognition for our unique value in China's entertainment market.

10 月，我們與索尼的子公司 Aniplex 簽署戰略協議，深化與索尼的合作，為我們的用戶帶來更多優質動漫內容和手機遊戲。這些不斷擴大的聯盟不僅豐富了我們的內容供應，也表明國內外行業領導者對我們在中國娛樂市場的獨特價值有著共同的認可。

While we are working to build our brand and attract more users, increasing demand for high-quality video content bodes us well for capitalizing on growth prospects. China represents the largest online video population in the world. According to the CNNIC report, by the end of first half of 2020, near 890 million users in China consumed online content in video format. Faster networks and smarter hardware enable more accessible content creation and consumption. Our experience over the past decade has made us a pioneer of video-lization movement. We are committed to capturing this market opportunity by further executing our growth strategy, which we believe will yield considerable return in the long run.

雖然我們正在努力建立我們的品牌並吸引更多用戶，但對高質量視頻內容的需求不斷增加，這對我們利用增長前景來說是個好兆頭。中國是世界上最大的在線視頻人口。根據 CNNIC 報告，截至 2020 年上半年末，中國有近 8.9 億用戶以視頻形式消費在線內容。更快的網絡和更智能的硬件支持更易於訪問的內容創建和消費。我們過去十年的經驗使我們成為視頻化運動的先驅。我們致力於通過進一步執行我們的增長戰略來抓住這個市場機會，我們相信從長遠來看這將產生可觀的回報。

With that overview, I would now like to provide some more color on our content, community and commercialization activities. I will begin with a review of our content. Our PUGV content ecosystem is the cornerstone of our business and the main engine that powers our growth vehicle. For the third quarter, we had approximately 1.7 million content creators uploading 5.6 million videos per month, representing increases of 51% and 79%, respectively, both year-over-year. We continue to cultivate a nourishing soil to allow content creators to grow and flourish. By promoting originality and ingenuity, our algorithm enables the highest quality of original content to quickly gain traction and expand the fan base. In the third quarter, the number of videos that achieved 1 million video views increased 73%, and the number of content creators with over 10,000 followers grew 75%, both year-over-year.

有了這個概述，我現在想為我們的內容、社區和商業化活動提供更多色彩。我將從回顧我們的內容開始。我們的 PUGV 內容生態系統是我們業務的基石，也是推動我們增長工具的主要引擎。第三季度，我們有大約 170 萬內容創作者每月上傳 560 萬個視頻，同比分別增長 51% 和 79%。我們繼續培育肥沃的土壤，讓內容創作者茁壯成長。通過促進原創性和獨創性，我們的算法使最高質量的原創內容能夠迅速獲得關注並擴大粉絲群。第三季度，視頻播放量達到 100 萬的視頻數量同比增長 73%，擁有超過 10,000 名粉絲的內容創作者數量同比增長 75%。

Meanwhile, we continue to help our content creators earn better monetary rewards through our cash incentive program and our newly launched advertising platform, Sparkle. The match-making platform is designed to better connect advertisers and content creators and bring more commercial opportunities to our creators by providing a safe and scalable product for native ads. Each of these components help us maintain and grow this important PUGV ecosystem.

同時，我們繼續通過我們的現金獎勵計劃和我們新推出的廣告平台 Sparkle 幫助我們的內容創作者獲得更好的金錢獎勵。撮合平台旨在通過為原生廣告提供安全且可擴展的產品，更好地連接廣告商和內容創作者，並為我們的創作者帶來更多商業機會。這些組件中的每一個都幫助我們維護和發展這個重要的 PUGV 生態系統。

Our top 5 verticals in terms of video views in the third quarter were lifestyle, game, entertainment, anime and tech and knowledge. Among these, tech and knowledge is emerging as one of the fastest-growing sectors. Learning on Bilibili is also attracting so -- many curious minds are attracted to our platform looking for informative and educational content. In the past 12 months, there were nearly 100 million users across different age groups with knowledge-related videos on Bilibili, making us one of the top learning platforms in China.

我們在第三季度的視頻觀看量排名前 5 位的垂直領域是生活方式、遊戲、娛樂、動漫以及科技和知識。其中，科技和知識正在成為增長最快的行業之一。在 Bilibili 上學習也很有吸引力——許多好奇的人被我們的平台所吸引，尋找信息和教育內容。在過去的 12 個月裡，有近 1 億不同年齡段的用戶在 Bilibili 上觀看了與知識相關的視頻，使我們成為中國頂級的學習平台之一。

While we enhanced our content offerings in our leading verticals, we are actively expanding our content reach in new categories. The automotive sector was one of them. In Q3, video views in this genre grew rapidly 177% year-over-year. This reflects our longevity and staying power with users as they mature. In this case, our core Gen Z users have come to a life-stage for auto consumption. This transition also helps us attract wide demographics and open new advertising opportunities across broader industry groups.

雖然我們在領先的垂直領域增強了我們的內容產品，但我們正在積極擴大我們在新類別中的內容覆蓋範圍。汽車行業就是其中之一。在第三季度，該類型的視頻觀看量同比快速增長 177%。這反映了我們在用戶成熟時的長壽和持久力。在這種情況下，我們的 Z 世代核心用戶已經進入了汽車消費的生命階段。這種轉變還有助於我們吸引廣泛的人口統計數據，並在更廣泛的行業群體中開闢新的廣告機會。

Turning to our OGV. Our investment in IP content is paying off. With our strong hold in this genre, Bilibili-produced Chinese anime not only attracted massive new users, but also became the most effective driver of premium memberships. This is especially true of our self-produced Chinese anime, Carp Reborn, Yuan Long, generating 260 million views in just 3 months since its launch.

轉向我們的OGV。我們對 IP 內容的投資正在獲得回報。憑藉我們在這一類型的強勢掌控，Bilibili 製作的中國動漫不僅吸引了大量新用戶，而且成為高級會員最有效的推動力。尤其是我們自製的國產動漫《鯉魚王元龍》，上線僅3個月就獲得了2.6億的點擊量。

In September, we were excited to welcome the thrilling TV drama Run For Young, Feng Quan Shao Nian De Tian Kong, to our platform, marking the first TV drama to follow our collaboration with Huanxi Media. This show was an immediate hit at the release and trended #1 on Bilibili's most searched list for weeks. This show has generated [380 million] (corrected by company after the call) video views, setting a new record in this category.

9月，激動人心的電視劇《為青春奔跑》《風權少年德天空》登陸我們平台，這是我們與歡喜傳媒合作的第一部電視劇。該節目一經推出便立即大獲成功，並連續數週在 Bilibili 搜索次數最多的榜單上排名第一。該節目產生了[3.8億]（由公司在通話後更正）視頻觀看量，創造了該類別的新紀錄。

We are also reaching new heights for documentary and variety shows department. Our very first self-produced musical variety show, Rap for Youth, (foreign language), received outstanding reviews beyond our typical community, generating approximately 410 million video views and 8.2 million bullet chats. This success will not only enrich our music category, but also attracted and inspired a great number of musicians and music lovers.

我們也在紀錄片和綜藝節目部門達到了新的高度。我們的首個自製音樂綜藝節目《青春說唱》（外語）獲得了超出我們普通社區的出色評價，產生了約 4.1 億次視頻觀看和 820 萬次彈幕。這一成功不僅豐富了我們的音樂品類，也吸引和啟發了眾多音樂家和音樂愛好者。

Looking at documentary, we believe our recent agreement with BBC Studios is a strong endorsement of our documentary quality and will further enhance our content library. Also, building on the success of last year's Gala, we will be aring another smashing New Year's Eve Gala event. We expect this year will bring our community more excitement and joy.

在紀錄片方面，我們相信我們最近與 BBC Studios 達成的協議是對我們紀錄片質量的有力認可，並將進一步增強我們的內容庫。此外，在去年晚會成功的基礎上，我們將舉辦另一場轟動一時的跨年晚會。我們預計今年將給我們的社區帶來更多的興奮和歡樂。

Turning to our community. While our user growth continued to rise, we set a number of new records across our key community metrics. In the third quarter, our daily video views reached 1.3 billion, up 77% year-over-year. Our users generated 5.5 billion monthly interactions through bullet chats, comments, likes and Bilibili Moment posts, up 117% year-over-year. The number of our official members is also on the rise. At the end of third quarter, we had 97 million official members who passed our 100-questions exam, up 56% year-over-year. Retention levels also remain strong, well above 80%.

轉向我們的社區。雖然我們的用戶增長持續上升，但我們在關鍵社區指標中創造了許多新記錄。第三季度，我們的每日視頻觀看量達到 13 億次，同比增長 77%。我們的用戶每月通過彈幕、評論、點贊和 Bilibili Moment 帖子產生 55 億次互動，同比增長 117%。我們的正式會員人數也在增加。截至第三季度末，我們有 9700 萬正式會員通過了 100 道題考試，同比增長 56%。保留水平也保持強勁，遠高於 80%。

With a decade of experience under our belt, we believe our community remains one of our biggest competitive advantages and moats in the evolving online entertainment industry.

憑藉十年的經驗，我們相信我們的社區仍然是我們在不斷發展的在線娛樂行業中最大的競爭優勢和護城河之一。

Turning to our commercialization progress. The growing traffic on our platform fuels each of our business line as well -- as we roll out more premium content and services to meet our users' diverse entertainment needs.

談到我們的商業化進展。隨著我們推出更多優質內容和服務以滿足用戶多樣化的娛樂需求，我們平台上不斷增長的流量也為我們的每個業務線提供了動力。

Our game business. Revenue from our mobile game business were RMB 1.3 billion, up 37% year-over-year, accounting for 40% of our total revenues. Building our massive game lovers base, we continue to expand our game offering in diverse genres as we maintain the commonality of our existing titles. Our new blockbuster game, Princess Connect (foreign language), continued to resonate with our fans and attract new users. It was another strong testament that -- our robust distribution and operating capabilities in the ACG genre. In October, we renewed our exclusive FGO license with Aniplex and celebrated the game's 4th anniversary. Additionally, we launched a few new titles during the third quarter, which included Animistic (foreign language), Zhan Yao Xing and Ash Arms, all of which have been well received by our users.

我們的遊戲業務。手游業務收入為人民幣13億元，同比增長37%，佔總收入的40%。建立我們龐大的遊戲愛好者基礎，我們繼續擴大我們在不同類型的遊戲產品，同時保持我們現有遊戲的共性。我們的新重磅遊戲 Princess Connect（外語）繼續與我們的粉絲產生共鳴並吸引新用戶。這是另一個強有力的證明——我們在 ACG 類型中強大的分銷和運營能力。 10 月，我們與 Aniplex 續簽了獨家 FGO 授權，並慶祝了該遊戲的 4 週年。此外，我們在第三季度推出了幾款新遊戲，其中包括 Animistic（外語）、戰耀星和 Ash Arms，都受到了我們用戶的好評。

And for our game pipeline, we have 10 titles in diverse genres that have acquired approvals and are ready to be released in the coming quarters. Next in queue is Sword Art Onlinee: Integral Factor (foreign language), an exciting MMORPG, planned for launch at the beginning of 2021.

對於我們的遊戲管道，我們有 10 款不同類型的遊戲已獲得批准，並準備在未來幾個季度發布。接下來是刀劍神域：積分因子（外語），一款激動人心的 MMORPG，計劃於 2021 年初推出。

Looking at our jointly-operated games, we continue to work with the leading games developers to bring our users premium titles. Our solid reputation, strong game operation capabilities and high-density gamer demographic have made Bilibili the go-to platform for jointly operating partners. In September, as the main Android partner in China, we began jointly operating the highly anticipated Genshin Impact. The massive success of Genshin and our operation is another feather in our cap. Other near-term joint titles include the plan to distribute NetEase's Harry Potter.

看看我們共同運營的遊戲，我們將繼續與領先的遊戲開發商合作，為我們的用戶帶來優質遊戲。我們良好的聲譽、強大的遊戲運營能力和高密度的遊戲玩家群體使 Bilibili 成為聯合運營合作夥伴的首選平台。 9月，作為中國主要Android合作夥伴，我們開始共同運營萬眾矚目的原神Impact。 Genshin 和我們的運營取得的巨大成功是我們的另一大亮點。其他近期聯合標題包括發行網易的哈利波特的計劃。

Turning to our VAS business. Revenues from VAS increased by 116% year-over-year, reaching RMB 980 million in the third quarter. Our growth was mainly driven by increased contribution from premium memberships, live broadcasting and other value-added services. As our brand name continue to spread, we are attracting business partners and live-broadcasting hosts and adding new and diverse content to our growing library.

轉向我們的增值服務業務。增值服務收入同比增長116%，第三季度達到人民幣9.8億元。我們的增長主要受到高級會員、直播和其他增值服務貢獻增加的推動。隨著我們的品牌名稱繼續傳播，我們正在吸引業務合作夥伴和直播主持人，並為我們不斷增長的圖書館添加新的和多樣化的內容。

Esports is a prime example. Our League of Legends World Championship live broadcasting rights, has secured an important place for Bilibili, including the esports genre. As we showcase our capabilities, more esports hosts and lovers are turning to Bilibili's immersive live broadcasting experience. For the entire S10 championship season, total live-broadcasting page views related to the game increased by over 300% compared with S9 last year.

電子競技就是一個很好的例子。我們的英雄聯盟全球總決賽直播權，為嗶哩嗶哩爭取到了重要的一席之地，包括電競這一流派。隨著我們展示我們的能力，越來越多的電競主播和愛好者開始轉向 Bilibili 身臨其境的直播體驗。整個S10冠軍賽季，與比賽相關的直播總瀏覽量比去年S9增長了300%以上。

We are pleased to see our users' growing willingness to pay for advanced or exclusive access to our OGV content. By the end of the third quarter, we had 12.8 million premium members, up 110% year-over-year. As we roll out more exciting content, we are confident we can continue converting more premium subscribers.

我們很高興看到我們的用戶越來越願意為高級或獨家訪問我們的 OGV 內容付費。截至第三季度末，我們擁有 1280 萬高級會員，同比增長 110%。隨著我們推出更多令人興奮的內容，我們有信心可以繼續轉化更多優質訂閱者。

Finally, our advertising business. Despite challenging macro economic and the environment, we delivered another accelerated growth in our advertising business. Revenues from the segment reached RMB 558 million, up 126% year-over-year. Our efforts to spread our brand name not only attracted wider user group, but also impressed many new business partners. Advertisers across different industries are turning to Bilibili to tap into the coveted young demographic. Our top 5 leading verticals in the third quarter were e-commerce, food and beverage, games, 3C products and automotive.

最後是我們的廣告業務。儘管宏觀經濟和環境充滿挑戰，但我們的廣告業務又實現了加速增長。該板塊收入達到人民幣5.58億元，同比增長126%。我們推廣品牌的努力不僅吸引了更廣泛的用戶群，也給許多新的商業夥伴留下了深刻印象。不同行業的廣告商正在轉向 Bilibili，以利用令人垂涎的年輕人群。我們在第三季度排名前 5 位的領先垂直領域是電子商務、食品和飲料、遊戲、3C 產品和汽車。

In summary, we are on an excellent growth trajectory. With solid execution of our user growth initiatives, we continue to improve our brand equity and reach new heights across key user matrics. The industry's trend toward video-lization is working strongly in our favor as we provide the most unique community experience to both content creators and users.

總而言之，我們正處於良好的增長軌跡上。隨著我們用戶增長計劃的紮實執行，我們將繼續提高我們的品牌資產，並在關鍵用戶矩陣中達到新的高度。行業視頻化趨勢對我們非常有利，因為我們為內容創建者和用戶提供最獨特的社區體驗。

Capitalizing on this momentum, we aim to further grow our brand, enrich our content offerings and unleash the great potential of our expanding online entertainment ecosystem.

利用這一勢頭，我們的目標是進一步發展我們的品牌，豐富我們的內容產品，並釋放我們不斷擴大的在線娛樂生態系統的巨大潛力。

This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the third quarter of 2020.

陳先生的發言到此結束。我現在將簡要概述我們 2020 年第三季度的財務業績。

Our total net revenues increased by 74% year-over-year to RMB 3.2 billion, exceeding the high end of our guidance. With our non-games accounting for 60% of the revenues, we are pleased with the commercialization progress of our non-game offerings and our ability to convert our online traffic into paying users.

我們的總淨收入同比增長 74% 至人民幣 32 億元，超過了我們指引的高端。由於我們的非遊戲收入佔收入的 60%，我們對非遊戲產品的商業化進展以及我們將在線流量轉化為付費用戶的能力感到滿意。

The average number of monthly paying users increased by 89% year-over-year, reaching 15 million in the third quarter. Cost of revenue increased by 63% year-over-year to RMB 2.5 billion. Revenue-sharing cost, a key component of cost of revenues, was RMB 1.2 billion, a 77% increase from same period in 2019. Gross profit increased by 117% year-over-year to RMB 762 million. We are seeing more operating leverage from our diversified revenue streams. With more revenue contribution from our higher-margin business as well as additional income from paying users, our gross profit margin continued to improve, reaching 23.6% in the third quarter. Total operating expenses increased to RMB 1.8 billion, up 138% from the same period of 2019.

月均付費用戶數同比增長 89%，第三季度達到 1500 萬。收入成本同比增長 63% 至 25 億元人民幣。收入分成成本是收入成本的重要組成部分，為人民幣 12 億元，較 2019 年同期增長 77%。毛利潤同比增長 117% 至人民幣 7.62 億元。我們從多元化的收入來源中看到了更多的經營槓桿。隨著我們更高利潤業務的更多收入貢獻以及來自付費用戶的額外收入，我們的毛利率繼續提高，第三季度達到 23.6%。總營業費用增至人民幣 18 億元，較 2019 年同期增長 138%。

Sales and marketing expenses were RMB 1.2 billion, representing a 227% increase year-over-year. The increase was mainly attributable to the increased channel and marketing expenses associated with our app and brand as well as increased expenses for our mobile games and sales and marketing personnel.

銷售及營銷費用為人民幣12億元，同比增長227%。增加的主要原因是與我們的應用程序和品牌相關的渠道和營銷費用增加，以及我們的手機遊戲和銷售和營銷人員的費用增加。

Building our brand appeal among a broader audience is one of the key initiatives in 2020. This strategy is affording us far-reaching market gains that we think have long-term effects. We plan to continue to build on this momentum to further strengthen and expand our virtuous growth cycle.

在更廣泛的受眾中建立我們的品牌吸引力是 2020 年的關鍵舉措之一。這一戰略為我們帶來了深遠的市場收益，我們認為這些收益具有長期影響。我們計劃繼續在這一勢頭的基礎上進一步加強和擴大我們的良性增長周期。

G&A expenses were RMB 253 million, representing a 55% increase year-over-year. The increase was primarily due to increased headcount in general and administrative personnel and increased share-based compensation expenses. R&D expenses were RMB 401 million, representing a 62% increase year-over-year. The increase was primarily due to increased headcount in research and development personnel. Net loss were RMB 1.1 billion for the third quarter of 2020 compared to RMB 406 million in the same period of 2019.

G&A費用為人民幣2.53億元，同比增長55%。增加的主要原因是一般和行政人員的人數增加以及股權激勵費用增加。研發費用4.01億元，同比增長62%。增加的主要原因是研發人員人數增加。 2020年第三季度淨虧損為11億元人民幣，而2019年同期為4.06億元人民幣。

Adjusted net loss, which is a non-GAAP measure that excludes the share-based compensation and amortization expenses related to intangible assets acquired through business acquisitions, was RMB 990 million compared to RMB 343 million in the same period of 2019.

調整後的淨虧損為人民幣 9.9 億元，而 2019 年同期為人民幣 3.43 億元。

Basic and diluted net loss per share were RMB 3.08. Adjusted basic and diluted net loss per share were RMB 2.76. As of September 30, 2020, we had cash and cash equivalents, time deposits as well as short-term investments of RMB 14.1 billion or USD 2.1 billion compared to RMB 8.1 billion as of December 31, 2019.

每股基本及攤薄淨虧損為人民幣3.08元。調整後的每股基本及攤薄淨虧損為人民幣2.76元。截至 2020 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 141 億元人民幣或 21 億美元，而截至 2019 年 12 月 31 日為 81 億元人民幣。

Our monetization capabilities continue to improve as we leverage our growing traffic base of users across an increasingly broad spectrum of demographics. We will also continue to roll out more premium content and services to convert more paying users. We believe that over the longer term, these monetization efforts, high-paying user conversion rates and scale will yield an improved bottom line.

隨著我們在越來越廣泛的人口統計數據中利用不斷增長的用戶流量基礎，我們的貨幣化能力不斷提高。我們還將繼續推出更多優質內容和服務，以轉化更多付費用戶。我們相信，從長遠來看，這些貨幣化努力、高付費用戶轉化率和規模將帶來改善的底線。

With that in mind, we are currently projecting net revenues for the fourth quarter of 2020 to be between RMB 3.6 billion and RMB 3.7 billion.

考慮到這一點，我們目前預計 2020 年第四季度的淨收入將在人民幣 36 億元至人民幣 37 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) Your first question on queue comes from the line of [Alex Yao] (corrected by company after the call) from JPMorgan.

（操作員說明）您關於隊列的第一個問題來自摩根大通的 [Alex Yao]（由公司在通話後更正）。

This is Alex from JPMorgan. I have a question regarding the user growth and the user profile of the newly added users. So you guys have been continuing delivering very strong user growth in the past several quarters. Can you talk about the typical new user profile that you guys have acquired in the recent quarters? And what exactly is the value that you offer to these guys to drive the user growth? Also lastly, what's the user growth outlook into the next 1 to 2 quarters? (foreign language)

這是來自摩根大通的亞歷克斯。我有一個關於用戶增長和新添加用戶的用戶配置文件的問題。因此，你們在過去幾個季度中一直在繼續提供非常強勁的用戶增長。你能談談你們最近幾個季度獲得的典型新用戶資料嗎？您為這些人提供的推動用戶增長的價值到底是什麼？最後，未來 1 到 2 個季度的用戶增長前景如何？ （外語）

(foreign language)

（外語）

[Interpreted] Mr. Chen said the profile of the new users actually hasn't changed much compared to historical data. The average age of our users is about 21 years old, and the average age for the newcomers is about 20 years old. We see a very balanced geographic mix with about 50% of the user coming from third tier city and below. And notably, we've seen that the users above 30 is actually gradually increasing its contribution year-over-year.

【解讀】陳先生表示，新用戶的概況與歷史數據相比，其實並沒有太大變化。我們用戶的平均年齡在21歲左右，新人的平均年齡在20歲左右。我們看到一個非常平衡的地理組合，大約 50% 的用戶來自三線城市及以下城市。值得注意的是，我們看到 30 歲以上的用戶實際上在逐年增加其貢獻。

(foreign language)

（外語）

[Interpreted] We've always been attracting our users from our content. The reason why users come to Bilibili is that they can find what they like, what type of content they like on Bilibili. For example, animation, music, game, digital content, et cetera. So based on the data, we have been experiencing a very fast user growth. On the quality side, we've also maintained a very high quality of growth based on the user retention, their engagement, also the paying conversion rate. We are quite happy and satisfied with our high-quality growth.

[解釋] 我們一直在通過我們的內容吸引用戶。用戶之所以來嗶哩嗶哩，是因為可以在嗶哩嗶哩上找到自己喜歡的，喜歡什麼類型的內容。例如，動畫、音樂、遊戲、數字內容等。因此，根據數據，我們一直在經歷非常快速的用戶增長。在質量方面，基於用戶留存、他們的參與度以及付費轉化率，我們也保持了非常高質量的增長。我們對我們的高質量增長感到非常高興和滿意。

(foreign language)

（外語）

[Interpreted] Because we have a very healthy self-sustaining ecosystem, which is our massive content creators continuously creating high-quality content, we are quite optimistic about the user growth trend as we look into the future. And also, videolization is an inevitable trend that Bilibili, as a pioneer in the video community industry, we are quite confident we'll continue to deliver this high-quality growth.

【解讀】因為我們有一個非常健康的自給自足的生態系統，也就是我們海量的內容創作者不斷創造出優質的內容，所以我們對未來的用戶增長趨勢是相當看好的。而且，視頻化是必然趨勢，B站作為視頻社區行業的先驅，我們有信心繼續實現這種高質量的增長。

(foreign language)

（外語）

[Interpreted] Mid last year, we have set a new user target, which is to reach 180 million for 2020 and 220 million for 2021. As you can see, we have already achieved this year's user target. We are also confident to achieve next year's user target in advance. And we are likely to refresh our new user target at beginning of next year.

【解讀】去年年中，我們制定了新的用戶目標，2020年達到1.8億，2021年達到2.2億。大家可以看到，我們已經完成了今年的用戶目標。我們也有信心提前實現明年的用戶目標。我們很可能會在明年年初更新我們的新用戶目標。

Your next question comes from the line of Yiwen Zhang from Citi.

您的下一個問題來自花旗的張一文。

(foreign language) So I have 2 questions regarding content ecosystem. Historically, BILI has been focused on documentary and drama series and movie. Now increasingly, we see some premium content coming out of, for example, the Rap for Youth variety show and also Run For Young, the drama series, also S10 for the esports content. Can you share your thoughts on premium OGV and nonmedia? And what role does premium OGV plan in our ecosystem?

（外語）所以我有兩個關於內容生態系統的問題。從歷史上看，BILI 一直專注於紀錄片、電視劇和電影。現在，我們越來越多地看到一些優質內容，例如青春說唱綜藝節目、電視劇《青春奔跑》以及電競內容的 S10。您能分享您對優質 OGV 和非媒體的看法嗎？優質 OGV 計劃在我們的生態系統中扮演什麼角色？

And secondly, so if we take a step back and see the broad industry, for sure, video is 100% on PUGC, where the nonmedia, the TV are coming from licensed content. So how do you see the middle media if we expand our user base to a much bigger level? In terms of video, what ratio do you think it would be between PUGV and OGV? And what is the implication for content?

其次，如果我們退後一步，看看整個行業，可以肯定的是，PUGC 上的視頻是 100%，非媒體、電視來自授權內容。那麼，如果我們將用戶群擴大到更大的水平，您如何看待中間媒體？在視頻方面，您認為 PUGV 和 OGV 之間的比例是多少？內容的含義是什麼？

(foreign language)

（外語）

[Interpreted] Before we get into the strategy of our OGV business, I want to reemphasize video as Bilibili's core business, which includes PUGV, OGV and live broadcasting. And the brand upgrade that we've been focusing on this year is proposing all the videos you like, which actually includes short-form video, long-form video and mid-form video, and we'll continue to cultivate and reinforce our content offering in video services based on users' needs, and we'll also continue to invest in our OGV content.

【解讀】在我們談OGV業務戰略之前，我想再次強調視頻是B站的核心業務，包括PUGV、OGV和直播。而今年我們一直在做的品牌升級，就是把大家喜歡的視頻都推薦給大家，其實包括短視頻、長視頻、中視頻，我們會不斷的去培育和強化我們的內容根據用戶需求提供視頻服務，我們還將繼續投資於我們的OGV內容。

(foreign language)

（外語）

[Interpreted] I would also like to emphasize that our PUGV content creator ecosystem remains the core of our business. And from the engagement level and our active content creator and content submission, all these key data continue to show that we have a very strong position in the PUGV ecosystem. And the PUGV component will be Bilibili's unique advantage in running our OGV business. As we look into the future, we will further integrate our OGV content ecosystem with our PUGV content position.

[解釋] 我還要強調，我們的 PUGV 內容創作者生態系統仍然是我們業務的核心。從參與度和我們活躍的內容創建者和內容提交來看，所有這些關鍵數據繼續表明我們在 PUGV 生態系統中擁有非常強大的地位。而 PUGV 組件將是 Bilibili 在運營我們的 OGV 業務方面的獨特優勢。展望未來，我們將進一步整合我們的 OGV 內容生態系統和我們的 PUGV 內容定位。

(foreign language)

（外語）

[Interpreted] For the OGV strategy going forward, we'll continue to focus on self-produced, self-publishing and will be on quality-driven, IP-driven and will also serve our content ecosystem. We hope that Bilibili-produced will be a label for high-quality content. And at the same time, we'll be focusing on improving our ROI and paying conversion.

【解讀】未來OGV戰略，我們將繼續以自產自銷為主，以質量為驅動，以IP為驅動，服務於我們的內容生態。我們希望嗶哩嗶哩出品成為優質內容的標籤。同時，我們將專注於提高投資回報率和支付轉化率。

(foreign language)

（外語）

[Interpreted] Bilibili started to get into the self-produced Chinese anime back in 2017. And in 2018, we started getting to the documentary self-production. In 2019, into variety show self-production. And for this year, we are making a few attempts into the real person TV and movies for the Internet users. And we have already formed a very integrated methodology to get into certain verticals. As for now, Bilibili has already become the go-to platform for animation and documentary. And users already have the perception that Bilibili has the best in those categories.

【解讀】嗶哩嗶哩從2017年就開始涉足中國動漫的自製，2018年開始涉足紀錄片的自製。 2019年，進入綜藝自產。而今年，我們正在為網民做一些真人電視和電影的嘗試。我們已經形成了一種非常綜合的方法來進入某些垂直領域。目前，嗶哩嗶哩已經成為動畫和紀錄片的首選平台。用戶已經感覺到 Bilibili 在這些類別中是最好的。

And for this year, our attempt in the TV, movie and variety shows, for example, Run for Young and Rap for Youth, have generated a very good feedback among our users and received very high ratings across all platforms. And this has been a show mark for our attempt in having new content categories. For those content, the revenue from the premium membership as well as the revenue from sponsorship and advertisement, actually has already exceeded our expectation. We are quite confident to continue to try out more new content offerings in those categories.

而今年，我們在電視、電影和綜藝節目中的嘗試，例如青春奔跑和青春說唱，在我們的用戶中產生了非常好的反饋，在所有平台上都獲得了很高的收視率。這是我們嘗試擁有新內容類別的標誌。對於這些內容，高級會員的收入以及贊助和廣告的收入，實際上已經超出了我們的預期。我們非常有信心繼續在這些類別中嘗試更多新的內容產品。

(foreign language)

（外語）

[Interpreted] The value for OGV for Bilibili, I believe that there are several factors. One is premium memberships, advertising revenue, new user attraction and the add-on value for our PUGV ecosystem as well as IP generation. And in the short term, we think we have already formed a virtuous cycle, where the premium membership revenue and ad revenue have pretty much covered our OGV content cost. Operating cash flow for the first 3 quarters of this year is positive.

【解讀】OGV對於B站的價值，我相信有幾個因素。一是高級會員、廣告收入、新用戶吸引力和我們的 PUGV 生態系統以及 IP 生成的附加價值。而在短期內，我們認為我們已經形成了一個良性循環，高級會員收入和廣告收入幾乎已經覆蓋了我們的OGV內容成本。今年前三季度經營現金流為正。

And as for our membership, we have achieved outstanding results. At end of third quarter, we have 12.8 million premium membership, which grew 110% year-over-year, and the quality of those members are also high. About 80% of them have signed at the annual membership or automatic renewal membership.

至於我們的會員，我們取得了突出的成績。第三季度末，我們擁有 1280 萬高級會員，同比增長 110%，而且這些會員的質量也很高。其中約80%的人已簽約年會或自動續會會員。

As for the sponsorship and advertising revenue associated with our OGV business, grew 230% year-over-year. All of our key projects have become a very valuable advertising outlet source for all advertisers. So in summary, we believe that OGV has a very important strategic role in our business.

至於與我們的 OGV 業務相關的讚助和廣告收入，同比增長 230%。我們所有的重點項目都已成為所有廣告商非常有價值的廣告渠道來源。綜上所述，我們認為 OGV 在我們的業務中具有非常重要的戰略作用。

(foreign language)

（外語）

[Interpreted] The OGV's high-quality content actually serves very well for our user growth. For example, the Carp Reborn, the Chinese anime, and Run for Young, or this latest high-quality OGV content, have been attracted a lot of new user coming onto Bilibili. And once they join Bilibili, the majority of them pay on Bilibili to consume more PUGV content. And actually, the new users that were attracted by those OGV, their retention is quite good.

【解讀】OGV的優質內容其實對我們的用戶增長非常有幫助。比如重生之鯉魚、中國動漫、青春奔跑等最新的優質OGV內容，已經吸引了很多新用戶進入B站。而一旦他們加入 Bilibili，他們中的大多數人都會向 Bilibili 付費以消費更多的 PUGV 內容。而實際上，那些被OGV吸引的新用戶，他們的留存率還是相當不錯的。

(foreign language)

（外語）

[Interpreted] As for the variety shows, Rap for Youth has been a quite successful attempt for Bilibili. Despite music variety show or specifically rap-related variety show have been around the industry and there's a few precedents, but we are still to make a new breakthrough in these verticals. And our PUGV content ecosystem continued to reinforce the effect and influence of this show. A lot of the derivative content were produced by our content creators. The overall video views related to the derivative content have reached a near 300 million, which also helped us to further expand into the music category by attracting a lot of music lovers or musicians to join Bilibili.

【解讀】在綜藝方面，《青春說唱》是B站比較成功的一次嘗試。儘管音樂綜藝或專門說說唱相關的綜藝已經在業界有一些先例，但我們還是要在這些垂直領域做出新的突破。而我們的 PUGV 內容生態系統則不斷強化該節目的效果和影響力。很多衍生內容是由我們的內容創作者製作的。與衍生內容相關的整體視頻觀看量已達到近 3 億，這也幫助我們進一步向音樂品類拓展，吸引了大量的音樂愛好者或音樂人加入 Bilibili。

And also for this show, we also generated quite decent sponsorship revenue and advertising revenue. And because we have an integrated product chain on Bilibili, we continue to extend the IP value by launching new music label waves and launching a series of off-line concerts relating to the show. So on Bilibili, we are able to further extend and enhance the value of the IP.

而且對於這個節目，我們也產生了相當可觀的讚助收入和廣告收入。並且因為我們在 Bilibili 上有一個完整的產品鏈，我們通過推出新的音樂標籤 Wave 和推出一系列與節目相關的線下音樂會來繼續擴展 IP 價值。所以在嗶哩嗶哩上，我們能夠進一步延伸和提升IP的價值。

(foreign language)

（外語）

[Interpreted] To summarize, we believe the value of the IP can be further enlarged on Bilibili's ecosystem, which includes game, anime, TV, movies, merchandise and multiple off-line events. And going forward, we are looking to further integrate our PUGV and OGV content ecosystem.

【解讀】綜上所述，我們認為該IP的價值在嗶哩嗶哩的生態系統中可以進一步放大，包括遊戲、動漫、電視、電影、商品和多個線下活動。展望未來，我們希望進一步整合我們的 PUGV 和 OGV 內容生態系統。

Your next question in queue comes from the line of Binnie Wong from HSBC.

您的下一個問題來自匯豐銀行的 Binnie Wong。

(foreign language) First of all, congrats on an amazing set of results, right, and also a strong outlook. I think the midpoint is ahead by 12%. Wondering if you can comment a bit on the competitive landscape. Very impressive to see your monetization, right, advertising, live streaming all continue triple-digit growth. And if you look at engagement here, it seems to retreat a bit, right? If you look at the time span, right, 3Q is a slight decline, but 3Q usually is the strongest in the past years. And DAU, MAU ratio also come down to 27%. So anything that we should be aware of structurally? And how do we see the competitive landscape among the different entertainment platform evolve? And especially as we see some of your short video and live streaming players are also very aggressive in growing the advertising business, in particular. So how do you see that evolve? I understand that we have a very strong ecosystem here, but I just want to hear a bit more into how you see as these players getting more aggressive, more capital, and then how will you see it? (foreign language)

（外語）首先恭喜取得了一組驚人的成績，對，還有很強的前景。我認為中點領先 12%。想知道您是否可以評論一下競爭格局。令人印象深刻的是，您的貨幣化、廣告、直播都繼續保持三位數的增長。如果你看這裡的訂婚，它似乎有點退縮，對吧？如果你看時間跨度，對，3Q是小幅下降，但3Q通常是過去幾年最強的。而DAU、MAU的比例也降到了27%。那麼我們應該在結構上註意什麼？我們如何看待不同娛樂平台之間的競爭格局演變？特別是當我們看到你們的一些短視頻和直播播放器在發展廣告業務方面也非常積極。那麼您如何看待這種演變？我知道我們在這裡有一個非常強大的生態系統，但我只是想更多地了解您如何看待這些玩家變得更加激進，更多資金，然後您會如何看待它？ （外語）

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] As for the user engagement matrix, we actually see a quite positive metric from the time spent, which is 81 minutes in Q3 compared to 79 minutes in Q2 this year. And overall, community engagement increased to 5.4 billion times versus 5.2 billion in Q2. And also, the matrix from views per user per daily is also improving. So in general, we are still carrying out this high-quality user growth momentum in the third quarter.

[解讀] 至於用戶參與度矩陣，我們實際上從花費的時間中看到了一個相當積極的指標，第三季度為 81 分鐘，而今年第二季度為 79 分鐘。總體而言，社區參與度從第二季度的 52 億次增加到 54 億次。此外，每個用戶每天的瀏覽量矩陣也在改進。所以總的來說，我們在第三季度仍在進行這種高質量的用戶增長勢頭。

As for the competitive landscape, in the video business, the competitive landscape has always been fierce, whether it's competition between A, B, C or D, E, F. Bilibili has been around for a lot of years. We have witnessed many players come and go. And most importantly, we believe the trend of utilization represents a huge market opportunity for the entire Internet services industry. And as a pioneer in this space, Bilibili is well positioned to capture this market opportunity.

至於競爭格局，在視頻業務中，競爭格局一直是激烈的，無論是A、B、C還是D、E、F之間的競爭，嗶哩嗶哩已經存在很多年了。我們目睹了許多球員來來去去。最重要的是，我們相信使用趨勢代表著整個互聯網服務行業的巨大市場機會。而作為這一領域的先驅者，Bilibili 已經做好了抓住這一市場機遇的準備。

(foreign language)

（外語）

[Interpreted] As for the advertising business, we believe the advertising value for a certain platform actually is a reflection of the users' value. So on Bilibili, we have captured the best set of users in terms of time spent, in terms of user engagement as well as the user cohort. So that's been backing up our advertising revenue growth. And at the same time, we continue to improve our advertising efficiencies, launching innovative ad product. That's also helping to reaccelerate our ad revenue. And as our brand perception and brand power continue to increase, Bilibili has now become a must-invest platform across many advertisers.

【解讀】對於廣告業務，我們認為某個平台的廣告價值其實是用戶價值的體現。因此，在 Bilibili 上，我們從所花費的時間、用戶參與度以及用戶群等方面捕獲了最佳用戶群。所以這一直在支持我們的廣告收入增長。同時，我們不斷提高廣告效率，推出創新的廣告產品。這也有助於重新加速我們的廣告收入。隨著我們的品牌認知度和品牌影響力不斷增強，Bilibili 現已成為眾多廣告商必須投資的平台。

Your next question comes from the line of Alex Poon from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) I'll translate my question. So my question is regarding advertising business. We have seen year-over-year acceleration for a couple of quarters already. Can you share with us the drivers behind the strong growth? And what's the outlook for Q4 and 2021?

（外語）我會翻譯我的問題。所以我的問題是關於廣告業務。我們已經看到幾個季度的同比增長。您能否與我們分享強勁增長背後的驅動力？第四季度和 2021 年的前景如何？

(foreign language)

（外語）

[Interpreted] As we've mentioned earlier, there are a lot of fundamental changes behind our advertising revenue. First of all, Bilibili's user continue to deliver a high-quality growth. On Bilibili, there are about half of the young generation in China has been active on Bilibili, which is the golden cohort for brand advertisers. And also, the brand advertisers are able to view their brand perception and influence user buying decision on Bilibili. And we have more and more high-quality content continue to reach mass market audiences, which allows Bilibili to become the must-invest and the go-to platform for advertisers. And we continue to improve our advertising efficiencies as we continue to enhance our data center platform to better support our commercialization efforts and will continue to roll out more innovative ad formats and ad products.

【解讀】正如我們前面提到的，我們的廣告收入背後有很多根本性的變化。首先，嗶哩嗶哩用戶持續實現高質量增長。在嗶哩嗶哩上，大約有一半的中國年輕一代一直活躍在嗶哩嗶哩，這是品牌廣告商的黃金群體。此外，品牌廣告商能夠查看他們的品牌認知度並影響用戶在 Bilibili 上的購買決策。而且我們有越來越多的優質內容持續接觸到大眾市場，這讓 Bilibili 成為了廣告商必須投資和首選的平台。隨著我們繼續增強我們的數據中心平台以更好地支持我們的商業化工作，我們將繼續提高我們的廣告效率，並將繼續推出更多創新的廣告格式和廣告產品。

So despite the challenging macro environment, as more people think it's getting more and more tougher in the advertisement business, Bilibili is able to deliver accelerated advertisement revenue for 5 consecutive quarters.

因此，儘管宏觀環境充滿挑戰，但隨著越來越多的人認為廣告業務越來越難，B站能夠連續5個季度實現廣告收入的加速增長。

(foreign language)

（外語）

[Interpreted] As we look into 2021, we'll continue to improve our overall integrated marketing capability to launch standardized and scalable integrated marketing solutions. And we'll continue to improve our ad efficiency on single user and focusing on improving the ad efficiency for vertical players, continue to improve our service quality for different advertisement verticals. And we'll also continue to launch innovative, scenario-based commercialization methods, which include multi-scenario, multi-screen solutions.

【解讀】展望2021年，我們將繼續提升整體整合營銷能力，推出標準化、可擴展的整合營銷解決方案。我們將繼續提升單用戶廣告效率，重點提升垂直玩家的廣告效率，持續提升不同廣告垂直領域的服務質量。我們還將繼續推出創新的、基於場景的商業化方法，包括多場景、多屏的解決方案。

As for the 2020, we believe our advertising value has been widely recognized by our advertisers. As we look into 2021, we're quite confident to continue to carry out this positive growth momentum.

至於2020年，我們相信我們的廣告價值已經得到了廣告主的廣泛認可。展望 2021 年，我們有信心繼續保持這種積極的增長勢頭。

Your next question comes from the line of Lei Zhang from Bank of America Securities.

您的下一個問題來自美國銀行證券的張磊。

(foreign language) Congrats on the strong results. Two questions. First, on sales and marketing. Can you give us breakdown for sales and marketing in Q3? And what are the trend in next 1 to 2 quarters?

（外語）恭喜取得了優異的成績。兩個問題。首先，關於銷售和營銷。您能給我們提供第三季度的銷售和營銷細分嗎？未來 1 到 2 個季度的趨勢如何？

And secondly, I want to follow up on the competitive landscape. Do you observe the short video platform actually allocate a relatively higher percent on mini radio part? And any update you can share with us?

其次，我想跟進競爭格局。你觀察到短視頻平台實際上在迷你電台部分的分配比例相對較高嗎？您可以與我們分享任何更新嗎？

Okay. Let me take your first question. First of all, we had RMB 14 billion cash reserve. And we also achieved like positive operating cash flow in the first 9 months of 2020. So we have very sufficient cash reserve that will support our investment in the different areas.

好的。讓我回答你的第一個問題。首先，我們有140億元的現金儲備。而且我們在 2020 年的前 9 個月也實現了類似的正運營現金流。所以我們有非常充足的現金儲備來支持我們在不同領域的投資。

As we mentioned before, we pay close attention to our investment in selling and marketing in terms of the, for example, the cost per activation and their conversion and retention. When the targets will drive will keep bringing the investment. As in Q3, everyone knows that it's off season to acquire users. So we targeted to invest in user acquisition through different channels, including the app store, the video app channels and OTT channels. We also invested in brand advertisement to promote our new slogan, Bilibili - All The Videos You Like. And we also attend and organized some off-line ACG-related events in different cities during this summer.

正如我們之前提到的，我們密切關注我們在銷售和營銷方面的投資，例如每次激活的成本及其轉換和保留。當目標將驅動將繼續帶來投資。和 Q3 一樣，大家都知道現在是獲取用戶的淡季。所以我們的目標是通過不同的渠道來投資用戶獲取，包括應用商店、視頻應用渠道和OTT渠道。我們還投資了品牌廣告來宣傳我們的新口號，Bilibili - 所有你喜歡的視頻。並且我們也在這個夏天在不同的城市參加並組織了一些線下ACG相關的活動。

As a result, you will recall that MAU grew like 25 million quarter-over-quarter and also, MAU surpassed 200 million. As mentioned by Carly, we see very good return on the membership conversion and advertising vendors when our users still grow. In Q4, generally it's a tough season for the MAU addition. But we will not spend that much. So in terms of the total selling and marketing and percentage of total revenues will be lower than -- compared with Q3 this year. And we will really focus on the user retention and paying user conversion in Q4.

結果，您會記得，MAU 環比增長了 2500 萬，而且 MAU 超過了 2 億。正如 Carly 所說，當我們的用戶仍在增長時，我們看到會員轉換和廣告供應商的回報非常好。在第 4 季度，對於 MAU 的增加來說，一般來說這是一個艱難的季節。但我們不會花那麼多錢。因此，就總銷售和營銷以及佔總收入的百分比而言，將低於今年第三季度。我們將真正關注第四季度的用戶保留和付費用戶轉化。

(foreign language)

（外語）

[Interpreted] So as for your second question, I wonder, the concept of mid-form video because we don't believe users choose to consume video content based on the length of the video, but rather on the quality of the video. It's very easy to change the length of the video, but it's very difficult to create the high-quality content that users like. So whether it's long form or short form, it's probably scenario-based, but it shouldn't be a format or a product concept.

[解釋]所以關於你的第二個問題，我想知道中間視頻的概念，因為我們不相信用戶選擇消費視頻內容是基於視頻的長度，而是基於視頻的質量。改變視頻的長度很容易，但很難創造出用戶喜歡的高質量內容。所以不管是長形式還是短形式，可能都是基於場景的，但不應該是一種格式或產品概念。

(foreign language)

（外語）

[Interpreted] So as for Bilibili, we offer video length range from a dozen seconds to a few hours, and each type of video has different audiences. And for different content categories, the length also varies. For example, the music categories, majority of the video is less than 10 minutes. And for games and lifestyle, it could up to hours. So we don't think it's the concept of the length. It's actually the concept of the content. And at Bilibili, we are a more comprehensive, general content platform.

【解讀】所以對於嗶哩嗶哩，我們提供的視頻時長從十幾秒到幾個小時不等，每種類型的視頻都有不同的受眾。並且對於不同的內容類別，長度也有所不同。比如音樂類，大部分視頻都在10分鐘以內。對於遊戲和生活方式，它可能長達數小時。所以我們不認為這是長度的概念。這實際上是內容的概念。在 Bilibili，我們是一個更全面、更通用的內容平台。

(foreign language)

（外語）

[Interpreted] So in the past couple of years, we've seen products that's focusing on providing majority short-form videos. And they've experienced quite a decent growth rate. But at the same time, Bilibili also continues to deliver high quality, fast growth. So we believe any product that provides the content that fits users' needs, that caters to users' interest and preferences can win over their time.

[解釋]所以在過去的幾年裡，我們看到了專注於提供大多數短視頻的產品。他們經歷了相當可觀的增長率。但與此同時，B站也繼續提供高質量、快速的增長。因此，我們相信任何提供符合用戶需求的內容、迎合用戶興趣和偏好的產品都可以贏得他們的時間。

(foreign language)

（外語）

[Interpreted] In the past 11 years, Bilibili has always been focused on the content ecosystem-driven business model and to satisfy users' interest and need for high-quality content, and this model has proven successful for us.

【解讀】11年來，B站一直專注於內容生態驅動的商業模式，滿足用戶對優質內容的興趣和需求，這種模式對我們來說是成功的。

(foreign language)

（外語）

[Interpreted] So as a comprehensive video community, Bilibili actually, we believe, represents the future of video product, which we believe will be omni-scenario and multiscreen.

【解讀】作為一個綜合性的視頻社區，嗶哩嗶哩其實我們認為代表了視頻產品的未來，我們認為這將是全場景、多屏。

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

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。

Thank you, once again, for joining us today. If you have any further questions, please contact myself, Juliet Yang, Bilibili's Senior IR 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.

再次感謝您今天加入我們。如果您還有任何問題，請聯繫我本人、嗶哩嗶哩高級投資者關係總監 Juliet Yang 或 TPG 投資者關係部。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。

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

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]