Bilibili Inc (BILI) 2020 Q2 法說會逐字稿

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

美好的一天，歡迎來到 Bilibili 2020 年第二季度收益電話會議。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 Securities 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 this 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。除非法律要求，否則公司不承擔更新此前瞻性信息的任何義務。

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 the reconciliation of GAAP to non-GAAP financial results, please see the 2020 second 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 年第二季度財務業績新聞稿。

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

提醒一下，正在錄製此電話會議。此外，Bilibili 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講話。

Thank you, Juliet, and thank you, everyone, for participating in our 2020 second 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 年第二季度電話會議。我很高興代表陳先生髮表今天的開幕詞。

The second quarter was another strong quarter of growth for Bilibili. Owing to our increasingly diverse content and wider awareness of our brand, we are reaching a much broader audience. For the second quarter, MAUs were 172 million, up 55%, and DAUs were up 52% to 51 million, both on a year-over-year basis. Mobile MAUs continued to be our fastest grower, reaching 153 million in the period, up 59% compared to the same period in 2019.

第二季度是 Bilibili 又一個強勁增長的季度。由於我們日益多樣化的內容和更廣泛的品牌知名度，我們正在接觸更廣泛的受眾。第二季度，MAU 為 1.72 億，同比增長 55%，DAU 同比增長 52% 至 5100 萬。移動 MAU 繼續成為我們增長最快的增長者，在此期間達到 1.53 億，與 2019 年同期相比增長 59%。

Along with the expanded user base, user engagement continued to be strong. In the second quarter, our users spent on average of 79 minutes per day on our Bilibili app, making us one of the most popular platforms among our peers. As we move into our peak summer season, with solid execution of our initiatives, we are looking forward to further building on our user growth momentum.

隨著用戶群的擴大，用戶參與度繼續保持強勁。在第二季度，我們的用戶平均每天在我們的 Bilibili 應用上花費 79 分鐘，使我們成為同行中最受歡迎的平台之一。隨著我們進入夏季旺季，隨著我們舉措的紮實執行，我們期待進一步鞏固我們的用戶增長勢頭。

We continue to roll out more premium content and services, strengthen our monetization capabilities and we are increasingly converting traffic to paying users. Our MPUs were up 105% year-over-year, reaching 12.9 million in the second quarter, and our paying ratio improved to 7.5% compared to 5.7% from the same period last year. These increases fueled our top line growth and we, once again, reached record-high revenues of RMB 2.6 billion, beating the high end of our guidance. Our gross margin expanded to 23% from 16% in the second quarter of last year as we continue to realize more operating leverage.

我們繼續推出更多優質內容和服務，加強我們的貨幣化能力，並且我們越來越多地將流量轉化為付費用戶。我們的 MPU 同比增長 105%，第二季度達到 1290 萬，我們的支付率從去年同期的 5.7% 提高到 7.5%。這些增長推動了我們的收入增長，我們的收入再次達到創紀錄的 26 億元人民幣，超過了我們指引的高端。隨著我們繼續實現更多的經營槓桿，我們的毛利率從去年第二季度的 16% 擴大到 23%。

We remain committed to our user growth-focused strategy. After 11 years of cultivation, we believe our content pool is deep and diverse enough to accommodate a much larger user base, and our community is friendly and robust enough to retain those newcomers. Hence, we have made more proactive user growth plans. Our primary areas of focus are on creating additional brand awareness and targeted channel acquisition.

我們仍然致力於以用戶增長為中心的戰略。經過 11 年的耕耘，我們相信我們的內容池足夠深厚和多樣化，足以容納更大的用戶群，我們的社區足夠友好和強大，足以留住這些新人。因此，我們制定了更積極的用戶增長計劃。我們的主要關注領域是建立額外的品牌知名度和有針對性的渠道獲取。

In the second quarter, we launched a series of campaigns aimed at spreading the Bilibili brand name among broader audience, in tandem with expanding our content appeal to a mass market. During our 11th-year anniversary, we introduced a new slogan, Bilibili - All The Videos You Like, helping to define our brand proposition and appeal to a wider base. With this vision in mind, we launched a branding campaign series that started with our blockbuster New Year's Eve gala in the first quarter, followed by the Hou Lang, Ru Hai, Xi Xiang Feng trilogy videos, which all have been widely successful, and we are seeing a clear uptick in brand perception and brand awareness across different demographics. This strategy is working well for us, and we are determined to carry on as we move into the summer peak season.

在第二季度，我們發起了一系列活動，旨在在更廣泛的受眾中傳播 Bilibili 品牌名稱，同時擴大我們對大眾市場的內容吸引力。在我們成立 11 週年之際，我們推出了一個新口號 Bilibili - All The Videos You Like，幫助定義我們的品牌主張並吸引更廣泛的群體。懷著這樣的願景，我們推出了一系列品牌宣傳活動，從第一季度的大片跨年晚會開始，隨後是《後浪》、《如海》、《西向風》三部曲視頻，都取得了廣泛的成功。看到不同人群的品牌認知度和品牌知名度明顯上升。這個策略對我們很有效，我們決心在進入夏季旺季時繼續前進。

Looking ahead, a number of positive industry trends are working in our favor. The adoption of a faster network and smarter hardware is making content creation easier and more accessible to everyone. Particularly, the video industry is emerging as the biggest beneficiary. Video is rapidly becoming the most interactive and influential method to convey information. Building on a decade of experience and leadership in the video community, we are well positioned to capture the growth opportunity.

展望未來，一些積極的行業趨勢對我們有利。採用更快的網絡和更智能的硬件使每個人都更容易和更容易地訪問內容。尤其是視頻行業正在成為最大的受益者。視頻正迅速成為最具互動性和影響力的信息傳遞方式。憑藉在視頻社區十年的經驗和領導力，我們已做好把握增長機會的準備。

With that overview, I would like to walk through the latest updates of our content, community, commercialization and strategic growth plans.

有了這個概述，我想了解我們的內容、社區、商業化和戰略增長計劃的最新更新。

First, our content. Our PUGV ecosystem remains the cornerstone of our business. For the past decade, we have carefully cultivated our PUGV community and risen as the clear industry leader. Our effective traffic distribution mechanism and friendly community environment make Bilibili an increasingly attractive platform for content creators. In addition to easy-to-use tools that make the content creation process simpler and more accessible, we launched our new ad platform to bring more commercial opportunities to our content creators. For the second quarter, we had approximately 1.9 million content creators uploading 6 million videos per month, representing increases of 123% and 148%, respectively, both year-over-year.

首先，我們的內容。我們的 PUGV 生態系統仍然是我們業務的基石。在過去的十年裡，我們精心培育了我們的 PUGV 社區，並成為了當之無愧的行業領導者。我們有效的流量分配機制和友好的社區環境使B站成為越來越吸引內容創作者的平台。除了使內容創建過程更簡單、更易於使用的易於使用的工具外，我們還推出了新的廣告平台，為我們的內容創建者帶來更多商業機會。第二季度，我們有大約 190 萬內容創作者每月上傳 600 萬個視頻，同比分別增長 123% 和 148%。

For the second quarter, our most heavily trafficked verticals were lifestyle, game, entertainment, animation and tech and knowledge. With rampant trends in video content, newcomers and key opinion leaders from other platforms are turning to Bilibili. In the first half of 2020, the number of content creators who submitted their first video creation trial grew by 139% year-over-year. These creative minds open Bilibili up to expanded content categories. For instance, we officially launched a Knowledge Sector to encourage content creators to share their insights such as business stories, how-to skills and professional experiences. With our effective operational campaigns and welcoming community atmosphere, Knowledge has quickly become the fastest-growing sector and we have seen excellent traction.

在第二季度，我們流量最大的垂直領域是生活方式、遊戲、娛樂、動畫以及科技和知識。隨著視頻內容的猖獗趨勢，來自其他平台的新人和關鍵意見領袖正在轉向 Bilibili。 2020 年上半年，提交首個視頻創作試用的內容創作者數量同比增長 139%。這些創造性思維使 Bilibili 可以擴展內容類別。例如，我們正式推出了知識部門，以鼓勵內容創作者分享他們的見解，例如商業故事、操作技能和專業經驗。憑藉我們有效的運營活動和熱情的社區氛圍，知識已迅速成為增長最快的行業，我們看到了極好的牽引力。

Turning to our OGV. We remain as the dominant leader in the animation field with one of China's largest anime libraries. Since beginning of this year, there were 3 new Chinese animes joined our 100 million video views club, including White Cat Legend (foreign language), and our self-produced The Daily Life of the Immortal King (foreign language) and Carp Reborn (foreign language). Additionally, we plan to roll out more Bilibili-produced Chinese animes, including Ling Cage (foreign language), A Mortal's Journey (foreign language) and The Legend of Tang (foreign language). We believe these new series will attract even more Chinese anime lovers to our platform in this summer.

轉向我們的OGV。我們仍然是動漫領域的主導者，擁有中國最大的動漫圖書館之一。今年以來，新增《白貓傳奇》（外語）、《仙王的日常》（外語）、《鯉魚重生》（外語）等3部新的國產動漫加入我們的億級視頻俱樂部。語）。此外，我們計劃推出更多由嗶哩嗶哩製作的中國動漫，包括《靈籠》（外語）、《凡人的旅程》（外語）和《大唐傳奇》（外語）。我們相信這些新系列將在今年夏天吸引更多中國動漫愛好者加入我們的平台。

As a supplement to our vast content library, our expanded variety shows and documentaries continued to resonate with fans and provide good adverting avenues to our business partners. In August, we were excited to introduce our very first self-produced musical variety show Rap for Youth (foreign language), sponsored by Alibaba's Juhuasuan. We hope this rap-themed talent show will help further expand our content offerings while inspiring our content creators and young generations alike.

作為對我們龐大的內容庫的補充，我們擴展的綜藝節目和紀錄片繼續引起粉絲的共鳴，並為我們的業務合作夥伴提供良好的廣告渠道。 8 月，我們很高興地推出了由阿里巴巴聚划算贊助的首個自製音樂綜藝節目《青春說唱》（外語）。我們希望這個以說唱為主題的選秀節目將有助於進一步擴展我們的內容產品，同時激勵我們的內容創作者和年輕一代。

In the documentary department, we are pleased to have received wide recognition not only from our users but also professional institutions. Two of our Bilibili-produced documentaries were nominated by Bai Yu Lan for the Best Documentary Award, including And Yet the Books (foreign language) and Police Stories (foreign language). The Hidden Kingdoms of China, a documentary that we coproduced with National Geographic, was nominated as the Best Limited Series - Long Form documentary by Jackson Wild Media Award.

在紀錄片部門，我們很高興不僅得到了用戶的廣泛認可，也得到了專業機構的廣泛認可。我們由 Bilibili 出品的兩部紀錄片獲得了白玉蘭的最佳紀錄片獎提名，包括《還有書》（外語）和《警察故事》（外語）。我們與國家地理聯合製作的紀錄片《神州三國》被傑克遜野生媒體獎提名為最佳有限系列 - 長篇紀錄片。

Turning to our community. Our community size and engagement have been accelerating rapidly. Our platform is more robust than ever, and we have seen record highs across all of our primary engagement metrics. In the second quarter our daily video views reached 1.2 billion, up 97% year-over-year. And our users generated nearly 5.2 billion monthly interactions through bullet chats, comments, likes and Bilibili moment posts, nearly 3x the amount from the same period in 2019. Our official membership program is on a similar growth track. By the end of the second quarter, we had 89 million official members who passed our 100-question exam, up 65% year-over-year. Retention for this group remains well above 80%, demonstrating the loyalty of our users.

轉向我們的社區。我們的社區規模和參與度一直在迅速增加。我們的平台比以往任何時候都更加強大，我們的所有主要參與度指標都創下歷史新高。第二季度，我們的每日視頻觀看量達到 12 億次，同比增長 97%。我們的用戶每月通過子彈聊天、評論、點贊和 Bilibili 時刻帖子產生近 52 億次互動，幾乎是 2019 年同期的 3 倍。我們的官方會員計劃也在類似的增長軌道上。截至第二季度末，我們有 8900 萬正式會員通過了 100 道題考試，同比增長 65%。該群體的保留率仍遠高於 80%，這表明了我們用戶的忠誠度。

Turning to our commercialization progress, I'll first review the status of our game business. Revenues from our mobile games business were up 36% year-over-year to RMB 1.2 billion, accounting for 48% of our total revenues. Building on our massive and expanding gamer community, our distribution power in the ACG sector is becoming even stronger. In the second quarter, we were excited to add the new blockbuster title Princess Connect! (foreign language) to our game portfolio. This exclusively licensed Japanese RPG was an instant hit after its release in April and topped China's iOS download and grossing charts multiple times. Our legacy title, Fate/Grand Order, or FGO, continues to hold a considerable draw for its stable fan base. At the end of June, we were excited to celebrate Azur Lane's 3-year anniversary with a major content update and accompanying off-line activities. The long life cycles of these games continue to be a strong testimony to our ability to operate and sustain high quality games.

談到我們的商業化進展，我先回顧一下我們遊戲業務的現狀。我們的手游業務收入同比增長 36% 至 12 億元人民幣，占我們總收入的 48%。基於我們龐大且不斷擴大的遊戲玩家社區，我們在 ACG 領域的分銷能力變得更加強大。在第二季度，我們很高興添加了新的大片公主連接！ （外語）到我們的遊戲組合。這款獨家授權的日本 RPG 遊戲在 4 月發布後一炮而紅，並多次登上中國 iOS 下載和暢銷榜榜首。我們的傳統遊戲 Fate/Grand Order 或 FGO 因其穩定的粉絲群而繼續吸引著可觀的吸引力。 6 月底，我們很高興通過重大內容更新和伴隨的線下活動來慶祝碧藍航線 3 週年。這些遊戲的長生命週期繼續有力地證明了我們運營和維持高質量遊戲的能力。

Looking at our game pipeline. Currently, we have 11 games that have acquired approvals and are scheduled to be released in the coming months. These include Magia Record (foreign language), a highly-anticipated ACG title adapted by a popular Japanese anime; and Sword Art Online (foreign language), an exciting MMORPG. Additionally, while strengthening our ACG game operation, we continue to expand offerings in high-quality games. At the end of July, we hosted our first ever game release event, Enter Your Fantasy World, where we introduced 11 exciting titles across different genres. [These included an exciting simulation game, Dark Boom (foreign language); (foreign language) Incarnation:] (corrected by company after the call) Huo Zhong, a highly anticipated title adapted from our self-owned Chinese anime IP; and several high-quality ACG titles, (foreign language) and (foreign language). In August, we are delighted to announce we are going to bring Chinese audience the mobile version of Fall Guys (foreign language), an exciting Battle Royale game. As we solidify our game-related content offerings and welcome more game lovers to our platform, Bilibili has become the go-to place for joint operating partners. In the second half of the year, we will continue to work with leading game developers to bring our users premium games such as Mihoyo's Genshin and the NetEase's Harry Potter.

查看我們的遊戲管道。目前，我們有 11 款遊戲已獲得批准，併計劃在未來幾個月內發布。其中包括Magia Record（外語），由日本流行動漫改編的備受期待的ACG標題；和刀劍神域（外語），一個令人興奮的MMORPG。此外，在加強我們的 ACG 遊戲運營的同時，我們繼續擴大優質遊戲的產品範圍。 7 月底，我們舉辦了有史以來的第一次遊戲發布活動，進入你的幻想世界，我們推出了 11 款不同類型的激動人心的遊戲。 [其中包括令人興奮的模擬遊戲Dark Boom（外語）； （外文）化身：]（公司來電後更正）《霍仲》，由我們自有的中國動漫IP改編而成，萬眾期待；以及幾款優質的ACG標題，（外語）和（外語）。 8 月，我們很高興地宣布，我們將為中國觀眾帶來令人興奮的大逃殺遊戲 Fall Guys（外語）的移動版。隨著我們鞏固遊戲相關內容產品並歡迎更多遊戲愛好者加入我們的平台，B站已成為聯合運營合作夥伴的首選之地。下半年，我們將繼續與領先的遊戲開發商合作，為我們的用戶帶來Mihoyo的Genshin和網易的Harry Potter等優質遊戲。

Turning to our VAS business. Revenues from VAS increased by 153% year-over-year reaching RMB 825 million in the second quarter. Our growth was mainly driven by increased contribution from premium memberships, live broadcasting and other value-added services. We continued to enrich our live-broadcasting content and increase the penetration among our growing traffic. As our platform becomes more influential in China's online entertainment industry, we have seen more hosts and talent agencies turning to Bilibili to grow their fan base and maximize their commercial potential.

轉向我們的增值服務業務。增值服務收入在第二季度達到 8.25 億元人民幣，同比增長 153%。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。我們不斷豐富直播內容，增加在不斷增長的流量中的滲透率。隨著我們的平台在中國在線娛樂行業的影響力越來越大，我們看到越來越多的主持人和經紀公司轉向 Bilibili 以擴大他們的粉絲群並最大限度地發揮他們的商業潛力。

On the e-sports front, our 3-year strategic partnership with Riot Games will significantly enhance our position in this area. We will join forces with Riot Games and the local government to host diversified online and off-line activities to promote world-renowned League of Legends World Championship events while bringing more e-sports lovers to Bilibili.

在電子競技方面，我們與 Riot Games 的 3 年戰略合作夥伴關係將顯著提升我們在該領域的地位。我們將與 Riot Games 和當地政府聯手，舉辦多元化的線上線下活動，推廣世界知名的英雄聯盟世界總決賽賽事，同時為 Bilibili 帶來更多的電競愛好者。

Our premium memberships, which offer additional exclusive or advanced content to paying users, continued to flourish in the second quarter. By the end of June, we had 10.5 million premium members, up 100% year-over-year. These members represent the golden cohort of our most loyal users who are also the most primed for future cross-selling opportunities. Notably, our comic business is also on the rise. Within 2 years, Bilibili Comic has grown from scratch to top 3 comic platforms in China with over 1 million paid subscribers. As a natural extension from our core ACG content offering, we see great synergy between our main app and Bilibili Comic with significant room to grow.

我們為付費用戶提供額外獨家或高級內容的高級會員在第二季度繼續蓬勃發展。截至 6 月底，我們擁有 1050 萬高級會員，同比增長 100%。這些成員代表了我們最忠實用戶的黃金群體，他們也最準備好迎接未來的交叉銷售機會。值得注意的是，我們的漫畫業務也在增長。短短兩年時間，嗶哩嗶哩漫畫從無到有成長為中國漫畫平台前三名，付費用戶超過100萬。作為我們核心 ACG 內容產品的自然延伸，我們看到我們的主應用程序和 Bilibili Comic 之間具有巨大的協同作用，具有很大的增長空間。

As for our advertising business, our growing user base and increased brand awareness make Bilibili a must go-to platform for advertisers. Despite the tough macroeconomic environment, we grew our advertising business to RMB 349 million, up 108% year-over-year and continued to broaden our customer base. The leading industry verticals in the period were games, e-commerce, 3C products, food and beverage and education.

至於我們的廣告業務，我們不斷增長的用戶群和不斷提高的品牌知名度使 Bilibili 成為廣告商的必備平台。儘管宏觀經濟環境嚴峻，我們的廣告業務仍增長至人民幣 3.49 億元，同比增長 108%，並繼續擴大我們的客戶群。期內領先的垂直行業是遊戲、電子商務、3C產品、餐飲和教育。

In summary, we had another strong quarter of growth and we are well poised to continue on this trajectory. Building on the positive momentum in the first half of this year, we plan to make additional investments in branding and channels in the coming quarters to further drive user growth and raise brand awareness. We believe these investments will boost our self-fulfilling growth cycle and yield considerable return in the long run. As we reach new heights, our focus will remain on the quality of growth and we will continue to closely monitor the ROI of our marketing expenses. We are confident that our effective strategic initiatives will further fuel our user growth and support our top line expansion as we continue to build value for our company, investors and growing community of users.

總而言之，我們有另一個強勁的季度增長，我們已準備好繼續沿著這條軌跡前進。在今年上半年的積極勢頭的基礎上，我們計劃在未來幾個季度對品牌和渠道進行額外投資，以進一步推動用戶增長並提高品牌知名度。我們相信，這些投資將促進我們自我實現的增長周期，並在長期內產生可觀的回報。隨著我們達到新的高度，我們將繼續關注增長質量，我們將繼續密切監控營銷費用的投資回報率。我們相信，我們有效的戰略舉措將進一步推動我們的用戶增長並支持我們的收入擴張，因為我們將繼續為我們的公司、投資者和不斷增長的用戶社區創造價值。

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

陳先生的發言到此結束。我現在將簡要概述我們 2020 年第二季度的財務業績。

Our total net revenues increased by 70% year-over-year to RMB 2.6 billion, exceeding the high end of our guidance. With our games accounting for just under half of our total revenues, we are pleased with the commercialization progress of our nongame offerings and our ability to convert our online traffic into paying users. The average number of monthly paying users increased by 105% year-over-year, reaching 12.9 million in the second quarter. Cost of revenues increased by 57% year-over-year to RMB 2 billion. Revenue-sharing cost, a key component of cost of revenues, was RMB 1 billion, a 79% increase from the same period in 2019.

我們的總淨收入同比增長 70% 至人民幣 26 億元，超過了我們指引的高端。由於我們的遊戲占我們總收入的不到一半，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。月平均付費用戶數同比增長 105%，第二季度達到 1290 萬。收入成本同比增長 57% 至 20 億元人民幣。收入分成成本是收入成本的重要組成部分，為 10 億元人民幣，較 2019 年同期增長 79%。

Gross profit increased by 140% year-over year to RMB 604 million. We are also starting to see operating leverage from our diversified revenue streams. With more revenue contribution from our higher-margin businesses as well as additional income from paying users, our gross profit margin continued to improve, reaching 23% in the second quarter.

毛利同比增長140%至人民幣6.04億元。我們也開始從多元化的收入來源中看到經營槓桿。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，在第二季度達到 23%。

Total operating expenses increased to RMB 1.2 billion, up 103% from the same period in 2019. Sales and marketing expenses were RMB 675 million, representing a 181% increase year-over-year. The increase was primarily attributable to the increased channel and marketing expenses associated with Bilibili's app and brand as well as expenses for the company's mobile games and sales and marketing personnel. G&A expenses were RMB 208 million, representing a 48% increase year-over-year. The increase was primarily due to increased head count in G&A personnel and increased share-based compensation expenses. R&D expenses were RMB 331 million, representing a 53% increase year-over-year. The increase was primarily due to increased head count in research and development personnel and increased share-based compensation expenses.

總營業費用增至人民幣12億元，較2019年同期增長103%。銷售及營銷費用人民幣6.75億元，同比增長181%。增加的主要原因是與嗶哩嗶哩的應用和品牌相關的渠道和營銷費用增加，以及公司手游和銷售和營銷人員的費用增加。 G&A費用為人民幣2.08億元，同比增長48%。這一增長主要是由於 G&A 人員人數增加和股權激勵費用增加所致。研發費用3.31億元，同比增長53%。這一增長主要是由於研發人員人數增加和股權激勵費用增加所致。

Net loss was RMB 571 million for the second quarter of 2020 compared to RMB 315 million in the same period of 2019. Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses and amortization expense related to intangible assets acquired through business acquisitions, was RMB 476 million compared to RMB 256 million in the same period of 2019.

2020 年第二季度的淨虧損為人民幣 5.71 億元，而 2019 年同期為人民幣 3.15 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，不包括與收購的無形資產相關的股權補償費用和攤銷費用通過業務收購，為 4.76 億元人民幣，而 2019 年同期為 2.56 億元人民幣。

Basic and diluted net loss per share were RMB 1.63. Adjusted basic and diluted net loss per share were RMB 1.35.

每股基本及攤薄淨虧損為人民幣1.63元。調整後每股基本及攤薄淨虧損為人民幣1.35元。

As of June 30, 2020, we had cash and cash equivalents, time deposits, as well as short-term investments of RMB 15.6 billion or USD 2.2 billion compared to RMB 8.1 billion as of December 31, 2019. For the third quarter of 2020, we are currently projecting net revenues to be between RMB 3.05 billion and RMB 3.10 billion.

截至 2020 年 6 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 156 億元人民幣或 22 億美元，而截至 2019 年 12 月 31 日為 81 億元人民幣。 2020 年第三季度，我們目前預計淨收入在人民幣 30.5 億元至人民幣 31.0 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 in queue comes from the line of Alex Poon from Morgan Stanley.

（操作員說明）您排隊的第一個問題來自摩根士丹利的 Alex Poon。

(foreign language) My first question is regarding the user growth. First half, the user growth is very strong. May I know -- can you share with us the quality and retention and the user profile of the new user growth in first half? And about the second half growth and also next year, what is the key focuses of your strategy of user growth? How are you going to balance the user retention and maintain the fast user growth in second half of next year?

（外語）我的第一個問題是關於用戶增長的。上半年，用戶增長非常強勁。請問——能否分享一下上半年新用戶增長的質量和留存率以及用戶概況？關於下半年和明年的增長，你的用戶增長戰略的重點是什麼？明年下半年如何平衡用戶留存和用戶快速增長？

(foreign language)

（外語）

[Interpreted] I'll translate for Mr. Chen. Last year, we have reinforced and reaffirmed user growth will be our key strategic focus, and we have been carrying out that strategy efficiently going through the first half of this year and have made very positive progress. As for the new user profile you asked, there's no significant change of the new user profile. We still see a lot of young generations that are coming in. The average age of our new user is about 20 years old. However, we would like to emphasize, during the user growth process, we are more focused on the quality over quantity. And the quality of our users can be supported by the daily time spend, the daily time spend of 79 minutes per day. And our user engagement were up to 5.2 billion on a monthly basis, and our daily video views reached 1.2 billion. So all of these numbers supported our users are not only growing very fast, their quality are very, very high.

【翻譯】我給陳先生翻譯。去年，我們強調並重申用戶增長將是我們的重點戰略重點，今年上半年我們一直在有效地執行該戰略，並取得了非常積極的進展。至於您詢問的新用戶配置文件，新用戶配置文件沒有重大變化。我們仍然看到很多年輕一代進入。我們新用戶的平均年齡約為 20 歲。但是，我們要強調的是，在用戶增長的過程中，我們更注重的是質量而不是數量。而我們用戶的質量可以通過每天花費的時間來支撐，每天花費的時間為每天 79 分鐘。我們的用戶每月參與度高達 52 億，我們的每日視頻觀看量達到 12 億。因此，我們的用戶支持的所有這些數字不僅增長非常快，而且他們的質量非常非常高。

(foreign language)

（外語）

[Interpreted] And notably, we've noticed that the new user who come in during the first half of 2020 and also paid for our services within the same period, the ratio has significantly increased compared to the same period last year. And also, the new users who came on our platform during 2017, '18 and '19 who also stayed and paid for the next few years, their paying ratio is also increasing. So once again, this set of numbers is a strong testimony of the quality of our new user growth.

【解讀】值得注意的是，我們注意到，2020年上半年新加入的用戶同時也為我們的服務付費，這一比例與去年同期相比有顯著提升。而且，2017年、18年和19年來到我們平台的新用戶也在接下來的幾年裡留下來付費，他們的付費比例也在增加。所以再一次，這組數據有力地證明了我們新用戶增長的質量。

(foreign language)

（外語）

[Interpreted] So here, we also wanted to emphasize the methodology of our user growth. The reason why we are very confident in the user growth trajectory is based on the concept that we have been really emphasizing that we use our content to attract user and use our community to retain users. And as you may notice, in the first half of this year, we've done some significant progress to allow our content to reach much broader audiences. And this type of user growth cannot be achieved by purely channel acquisition or user acquisition. If a user comes to our platform simply through the channel acquisition, we cannot retain them if there's no good content. And the key strategy is to allow our content to grow to a much broader category, and this opens up to new -- for us, to new demographics.

【解讀】所以在這裡，我們也想強調一下我們用戶增長的方法論。我們之所以對用戶增長軌跡非常有信心，是基於我們一直非常強調的理念，就是用我們的內容來吸引用戶，用我們的社區來留住用戶。您可能會注意到，在今年上半年，我們取得了一些重大進展，使我們的內容能夠接觸到更廣泛的受眾。而這種類型的用戶增長，是單純靠渠道獲取或者用戶獲取都無法實現的。如果用戶只是通過渠道獲取來到我們的平台，如果沒有好的內容，我們就無法留住他們。關鍵策略是讓我們的內容髮展到更廣泛的類別，這為我們開闢了新的——對我們來說，新的人口統計數據。

(foreign language)

（外語）

[Interpreted] And Bilibili is a community with high engagement level and high retention level. Although our users increased significantly, our overall community maintains the same intensity and continues to be very sticky with high retention rate.

【解讀】而嗶哩嗶哩是一個參與度高、留存度高的社區。儘管我們的用戶顯著增加，但我們的整個社區保持了相同的強度，並繼續保持很高的粘性和高保留率。

(foreign language)

（外語）

[Interpreted] So I'll take you to the schedule of our user growth plan. So I will let you know, during Q1, the pandemic period, people have more time in their hands. So that gives us a very good window to invest in user growth. And the second quarter, as people are going back to the work and return to school, it came to a more stabilized period that we'll be focusing on raising our retention and converting those users to paying users. And notably, we've also made very good progress to raise our brand awareness in the second quarter and achieve pretty good results. And in the Q3, it's a traditionally strong peak season for us, so that we plan to make additional investment in both brands as well as channel acquisition.

【解讀】那我帶大家看看我們的用戶增長計劃的時間表。所以我會讓你知道，在第一季度，大流行期間，人們有更多的時間在他們手中。因此，這為我們提供了一個非常好的窗口來投資於用戶增長。第二季度，隨著人們重返工作崗位並重返學校，進入了一個更加穩定的時期，我們將專注於提高保留率並將這些用戶轉化為付費用戶。值得注意的是，我們在第二季度提高品牌知名度方面也取得了很好的進展，取得了不錯的成績。而在第三季度，這對我們來說是一個傳統的旺季，因此我們計劃在品牌和渠道收購方面進行額外投資。

(foreign language)

（外語）

[Interpreted] I would also update you with our brand -- branding campaigns. In the second quarter, starting from May, we have made a very successful marketing campaign trilogy profits with Hou Lang, Ru Hai and Xi Xiang Feng, and we believe this series of campaigns as a complete marketing event, which we consider to be the most successful branding campaign among Chinese Internet companies during the second quarter.

[解釋] 我還會向您介紹我們的品牌——品牌宣傳活動。第二季度，從5月開始，我們與後浪、如海、西向風取得了非常成功的營銷活動三部曲盈利，我們認為這一系列活動是一個完整的營銷活動，我們認為這是最完整的營銷活動。第二季度中國互聯網公司的品牌推廣活動取得了成功。

(foreign language)

（外語）

[Interpreted] This proves our ability not only to do amazing events among the young generation, but we also have the ability to touch much wider, broader audiences.

[解讀]這證明了我們不僅有能力在年輕一代中做驚人的事情，而且我們也有能力接觸更廣泛、更廣泛的受眾。

(foreign language)

（外語）

[Interpreted] And the reason why we wanted to emphasize on branding campaign is based on our business model. We use content to attract user and community to retain user. As our content continues to evolve to reach broader audiences, one important step, too, is to allow more people to know that Bilibili have so much content to offer, which are in line with our new brand slogan, Bilibili - All The Videos You Like.

[解釋] 而我們之所以要強調品牌活動，是基於我們的商業模式。我們使用內容來吸引用戶和社區來留住用戶。隨著我們的內容不斷發展以覆蓋更廣泛的受眾，重要的一步也是讓更多人知道 Bilibili 有如此多的內容可以提供，這與我們的新品牌口號 Bilibili - All The Videos You Like .

(foreign language)

（外語）

[Interpreted] As for our Q3 user outlook, we believe we'll reach historical highs during this quarter. And this summer is a little bit special because in July, a majority of those students are still in school, and August is a full month of summer vacation. And September will be the period when students are returning to school. So in August, we believe we are able to achieve a pretty high MAU target. And on a quarterly, monthly average basis, we believe we can reach a historical high.

[解讀]至於我們的第三季度用戶展望，我們相信我們將在本季度達到歷史高位。而這個暑假有點特別，因為7月份大部分學生還在上學，而8月份又是一整月的暑假。而九月將是學生返校的時期。所以在 8 月，我們相信我們能夠實現相當高的 MAU 目標。並且按季度、月平均計算，我們相信我們可以達到歷史新高。

(foreign language)

（外語）

[Interpreted] So on a single month basis, we believe we can achieve over 200 million MAU target during Q3, on a single month basis.

[解釋] 因此，單月計算，我們相信我們可以在第三季度實現單月超過 2 億的 MAU 目標。

(foreign language)

（外語）

[Interpreted] Carly would like to supplement a few points. During our brand upgrade campaign this year, our overall brand exposure has achieved over 5 billion times. And the brand recognition level among -- just among the age bracket of between 17 to 35 has raised to 60%. And in the second half, our main focus will be to convert people from recognizing Bilibili brand to turning to Bilibili users. And during the second half, the marketing campaign, we'll surround our key activity around the key time slots such as the summer vacation and returning to school as well as the League of Legends World Championship and our New Year's Eve Gala and many work-life scenario among young generations and to create new content, new brand campaign and further drive our user growth.

【解讀】卡莉想補充幾點。在我們今年的品牌升級活動中，我們的整體品牌曝光量已超過 50 億次。而在 17 到 35 歲年齡段的品牌認知度已經提高到 60%。而在下半年，我們的主要工作重點是讓人們從認可Bilibili品牌轉變為轉向Bilibili用戶。而在下半年的營銷活動中，我們將圍繞暑假、返校等關鍵時間段以及英雄聯盟全球總決賽和我們的跨年晚會等關鍵時間段進行重點活動。年輕一代的生活場景，創造新的內容，新的品牌活動，進一步推動我們的用戶增長。

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

我們的下一個問題來自美銀美林的張磊。

(foreign language) Congrats on the strong results. My question's actually regarding your game business, which is quite solid in the second quarter. Wonder if you could give us here more color on the performance of Princess Connect!? Specifically, what's your expectation on the longevity for this game? And secondly, can you give us some updates on your game pipeline? Any game launch we can expect, specifically, your expectation about the mobile version of Fall Guys?

（外語）恭喜取得了優異的成績。我的問題實際上是關於你的遊戲業務，它在第二季度相當穩固。想知道您是否可以在這裡給我們更多關於公主連接的表現！？具體來說，你對這款遊戲的壽命有什麼期望？其次，您能否向我們介紹一下您的遊戲流程的最新情況？我們可以期待任何遊戲發布，特別是您對 Fall Guys 移動版的期望？

(foreign language)

（外語）

[Interpreted] Regarding Princess Connect! Re: Dive, it's like we expect this game will be having a very long life cycle. And we expect this game to last quite a long period. And for this game, in many aspects, it broke the historical record. In terms of preregistered number, we have over 6.5 million people preregistered, and the newly added user for this game also achieved a record high number. And the success of this game proves 2 points. One is that the ACG game has become the main game of young generations, a preference over game genres. And second is, over the years, our ability to operate and sustain our ACG titles have improved significantly, and we're quite confident to continue with this success.

[解釋]關於公主連接！ Re: Dive，就像我們預計這款遊戲會有一個很長的生命週期一樣。我們預計這場比賽將持續相當長的一段時間。而對於這款遊戲來說，在很多方面都打破了歷史記錄。在預註冊人數方面，我們的預註冊人數超過了650萬人，這款遊戲的新增用戶也創下了歷史新高。而這場比賽的成功證明了2分。一是ACG遊戲已經成為年輕一代的主打遊戲，重於遊戲類型。其次，多年來，我們運營和維持 ACG 遊戲的能力已顯著提高，我們對繼續取得成功充滿信心。

(foreign language)

（外語）

[Interpreted] And for games like Princess Connect!, with such a large user base and within the 4-month period of our operating history, it has been very smooth in terms of operations and technical operations. So this, once again, supports our testimony that Bilibili is able to operate this genre's game quite well. As for the long life cycle of this game, we expect it could be something like FGO and to last couple of years.

【解讀】而像公主連線這樣的遊戲，擁有如此龐大的用戶群，在我們運營歷史的4個月內，無論是運營還是技術運營都非常順利。因此，這再次支持了我們的證詞，即 Bilibili 能夠很好地運營該類型的遊戲。至於這款遊戲的長生命週期，我們預計它可能會像 FGO 那樣持續幾年。

(foreign language)

（外語）

[Interpreted] As for our game -- overall game business, currently, we have over 30 games in our pipeline. And those games are not only ACG titles, we have been actively expanding our content offerings across different genres since last year. And we've made a quite good progress on some of the console games, indie games and have received good results.

[解釋] 至於我們的遊戲——整體遊戲業務，目前我們有超過 30 款遊戲正在籌備中。這些遊戲不僅是 ACG 遊戲，自去年以來，我們一直在積極擴展不同類型的內容產品。而我們在一些主機遊戲、獨立遊戲上也取得了相當不錯的進展，並取得了不錯的成績。

(foreign language)

（外語）

[Interpreted] So the Fall Guys game that you mentioned is another example of our successful attempt in expanding into new genres. And looking ahead, we'll continue to explore the new genres that will fit to our user demographic.

[翻譯]所以你提到的Fall Guys遊戲是我們成功嘗試擴展到新類型的另一個例子。展望未來，我們將繼續探索適合我們用戶群體的新類型。

(foreign language)

（外語）

[Interpreted] So in terms of revenue contribution, we believe ACG titles still have advantage in this area. And in our pipeline, we believe that Sword Art Online: Integral Factor will be a title that could make a decent contribution in the revenue department.

[解讀]所以在收入貢獻方面，我們認為 ACG 遊戲在這方面仍然具有優勢。在我們的計劃中，我們相信《刀劍神域：積分要素》將是一個可以在收入部門做出可觀貢獻的遊戲。

Our next question comes from the line of Daniel Chen from JPMorgan.

我們的下一個問題來自摩根大通的 Daniel Chen。

(foreign language) I have a question on advertising. Our ad revenue growth actually accelerated on a year-over-year basis from -- in the second quarter. Should we expect the ad revenue to sustain such strong momentum in the second half? What are the key drivers behind? Is it brand advertising? Or is it because of performance advertising, including feed? So what is our expectation for the new ad system we launched in the third quarter for the content providers?

（外語）我有一個關於廣告的問題。從第二季度開始，我們的廣告收入增長實際上同比加速。我們是否應該期望廣告收入在下半年保持如此強勁的勢頭？背後的關鍵驅動因素是什麼？是品牌廣告嗎？還是因為性能廣告，包括提要？那麼我們對我們在第三季度為內容提供商推出的新廣告系統有何期望？

(foreign language)

（外語）

[Interpreted] Overall, 2020 is still full of uncertainties under the macro environment. However, under the challenging macro environment, we still delivered a pretty good advertising growth rate at 108% year-over-year.

【解讀】總體而言，2020年宏觀環境下仍充滿不確定性。然而，在充滿挑戰的宏觀環境下，我們仍然實現了相當不錯的廣告增長率，同比增長 108%。

(foreign language)

（外語）

[Interpreted] So Bilibili as a video platform, we are one of the biggest beneficiaries in the overall video-lization industry trend. And we have observed that the advertiser's budget has shifted from the traditional portal to the video platform.

【解讀】所以嗶哩嗶哩作為視頻平台，我們是整個視頻化行業趨勢中最大的受益者之一。而且我們觀察到，廣告主的預算已經從傳統的門戶網站轉移到了視頻平台。

(foreign language)

（外語）

[Interpreted] As we mentioned earlier, we have invested significantly in expanding our brand awareness and raised our brand influence in the first half. And we have become the must go-to platform for advertisers who wanted to reach the younger-generation demographic. At the same time, we also become the media center to create viable marketing events. And Bilibili's brand upgrade, brand awareness increases has direct relationships with advertisers' perception towards Bilibili's brand proposition.

【解讀】如前所述，上半年我們在擴大品牌知名度和提升品牌影響力方面投入了大量資金。對於想要接觸年輕一代人群的廣告商來說，我們已經成為必去的平台。同時，我們也成為媒體中心，創造可行的營銷活動。而嗶哩嗶哩的品牌升級、品牌知名度的提升，直接關係到廣告主對嗶哩嗶哩品牌主張的認知。

(foreign language)

（外語）

[Interpreted] So as our users continue to grow and our PUGV ecosystem continues to thrive, we've seen that we've made decent progress in expanding our content verticals, such as fashion, lifestyle, technology, fitness as well as autos. So we are also hoping to expand our advertisers' customers into those industry verticals.

[解釋] 因此，隨著我們的用戶不斷增長，我們的 PUGV 生態系統繼續蓬勃發展，我們已經看到我們在擴展我們的內容垂直領域取得了不錯的進展，例如時尚、生活方式、技術、健身以及汽車。因此，我們也希望將廣告客戶的客戶擴展到這些垂直行業。

(foreign language)

（外語）

[Interpreted] So during the second quarter, we didn't make any singular marketing campaign towards certain verticals but rather emphasizing on our overall marketing solutions as well as Bilibili's brand propositions and influence. And it's working well for us, and we aim to continue this strategy going forward.

【解讀】所以在第二季度，我們並沒有針對某些垂直領域做任何單一的營銷活動，而是強調我們的整體營銷解決方案以及 Bilibili 的品牌主張和影響力。它對我們來說效果很好，我們的目標是繼續這一戰略。

(foreign language)

（外語）

[Interpreted] So the reason that -- the supporting system behind our Q2 strong growth is on our improvement in terms of our advertising product and our advertisers' verticals as well as our AI-powered algorithms to improve our ad efficiencies. And we are confident to carry on this good trajectory into the third quarter.

[解釋] 因此，我們第二季度強勁增長背後的支持系統是因為我們在廣告產品和廣告客戶的垂直領域以及我們的人工智能驅動算法方面的改進，以提高我們的廣告效率。我們有信心將這一良好軌跡延續到第三季度。

(foreign language)

（外語）

[Interpreted] So looking ahead in Q3 and Q4, we are quite confident we can deliver a continued growth rate on our advertisement business and to develop a Bilibili specialty advertisement solution campaign.

[解讀]因此，展望第三季度和第四季度，我們非常有信心在我們的廣告業務上實現持續增長，並開發出 Bilibili 專業廣告解決方案活動。

(foreign language)

（外語）

[Interpreted] So the area of focus could be on the e-commerce area. Bilibili's vibrant and engaged community has become many e-commerce platforms' ideal platform to promote shopping festivals and shopping events. So in the second half of this year, this could be a rising sector for us.

[解釋]所以重點領域可能是電子商務領域。 B站充滿活力和參與度的社區已成為許多電子商務平台推廣購物節和購物活動的理想平台。因此，在今年下半年，這對我們來說可能是一個新興領域。

(foreign language)

（外語）

[Interpreted] So as our content verticals [are expanding] (corrected by company after the call), we are quite confident to also expand our advertisers in those verticals.

[解釋]因此，隨著我們的內容垂直領域[正在擴展]（在電話會議後由公司更正），我們也很有信心在這些垂直領域擴展我們的廣告客戶。

(foreign language)

（外語）

[Interpreted] So the third point would be on the continuous improvement on our algorithm. We'll continue to invest in improving our advertisement efficiency to increase our advertisers' ROI. And the fourth point is on the big events in the second half. There could be new variety shows as well as new events and gala. And these types of Bilibili specialty events have become advertisers' favorites, favorite advertising avenues to reach young audiences.

[解釋] 所以第三點是關於我們算法的持續改進。我們將繼續投資以提高我們的廣告效率，以提高我們廣告商的投資回報率。第四點是關於下半場的重大事件。可能會有新的綜藝節目，也可能有新的活動和晚會。而這些類型的嗶哩嗶哩特色活動已經成為廣告商的最愛，最喜歡接觸年輕觀眾的廣告渠道。

(foreign language)

（外語）

[Interpreted] So the Huahuo platform is a new platform we launched to help our content creators to connect with brand advertisers. And this platform provides our content creators pricing systems, order management as well as settlement services. We are hoping this platform will better serve our content creators to increase and expand their commercial potential and increase their income.

【解讀】所以花火平台是我們為幫助內容創作者對接品牌廣告主而推出的新平台。這個平台為我們的內容創作者提供定價系統、訂單管理以及結算服務。我們希望這個平台能夠更好地服務於我們的內容創作者，以增加和擴大他們的商業潛力並增加他們的收入。

(foreign language)

（外語）

[Interpreted] Since its launch in July, we have over 8,000 content creators who have already participated and signed up for this platform. For the GMV, we'll disclose when we reach a certain milestone.

【解讀】自7月上線以來，我們已經有超過8000位內容創作者參與並註冊了這個平台。對於 GMV，我們將在達到某個里程碑時進行披露。

(foreign language)

（外語）

[Interpreted] And lastly, we'll continue to focus on ways of improving our data power to provide better decision-making assistance presale or post sale and to increase our content creators' earning power.

[解釋] 最後，我們將繼續專注於提高數據能力的方法，以提供更好的售前或售後決策輔助，並提高我們的內容創作者的盈利能力。

Your next question comes from the line of Alex Liu from China Renaissance.

您的下一個問題來自華興資本的 Alex Liu。

(foreign language) I'll translate myself very quickly. Just wondering what are the major difference in terms of operating know-how and the road map between livestreaming business and other core business? Should we consider livestreaming as a business that requires some time of incubation and will reach inflection point on user adoption? If that's the case, how far are we standing from that inflection point?

（外語）我會很快翻譯自己。只是想知道直播業務與其他核心業務在運營技術和路線圖方面的主要區別是什麼？我們是否應該將直播視為一項需要一些孵化時間並且將在用戶採用方面達到拐點的業務？如果是這樣的話，我們離那個拐點還有多遠？

(foreign language)

（外語）

[Interpreted] Live broadcasting business, as we mentioned earlier, has always been a part of our content ecosystem. This is not a singular commercialization avenue for us but also an important part of our content. Live broadcasting also provides a very good avenue for our content creators to activate and retain their followers as well as for them to increase their commercialization potential.

【解讀】直播業務，正如我們前面提到的，一直是我們內容生態系統的一部分。這對我們來說不是單一的商業化途徑，也是我們內容的重要組成部分。直播也為我們的內容創作者提供了一個很好的途徑來激活和留住他們的追隨者，並為他們增加他們的商業化潛力。

(foreign language)

（外語）

[Interpreted] So in the past few years, you may have noticed there's such heavy competition among other live broadcasting platforms. However, Bilibili has remained a own self-sustaining ecosystem that continuously has talented content creators rising above, and they become our live broadcasting hosts and are providing very good content. This is quite different. Bilibili's business, live broadcasting business, is quite different from other singular live broadcasting platform.

【解讀】所以在過去的幾年裡，你可能已經註意到其他直播平台之間的競爭如此激烈。但是，嗶哩嗶哩一直是一個自給自足的生態系統，不斷有優秀的內容創作者拔地而起，成為我們的直播主，提供非常好的內容。這是完全不同的。 B站的業務，直播業務，與其他單一的直播平台有很大的不同。

(foreign language)

（外語）

[Interpreted] So our content offering on the live broadcasting business is actually mirroring what we have to offer on the video platform. For example, our popular game-related video would also be our popular live broadcasting content. And hence, Bilibili's live broadcasting verticals, games and talent shows and lifestyle-related content, are the top verticals.

[解讀]所以我們在直播業務上提供的內容實際上是在反映我們在視頻平台上提供的內容。例如，我們流行的遊戲相關視頻也將是我們流行的直播內容。因此，嗶哩嗶哩的直播垂直領域、遊戲和選秀節目以及與生活方式相關的內容，都是頂級垂直領域。

(foreign language)

（外語）

[Interpreted] So you may see on our platform, a lot of the popular live broadcasting hosts are also our popular top content creators. And there are 2 key factors among the live broadcasting industry: one is a good base of live broadcasting hosts and second is a good base of users. And we believe we have these particular audiences for the 2 factors. We have the high-quality content creators, aka our live broadcasting hosts; and we also have a very high-quality set of users who love to watch live broadcasting content.

【解讀】所以大家可能在我們的平台上看到，很多當紅的直播主也是我們當紅的頂級內容創作者。而直播行業有兩個關鍵因素：一是主播基礎好，二是用戶基礎好。我們相信我們有這兩個因素的特定受眾。我們有優質的內容創作者，也就是我們的直播主；而且我們還有一群非常優質的喜歡看直播內容的用戶。

(foreign language)

（外語）

[Interpreted] So compared to other live broadcasting platforms, you are right about the revenue trajectory. We tend to have more stable growth instead of a sharply increased circle because other platforms like signing top content hosts, which will drive the revenue in the short term. But the merits of our business model is we tend to have a more stable and sustaining life cycle and our content creators, the live broadcasting hosts' life cycle will also tend to be longer period.

【解讀】所以和其他直播平台相比，收入軌跡你說的很對。我們傾向於有更穩定的增長而不是急劇增加的循環，因為其他平台喜歡簽約頂級內容主機，這將在短期內推動收入。但我們商業模式的優點是我們的生命週期更趨於穩定和持續，我們的內容創作者、主播的生命週期也將趨於更長的周期。

(foreign language)

（外語）

[Interpreted] We are quite confident to become the best platform for video content creators given that the video equals live broadcasting content on our platform, we're also quite confident that we will become one of the most popular live broadcasting platform in the future.

【解讀】我們非常有信心成為視頻內容創作者的最佳平台，因為我們平台上的視頻等於直播內容，我們也有信心成為未來最受歡迎的直播平台之一。

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 further questions, please contact myself, Juliet Yang, Bilibili's Senior IR Director, or TPG Investor Relations. Our content 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。如果您還有其他問題，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 內容信息可在今天的新聞稿中找到。祝你有美好的一天。

Ladies and gentlemen, this concludes our conference for today. Thank you all for participating. Stay safe, everyone. You may now disconnect.

女士們，先生們，今天的會議到此結束。謝謝大家的參與。大家注意安全。您現在可以斷開連接。

[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。]