Bilibili Inc (BILI) 2020 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to the Bilibili 2020 First Quarter Earnings Conference Call.

女士們，先生們，早上好，歡迎來到 Bilibili 2020 年第一季度財報電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time, I would now like to hand the conference over to Juliet Yang, Senior Director of Investor Relations.

在這個時候，我現在想把會議交給投資者關係高級總監 Juliet Yang。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線員。

Please note the discussion today will contain forward-looking statements relating to the company's future performances and are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act.

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資格。

Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors.

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。

Some of these risk factors 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.

其中一些風險因素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。

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.

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。

The company does not undertake any obligation to update this forward-looking information, except as required by law.

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 purposes only.

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。

For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2020 first quarter financial results news release issued earlier today.

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 年第一季度財務業績新聞稿。

As a reminder, this conference call is being recorded.

提醒一下，正在錄製此電話會議。

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

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 first quarter conference call.

謝謝朱麗葉，謝謝大家參加我們的 2020 年第一季度電話會議。

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

我很高興代表陳先生髮表今天的開幕詞。

2020 is off to a remarkable start.

2020 年有了一個非凡的開端。

We are proud to deliver stellar results and set new records within our key operating and financial metrics.

我們很自豪能夠在我們的關鍵運營和財務指標中提供出色的結果並創造新的記錄。

For the first quarter, our MAUs grew by 70% year-over-year, reaching 172 million; and our mobile MAUs grew even faster at 77% year-over-year to 156 million.

第一季度，我們的 MAU 同比增長 70%，達到 1.72 億；我們的移動月活躍用戶增長更快，同比增長 77%，達到 1.56 億。

Our user engagement level also reached a new height.

我們的用戶參與度也達到了一個新的高度。

Our DAUs achieved a major milestone, up 69% year-over-year to 51 million.

我們的 DAU 達到了一個重要的里程碑，同比增長 69%，達到 5100 萬。

Along with our large user numbers, we saw a striking increase in the amount of daily time spent on our platform, up 10 minutes from Q4 to an average of 87 minutes.

隨著我們龐大的用戶數量，我們看到每天在我們平台上花費的時間顯著增加，從第四季度增加了 10 分鐘到平均 87 分鐘。

This is the highest level we have seen in our corporate history.

這是我們公司歷史上看到的最高水平。

These statistics once again demonstrate our strong execution and high-quality growth we aim to deliver.

這些統計數據再次證明了我們旨在實現的強大執行力和高質量增長。

We attribute our success to our increasingly broad content, friendly and sticky community as well as improved brand awareness.

我們將我們的成功歸功於我們日益廣泛的內容、友好和粘性的社區以及提高的品牌知名度。

Building on the success of our New Year Eve's Gala event, we welcomed more new users, especially during the extended winter holiday.

在除夕晚會活動取得成功的基礎上，我們迎來了更多新用戶，尤其是在延長的寒假期間。

Bilibili is becoming many people's first choice when it comes to content creation and consumption.

嗶哩嗶哩正在成為很多人在內容創作和消費方面的首選。

In 2019, we affirmed our user growth as one of our key objectives and raised our target of MAUs for 2021 to 220 million.

2019 年，我們將用戶增長作為我們的主要目標之一，並將 2021 年的 MAU 目標提高到 2.2 億。

We are pleased to say, with the solid execution on our initiatives, we are on a fast track to meet this target.

我們很高興地說，隨著我們舉措的紮實執行，我們正在快速實現這一目標。

As we roll out more premium content and services and strengthen our monetization capabilities, we are converting more traffic to paying users.

隨著我們推出更多優質內容和服務並加強我們的貨幣化能力，我們正在將更多流量轉化為付費用戶。

Our MPUs grew by 134% year-over-year to an impressive 13.4 million in the first quarter.

第一季度，我們的 MPU 同比增長 134%，達到令人印象深刻的 1340 萬。

The paying ratio also grew to 7.8%, more than doubled from 2 years ago.

支付率也增長到 7.8%，比 2 年前增加了一倍多。

Our revenues reached an all-time high of RMB 2.3 billion, surpassing the top end of our guidance by more than -- over RMB 100 million.

我們的收入達到了 23 億元人民幣的歷史新高，超過了我們指導的上限超過 1 億元人民幣。

As our top line expands, we have seen increasing operating leverage.

隨著我們收入的擴大，我們看到經營槓桿不斷增加。

Gross margin jumped to 23% in the first quarter, up from 14% for the same period last year, marking the fourth consecutive quarter of margin improvement.

第一季度毛利率從去年同期的 14% 躍升至 23%，標誌著利潤率連續第四個季度提高。

Our strategic partnerships are also expanding.

我們的戰略合作夥伴關係也在擴大。

On the heels of our agreement with Tencent and BABA, we were excited to bring our long-standing partnership with Sony to the next level with its USD 400 million equity investment and business collaboration plans.

在我們與騰訊和阿里巴巴達成協議後，我們很高興通過其 4 億美元的股權投資和業務合作計劃將我們與索尼的長期合作夥伴關係提升到一個新的水平。

Under the agreement, we plan to bring even more world-class anime and mobile game content to the domestic market, further enhancing our advantage in these sectors.

根據協議，我們計劃將更多世界級的動漫和手機遊戲內容引入國內市場，進一步增強我們在這些領域的優勢。

The equity investment will not only fuel our future growth but also demonstrate Sony's confidence in our unique positioning and growth prospects.

股權投資不僅將推動我們未來的增長，也表明索尼對我們獨特的定位和增長前景充滿信心。

With that overview, I'd now like to walk through some of our initiatives and the trends we are seeing in each of our core area of content, community and commercialization and how they fit into our long-term strategy.

有了這個概述，我現在想介紹我們的一些舉措和我們在內容、社區和商業化的每個核心領域看到的趨勢，以及它們如何融入我們的長期戰略。

I will begin with content.

我將從內容開始。

Bilibili has cultivated one of the most attractive and friendly environments for our creators.

Bilibili 為我們的創作者培養了最有吸引力和最友好的環境之一。

Creators can easily upload content, actively interact with users and gain broader fan base access.

創作者可以輕鬆上傳內容、積極與用戶互動並獲得更廣泛的粉絲群訪問權限。

For these reasons, Bilibili has become many people's first choice for PUGV creation, especially during the extended winter holiday, when more people were looking for ways to express themselves.

由於這些原因，嗶哩嗶哩成為了很多人創作PUGV的首選，尤其是在延長的寒假期間，更多的人在尋找表達自我的方式。

We saw a significant increase in the number of active content creators and video submissions during the first quarter.

我們看到第一季度活躍內容創作者和視頻提交的數量顯著增加。

We had about 1.8 million content creators uploading 4.9 million videos per month, representing increases of 146% and 138%, respectively, both year-over-year.

我們有大約 180 萬內容創作者每月上傳 490 萬個視頻，同比分別增長 146% 和 138%。

With a growing number of creators and effective operational campaign, we are gaining even more diverse and innovative content submissions and further increasing our mass market appeal.

隨著越來越多的創作者和有效的運營活動，我們獲得了更加多樣化和創新的內容提交，並進一步增加了我們的大眾市場吸引力。

For the first quarter, our most heavily trafficked verticals were lifestyle, game, entertainment, animation, tech and knowledge.

第一季度，我們流量最大的垂直行業是生活方式、遊戲、娛樂、動畫、科技和知識。

For lifestyle, during the extended holiday, people were looking for ways to entertain themselves while staying at home.

對於生活方式，在延長假期期間，人們都在尋找在家中自娛自樂的方式。

We actively promoted subcategories such as foodie, online fitness and vlog as many people looked for ways to cook, stay fit and express themselves.

我們積極推廣美食家、在線健身和視頻博客等子類別，因為許多人都在尋找烹飪、保持健康和表達自我的方式。

Similarly, games overtook entertainment vertical as we fortified our game content library, becoming the host for more and more gamers.

同樣，隨著我們強化遊戲內容庫，遊戲超越了娛樂垂直領域，成為越來越多遊戲玩家的主機。

With our recent partnership with Tencent Music and Sony Music, our music content is also attracting a growing amount of traffic given its universal appeal.

隨著我們最近與騰訊音樂和索尼音樂的合作，我們的音樂內容也因其普遍的吸引力而吸引了越來越多的流量。

In addition, we expanded our technology and education categories in order to support those looking to catch up on their studies, learn a new skill or simply gain more general knowledge during the long holiday.

此外，我們擴大了技術和教育類別，以支持那些希望在長假期間趕上學業、學習新技能或只是獲得更多一般知識的人。

Turning to our OGV business.

轉向我們的 OGV 業務。

Building on our years of investment and key leadership in the anime, documentary and other categories, we continue to turn our OGV library into valuable IP assets, attracting new users as well as converting paying users.

基於我們在動漫、紀錄片和其他類別的多年投資和關鍵領導地位，我們繼續將我們的 OGV 庫轉變為有價值的 IP 資產，吸引新用戶並轉化付費用戶。

During the first quarter, we launched the Daily Life of Immortal King, (foreign language), a Bilibili-produced Chinese anime series.

第一季度，我們推出了由嗶哩嗶哩出品的中國動漫系列《仙王的日常》（外語）。

This high-quality series quickly gained over 100 million video views in less than 30 days, setting a new record in our OGV history.

這個高質量的系列在不到 30 天的時間內迅速獲得了超過 1 億的視頻觀看量，創造了我們 OGV 歷史上的新紀錄。

It not only attracted many new anime fans to our platform, but also converted a considerable amount of premium members.

它不僅為我們的平台吸引了許多新的動漫迷，還轉化了相當數量的優質會員。

Similarly, we further expanded our documentary and variety show offerings to attract broader audience.

同樣，我們進一步擴大了紀錄片和綜藝節目的範圍，以吸引更廣泛的觀眾。

Our reality show, Animal Hospital Season 2, (foreign language), and First Man Out of China, (foreign language), a documentary that we coproduced with Discovery, were also welcomed by many pets and survival show lovers, respectively.

我們的真人秀節目《動物醫院第二季》（外語）和與Discovery合拍的紀錄片《走出中國》（外語）也分別受到了眾多寵物和生存類節目愛好者的歡迎。

Turning to our community.

轉向我們的社區。

As I mentioned, we are seeing record highs across all of our primary user metrics.

正如我所提到的，我們的所有主要用戶指標都創下歷史新高。

With this rapid influx to our community, the quality of our platform, our content and our users has gotten even stronger.

隨著這種快速湧入我們的社區，我們平台的質量、我們的內容和我們的用戶變得更加強大。

In the first quarter, our daily video views reached a record high of 1.1 billion, up 113% year-over-year.

第一季度，我們的每日視頻觀看量達到創紀錄的 11 億次，同比增長 113%。

Our users were more engaged with content and each other than ever before, and our overall community retention levels were improved.

我們的用戶比以往任何時候都更多地參與內容和彼此之間，並且我們的整體社區保留水平得到了提高。

In the first quarter, our users generated nearly 4.9 billion monthly interactions through the bullet chats, comments, likes and Bilibili moment posts, more than triple the amount from the same period in 2019.

第一季度，我們的用戶每月通過彈幕、評論、點贊和嗶哩嗶哩的帖子產生近 49 億次互動，是 2019 年同期的三倍多。

Members of our official membership also grew at an accelerated pace in the first quarter.

我們的正式會員在第一季度也加速增長。

By the end of Q1, we had 82 million official members who passed our 100-question exam, up 66% year-over-year, and the 12-month retention rate for these users remained high as well, well above 80%.

截至第一季度末，我們有 8200 萬正式會員通過了 100 道題考試，同比增長 66%，這些用戶的 12 個月留存率也保持在較高水平，遠高於 80%。

The strong community engagement and retention level continue to be excellent indicators of the quality of our user growth.

強大的社區參與度和保留水平仍然是我們用戶增長質量的出色指標。

Turning to our commercialization progress.

談到我們的商業化進展。

I will first review the status of our game business.

我先回顧一下我們遊戲業務的現狀。

Revenues from our games increased 32% year-over-year to RMB 1.15 billion, accounting for 50% of our total first quarter revenues.

我們的遊戲收入同比增長 32% 至 11.5 億元人民幣，佔第一季度總收入的 50%。

Fate/Grand Order, or FGO, delivered a robust performance for the period, following a major content update.

Fate/Grand Order，或 FGO，在主要內容更新後，在此期間表現強勁。

Other exclusively licensed titles such as Azur Lane and Furious Yama also continued their popularity during the first quarter.

Azur Lane 和 Furious Yama 等其他獨家授權遊戲在第一季度也繼續受歡迎。

In April, we launched the highly anticipated Japanese RPG Princess Connect, (foreign language).

4月，我們推出了備受期待的日本RPG公主連接，（外語）。

This exclusively licensed game was an immediate hit, attracting millions of players and topping China's iOS download and grossing charts within a week after release.

這款獨家授權的遊戲一經推出便一炮而紅，吸引了數百萬玩家，並在發布後的一周內登上了中國 iOS 下載和暢銷榜榜首。

The phenomenal success of this release once again proves our strong distribution power and deep understanding of the ACG game market.

本次發布的驚人成功再次證明了我們強大的發行能力和對ACG遊戲市場的深刻理解。

Our jointly operated games also continued their growth momentum in the first quarter.

我們共同運營的遊戲在第一季度也繼續保持增長勢頭。

Newly released update Arknights, (foreign language), and HonKai Impact 3 (foreign language), were welcomed by many existing and new players.

新發布的更新Arknights（外語）和HonKai Impact 3（外語）受到了許多現有和新玩家的歡迎。

With an increasing number of gamers gathering and more efficient distribution operations, our platform in an inevitable channel for game developers who want to maximize their exposure to quality players and reach potential new fans.

隨著越來越多的遊戲玩家聚集和更高效的分發運營，我們的平台成為遊戲開發者不可避免的渠道，他們希望最大限度地接觸優質玩家並接觸潛在的新粉絲。

Later this year, we will be further expanding our game offerings.

今年晚些時候，我們將進一步擴展我們的遊戲產品。

With 30 high-quality games in our upcoming game pipeline, we are looking forward to further diversifying our portfolio.

我們即將推出的遊戲管道中有 30 款優質遊戲，我們期待進一步豐富我們的產品組合。

We have 8 titles that have acquired approvals and are scheduled to be released in the coming months.

我們有 8 款遊戲已獲得批准，併計劃在未來幾個月內發布。

This includes Animistic, (foreign language), a thrilling ACG title that we plan to roll out this summer.

這包括 Animistic（外語），這是我們計劃在今年夏天推出的激動人心的 ACG 遊戲。

On the jointly operated games front, we will continue to work with leading game developers to bring our users premium games, such as Mihoyo's Genshin and NetEase's Harry Potter.

在聯營遊戲方面，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的遊戲，例如 Mihoyo 的 Genshin 和網易的 Harry Potter。

Turning to our VAS business.

轉向我們的增值服務業務。

Revenues from VAS increased by 172% year-over-year, reaching RMB 794 million in the first quarter.

增值服務收入同比增長172%，一季度達到人民幣7.94億元。

Our growth was mainly driven by increased contribution from premium members, live broadcasting and other value-added services.

我們的增長主要是受到高級會員、直播和其他增值服務貢獻增加的推動。

As part of our video content ecosystem, we continued to enrich our live broadcasting offerings and increase our live broadcasting penetration among our growing user traffic.

作為我們視頻內容生態系統的一部分，我們繼續豐富我們的直播產品，並提高我們在不斷增長的用戶流量中的直播滲透率。

Our investment of top live broadcasting IP continues to fuel our user growth and attract more live broadcasting hosts to our platform.

我們對頂級直播 IP 的投資繼續推動我們的用戶增長，並為我們的平台吸引更多的直播主。

We are seeing more talent agencies and individuals turn to Bilibili to grow their influence on our fast-developing platform.

我們看到越來越多的人才機構和個人轉向 Bilibili，以擴大他們對我們快速發展的平台的影響力。

With access to our exclusive or advanced content, members have become accustomed to paying for high-quality content.

通過訪問我們的獨家或高級內容，會員已經習慣於為高質量的內容付費。

By the end of the first quarter, our premium members reached an exciting milestone, exceeding 10 million, for record 10.9 million subscribers.

到第一季度末，我們的高級會員達到了令人興奮的里程碑，超過 1000 萬，訂閱用戶達到創紀錄的 1090 萬。

This represents an increase of 127% year-over-year and further demonstrates that our users represent a golden cohort with a high willingness to pay for premium entertainment material.

這比去年同期增長了 127%，進一步表明我們的用戶代表了一個黃金群體，他們願意為優質娛樂材料付費。

As for our advertising business, our rapidly growing community and increasing brand equity continue to make Bilibili a leading platform for advertisers.

至於我們的廣告業務，我們快速發展的社區和不斷增加的品牌資產繼續使 Bilibili 成為廣告商的領先平台。

Despite macro headwinds, revenues from advertising segment continued to increase year-over-year, up 90% to RMB 214 million in the first quarter.

儘管存在宏觀不利因素，但廣告業務收入同比繼續增長，第一季度增長 90% 至人民幣 2.14 億元。

The leading 3 industry verticals for brand advertising were e-commerce, games and 3C products.

品牌廣告領先的 3 個垂直行業分別是電子商務、遊戲和 3C 產品。

And the top 3 verticals for performance-based ads were games, education and e-commerce.

基於效果的廣告排名前三的垂直領域是遊戲、教育和電子商務。

Advertisers are seeking out new and innovative ways to increase their visibility, and online channels represent a popular, heavily trafficked avenue.

廣告商正在尋找新的和創新的方法來提高他們的知名度，而在線渠道代表了一個受歡迎的、流量很大的途徑。

Beginning from this year, we hosted multiple online new product launch conferences, including Huawei, Vivo, Oppo and McDonald's.

從今年開始，我們舉辦了多場線上新品發布會，包括華為、vivo、OPPO、麥當勞等。

We expect this offline-to-online marketing [transition] (corrected by company after the call) will continue throughout the year.

我們預計這種線下到線上的營銷[過渡]（在電話會議後由公司更正）將持續一整年。

Advertisers in other industries, such as online education and e-commerce, are also seeking out our platform to increase their brand reach.

其他行業的廣告商，如在線教育和電子商務，也在尋找我們的平台來擴大他們的品牌影響力。

To summarize, we had an outstanding first quarter marked by excellent growth across our primary operational and financial metrics.

總而言之，我們的第一季度表現出色，主要運營和財務指標均實現了出色的增長。

The success was attributable to years of devotion in building a healthy content ecosystem, friendly community and improved commercialization capabilities.

成功得益於多年來致力於構建健康的內容生態系統、友好的社區和提高的商業化能力。

We are also pleased with our strong execution in raising our brand awareness, growing our user base as well as forming high-level strategic partners.

我們也很高興我們在提高品牌知名度、擴大用戶群以及形成高水平戰略合作夥伴方面的強大執行力。

Building on this early 2020 momentum, we will continue our user growth strategy, improve our top line and drive value for all of our supporters, our growing community and our stakeholders.

在 2020 年初的這一勢頭的基礎上，我們將繼續我們的用戶增長戰略，提高我們的收入並為我們所有的支持者、我們不斷發展的社區和我們的利益相關者創造價值。

This concludes Mr. Chen's remarks.

陳先生的發言到此結束。

I will now provide a brief overview of our financial results for the first quarter of 2020.

我現在將簡要概述我們 2020 年第一季度的財務業績。

Our total net revenues increased by 69% year-over-year to RMB 2.3 billion, exceeding the high end of our guidance.

我們的總淨收入同比增長 69% 至人民幣 23 億元，超過了我們指引的高端。

With a 50-50 revenue split from our game and nongame business, we are pleased with our commercialization progress and the implications of this diversity.

我們的遊戲和非遊戲業務收入分成 50-50，我們對我們的商業化進展和這種多樣性的影響感到滿意。

We are also converting more and more online traffic to paying users.

我們還將越來越多的在線流量轉化為付費用戶。

So the average number of monthly paying users increased by 134% year-over-year, reaching 13.4 million in the first quarter.

因此，每月付費用戶的平均數量同比增長 134%，第一季度達到 1340 萬。

Cost of revenues increased by 51% year-over-year to RMB 1.8 billion.

收入成本同比增長 51% 至人民幣 18 億元。

Revenue-sharing cost, a key component of cost of revenues, was RMB 889 million, a 61% increase from the same period in 2019.

收入分成成本是收入成本的重要組成部分，為人民幣8.89億元，較2019年同期增長61%。

Gross profit increased by 180% year-over-year to RMB 530 million.

毛利同比增長180%至人民幣5.3億元。

We are also starting to see operating leverage from our diversified revenue streams.

我們也開始從多元化的收入來源中看到經營槓桿。

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 first quarter.

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，第一季度達到 23%。

Total operating expenses increased to RMB 1.1 billion, up 117% from the same period in 2019.

總營業費用增至人民幣 11 億元，較 2019 年同期增長 117%。

Selling and marketing expenses were RMB 606 million, representing a 234% increase year-over-year.

銷售及營銷費用為人民幣6.06億元，同比增長234%。

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 the sales and marketing personnel.

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。

Building on the success of our New Year's Eve Gala and a strong user demand during the extended holiday, we made additional investment in branding and the channels to further drive user growth and raising brand awareness, which we believe will yield considerable return in the long run.

在跨年晚會的成功和長假期間強勁的用戶需求的基礎上，我們在品牌和渠道上進行了額外的投資，以進一步推動用戶增長和提高品牌知名度，我們相信從長遠來看，這將產生可觀的回報.

G&A expenses were RMB 171 million, representing a 33% increase year-over-year.

G&A費用為人民幣1.71億元，同比增長33%。

The increase was primarily due to increased head count in general and administrative personnel and increased share-based compensation expenses.

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。

R&D expenses were RMB 297 million, representing a 60% increase year-over-year.

研發費用2.97億元，同比增長60%。

The increase was primarily due to increased head count in research and development personnel.

增加的主要原因是研發人員人數增加。

Net loss was RMB 539 million for the first quarter of 2020 compared with RMB 196 million in the same period of 2019.

2020年第一季度淨虧損為人民幣5.39億元，而2019年同期為人民幣1.96億元。

Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses and amortization expenses related to intangible assets and acquired through business acquisition, was RMB 475 million compared with RMB 145 million in the same period of 2019.

調整後的淨虧損為人民幣 4.75 億元，而 2019 年同期為人民幣 1.45 億元，調整後的淨虧損為人民幣 4.75 億元，這是一項非公認會計原則，不包括股權補償費用和通過業務收購獲得的與無形資產相關的攤銷費用。

Basic and diluted net loss per share were RMB 1.62.

每股基本及攤薄淨虧損為人民幣1.62元。

Adjusted basic and diluted net loss per share were RMB 1.43.

調整後的每股基本及攤薄淨虧損為人民幣1.43元。

As of March 31, 2020, [because of these investment] we had cash and cash equivalents, time deposits as well as short-term investments of RMB 7.9 billion or USD 1.1 billion compared to RMB 8.1 billion as of December 31, 2019.

截至 2020 年 3 月 31 日，[由於這些投資]，我們擁有 79 億元人民幣或 11 億美元的現金和現金等價物、定期存款以及短期投資，而截至 2019 年 12 月 31 日為 81 億元人民幣。

To further grow our business, we plan to improve our monetization by leveraging our considerable and growing traffic.

為了進一步發展我們的業務，我們計劃通過利用我們可觀且不斷增長的流量來提高我們的盈利能力。

We also see benefit in further expanding our diverse revenue streams and continuing to improve our paying ratio.

我們還看到進一步擴大我們多樣化的收入來源和繼續提高我們的支付比率的好處。

Longer term, we believe our monetization efforts, high-paying user conversion rates and scale will yield an improved bottom line.

從長遠來看，我們相信我們的貨幣化努力、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 second quarter of 2020 to be between RMB 2.50 billion and RMB 2.55 billion.

考慮到這一點，我們目前預計 2020 年第二季度的淨收入將在人民幣 25.0 億元至人民幣 25.5 億元之間。

Thank you for your attention.

感謝您的關注。

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

我們現在想打開您的問題的電話。

Operator, please go ahead.

接線員，請繼續。

(Operator Instructions) Okay.

（操作員說明）好的。

So your first question today comes from Jialong Shi from Nomura.

所以你今天的第一個問題來自野村的Jialong Shi。

(foreign language) Congratulations on a very solid quarter.

（外語）祝賀一個非常穩定的季度。

My question is about MAU.

我的問題是關於 MAU。

We saw a big acceleration in this quarter.

我們在本季度看到了大幅加速。

Could management give us some colors on how much of the growth was driven by the pandemic in 1Q and how much was organic?

管理層能否為我們提供一些關於第一季度的大流行推動了多少增長以及有機增長的一些顏色？

And as life in China is getting back to normal, how should we look at the trend of your MAU growth post the pandemic?

隨著中國生活逐漸恢復正常，我們應該如何看待疫情后您的 MAU 增長趨勢？

For the new users acquired in the quarter, how is their engagement level compared to those who are old users?

對於本季度獲得的新用戶，與老用戶相比，他們的參與度如何？

Lastly, for China's PUGV market, could you give us some color as to what will be the size of the user base this segment could potentially reach?

最後，對於中國的 PUGV 市場，您能否告訴我們這個細分市場可能達到的用戶群規模？

(foreign language)

（外語）

[Interpreted] The first question on the MAU.

【解讀】關於MAU的第一個問題。

Indeed, we had an outstanding first quarter in terms of user growth.

事實上，就用戶增長而言，我們第一季度的表現非常出色。

And we believe that user growth is based on 2 factors: one is 10 years of devotion and dedication in building a healthy content ecosystem and friendly community to ensure that we always have the highest quality content to offer to our users, and second of all is our continuously raising brand awareness and our active and effective user acquisition strategy.

我們認為，用戶增長基於兩個因素：一是 10 年來致力於構建健康的內容生態系統和友好社區，以確保我們始終為用戶提供最優質的內容，二是我們不斷提高品牌知名度和積極有效的用戶獲取策略。

(foreign language)

（外語）

[Interpreted] Probably we have already experienced that Bilibili has become not only for the younger generation but more for mass market people's first choice when it comes to content creation or content consumption.

【解讀】或許我們已經體驗到，嗶哩嗶哩不僅成為年輕一代，更成為大眾市場人群在內容創作或內容消費方面的首選。

And there's more and more chatters about what type of videos are seen on Bilibili.

關於在 Bilibili 上看到什麼類型的視頻的討論越來越多。

(foreign language)

（外語）

[Interpreted] So all of the factors that we've mentioned above actually has nothing to do with the extended holiday resulted by the pandemic.

【解讀】所以我們上面提到的所有因素，其實都與疫情導致的假期延長無關。

(foreign language)

（外語）

[Interpreted] So we believe the pandemic only helped us to accelerate our user growth process, but it will not change or become a main factor of how -- our user growth.

【解讀】所以我們認為疫情只是幫助我們加速了用戶增長的過程，但它不會改變或成為我們用戶增長的主要因素。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So regarding your second question about how we -- I mean its trend after people are returning back to school or work.

[解釋]所以關於你關於我們如何 - 我的意思是人們返回學校或工作後的趨勢的第二個問題。

So as I mentioned earlier, the accelerated user growth that we've seen in the first quarter has more to do with the fundamentals of our company, and the extended holiday only helped us to accelerate our process.

所以正如我之前提到的，我們在第一季度看到的加速用戶增長更多地與我們公司的基本面有關，延長假期只會幫助我們加快進程。

So we are still quite confident that in the second and third quarter, we will still be seeing a relatively decent rate of user growth.

所以我們仍然很有信心，在第二和第三季度，我們仍然會看到相對不錯的用戶增長率。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So in terms of the new user profile that we've seen in the first quarter, there's been no big difference between the new users and the old users.

【解讀】所以從第一季度我們看到的新用戶畫像來看，新老用戶並沒有太大的區別。

It's still majority a younger generation.

它仍然是大多數年輕一代。

Their average age is around 20 years old.

他們的平均年齡在 20 歲左右。

And over 50% of the new user comes from third-tier cities or below.

而超過50%的新增用戶來自三線及以下城市。

(foreign language)

（外語）

[Interpreted] So in terms of user growth, we never just purely focus on the quantity, but we always put the quality first.

【解讀】所以在用戶增長上，我們從來不只看數量，而是始終把質量放在第一位。

As you can see from the user metrics, our MAU grew 70% year-on-year.

從用戶指標可以看出，我們的 MAU 同比增長 70%。

Our DAU also grew 69% year-on-year.

我們的 DAU 也同比增長了 69%。

And our time spent per DAU increased 10 minutes quarter-over-quarter to 87 minutes per day.

我們在每個 DAU 上花費的時間比上一季度增加了 10 分鐘，達到每天 87 分鐘。

And our video views surpassed 10 billion, reaching -- I'm sorry, surpassed 1 billion, reaching 1.1 billion, on a daily basis.

我們的視頻瀏覽量超過 100 億，達到 -- 對不起，超過 10 億，達到 11 億，每天。

And the overall retention rate, the engagement level of our user base is also very, very strong.

總體保留率，我們用戶群的參與度也非常非常強。

The 12-month retention rate of our official members who took and passed the 100-question test, they are also well above 80%.

參加並通過 100 題測試的我們官方會員的 12 個月保留率也遠高於 80%。

All of these metrics were achieved under the [environment] that the overall user increased significantly.

所有這些指標都是在整體用戶顯著增加的【環境】下實現的。

So this is another set of results that demonstrate our quality of growth.

這是另一組證明我們增長質量的結果。

(foreign language)

（外語）

[Interpreted] So at the same time, as you can see, our paying user has also experienced very fast growth.

【解讀】所以與此同時，正如你所看到的，我們的付費用戶也經歷了非常快速的增長。

Our paying user has reached over 13 million this quarter, which means we're converting more traffic to paying users.

本季度我們的付費用戶已超過 1300 萬，這意味著我們正在將更多流量轉化為付費用戶。

So this is another very strong metric that supports the quality growth.

因此，這是支持質量增長的另一個非常強大的指標。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So according to the latest CNNIC report, the overall Chinese video user has already reached 850 million.

【解讀】所以根據CNNIC的最新報告，中國視頻用戶整體已經達到8.5億。

With the adoption of 5G technology, we believe video will become the most common format of content consumption or creation.

隨著 5G 技術的採用，我們相信視頻將成為最常見的內容消費或創作形式。

By that time, we believe the overall video user is probably going to be equivalent to the overall Internet users.

到那時，我們相信整體視頻用戶可能會與整體互聯網用戶相當。

(foreign language)

（外語）

[Interpreted] So the reason why we call PUGV, PUGV is the professional part of the term, because it's professionally produced.

【解讀】所以我們之所以叫PUGV，PUGV是這個詞的專業部分，因為它是專業製作的。

So it has higher quality.

所以它的質量更高。

We don't believe anybody will say no to higher-quality video content.

我們相信沒有人會對更高質量的視頻內容說不。

And because of that, we think that all the video users could potentially be PUGV users.

因此，我們認為所有視頻用戶都可能是 PUGV 用戶。

(foreign language)

（外語）

[Interpreted] So we believe in the near future, everything will be video-lized, which is a great opportunity for Bilibili.

【解讀】所以我們相信在不久的將來，一切都會被視頻化，這對B站來說是一個很好的機會。

And from what we have observed that we believe video is not just pure content or communication, it has become as a service or as a scenario or an important part of entertainment.

從我們的觀察來看，我們認為視頻不僅僅是純粹的內容或交流，它已成為一種服務、一種場景或娛樂的重要組成部分。

Based on what we have seen so far, there's a trend that everything marketing-related has become more video-lized.

根據我們目前看到的情況，有一種趨勢是所有與營銷相關的東西都變得更加視頻化。

And there are tons of users who are studying, learning new things, gaining general knowledge on Bilibili, so this has really become a format of gaining knowledge.

並且有大量的用戶在學習，學習新事物，獲得關於 Bilibili 的一般知識，所以這真的成為了一種獲得知識的形式。

And in the longer term, we believe video is going to be the new connector that connects everything.

從長遠來看，我們相信視頻將成為連接一切的新連接器。

I hope that answers your question, Jialong.

我希望能回答你的問題，佳龍。

Yes, indeed.

確實是的。

Your next question comes from the line of Lei Zhang.

你的下一個問題來自張磊的台詞。

(foreign language) My question is mainly about the commercialization of nongame business.

（外語）我的問題主要是關於非遊戲業務的商業化。

We have seen a strong revenue growth in fourth quarter of nongame, especially last, and we also noticed some positive business development recently in music and the live streaming.

我們在第四季度看到了非遊戲收入的強勁增長，尤其是最後一個季度，我們還注意到最近在音樂和直播方面的一些積極業務發展。

Could management share more color on the efforts we have made in nongame business, especially our policy with live streaming?

管理層能否就我們在非遊戲業務方面所做的努力分享更多色彩，尤其是我們在直播方面的政策？

And also wondering your growth opportunity in nongame business in live streaming and advertisement in 2020.

並且想知道您在 2020 年在直播和廣告方面的非遊戲業務增長機會。

(foreign language)

（外語）

[Interpreted] So we haven't changed our concept on our nongame business plan or strategies since our IPO.

[解釋] 因此，自 IPO 以來，我們沒有改變我們對非遊戲業務計劃或策略的概念。

(foreign language)

（外語）

[Interpreted] So from -- with regard to our live broadcasting business, we've always emphasized live broadcasting for Bilibili as an ability.

【解讀】所以從——關於我們的直播業務，我們一直強調B站的直播是一種能力。

It's based on our current real content ecosystem, and we have massive users gathering around.

它基於我們當前的真實內容生態系統，我們擁有大量用戶。

Bilibili consumes a lot of entertainment content, such as animation and other professionally generated content, so we launched our premium membership services to satisfy their growing need.

B站消費了大量的娛樂內容，例如動畫和其他專業生成的內容，因此我們推出了我們的高級會員服務以滿足他們不斷增長的需求。

And if I have to talk about our strategy, again, it still come back to the same logic that we have, the user, we understand the need, and we recommend the right products to suit their right needs.

如果我不得不再次談論我們的策略，它仍然回到我們的邏輯，用戶，我們了解需求，我們推薦合適的產品來滿足他們的正確需求。

(foreign language)

（外語）

[Interpreted] And our strategy is always to attract massive, loyal engaged users through PUGV at the same time to provide them live broadcasting content, professional OGV content to satisfy their growing needs.

【解讀】我們的策略始終是通過PUGV吸引海量、忠誠的參與用戶，同時為他們提供直播內容、專業的OGV內容，以滿足他們不斷增長的需求。

(foreign language)

（外語）

[Interpreted] So in terms of the growth potential of our VAS business, we believe, for many years to come, we will maintain a high-growth rate for a relatively longer term.

【解讀】所以就我們增值服務業務的增長潛力而言，我們相信，在未來的很多年裡，我們會在相對較長的時間內保持較高的增長速度。

To be more specific, regarding the high-growth rate, it will be over 100%.

更具體地說，在高增長率方面，將超過100%。

(foreign language)

（外語）

[Interpreted] So we avoid using monetization when we talk about our commercialization process.

[解釋]所以我們在談論我們的商業化過程時避免使用貨幣化。

It's because we believe, essentially, our commercialization process is providing user better services for more premium content.

這是因為我們相信，從本質上講，我們的商業化過程正在為用戶提供更好的服務以獲取更多優質內容。

This is beneficiary for our users.

這對我們的用戶是有益的。

Okay.

好的。

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) My question is on sales and marketing spending.

（外語）我的問題是關於銷售和營銷支出。

Could management provide us some breakdown on this quarter's sales and marketing expenses?

管理層能否為我們提供本季度銷售和營銷費用的一些細目？

And also, could the management share more updates on this year's brand image upgrade, considering our recent platform branding initiative resulted in a pretty heated discussion among users?

另外，考慮到我們最近的平台品牌推廣計劃在用戶中引起了相當激烈的討論，管理層能否分享更多關於今年品牌形像升級的更新？

Okay.

好的。

Alex, I will take your question and Carly will add more color about the brand upgrade program.

亞歷克斯，我會接受你的問題，卡莉會為品牌升級計劃添加更多色彩。

As Chairman Chen Rui mentioned, user growth is still the top priority of our business in this year.

正如陳睿董事長所說，用戶增長仍然是我們今年業務的重中之重。

So it's also the cornerstone of our commercial monetization progress.

所以這也是我們商業變現進程的基石。

So if you look at all the numbers, the main component for our marketing expenses are the channel promotion.

因此，如果您查看所有數字，我們營銷費用的主要組成部分是渠道推廣。

The channels like app store as well as feed ads channel and our brand activities as well as for our game release and promotions and our sales staff's bonuses.

應用商店等渠道以及飼料廣告渠道和我們的品牌活動以及我們的遊戲發布和促銷以及我們的銷售人員的獎金。

The incremental part, if we compare that with our Q4 numbers, are mainly for the channel promotion and brand activities.

增量部分，如果我們與我們的 Q4 數據相比，主要用於渠道推廣和品牌活動。

We don't set a very specific market cost target for financial purposes.

我們沒有為財務目的設定一個非常具體的市場成本目標。

But instead, we monitor all the ROI very closely to ensure the high-quality user growth.

但相反，我們非常密切地監控所有的投資回報率，以確保高質量的用戶增長。

And the decision will be made according to both of the quality and the quantity observations on all the newly added users, including their activeness degree, for example, the DAU, their retention level, time spent and average daily [interaction] (corrected by company after the call) and the numbers of their interactions.

並根據對所有新增用戶的質量和數量觀察做出決定，包括他們的活躍程度，例如DAU，他們的保留水平，花費的時間和平均每日[互動]（由公司更正通話後）和他們的互動次數。

When the market opportunity comes and the ROI is found reasonable, we will continue to invest.

當市場機會來臨時，投資回報率合理時，我們會繼續投資。

At the same time, with the deepening of our commercialization progress, the new users, we see they also effectively converted into our paying users.

同時，隨著我們商業化進程的深入，新的用戶，我們也看到他們也有效的轉化為我們的付費用戶。

In Q1, MAU just increased by 70% year-on-year, but the number of paying users increased over 130% year-over-year and the overall paying ratio also improving.

第一季度，MAU 同比僅增長 70%，但付費用戶數同比增長超過 130%，整體付費率也在提升。

So that demonstrates that we still have room to raise our paying ratio and get better long-term returns from our UG strategies.

這表明我們仍有空間提高支付率，並從我們的 UG 戰略中獲得更好的長期回報。

And the user growth will also lead to the growth of the top line.

而用戶的增長也將帶動收入的增長。

You will see that the leverage is still there.

您會看到槓桿仍然存在。

The top line increased by, I think, 69% in Q1, and our gross profit increased by 180%.

我認為第一季度的收入增長了 69%，我們的毛利潤增長了 180%。

So that means we just need to accelerate our commercialization process to get a better return from our investment.

所以這意味著我們只需要加快我們的商業化進程，就可以從我們的投資中獲得更好的回報。

So currently, we have over CNY 10 billion cash reserve after Sony's capital injection.

所以目前我們在索尼注資後擁有超過100億元的現金儲備。

And all the strategic shareholders, they are still very supportive of our user growth strategy.

而所有的戰略股東，他們仍然非常支持我們的用戶增長戰略。

And generally, in Q1, we still generate positive operating cash flow.

一般來說，在第一季度，我們仍然產生正的經營現金流。

And the actual cash burn for Q1 is just like RMB 200 million, which is much less than the loss recorded in our P&L.

而第一季度的實際現金消耗大約是 2 億元人民幣，這比我們在損益表中記錄的損失要少得多。

So the financial status is quite healthy.

所以財務狀況相當健康。

We believe the market is still booming, and the opportunity is still there.

我們相信市場仍在蓬勃發展，機會依然存在。

So we're just on the right track to catch those kinds of opportunities.

因此，我們正走在抓住這些機會的正確軌道上。

So I will let Carly comment about the brand upgrade program.

所以我會讓卡莉評論一下品牌升級計劃。

(foreign language)

（外語）

[Interpreted] So as you can -- are already aware, user growth will be our primary focus for 2020.

[解釋]所以你可以 - 已經意識到，用戶增長將是我們 2020 年的主要關注點。

And we have set up a comprehensive plan to grow our user in 2019 last year.

去年，我們制定了一個全面的計劃，以在 2019 年增加我們的用戶。

That includes to raise brand awareness and to correct some misperception of how our brand represents or some of our content vertical represent in -- among users or content consumers.

這包括提高品牌知名度並糾正用戶或內容消費者對我們的品牌代表方式或我們的某些內容垂直代表方式的誤解。

(foreign language)

（外語）

[Interpreted] So from late last year, we have tried some independent marketing campaigns.

【解讀】所以從去年年底開始，我們嘗試了一些獨立的營銷活動。

Some of the events you've probably already been very aware.

有些事件你可能已經非常清楚了。

One is our investment in the World Championships League of Legend and our New Year Eve's Gala and the most recent -- the Youth Day campaign regarding the new generation.

一個是我們對世界冠軍聯賽和我們的跨年晚會以及最近的一項關於新一代的青年節活動的投資。

And all of that have echoed strongly with our existing and potential users.

所有這些都與我們現有和潛在的用戶產生了強烈的共鳴。

(foreign language)

（外語）

[Interpreted] In addition, we'll also actively promote our content verticals within Bilibili ecosystems such as studying, such as vlogs, letting people know this is the go-to platform to consume those content verticals.

[解讀]此外，我們還將在 Bilibili 生態系統中積極推廣我們的內容垂直領域，例如學習，例如 vlog，讓人們知道這是消費這些垂直領域內容的首選平台。

This is also helping us to raise more brand awareness and platform awareness.

這也有助於我們提高品牌知名度和平台知名度。

(foreign language)

（外語）

[Interpreted] So from the Q1 operating data, it's already pretty obvious that the efforts and initiatives that we take has quite significantly raised our brand awareness and influence among Internet users aged between 15 to 35.

【解讀】所以從第一季度的運營數據來看，我們的努力和舉措已經非常明顯地提升了我們在15-35歲互聯網用戶中的品牌知名度和影響力。

And we have taken great pride of what we have done so far.

我們為迄今為止所做的一切感到非常自豪。

(foreign language)

（外語）

[Interpreted] So going forward, we'll continue to promote our brand through online and off-line campaigns.

[解釋] 所以今後，我們將繼續通過線上和線下活動來推廣我們的品牌。

We'll create more events, and we'll continue to educate our users about our categories and our content offerings.

我們將創建更多活動，我們將繼續向用戶介紹我們的類別和我們的內容產品。

(foreign language)

（外語）

[Interpreted] So going forward, we are going to launch a series of campaigns in terms of raising our brand awareness, our brand mission and positioning through a bunch of online and off-line activities.

【解讀】所以接下來，我們將通過一系列線上線下活動，在提升品牌知名度、品牌使命和定位等方面開展一系列活動。

And the time line will be surrounded with several important time stamps, for example, the graduation season and Bilibili's anniversary as well as summer vacation.

並且時間線周圍會有幾個重要的時間戳，比如畢業季、嗶哩嗶哩的周年紀念日以及暑假。

[Interpreted]

[解釋]

[Interpreted] So tomorrow, on [May] (corrected by company after the call) 20, it is also a very interesting time of the year.

【解讀】所以明天，【5月】（電話後公司更正）20號，也是一年中非常有趣的時候。

We will collaborate with a famous finger, Mao Buyi, to launch a graduation theme song called (foreign language) to dedicate that -- to dedicate the song to the new generation that is about to graduate from school and enter the society, and we quite look forward to that, to meet everybody.

我們將與著名手指毛不易合作推出一首畢業主題曲《（外語）》獻給——獻給即將畢業進入社會的新一代，我們相當期待，與大家見面。

Your next question comes from the line of Wendy Chen from Goldman Sachs.

您的下一個問題來自高盛的 Wendy Chen。

(foreign language) My question is related to the mobile game business.

（外語）我的問題是關於手游業務的。

So just a follow-up on the previous question, how do we foresee the mobile game business growth for the coming quarter, considering many gamers potentially have resumed work and school with potentially reduced gaming time?

所以只是對上一個問題的跟進，考慮到許多遊戲玩家可能已經恢復工作和上學，遊戲時間可能會減少，我們如何預測下一季度的手機遊戲業務增長？

And my second question is regarding -- since we're doing some very innovative campaigns to market our new title Princess Connect, wondering will we utilize such a marketing toolkit for the future games to be launched.

我的第二個問題是關於——因為我們正在做一些非常創新的活動來營銷我們的新遊戲 Princess Connect，想知道我們是否會在未來推出的遊戲中使用這樣的營銷工具包。

And lastly, wondering if management can share your insight on our strategic cooperation with Sony in terms of the game business.

最後，想知道管理層是否可以分享您對我們與索尼在遊戲業務方面的戰略合作的見解。

(foreign language)

（外語）

[Interpreted] So we actually don't believe the global pandemic has a big influence on our games business.

[解釋] 所以我們實際上並不認為全球大流行對我們的遊戲業務有很大的影響。

Actually, we're quite confident.

其實，我們很有信心。

Throughout the rest of the year with our game business, we currently have 30 games, exclusively licensed games, in our pipeline.

在我們遊戲業務的剩餘時間裡，我們目前有 30 款遊戲（獨家授權遊戲）正在籌備中。

Eight of those already acquired approval, and a majority of those in our pipeline are domestic titles and relatively smaller scale are from imported titles.

其中8個已經獲得批准，我們在研的大部分是國產作品，相對較小的規模來自進口作品。

So it's a very healthy component.

所以它是一個非常健康的成分。

(foreign language)

（外語）

[Interpreted] So the success of Princess Connect, we believe this is another strong testimony of our strong distribution power and our deep understanding in terms of ACG games.

【解讀】所以公主連線的成功，我們相信這是我們強大的發行能力和對ACG遊戲的深刻理解的又一有力證明。

And before the game was launched, the game had over 6.5 million preregistered users.

而在遊戲上線前，該遊戲的預註冊用戶已超過650萬。

And since its release on April 16, it has topped on the China's iOS top downloading charts for a week and reached the #2 on top grossing.

自 4 月 16 日發布以來，它已連續一周位居中國 iOS 下載排行榜榜首，並在總收入榜上排名第二。

And based on our strong execution, we believe this is a very, very successful event and a very successful launch.

基於我們強大的執行力，我們相信這是一次非常非常成功的活動，也是一次非常成功的發布。

(foreign language)

（外語）

[Interpreted] And based on the existing data and feedback that we have received, we believe this is going to be a title with very long life cycle, probably over 3 years.

[解讀]根據我們收到的現有數據和反饋，我們認為這將是一個生命週期非常長的遊戲，可能超過 3 年。

(foreign language)

（外語）

[Interpreted] So as I mentioned, the Princess Connect is another strong testimony of our distribution power in terms of ACG games, and we are becoming the inevitable channel in China to launch ACG-related titles.

【解讀】所以正如我所說，公主連接是我們在ACG遊戲方面的分銷能力的又一有力證明，我們正在成為中國推出ACG相關遊戲的必然渠道。

And we believe this advantage will further expand and our overall community is getting bigger and our overall community of users and gamers become more and more active.

我們相信這種優勢會進一步擴大，我們的整體社區會越來越大，我們的整體用戶和遊戲玩家社區會變得越來越活躍。

(foreign language)

（外語）

[Interpreted] And going forward, similar with our -- how we expand our content verticals, we'll also seek to expand our game offerings into more high-quality content, high-quality titles, and we are quite confident this will also be very successful as well.

[解釋] 展望未來，與我們擴展內容垂直的方式類似，我們還將尋求將我們的遊戲產品擴展到更多高質量的內容、高質量的遊戲，我們非常有信心這也將是也非常成功。

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So we indeed have a long-standing relationship with Sony.

[解讀]所以我們確實與索尼有著長期的合作關係。

Before the equity investment, we already are working with them on multiple business aspects, including animation and games.

在股權投資之前，我們已經在多個業務方面與他們合作，包括動畫和遊戲。

And with the strategic partnership, we are going to further solidify and bring our partnership to the next level in terms of animation and mobile games.

通過戰略合作夥伴關係，我們將進一步鞏固我們的合作夥伴關係，並將我們在動畫和手機遊戲方面的合作夥伴關係提升到一個新的水平。

(foreign language)

（外語）

[Interpreted] Sure.

[解釋] 當然。

Carly wanted to add something on that.

Carly 想在此基礎上添加一些內容。

So first of all, Sony is the world leader in terms of entertainment and technology, and Sony's strategic investments really demonstrate their confidence in Bilibili's growth potential and our unique positioning in the China entertainment market.

所以首先，索尼在娛樂和技術方面是全球領先的，而索尼的戰略投資確實表明了他們對嗶哩嗶哩的增長潛力和我們在中國娛樂市場的獨特定位的信心。

And on top of the animation and games Mr. Chen mentioned, we are also hoping to work with Sony on other aspects, including music as well as movies.

並且除了陳先生提到的動畫和遊戲之外，我們還希望在其他方面與索尼合作，包括音樂和電影。

We are hoping to really bring more world-class premium content to satisfy our growing user need.

我們希望真正帶來更多世界級的優質內容，以滿足我們不斷增長的用戶需求。

And your next question comes from 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.

（外語）我會翻譯我的問題。

My first question is regarding MAU target.

我的第一個問題是關於 MAU 目標的。

As we already achieved more than 170 million MAUs in first quarter, should we expect to revise up the full year target and also next year?

由於我們在第一季度已經實現了超過 1.7 億的 MAU，我們是否應該期望修改全年目標以及明年？

My second question is related to PUGV competition.

我的第二個問題與 PUGV 比賽有關。

There are many more platforms allowing content creators to upload on platform, and they also provide a lot of easy tools and cash returns to these content creators.

有更多的平台允許內容創作者在平台上上傳，他們也為這些內容創作者提供了很多簡單的工具和現金回報。

So how do -- how should we see the ROI of PUGV in future?

那麼如何——我們應該如何看待 PUGV 未來的投資回報率呢？

(foreign language)

（外語）

[Interpreted] Okay.

[解釋] 好的。

Regarding your first question on the user target, we are confident to say we are going to achieve our user target in advance.

關於您第一個關於用戶目標的問題，我們有信心提前實現我們的用戶目標。

When we get there, we'll discuss further about raising our user target.

當我們到達那裡時，我們將進一步討論提高我們的用戶目標。

And your second question about the competition.

還有你關於比賽的第二個問題。

I think the essential -- the foundation of your question relies on how we're able to keep our content creator or essentially how we are able to grow our content creators.

我認為最重要的 - 你的問題的基礎取決於我們如何能夠留住我們的內容創作者，或者本質上我們如何能夠培養我們的內容創作者。

And as you can see from our Q1 data that, actually, we have experienced a very fast growth in terms of our active content creator and their content creation.

正如您從我們的第一季度數據中看到的那樣，實際上，我們在活躍的內容創作者及其內容創作方面經歷了非常快速的增長。

The number of content creators was more than -- over 10,000 followers.

內容創建者的數量超過 - 超過 10,000 名追隨者。

The growth rate is also expediting.

增長速度也在加快。

All of that means we have cultivated a very healthy ecosystem that allows our content creators to grow on our platform.

所有這一切都意味著我們培育了一個非常健康的生態系統，讓我們的內容創作者能夠在我們的平台上成長。

And the message behind that is to truly respect the high-quality content, and we respect the high-quality content creators and always put quality in our priority.

而這背後的信息是真正尊重高質量的內容，我們尊重高質量的內容創作者，始終把質量放在首位。

It's much easier said than done.

說起來容易做起來難。

You have to persist that principle for over 10 years and to make sure this mechanism helps you keep attracting and retaining those users.

你必須堅持這個原則超過 10 年，並確保這個機制幫助你繼續吸引和留住這些用戶。

So as you can see, actually, those top content creators are staying with us and growing with Bilibili.

正如你所看到的，實際上，那些頂級的內容創作者正在和我們在一起，並與 Bilibili 一起成長。

And I think that's the key competitive edge Bilibili has compared with other competitors.

我認為這是 Bilibili 與其他競爭對手相比的關鍵競爭優勢。

And that concludes the question-and-answer session for today.

今天的問答環節到此結束。

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

我現在想將會議交還給管理層，以徵求任何其他意見或結束意見。

All right.

好的。

Thank you once again for joining us today.

再次感謝您今天加入我們。

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

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。

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

我們在中國和美國的 IR 內容信息可在今天的新聞稿中找到。

Have a great day.

祝你有美好的一天。

Ladies and gentlemen, that does conclude today's conference call.

女士們先生們，今天的電話會議到此結束。

Thank you for all participating today.

感謝大家今天的參與。

You may now all disconnect.

您現在可以全部斷開連接。

[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。]