Bilibili Inc (BILI) 2021 Q4 法說會逐字稿

Good day, and welcome to the Bilibili 2021 Fourth Quarter and Full Year Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

美好的一天，歡迎參加 Bilibili 2021 年第四季度和全年財務業績和業務更新電話會議。今天的會議正在錄製中。在這個時候，我想把會議交給投資者關係執行董事 Juliet Yang。請繼續。

Thank you, operator. During this call, we'll discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC and Hong Kong Stock Exchange. The non-GAAP financial measures we provide are for comparison purpose only. Definition of these measures and a reconciliation table are available in today's news release we issued earlier today.

謝謝你，接線員。在這次電話會議中，我們將討論我們的業務前景並做出前瞻性陳述。這些評論是基於我們今天的預測和期望。由於存在許多風險和不確定性，包括我們最近提交給美國證券交易委員會和香港聯交所的文件中提到的風險和不確定性，實際事件或結果可能與今天的新聞稿和本次討論中提到的有重大差異。我們提供的非公認會計原則財務指標僅用於比較目的。我們今天早些時候發布的今天的新聞稿中提供了這些措施的定義和對賬表。

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

提醒一下，本次會議正在錄製中。此外，Bilibili IR 網站 ir.bilibili.com 上將提供投資者介紹和本次電話會議的網絡重播。

Joining us today from Bilibili'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.

今天加入嗶哩嗶哩的還有董事長兼首席執行官陳睿先生；副董事長兼首席運營官李嘉玲女士；以及首席財務官 Sam Fan 先生。

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

我現在將把電話轉給范先生，范先生將代表陳先生宣讀準備好的發言。

Thank you, Juliet, and thank you, everyone, for participating in our 2020 first quarter results conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen.

謝謝朱麗葉，謝謝大家參加我們的 2020 年第一季度業績電話會議。我很高興代表陳先生髮表今天的開幕詞。

Growth remained the key word for Bilibili throughout the year of 2021. In the fourth quarter, our MAUs rose to 272 million and mobile MAUs rose to 252 million, each representing a 35% increase year-over-year, making us one of the fastest growing companies in China's Internet space. At the same time, average daily time spent on our platform rose to 82 minutes with DAUs reaching 72 million in Q4, 34% more than the same period in 2020. In fact, we have more than doubled our MAUs in the past 3 years, far outpacing the industry growth rate, and this is no small feat.

2021 年全年，增長依然是 B站的關鍵詞。第四季度，我們的 MAU 升至 2.72 億，移動 MAU 升至 2.52 億，同比增長 35%，成為最快的公司之一中國互聯網領域的成長型企業。與此同時，我們平台的日均使用時長上升到 82 分鐘，第四季度 DAU 達到 7200 萬，比 2020 年同期增長 34%。事實上，我們的 MAU 在過去 3 年中翻了一番多，遠超行業增速，這是不小的壯舉。

Importantly, our expanding user scale translated to top line expansion with consistent quarterly growth in 2021. For the fourth quarter, our total revenues reached another record high of RMB 5.8 billion, up 51% year-over-year, and our full year revenues grew by 62% to RMB 19.4 billion. MPUs in Q4 grew to 24.5 million, up 37% year-over-year. And our paying ratio expanded to 9%. Above all, as we gain more users, more advertising dollars are being directed to our platform. Our full year advertising revenue reached to CNY 4.5 billion, up 145% year-over-year, spearheading our top line growth.

重要的是，我們不斷擴大的用戶規模轉化為收入的擴張，並在 2021 年實現季度持續增長。第四季度，我們的總收入再創歷史新高，達到 58 億元人民幣，同比增長 51%，全年收入增長194 億元人民幣，增長 62%。第四季度的 MPU 增長到 2450 萬，同比增長 37%。我們的支付比例擴大到 9%。最重要的是，隨著我們獲得更多用戶，更多的廣告費用被引導到我們的平台。我們全年的廣告收入達到 45 億元人民幣，同比增長 145%，引領我們的收入增長。

We firmly believe the value of our community is tied closely with the scale of our users and their level of trust in our platform. There is no doubt that our Gen Z+ users are the most valuable group in the market. They are our society's backbone and the mainstream consumers in all kinds of economies. Our engaging community connects and tightly bonds those users to our platform, creating an invaluable relationship built on trust, which leads to multiple avenues for commercialization.

我們堅信我們社區的價值與我們的用戶規模和他們對我們平台的信任程度密切相關。毫無疑問，我們的 Z+ 世代用戶是市場上最有價值的群體。他們是我們社會的脊梁，是各種經濟體的主流消費者。我們引人入勝的社區將這些用戶與我們的平台聯繫起來並緊密聯繫在一起，建立了一種建立在信任基礎上的寶貴關係，從而為商業化提供了多種途徑。

Looking at our plan for 2022 in more detail, quality growth will remain our top priority. We will continue to build our multi-category content ecosystem, meeting users' video demands across various consumption scenarios. We remain committed to achieving our user target of 400 million MAUs by the end of 2023. While we grow our user base, we will continue to improve our commercialization capabilities. Specifically, we plan to increase our revenue per MAU by developing more value-added services to meet our users' evolving needs as well as increasing our ad revenue by optimizing our ad products and improving ad efficiency. Our revenue per MAU in 2021 increased by 20% year-over-year, and we expect this trend to continue.

更詳細地審視我們的 2022 年計劃，質量增長仍將是我們的首要任務。我們將繼續構建多品類內容生態系統，滿足用戶跨各種消費場景的視頻需求。我們將繼續致力於在 2023 年底之前實現 4 億 MAU 的用戶目標。在我們擴大用戶群的同時，我們將繼續提高我們的商業化能力。具體而言，我們計劃通過開發更多增值服務來滿足用戶不斷變化的需求，並通過優化我們的廣告產品和提高廣告效率來增加我們的廣告收入，從而增加我們的每 MAU 收入。我們在 2021 年的每 MAU 收入同比增長 20%，我們預計這一趨勢將持續下去。

More importantly, we plan to optimize our capital allocation and effectively control our spending across our business. In 2022, we will strengthen our execution and our commercialization capability and aim to narrow our loss margins. Meanwhile, we hold RMB 30 billion in cash reserves as of the end of 2021. This gives our ample liquidity to support our long-term growth strategy and provides a strong cushion in the evolving industry landscape.

更重要的是，我們計劃優化我們的資本配置並有效控制我們在整個業務中的支出。 2022年，我們將加強我們的執行力和商業化能力，旨在縮小我們的虧損幅度。同時，截至2021年底，我們持有人民幣300億元的現金儲備。這為我們提供了充足的流動性來支持我們的長期增長戰略，並為不斷變化的行業格局提供了強大的緩衝。

With that overview, I'd like to go through some details on our fourth quarter operations as they relate to our content, community and commercialization. PUGVs continued to be our most prevalent feature, accounting for nearly 94% of our video views in the fourth quarter. As the bedrock of our ecosystem, we're actively expanding our PUGV content categories and scenarios to grow and tether our community together. Our top categories in the fourth quarter were lifestyle, games, entertainment, anime and knowledge. Our active users inspire our creators and vice versa, creating a reciprocal community environment that fuels our virtuous cycle. In the fourth quarter, over 3 million monthly active creators submitted nearly 11 million video creations. And that makes 58% more creators and 83% more submissions compared with the same period last year, outpacing our user growth.

有了這個概述，我想詳細介紹一下我們第四季度的運營，因為它們與我們的內容、社區和商業化有關。 PUGV 仍然是我們最流行的功能，在第四季度占我們視頻瀏覽量的近 94%。作為我們生態系統的基石，我們正在積極擴展我們的 PUGV 內容類別和場景，以發展和將我們的社區聯繫在一起。我們在第四季度的熱門類別是生活方式、遊戲、娛樂、動漫和知識。我們的活躍用戶激勵我們的創造者，反之亦然，創造了一個互惠的社區環境，推動了我們的良性循環。第四季度，每月有超過 300 萬活躍創作者提交了近 1100 萬個視頻創作。與去年同期相比，這使得創作者增加了 58%，提交量增加了 83%，超過了我們的用戶增長。

Content creators with more than 10,000 followers increased by 41% in the fourth quarter, showing that our community connections was tighter than ever. We have continued to refine our algorithm and create avenues to unlock content creators commercial value, making sure they are seen, recognized and well rewarded. In January, we honored top 100 content creators at the Fourth Annual BILIBILI POWER UP 2021 Awards Ceremony. Notably, in 2021, over 1.3 million content creators received monetary rewards through various channels on Bilibili, covering near 90% of content creators with over 10,000 followers. Primary payment channels include our cash incentive program, live broadcasting, the Sparkle ad platform and the direct tipping from users. By the end of 2021, over 550,000 content creators have enrolled in our cash incentive program. On top of native ads on our Sparkle platform, we plan to launch more accessible and scalable ad tools and functions within or around video play frame to help better monetize content creators private domain traffic.

擁有超過 10,000 名粉絲的內容創作者在第四季度增長了 41%，這表明我們的社區聯繫比以往任何時候都更加緊密。我們不斷完善我們的算法並創造途徑來釋放內容創作者的商業價值，確保他們被看到、認可並獲得豐厚的回報。 1 月，我們在第四屆年度 BILIBILI POWER UP 2021 頒獎典禮上表彰了前 100 名內容創作者。值得注意的是，2021年，超過130萬內容創作者通過嗶哩嗶哩的各種渠道獲得了金錢獎勵，覆蓋了近90%的擁有1萬多粉絲的內容創作者。主要支付渠道包括我們的現金獎勵計劃、直播、Sparkle 廣告平台和用戶直接打賞。到 2021 年底，已有超過 550,000 名內容創作者加入了我們的現金獎勵計劃。除了 Sparkle 平台上的原生廣告之外，我們還計劃在視頻播放框架內或周圍推出更易於訪問和可擴展的廣告工具和功能，以幫助更好地利用內容創建者的私域流量獲利。

As part of our user growth strategy, we are upgrading our content ecosystem with a few different ways. The first is expanding our category outreach to appeal to different genders, occupations and age groups. Each of these groups bring us more avenues to grow our user base. For example, we are advancing our positions in the student community, adding more female-oriented content and expanding our pan-knowledge libraries' appeal to mature users.

作為我們用戶增長戰略的一部分，我們正在通過幾種不同的方式升級我們的內容生態系統。首先是擴大我們的品類覆蓋範圍，以吸引不同的性別、職業和年齡組。這些群體中的每一個都為我們帶來了更多擴大用戶群的途徑。例如，我們正在提升我們在學生社區的地位，增加更多面向女性的內容，並擴大我們的泛知識庫對成熟用戶的吸引力。

Secondly, we are broadening our video formats to address users' needs in different access scenarios. Specifically, we are optimizing our short-form video Story Mode to fit into users' fragmented time. The initial feedback from our community is encouraging. It's not only satisfied content needs for users on the go and boosted the engagement levels, but also helped the users discover even more PUGVs and live broadcasting content across our video universe. Additionally, our Smart TV App that extends to living rooms is meeting our users' needs for immersive video experiences on large screen. These initiatives are aptly in sync with our brand proposition. All the videos you like, anywhere, any time.

其次，我們正在拓寬視頻格式，以滿足用戶在不同接入場景下的需求。具體來說，我們正在優化我們的短視頻故事模式，以適應用戶的碎片化時間。我們社區的初步反饋令人鼓舞。它不僅滿足了用戶在旅途中的內容需求並提高了參與度，而且還幫助用戶在我們的視頻世界中發現了更多的 PUGV 和直播內容。此外，我們擴展到客廳的智能電視應用程序正在滿足我們用戶對大屏幕沉浸式視頻體驗的需求。這些舉措與我們的品牌主張非常吻合。您喜歡的所有視頻，隨時隨地。

For our OGV department, expanding our OGV categoryies is helping us attract new users, convert users to premium members and create valuable IP assets. Two main areas of focus will be Chinese anime and documentary. In November, we announced 51 new Chinese anime titles at our fourth Made by Bilibili Chinese Anime Press conference. As an imaginative art form, we believe that Chinese anime can transcend barriers of gender, race and language.

對於我們的 OGV 部門而言，擴大我們的 OGV 類別有助於我們吸引新用戶，將用戶轉化為高級會員並創造有價值的 IP 資產。中國動漫和紀錄片將是兩個主要重點領域。 11 月，我們在第四屆嗶哩嗶哩中國動漫新聞發布會上宣布了 51 部新的中國動漫作品。作為一種富有想像力的藝術形式，我們相信中國動漫可以超越性別、種族和語言的障礙。

With our increasing global appeal, we also officially upgraded our Chinese anime proposition to Made by Bilibili, Made for Global. We are delighted to see our Chinese anime being highlighted for its originality, long-tail IP asset value and our successful globalization initiatives.

隨著我們在全球的吸引力越來越大，我們也正式將我們的中國動漫主張昇級為由嗶哩嗶哩製造，為全球製造。我們很高興看到我們的中國動漫因其原創性、長尾 IP 資產價值和我們成功的全球化舉措而備受矚目。

Over the past 2 years, we have established partnership with Netflix and Sony, distributing 24 titles in overseas markets. In 2021, our top-rated anime titles were The Daily Life of the Immortal King Season 2 and Link Click which not only won the heart of Chinese fans but also reached over 100 countries' anime markets.

過去 2 年，我們與 Netflix 和索尼建立了合作夥伴關係，在海外市場發行了 24 部作品。 2021年，我們收視率最高的動漫作品是《仙王的日常》第二季和《Link Click》，不僅贏得了中國粉絲的心，還進入了100多個國家的動漫市場。

We also hosted our first Documentary Press event in December and announced the plan to produce 21 new titles in the coming years. As our flagship content category, documentaries represent our useful content. In addition to commercial value, it's also bringing great cultural value and represents our commitment to social responsibility. Some of our docuseries have already turned into important IPs. In January, the return of our reading documentary, And Yet the Book, and police station reality show, The Guardians of Jiefangxi, were both met with great enthusiasm.

我們還在 12 月舉辦了第一次紀錄片新聞發布會，並宣布了在未來幾年製作 21 部新作品的計劃。作為我們的旗艦內容類別，紀錄片代表了我們的有用內容。除了商業價值，它還帶來了巨大的文化價值，代表了我們對社會責任的承諾。我們的一些紀錄片系列已經變成了重要的 IP。 1月，我們的閱讀紀錄片《還書》和派出所真人秀《解放西守護者》的回歸，都受到了熱烈的歡迎。

Turning to our community. Community surrounds and grounds our ecosystem. Our users and content creators form tight bonds and interactions creates trust, a strong sense of belonging, inspiration and retention value. We actively cultivate a fun, informative and friendly environment where users can express themselves in a supportive community. For the fourth quarter, we had remarkably high engagement and interaction levels, showing that both new and experienced members are finding connection and fun on Bilibili.

轉向我們的社區。社區圍繞並奠定了我們的生態系統。我們的用戶和內容創建者形成了緊密的聯繫，互動創造了信任、強烈的歸屬感、靈感和保留價值。我們積極營造一個有趣、信息豐富和友好的環境，用戶可以在支持性社區中表達自己。第四季度，我們的參與度和互動水平非常高，這表明新老會員都在 Bilibili 上找到了聯繫和樂趣。

As mentioned previously, in Q4, the average daily time spent on Bilibili reached 82 minutes, the highest of fourth quarter usage time in our operating history and the daily video views soared to 2.2 billion, up 80% year-over-year. Monthly interactions in the fourth quarter more than doubled from the same period in 2020, jumping into 10.1 billion. We exited the year with 145 million official members, up 42% year-over-year and a strong 12-month retention rate of 84%.

如前所述，第四季度，嗶哩嗶哩的日均使用時長達到了 82 分鐘，是我們運營歷史上第四季度的最高使用時長，日均視頻觀看量飆升至 22 億，同比增長 80%。第四季度的月度互動量比 2020 年同期增加了一倍多，躍升至 101 億次。我們以 1.45 億正式會員結束了這一年，同比增長 42%，12 個月的保留率高達 84%。

Now let's look at our commercialization progress. In the fourth quarter, our total revenues reached RMB 5.8 billion, up 51% year-over-year, and our full year revenues grew by 62% to RMB 19.4 billion. Revenue per MAU was RMB 77.6 in 2021, up 20% year-over-year. Having gathered half of China's Gen Z+ population on our platform and understood their needs, we believe we can consistently improve our commercialization capabilities and continue to increase our revenue per MAU.

現在讓我們看看我們的商業化進展。第四季度，我們的總收入達到人民幣 58 億元，同比增長 51%，全年收入增長 62% 至人民幣 194 億元。 2021年每MAU收入為人民幣77.6元，同比增長20%。在我們的平台上聚集了中國 Z+ 一代人口的一半並了解他們的需求後，我們相信我們可以不斷提高我們的商業化能力並繼續增加我們的每 MAU 收入。

Beginning with our mobile game business, under the current game industry environment, our goal for 2022 is clear. We will enhance our current domestic game operations while we continue to focus on selectively developing games in-house and overseas games distribution. As for our games pipeline, we currently have 5 titles approved for domestic release and 13 titles slated for international release in the coming quarters.

從我們的手游業務開始，在當前的遊戲行業環境下，我們2022年的目標是明確的。我們將加強我們目前的國內游戲業務，同時繼續專注於有選擇地開發遊戲內部和海外遊戲發行。至於我們的遊戲管道，我們目前有 5 款遊戲獲准在未來幾個季度在國內發布，13 款遊戲計劃在國際發布。

For the fourth quarter, our mobile game revenues were RMB 1.3 billion, up 15% from the same period last year. We released 4 new titles domestically and 3 new titles in overseas markets during the quarter. Meanwhile, many of our older games were still showing long life cycles. Revenues were still on the rise for some of our exclusively licensed games such as Azur Lane.

第四季度，我們的手游收入為人民幣13億元，同比增長15%。本季度我們在國內發布了 4 款新遊戲，在海外市場發布了 3 款新遊戲。與此同時，我們的許多老遊戲仍然顯示出較長的生命週期。我們的一些獨家授權遊戲（例如 Azur Lane）的收入仍在增長。

As a game operator, we continue to protect young players from game addiction and promote healthy game behavior following the anti-addiction measures we launched early on for teenager players. In 2021, our revenues from players 18 years old accounted for less than 1% of our game revenues.

作為遊戲運營商，我們在早期針對青少年玩家推出的防沉迷措施之後，繼續保護年輕玩家免受遊戲成癮並促進健康的遊戲行為。 2021年，我們來自18歲玩家的收入占我們遊戲收入的比例不到1%。

Looking at our VAS business. Our VAS business remained strong with revenues of RMB 1.9 billion in the fourth quarter, up 52% year-over-year. VAS revenue per MAU was RMB 27.8 in 2021, up 34% year-over-year. As we develop more products and services based on our users' entertainment needs, we believe VAS has great growth potentials beyond live broadcasting and the premium memberships. We will actively explore innovative avenues within our community to increase VAS revenue per MAU.

看看我們的增值服務業務。我們的增值服務業務保持強勁，第四季度收入為人民幣 19 億元，同比增長 52%。 2021 年每 MAU 的 VAS 收入為 27.8 元人民幣，同比增長 34%。隨著我們根據用戶的娛樂需求開發更多產品和服務，我們相信增值服務在直播和高級會員之外具有巨大的增長潛力。我們將積極探索社區內的創新途徑，以增加每 MAU 的 VAS 收入。

Live broadcasting, as an organic component of our video content ecosystem, has formed multiple self-reinforcing circulations within our community. For example, we see great synergies between content creators and live broadcasting hosts as well as their commercialization opportunities. In 2021, over 70% of our content creators with 1 million followers were live broadcasting hosts. Over 600,000 content creators generated income through live broadcasting during the year. In 2022, we will continue to explore innovative ways to incorporate live broadcasting with our video community and enhance users' overall experience.

直播作為我們視頻內容生態系統的有機組成部分，在我們的社區內形成了多種自我強化的循環。例如，我們看到內容創作者和直播主持人之間的巨大協同效應以及他們的商業化機會。 2021年，我們擁有100萬粉絲的內容創作者中有70%以上是直播主。全年超過60萬內容創作者通過直播創收。 2022年，我們將繼續探索創新方式，將直播融入視頻社區，提升用戶整體體驗。

Turning to our premium membership business. By the end of the fourth quarter, the number of premium memberships reached an exciting milestone of 20 million, representing an increase of 39% year-over-year. Notably, near 80% of our premium members signed up for an annual or continuous monthly plan, demonstrating their love and trust in our platform.

轉向我們的高級會員業務。到第四季度末，高級會員數量達到了令人興奮的里程碑，達到了 2000 萬，同比增長 39%。值得注意的是，我們近 80% 的高級會員註冊了年度或連續月度計劃，這表明他們對我們平台的熱愛和信任。

As for advertising, our advertising business is a great demonstration of how our value comes from our users and strong trust between them and the community. We hit another home run with advertising services in the fourth quarter. Ad revenue in Q4 reached RMB 1.6 billion, up 120% year-over-year. Full year ad revenue came in at RMB 4.5 billion, up 145% year-over-year. Ad revenue per MAU in 2021 was RMB 18.1, up 83% year-over-year. With nearly half of China's Gen Z+ users on our platform, Bilibili has become a must for advertisers looking to reach this golden consumer group.

至於廣告，我們的廣告業務很好地展示了我們的價值如何來自我們的用戶以及他們與社區之間的強大信任。我們在第四季度的廣告服務又打了一個本壘打。第四季度廣告收入達到人民幣 16 億元，同比增長 120%。全年廣告收入為人民幣 45 億元，同比增長 145%。 2021年每MAU的廣告收入為18.1元，同比增長83%。在我們的平台上擁有近一半的中國 Z+ 世代用戶，嗶哩嗶哩已成為廣告商接觸這一黃金消費群體的必經之地。

Video-based integrated marketing campaigns has emerged as a key solution. In 2021, more of our native ads went viral, alerting even more advertisers to our powerful content and its influence among users. In 2022, we plan to further integrate our Sparkle ad platform with more scalable ad products. This will enable native ads to gain more exposure while realizing more efficient and smooth sales conversions on Bilibili, achieving the effects of brand and performance ads in one shot. Additionally, we plan to enrich our ad display scenarios with Story Mode and mart TV, greatly increasing our ad inventory and offering more places for advertisers to reach their desired customers.

基於視頻的整合營銷活動已成為關鍵解決方案。 2021 年，我們更多的原生廣告在病毒式傳播，提醒更多廣告商注意我們強大的內容及其在用戶中的影響力。 2022 年，我們計劃將 Sparkle 廣告平台與更具擴展性的廣告產品進一步整合。這將使原生廣告在獲得更多曝光的同時，在 Bilibili 上實現更高效、更流暢的銷售轉化，實現品牌和效果廣告的效果一舉兩得。此外，我們計劃通過 Story Mode 和 mart TV 豐富我們的廣告展示場景，大大增加我們的廣告庫存，並為廣告商提供更多接觸他們想要的客戶的地方。

We're glad to see our integrated marketing campaigns have been welcomed by more and more new industries. In 2021, we welcomed a well-known consumer brand and a premier automotive group and our key sponsors of the New Year's Eve Gala.

我們很高興看到我們的整合營銷活動受到越來越多新興行業的歡迎。 2021 年，我們迎來了知名消費品牌和首屈一指的汽車集團以及我們的跨年晚會的主要贊助商。

In the fourth quarter, our top 5 advertising verticals were mobile games, e-commerce, 3C and digital products, food and beverage and automotive. As we move through 2022, we expect visualization to continue paving the way for massive industry opportunities forward. We will continue expanding our user base, and we believe we are still in the initial stages of ramping our commercialization efforts.

第四季度，我們排名前 5 的廣告垂直領域是手機遊戲、電子商務、3C 和數碼產品、食品飲料和汽車。隨著我們進入 2022 年，我們預計可視化將繼續為巨大的行業機遇鋪平道路。我們將繼續擴大我們的用戶群，我們相信我們仍處於加速商業化努力的初始階段。

In 2022, we will work to generate more revenue per MAU by introducing more value-added services to our users and valuable ad products to our partners. At the same time, we will focus on expense control and overall operating efficiency improvement.

2022 年，我們將通過向我們的用戶推出更多的增值服務和向我們的合作夥伴推出有價值的廣告產品，努力創造更多的每 MAU 收入。同時，我們將專注於費用控制和整體運營效率的提升。

This concludes Mr. Chen's remarks. I will now provide a brief overview of our financial results for the fourth quarter of 2021 and the outlook for the first quarter of 2022.

陳先生的發言到此結束。我現在將簡要概述我們 2021 年第四季度的財務業績和 2022 年第一季度的前景。

Total net revenues for the fourth quarter waere RMB 5.8 billion, up 51% from the same period of 2020. We continue to see a more balanced revenue mix driven by our diversified commercialization channels. Our total net revenues breakdown by revenue stream was approximately 22%, mobile games; 33%, VAS; 28%, advertising; and 17%, e-commerce and other business.

第四季度總淨收入為人民幣 58 億元，比 2020 年同期增長 51%。在多元化商業化渠道的推動下，我們繼續看到更加平衡的收入組合。我們按收入來源劃分的總淨收入約為 22%，手機遊戲； 33%，增值服務； 28%，廣告； 17%，電子商務和其他業務。

Cost of revenues increased by 62% year-over-year to RMB 4.7 billion. Revenue sharing cost, a key component of cost of revenues was RMB 2.4 billion, representing 91% increase from the same period in 2020.

收入成本同比增長 62% 至 47 億元人民幣。收入分成成本是收入成本的重要組成部分，為人民幣 24 億元，較 2020 年同期增長 91%。

Gross profit increased by 16% year-over-year to RMB 1.1 billion, and our gross margin was 19% in the fourth quarter. Total operating expenses waere RMB 3.1 billion, up 68% from the same period in 2020.

毛利潤同比增長 16% 至人民幣 11 億元，第四季度我們的毛利率為 19%。總營業費用為人民幣31億元，較2020年同期增長68%。

Sales and marketing expenses were RMB 1.8 billion, representing a 73% increase year-over-year. The increase was primarily attributable to increased channel and marketing expenses to promote our app and brand as well as promotional expenses for our mobile games.

銷售及營銷費用為人民幣18億元，同比增長73%。增加的主要原因是推廣我們的應用程序和品牌的渠道和營銷費用以及我們的手機遊戲的推廣費用增加。

Moving into 2022, we aim to actively manage and control our marketing spending and improve our overall operating efficiency. G&A expenses were RMB 538.1 million, representing a 57% increase year-over-year. The increase was primarily due to increased headcount in G&A personnel, share-based compensation expenses, allowance for doubtful accounts, rental expenses and other G&A expenses.

進入 2022 年，我們的目標是積極管理和控制我們的營銷支出，提高我們的整體運營效率。 G&A 費用為人民幣 5.381 億元，同比增長 57%。增加的主要原因是 G&A 人員人數增加、股票薪酬費用、呆賬準備金、租金費用和其他 G&A 費用。

R&D expenses were RMB 797.6 million, representing a 65% increase year-over-year. The increase was primarily due to increased headcount in research and development team and share-based compensation expenses. Net loss was RMB 2.1 billion for the fourth quarter of 2021 compared with RMB 843.7 million in the same period of 2020.

研發費用為人民幣7.976億元，同比增長65%。增加的主要原因是研發團隊的人數增加和股權激勵費用。 2021年第四季度淨虧損為人民幣21億元，而2020年同期為人民幣8.437億元。

Adjusted net loss, which is a non-GAAP measure that excludes share-based compensation expenses, amortization expense related to the intangible assets acquired through business acquisitions, income tax related to the intangible assets acquired through business acquisition and the loss of fair value change in publicly traded companies was RMB 1.7 billion compared with RMB 0.7 billion in the same period of 2020. Basic and diluted net loss per share were each RMB 5.34. Adjusted basic and diluted net loss per share was each RMB 4.22.

調整後的淨虧損，這是一種非公認會計原則的衡量標準，不包括股權激勵費用、與通過業務收購獲得的無形資產相關的攤銷費用、與通過業務收購獲得的無形資產相關的所得稅以及公允價值變動損失上市公司為人民幣 17 億元，而 2020 年同期為人民幣 7 億元。每股基本和攤薄淨虧損分別為人民幣 5.34 元。調整後每股基本及攤薄淨虧損為人民幣4.22元。

For the full year of 2021, our total net revenues increased by 62% to RMB 19.4 billion. Notably, non-game revenue for 2021 grew 99% year-on-year, accounting for 74% of the total revenue. Gross profit for the 2021 full year increased 42% to RMB 4 billion. Net loss for 2021 was RMB 6.8 billion compared with RMB 3.1 billion in 2020. Adjusted net loss for 2021 was RMB 5.5 billion compared with RMB 2.6 billion in 2020. Basic and diluted net loss per share for 2021 was RMB 17.87 as compared with RMB 8.71 in 2020. Adjusted basic and diluted net loss per share were RMB 14.42 compared with RMB 7.4 in 2020.

2021年全年，我們的總淨收入增長62%至人民幣194億元。值得注意的是，2021年非遊戲收入同比增長99%，佔總收入的74%。 2021年全年毛利增長42%至人民幣40億元。 2021 年淨虧損為人民幣 68 億元，而 2020 年為人民幣 31 億元。 2021 年調整後淨虧損為人民幣 55 億元，而 2020 年為人民幣 26 億元。 2021 年基本及攤薄每股淨虧損為人民幣 17.87 元，而 2021 年為人民幣 8.71 元2020 年調整後的基本和攤薄每股淨虧損為 14.42 元，而 2020 年為 7.4 元。

As of December 31, 2021, we had cash and cash equivalents, time deposits and short-term investments of RMB 30.2 billion compared with RMB 12.8 billion as of December 31, 2020.

截至 2021 年 12 月 31 日，我們的現金及現金等價物、定期存款和短期投資為人民幣 302 億元，而截至 2020 年 12 月 31 日為人民幣 128 億元。

Driving long-term value for all of our stakeholders remains our broader objective. We are pleased to announce an up to USD 500 million share repurchase program in the next 24 months. In addition, our Chairman and CEO, Chen Rui, also expressed his intention to use his personal funds to purchase the company's outstanding ADS for up to USD 10 million in the next 24 months. With that in mind, we are currently projecting net revenues for the first quarter of 2022 to be between RMB 5.3 billion and RMB 5.5 billion.

為所有利益相關者創造長期價值仍然是我們更廣泛的目標。我們很高興地宣佈在未來 24 個月內進行高達 5 億美元的股票回購計劃。此外，我們的董事長兼首席執行官陳銳也表示有意在未來24個月內，以個人資金購買公司流通在外的ADS，最高可達1000萬美元。考慮到這一點，我們目前預計 2022 年第一季度的淨收入將在人民幣 53 億元至人民幣 55 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) Our first question is from Lei Zhang with Bank of America Merrill Lynch.

（操作員說明）我們的第一個問題來自美銀美林的張磊。

(foreign language) Firstly, a high-level question on your strategic focus in 2022. And secondly, on users side with our outlook in user growth for 2022 and how should we achieve our user target. Related to that, any color on the fourth quarter user and community investment?

（外語）首先，關於您在 2022 年的戰略重點的高級問題。其次，關於用戶方面，我們對 2022 年用戶增長的展望以及我們應該如何實現我們的用戶目標。與此相關的是，第四季度用戶和社區投資有什麼不同嗎？

(foreign language)

（外語）

[Interpreted] Our key word for 2022 will still be focused on growth. Growth on the user side, on the revenue side and most importantly, we wanted to remain the growth quality. We want to keep it a high-quality growth.

【解讀】我們2022年的關鍵詞仍然是增長。用戶方面的增長，收入方面的增長，最重要的是，我們希望保持增長質量。我們希望保持它的高質量增長。

For example, in Q4, we maintained a very high-quality user growth rate. Our MAU reached 272 million, up 35% year-over-year. And most importantly, the healthiness of that MAU is very strong. For example, the average daily time spent per DAU reached 82 minutes, and that is the highest the DAU time spent we've seen in the fourth quarter operating history.

例如，在第四季度，我們保持了非常高質量的用戶增長率。我們的 MAU 達到 2.72 億，同比增長 35%。最重要的是，該 MAU 的健康度非常強。例如，每個 DAU 平均每天花費的時間達到 82 分鐘，這是我們在第四季度運營歷史上看到的最高 DAU 時間。

And on the community engagement side, our monthly interactions grew over 116% year-over-year, reaching 10 billion. And on the retention side, the 12-month retention rate of our official member has further increased to 84%.

在社區參與方面，我們每月的互動量同比增長超過 116%，達到 100 億次。而在留存方面，我們官方會員的12個月留存率進一步提升至84%。

And on top of those engagement numbers, we noticed that all the users that come into our community have effectively converted to our paying users. In the fourth quarter, the monthly MPUs increased 37% year-on-year, outpacing the MAU growth rate, and our annual paying ratio reached 9%, which has improved from 8% from 2020 and 6-plus percent compared to 2019. And over -- this is very important over the period of growth we are able to deliver this quality set of numbers to show that we really have delivered high-quality growth rate.

除了這些參與人數之外，我們注意到進入我們社區的所有用戶都有效地轉化為我們的付費用戶。第四季度，每月 MPU 同比增長 37%，超過 MAU 增速，我們的年支付率達到 9%，較 2020 年的 8% 和 2019 年的 6% 以上有所改善。結束——這在增長期間非常重要，我們能夠提供這組高質量的數字，以表明我們確實實現了高質量的增長率。

As we look ahead, we still are very, very confident to achieve our 400 million MAU user target by end of 2023. And looking at our January number, our overall MAU have reached over 300 million milestone. And more importantly, the daily time spent per DAU has reached over 90 minutes. So the momentum -- growth momentum remained very, very strong, and we are confident to continue to deliver this high-quality, high-growth rate set of numbers.

展望未來，我們仍然非常非常有信心在 2023 年底之前實現 4 億 MAU 用戶的目標。看看我們 1 月份的數字，我們的整體 MAU 已經達到了超過 3 億的里程碑。更重要的是，每個 DAU 每天花費的時間已經達到 90 多分鐘。所以勢頭——增長勢頭仍然非常非常強勁，我們有信心繼續提供這組高質量、高增長率的數據。

As we look in the past, we think Bilibili is a very unique product across the global Internet landscape. We have maintained a fast and healthy growth rate for the past 13 years, and we think that contributes to our powerful content ecosystem-driven business model. And based on this business model, we're still very confident that this growth momentum can continue.

回顧過去，我們認為 Bilibili 在全球互聯網領域是一個非常獨特的產品。在過去的 13 年裡，我們一直保持快速健康的增長速度，我們認為這有助於我們強大的內容生態系統驅動的商業模式。而且基於這種商業模式，我們仍然非常有信心這種增長勢頭能夠持續下去。

So if we're taking another look at our growth on the revenue side, for the past 2 years, we see revenue growth as important as our user growth. especially within our VAS and advertising segment, and they have been keeping roughly around 100% year-on-year growth rate.

因此，如果我們重新審視我們在收入方面的增長，在過去 2 年中，我們認為收入增長與用戶增長同樣重要。特別是在我們的增值服務和廣告領域，它們一直保持著大約 100% 的同比增長率。

As we look into our past work priority or resource allocation in the past 2 years, the energy we put in revenue growth versus user growth could split to 3 to 7 ratio. And for this year, we will adjust our resource allocation and split our energy and resource equally into both revenue growth and user growth. In other words, revenue growth will play a much more important role across our work priorities.

當我們回顧過去 2 年的工作重點或資源分配時，我們在收入增長與用戶增長方面投入的精力可能會分成 3 比 7 的比例。今年，我們將調整資源配置，將精力和資源平均分配給收入增長和用戶增長。換句話說，收入增長將在我們的工作重點中發揮更重要的作用。

And on the other hand, we've noticed that there's being a fluctuation in the capital market. There's been a fluctuation on the stock price as well. And from another perspective, this is actually helping the overall industry to reduce the rat race. For example, on the sales and marketing side and compete for talent side, there's been a very, very heavy, intense rat race across the sector. And we believe that situation will alleviate this year, and we'll pay more attention to control our expenses and reduce our costs and improve our overall efficiency, putting every dollar we spend into more use. So that's the -- all the answers.

另一方面，我們注意到資本市場存在波動。股價也有波動。而從另一個角度來看，這實際上是在幫助整個行業減少競爭。例如，在銷售和營銷方面以及人才競爭方面，整個行業都在進行一場非常、非常沉重、激烈的激烈競爭。我們相信今年情況會有所緩解，我們會更加註重控制開支，降低成本，提高整體效率，讓我們花的每一分錢都得到更多的利用。這就是——所有的答案。

Our next question comes from Alex Yao with JPMorgan.

我們的下一個問題來自摩根大通的 Alex Yao。

(foreign language) I'd like to ask a couple of questions on relatively new product, Story Mode. Can you share with us some of the latest thoughts around the product penetration rate? And then what kind of the role you want this product to play in our content ecosystem over the medium to longer term? Lastly, how do you guys think about the monetization potential and the revenue model for this product?

（外語）我想問幾個關於相對較新的產品故事模式的問題。您能否與我們分享一些關於產品滲透率的最新想法？那麼您希望這款產品在中長期內在我們的內容生態系統中扮演什麼樣的角色？最後，你們如何看待這個產品的貨幣化潛力和收入模式？

(foreign language)

（外語）

[Interpreted] The product Story Mode actually has already been online last year. However, our users really -- they can tell -- they don't know the product name, it's called Story Mode because it's been integrated in our overall user interface. It's naturally embedded in our recommendation feeds to satisfy users' needs for this certain product.

【解讀】產品故事模式其實去年就已經上線了。但是，我們的用戶確實——他們可以說——他們不知道產品名稱，它被稱為故事模式，因為它已集成到我們的整體用戶界面中。它自然地嵌入到我們的推薦提要中，以滿足用戶對該特定產品的需求。

The reason why we started the Story Mode is because, from my personal perspective, I think Bilibili should not be a tool. It should be a video community surrounded with people's needs, and that needs may involve multiple scenarios on multiple screens, whether it's mid- to longer form, whether it's in the horizontal format. We believe those content can be shorter, and they can also be a vertical format. It could also be live broadcasting. And addressing this trend or our understanding to users' needs, we launched the Story Mode to supplement our application scenarios.

我們之所以開始故事模式，是因為從我個人的角度來看，我認為嗶哩嗶哩不應該是一個工具。它應該是一個圍繞著人們需求的視頻社區，而這種需求可能涉及多個屏幕上的多個場景，無論是中長形式，還是橫向格式。我們相信這些內容可以更短，也可以是垂直格式。也可以是直播。針對這一趨勢或我們對用戶需求的理解，我們推出了故事模式來補充我們的應用場景。

In the last earnings report call, we mentioned our initiatives on the smart TV side. And those initiatives are -- adapt to this multi-scenario strategy, which we are putting our content into people's living rooms. And for the adoption of a Story Mode, we hope to satisfy users on-the-go entertainment needs in their fragmented time.

在上一次財報電話會議中，我們提到了我們在智能電視方面的舉措。這些舉措是——適應這種多場景策略，我們正在將我們的內容放入人們的客廳。而對於故事模式的採用，我們希望滿足用戶在碎片化時間中的移動娛樂需求。

So if you have used Story Mode, you would notice even though the user interface is in vertical format, it might look like Douyin product. However, the actual experience will be full Bilibili-featured experience. For example, on our Story Mode, there's content range from 1 minute, 2 minutes, 3 minutes, and the quality is similar to our PUGV and there will be bullet-chats flying off the screen.

因此，如果您使用過故事模式，您會注意到即使用戶界面是垂直格式，它也可能看起來像抖音產品。但是，實際體驗將是完整的嗶哩嗶哩特色體驗。比如我們的故事模式，內容範圍從1分鐘、2分鐘、3分鐘不等，質量和我們的PUGV差不多，還會有彈幕飛出。

On the content category, we can see Story Mode as a very natural extension to our PUGV ecosystem. Massive number of Story Mode video has been produced by our PUGV content creators. In another way, just those content creators are leveraging this new outlet and new tools to create content.

在內容類別上，我們可以將故事模式視為我們 PUGV 生態系統的一個非常自然的延伸。我們的 PUGV 內容創作者製作了大量的故事模式視頻。另一方面，只有那些內容創建者正在利用這個新渠道和新工具來創建內容。

On our product philosophy, it always has been surrounded by users and the product progress follows our users' needs towards video content. From several data point, we noticed that the adoption of Story Mode has been lightly accepted by our users. On the DAU level, the penetration is over 20% and over 30% if those news will be subject to the thumbs up, the likes, which means our users are accepting and loving this new product.

在我們的產品理念上，它始終被用戶所包圍，產品的進步遵循用戶對視頻內容的需求。從幾個數據點來看，我們注意到故事模式的採用已經被我們的用戶輕鬆接受。在 DAU 層面，滲透率超過 20%，如果這些新聞受到點贊、點贊，則滲透率超過 30%，這意味著我們的用戶正在接受和喜愛這個新產品。

In summary, we think the user chooses content largely based on the content category and the overall community experience, not by the length of it. For example, a Coke lover would not care if the Coke is in a can or in a bottle. A soda lover wouldn't care if the Coke is black and Fanta is white. And all in all, it's the category, it's the content category and the community environment is helping users to decide which product they follow. And in my view, I think Story Mode as a product can be fully integrated, immersed in our content category as well as our community. In the not-so-distant future, the penetration could go -- could potentially reach to 50% or even above because after all, what attracts user, it's about the content category itself, not the length of the content or whether it's in the vertical format or in a horizontal format.

總之，我們認為用戶選擇內容主要是根據內容類別和整體社區體驗，而不是內容的長度。例如，可樂愛好者不會關心可樂是裝在罐子裡還是裝在瓶子裡。如果可樂是黑色的而芬達是白色的，蘇打水愛好者不會在意。總而言之，這是類別，是內容類別，社區環境正在幫助用戶決定他們關注的產品。在我看來，我認為故事模式作為一種產品可以完全集成，沉浸在我們的內容類別以及我們的社區中。在不遠的將來，滲透率可能會上升——可能會達到 50% 甚至更高，因為畢竟吸引用戶的是內容類別本身，而不是內容的長度或是否在垂直格式或水平格式。

Lastly, on the commercialization potential because Story Mode is a product based on mobile devices and vertical format so on -- actually on -- in this industry, the commercialization of this product has been pretty mature, whether it's on the distribution of advertisement or its traffic interest for live broadcasting services. It's just about our implementation on the execution of our commercialization strategy. And based on our initial testing and initial data, we've noticed that it has very good efficiency -- distribution efficiency to commercial ads as well as our live broadcasting services. That would be all.

最後，關於商業化潛力，因為Story Mode是一個基於移動設備和垂直格式的產品，實際上在這個行業中，這個產品的商業化已經相當成熟，無論是在廣告的分發上還是在它的直播服務的流量興趣。這只是關於我們執行商業化戰略的實施。根據我們的初步測試和初步數據，我們注意到它具有非常好的效率——對商業廣告以及我們的直播服務的分發效率。這就是全部。

Our next question comes from Alex Poon with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Alex Poon。

(foreign language) My question is related to our losses controlled in 2022, including how will our gross margin trend from Q1 to Q4 this year, assuming we don't get any game licenses approval. And also the by segment gross margin trend for including advertising and live streaming, how would that change this year and our headcount expansion plan and also the timetable for breakeven and profitability?

（外語）我的問題與我們在2022年控制的虧損有關，包括我們今年第一季度到第四季度的毛利率趨勢如何，假設我們沒有獲得任何遊戲許可批准。還有包括廣告和直播在內的細分市場毛利率趨勢，今年將如何改變我們的員工人數擴張計劃以及盈虧平衡和盈利的時間表？

Thank you, Alex. Let me take this question. You are right. We agree that profitability is a key objective for all companies. Our company, we believe in long-term, we strive to find a balance between achieving a breakeven point and investing for long-term opportunities rather than just pursuing certain short-term financial metrics. We believe by doing so, it will maximize the interest of our shareholders.

謝謝你，亞歷克斯。讓我來回答這個問題。你說的對。我們同意盈利能力是所有公司的關鍵目標。我們公司，我們相信長期，我們努力在實現盈虧平衡點和投資長期機會之間找到平衡，而不是僅僅追求某些短期財務指標。我們相信，這樣做可以使我們股東的利益最大化。

As mentioned by our CEO, we are confident that while maintaining a healthy user and revenue growth, the non-GAAP operating loss ratio could be narrowed on a year-over-year basis starting from 2022. By improving the monetization efficiency including the revenue per MAU and control the operating expenses, the target is to achieve the breakeven point on a non-GAAP basis by 2024.

正如我們的首席執行官所說，我們有信心在保持健康的用戶和收入增長的同時，從 2022 年開始，非 GAAP 運營虧損率可能會同比收窄。通過提高貨幣化效率，包括每MAU 和控制運營費用，目標是到 2024 年在非 GAAP 基礎上實現盈虧平衡點。

Let's look into the details. First of all, we aim to proactively manage our operating expense. Selling marketing expense, for example, is measurable and controllable. For example, the user acquisition cost is a big component of our sales and marketing expenses only increased by 50%, while our total revenue increased by 61% year-over-year in 2021. There are still room to further optimize the marketing spending while we reach 400 million MAU target. We expect the total sales and marketing expenses as a percentage of revenue will decline starting from 2022.

讓我們看看細節。首先，我們的目標是積極管理我們的運營費用。例如，銷售營銷費用是可衡量和可控的。例如，用戶獲取成本是我們銷售和營銷費用的重要組成部分，僅增長了 50%，而 2021 年我們的總收入同比增長了 61%。營銷支出仍有進一步優化的空間，而我們達到了 4 億月活躍用戶的目標。我們預計從 2022 年開始，總銷售和營銷費用佔收入的百分比將下降。

In R&D expenses, mainly include the personnel costs associated with developing the new games, enhancing the data capabilities and optimizing the new product features, which are critical to increase our productivity and monetization capability.

在研發費用中，主要包括與開發新遊戲、增強數據能力和優化新產品功能相關的人員成本，這對提高我們的生產力和貨幣化能力至關重要。

Understood the importance of attracting talents, in 2022, we will continue to invest in R&D, but we will closely monitor the ROI for all of our R&D projects. We expect that R&D expenses as a percentage of total revenue will start to show significant leverage from 2023 onwards.

明白吸引人才的重要性，2022年，我們將繼續投入研發，但我們將密切關注我們所有研發項目的投資回報率。我們預計，從 2023 年起，研發費用佔總收入的百分比將開始顯示出顯著的槓桿作用。

Secondly, there are still ample room for improvement in user monetization efficiency. We are still in a very early stage of commercialization. Our revenue per MAU increased by 20% last year. The increase was mainly driven by a 34% increase in VAS revenue per MAU and an 83% increase in ad revenue per MAU. Looking forward, those trends will continue, and we expect both VAS and ad revenue per MAU would have potential to double their current levels in 3 years.

其次，用戶變現效率仍有較大提升空間。我們仍處於商業化的早期階段。去年，我們每 MAU 的收入增長了 20%。這一增長主要是由於每 MAU 的 VAS 收入增長了 34% 以及每 MAU 的廣告收入增長了 83%。展望未來，這些趨勢將繼續下去，我們預計每 MAU 的 VAS 和廣告收入都有可能在 3 年內翻一番目前的水平。

Last but not least, as you asked the gross profit margin. While our game business undergoes a transition period, we are happy to see revenue contribution from advertising has risen from 13% in 2020 to 23% in 2021 and expect it to further increase in 2022 in this year.

最後但並非最不重要的一點是，正如您所問的毛利率。雖然我們的遊戲業務處於過渡期，但我們很高興看到廣告收入貢獻從 2020 年的 13% 上升到 2021 年的 23%，並預計在 2022 年將進一步增加。

In addition, we expect to introduce more VAS services and further improve the VAS gross margin.

此外，我們預計將推出更多增值服務，進一步提高增值服務毛利率。

As a result, with the improvement of our commercialization capabilities, I think that overall, the 2022 gross margin is expected to be slightly lower in Q1 this year but will gradually improve during this year. And in the 3 years, the overall gross profit margin will be improved around 30% in 3 years. That will be all.

因此，隨著我們商業化能力的提高，我認為總體而言，2022年的毛利率在今年第一季度預計會略有下降，但今年會逐漸改善。並且在3年內，整體毛利率將在3年內提高30%左右。這就是全部。

And for the headcount, I'll translate for Mr. Chen's remarks.

至於人數，我會翻譯陳先生的話。

(foreign language)

（外語）

[Interpreted] Actually, in the past few years, the growth rates have slowed for the number of our staff. And as for 2022, there's going to be a very limited headcount increase. My request for our HR this year is laser-focused on the business areas that we wanted to have decent growth. And for those areas, we can add certain headcounts and the rest of the business is controlled.

【解讀】實際上，在過去的幾年裡，我們員工數量的增長速度已經放緩。至於 2022 年，員工人數的增加將非常有限。今年我對人力資源的要求是激光專注於我們希望獲得可觀增長的業務領域。對於這些領域，我們可以增加一定的人數，其餘的業務是可控的。

Our next question comes Felix Liu with UBS.

我們的下一個問題是瑞銀的 Felix Liu。

(foreign language) Congratulations on the 4Q results, especially on the strong ad performance. I would like to ask a question on the ad outlook for 2022 as well as on the first quarter, especially in light of recent macro weakness as well as the temporary suspension in new game license. And also, could you elaborate on your key commercialization initiatives for advertisements for 2022?

（外語）祝賀第四季度的業績，尤其是強勁的廣告表現。我想問一個關於 2022 年和第一季度的廣告前景的問題，特別是考慮到最近的宏觀疲軟以及新遊戲許可證的臨時暫停。另外，您能否詳細說明一下您在 2022 年的主要廣告商業化舉措？

(foreign language)

（外語）

[Interpreted] I would like to take this opportunity to share with you the growth driver behind Bilibili's advertisement business. And you can see in the past few quarters, our advertisement revenue has been growing over 100%, has been very strong. And we also heard suspicions from the market that Bilibili's user experience is so good, how can you drive your advertising revenue without compromising user experience?

【解讀】藉此機會和大家分享一下B站廣告業務背後的增長動力。而且你可以看到，在過去的幾個季度裡，我們的廣告收入一直在增長超過 100%，非常強勁。而且我們也聽到了市場的質疑，嗶哩嗶哩的用戶體驗這麼好，如何在不影響用戶體驗的情況下拉動廣告收入？

So the #1 reason is that we have experienced a very strong user growth. And at the same time, our ad efficiency per user has also been increasing pretty nicely. In the fourth quarter, our DAU grew 34% year-over-year. And on a full year level in 2021, the ad revenue per MAU has increased 83% and for those 2 factors combined together, that gives you the over 100% ad revenue growth.

所以第一個原因是我們經歷了非常強勁的用戶增長。同時，我們每用戶的廣告效率也得到了相當不錯的提升。第四季度，我們的 DAU 同比增長 34%。在 2021 年全年水平上，每 MAU 的廣告收入增長了 83%，而這兩個因素加在一起，您的廣告收入增長超過 100%。

And the second growth driver would be the value of Bilibili's user has been increasing. And at the same time, the influence of our platform has been well recognized by the market. If we look in the past few years on the horizontal perspective, our user has been growing pretty nicely. And in a vertical view, we actually have constantly breaking up our own circle and make -- allowing more users, more different groups of user occupation, gender, user being seen and recognize the existence of Bilibili and that leads to more attention from different advertising verticals.

第二個增長動力是嗶哩嗶哩的用戶價值不斷增加。同時，我們平台的影響力也得到了市場的認可。如果我們從水平的角度來看過去幾年，我們的用戶一直在增長。而縱向來看，我們其實一直在不斷的打破自己的圈子，讓更多的用戶，更多不同的用戶職業，性別，用戶被看到，認可Bilibili的存在，從而引起不同廣告的更多關注垂直。

For example, in the past few years, we -- our leading verticals would be games and 3C digital products. And this slowly extended to skin care and cosmetics, food and beverage. And for this year, we are looking to expand into verticals like automotive. As a matter of fact, in fourth quarter last year, automotive has become our top 5 advertising industry verticals.

例如，在過去的幾年裡，我們——我們領先的垂直領域是遊戲和 3C 數字產品。而這慢慢擴展到護膚和化妝品、食品和飲料。今年，我們正在尋求擴展到汽車等垂直領域。事實上，在去年第四季度，汽車已經成為我們排名前 5 的廣告垂直行業。

And the third growth driver would be the visualization of advertisement. More and more advertisement will be presented in a format of videos. And that's why we are adopting this trend, launching products like top view, different advertising format based on our different video format, including native ads, Story Mode. In the launch of Story Mode, it will also be adapting to current industries, the advertisement videos in vertical format and all of this will help us to drive our advertising growth in the next few years.

第三個增長動力是廣告的可視化。越來越多的廣告將以視頻的形式呈現。這就是我們採用這種趨勢的原因，推出頂視圖等產品，根據我們不同的視頻格式推出不同的廣告格式，包括原生廣告、故事模式。故事模式的推出，也將適應當前的行業，垂直格式的廣告視頻，所有這些都將幫助我們推動未來幾年的廣告增長。

And the fourth growth driver would be our own unique advertising format a.k.a our native ads. The Bilibili native ads largely were produced by our content creators. They're actually combining their creativity to customize an advertisement within its own video. It's known as our Sparkle native ads. We are delighted to see more and more advertisers has been adapting and recognize this innovative format of advertisement. In 2021, in the fourth quarter of 2021, over 4,000 advertisers has been investing in our Sparkle ad platform. The repeated purchase rate has reached 75%.

第四個增長動力將是我們自己獨特的廣告格式，也就是我們的原生廣告。 Bilibili 原生廣告主要由我們的內容創作者製作。他們實際上是在結合自己的創造力在自己的視頻中定制廣告。它被稱為我們的 Sparkle 原生廣告。我們很高興看到越來越多的廣告商適應並認可這種創新的廣告形式。 2021 年，即 2021 年第四季度，超過 4,000 名廣告商一直在投資我們的 Sparkle 廣告平台。重複購買率達到75%。

On the other hand, more and more content creator has signed up for our Sparkle platform. In 2021, over 22,000 content creator has signed up on our Sparkle platform to open themselves to this native ads opportunity.

另一方面，越來越多的內容創作者註冊了我們的 Sparkle 平台。 2021 年，超過 22,000 名內容創作者在我們的 Sparkle 平台上註冊，向這個原生廣告機會敞開大門。

We think the native ads is a very, very important format of advertisement for Bilibili. It's like a reservoir for us to keep the advertisers. The native ads, the content creator is helping us to attract those advertisers. They are staying with us, what we need to do next is to further integrate the native ads with more of our standardized, scalable advertising formats to allow native ads to help us to drive the sale of our other standard advertisement products.

我們認為原生廣告對於 Bilibili 來說是一種非常非常重要的廣告形式。這就像我們留住廣告商的水庫。原生廣告，內容創作者正在幫助我們吸引那些廣告商。他們一直在我們身邊，我們接下來需要做的是進一步整合原生廣告與我們更多標準化、可擴展的廣告格式，讓原生廣告幫助我們推動其他標準廣告產品的銷售。

Lastly, the last growth driver was the multi-scenario multiscreen strategy. We believe by further integrate those scenarios and devices, we can help us to open more ad inventories and improve our overall ad efficiency.

最後一個增長動力是多場景多屏戰略。我們相信通過進一步整合這些場景和設備，我們可以幫助我們打開更多的廣告庫存並提高我們的整體廣告效率。

From the data perspective, as our PUGV continued to expand rapidly, the new territory, which is the smart devices, smart TV and Story Mode is helping us open up more scenarios more devices and more video content and leverage for commercial advertisement opportunities.

從數據上看，隨著我們的PUGV持續快速擴張，智能設備、智能電視和故事模式的新領域正在幫助我們打開更多的場景更多的設備和更多的視頻內容，並利用商業廣告機會。

In summary, I've always believed that the increase of revenue, ad revenue, does not conflict with user experience. In other way, actually, it actually shared the same goal because we believe the effect of an advertisement largely depends on the platform's influence among users' mindset and a good platform can really put that influence to its users. Hence, the goal is connected.

綜上所述，我一直認為收入的增加，廣告收入的增加，與用戶體驗並不衝突。換句話說，實際上，它實際上具有相同的目標，因為我們認為廣告的效果在很大程度上取決於平台對用戶心態的影響，而一個好的平台確實可以將這種影響傳遞給用戶。因此，目標是相連的。

As for the outlook for 2022, despite the macro environment headwinds and slowdown of digital advertisement, because of those 5 growth drivers I mentioned earlier, we are confident under this environment, we can still deliver a healthy, stable ad revenue growth, at least above industry average. That will be all.

至於 2022 年的前景，儘管宏觀環境逆風，數字廣告增速放緩，但由於我前面提到的這 5 個增長動力，我們有信心在這種環境下，我們仍然可以實現健康、穩定的廣告收入增長，至少高於行業平均水平。這就是全部。

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

問答環節到此結束。我想將任何其他或結束的評論轉回給管理層。

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

再次感謝您今天加入我們。如果您還有其他問題，請聯繫我、Bilibili 執行 IR 總監 Juliet Yang 或 TPG 投資者關係部。我們在中國或美國的 IR 聯繫信息可在今天的新聞稿中找到。祝你有美好的一天。謝謝你。再見。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。