Q2 2025 Bilibili Inc Earnings Call

Conference over to Julian Young, except you have to keep executing director of Investor Relations. Please go ahead.

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 discussions due to a number of risks and uncertainties, including those mentioned in our most recent filing with the SEC and Hong Kong stock exchange. The non-GAAP financial measure we provide are for comparison purpose only.

Juliet Yang: Good day and welcome to the Bilibili second quarter 2025 financial results and business updates 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.

Speaker #2: Good day and welcome to the Bilibili 2nd Quarter 2025 Financial Results and Business Updates 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.

The definition of this measure and a reconciliation table are available in the news release, we issued earlier today 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 availability IR website at IR <unk>.

Speaker #2: Please go ahead.

Operator: Thank you, operator. During this call, we will 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 filing with SEC and Hong Kong Stock Exchange. The non-GAAP financial measure we provide is for comparison purposes only. The definition of this measure and the reconciliation table are available in the news release we issued earlier today. 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. Joining us today from Bilibili Senior Management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer, Ms.

Speaker #3: Thank you, Operator. During this call, we'll discuss our business outlooks and make forward-looking statements. These comments are based on our predictions and expectations as of today.

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Joining us today from Billy Billy Senior management are Mr. Ray Chen Chairman of the Board and Chief Executive Officer. His colleagues Lee Vice chairwoman of the board and Chief operating Officer and Mr. Sam Fan Chief Financial Officer, I will now turn the call to Mr. Chen.

Speaker #3: Actual events or results could differ materially from those mentioned in today's news release due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC and Hong Kong Stock Exchange.

Speaker #3: The non-GAAP financial measures we provide are for comparison purposes only. The definition of this measure and the reconciliation table are available in the news release we issued earlier today.

Thank you Juliet and thank you to everyone for joining us today to discuss our 2025 second quarter results.

We maintained strong momentum in the second quarter, delivering solid revenue growth alongside our thriving community of high value loyal young users.

Speaker #3: 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.

Total net revenues for the second quarter grew by 20% year over year to RMB seven 3 billion driven by the continued strength of our core games and advertising businesses.

Speaker #3: Joining us today from Bilibili senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer, and his colleague, Ms. Lee, Vice Chairwoman of the Board and Chief Operating Officer.

James revenues rose, 60% year over year to RMB, one 6 billion propelled by new seasons of our popular <unk> title, Senegal Modine cancer funnel.

Operator: Kali Li, Vice Chairwoman of the Board and Chief Operating Officer, and Mr. Sam Fan, Chief Financial Officer. I will now turn the call to Mr. Chen.

Speaker #3: And Mr. Xin Fan, Chief Financial Officer. I will now turn the call over to Mr. Chen.

Rui Chen: Thank you, Juliet, and thank you to everyone for joining us today to discuss our 2025 second quarter results. We maintained strong momentum in the second quarter, delivering solid revenue growth alongside our thriving community of high-value, loyal young users. Total net revenues for the second quarter grew by 20% year-over-year to RMB 7.3 billion, driven by the continued strength of our core games and advertising businesses. Games revenues rose 60% year-over-year to RMB 1.6 billion, propelled by a new season of our popular SLG title, San Mo (三国谋定天下). Advertising revenues increased 20% year-over-year to RMB 2.4 billion, supported by greater AI integration that made our ads more efficient and effective. Underpinned by operating efficiency, our growth in games and advertising drove a 46% year-over-year increase in gross profit, with gross margin expanding to 36.5% from 29.9% in the same period last year.

Advertising revenues increased 20% year over year to RMB, two 4 billion.

Speaker #4: Thank you, Juliet. And thank you to everyone for joining us today to discuss our Q2 2025 results. We maintain strong momentum in Q2, delivering solid revenue growth alongside our thriving community of high-value, loyal young users.

Supported by greater AI integration that made our at more efficient and effective underpinned by operating efficiency our growth in games and advertising drove a 46% year over year increase in gross profit with gross margin expanding to 36, 5% from 29, 9% in the same period last year.

Speaker #4: Total net revenues for the 2nd quarter grew by 20% year-over-year to R&B 7.3 billion, driven by the continued strength of our core games and advertising businesses.

As a result, we achieved GAAP net profit of RMB $218 million and adjusted net profit of RMB $561 million.

Speaker #4: Games revenues rose 60% year-over-year to R&B 1.6 billion, propelled by new seasons of our popular SLG title, ?????? and ??. Advertising revenues increased 20% year-over-year to R&B 2.4 billion.

Our performance reflects our growing influence among China's Gen Z plus audience.

Providing users with high quality content. They love, we fostered deeper engagement that fuels, our commercial ecosystem in the second quarter <unk> reached a new high of $109 million up 7% year over year and <unk> grew by 8% to $363 million <unk> also grew by 9% to $31 million.

Speaker #4: Supported by greater AI integration that made our ads more efficient and effective, and underpinned by operating efficiency, our growth in games and advertising drove a 46% year-over-year increase in gross profit.

The average daily time spent rose to 105 minutes up six minutes compared to the same period last year, reflecting.

Speaker #4: With gross margin expanding to 36.5%, from 29.9% in the same period last year, we achieved a GAAP AP net profit of RMB 218 million and an adjusted net profit of RMB 561 million.

Rui Chen: As a result, we achieved a GAAP net profit of RMB 218 million and adjusted net profit of RMB 561 million. Our performance reflects our growing influence among China's Gen Z+ audience. By providing users with high-quality content they love, we fostered deeper engagement that fuels our commercial ecosystem. In the second quarter, DAUs reached a new high of 109 million, up 7% year-over-year, and MAUs grew by 8% to 363 million. MPUs also grew by 9% to 31 million. The average daily time spent rose to 105 minutes, up 6 minutes compared to the same period last year, reflecting our continued focus on high-quality videos that capture and hold our community's interest in meaningful and fulfilling content. Our growing influence among our core users is showing up both online and offline. This year's Bilibili World and Bilibili Macrolink drew in record crowds.

Our continued focus on high quality videos that capture and hold our community's interest and meaningful and fulfilling contents.

Our growing influence among our core users is showing up both online and offline.

Speaker #4: Our performance reflects our growing China’s Gen Z+ audience. By providing users with high-quality content they love, we foster deeper engagement that fuels our commercial ecosystem.

This year's visibility World and Billy Billy macro link drew and record crowds.

Over 400000 participants attended the three day event, 60% more than last year, making it one of the largest offline animation Expos in China.

Speaker #4: In the 2nd quarter, BAUs reached a new high of 109 million, up 7% year-over-year, and MAUs grew by 8% to 363 million. MPUs also grew by 9% to 31 million.

The strong turnout reflects the vitality of our brands and the power of our community showing the tremendous potential of our young users.

Speaker #4: The average daily time spent rose to 105 minutes, up 6 minutes compared to the same period last year. This reflects our continued focus on high-quality videos that capture and hold our community's interest in meaningful and fulfilling content.

Their tastes are already shaping mainstream trends and countless more interest within our community are waiting to be unleashed.

Looking ahead, we will sharpen our focus on delivering the best <unk> community experience.

Speaker #4: Our growing influence among our core users is showing up both online and offline. This year's Bilibili World and Bilibili MacroLink drew record crowds.

Attracting more users and growing alongside them.

At the same time, we will continue to proactively invest in monetization initiatives to drive sustainable profitability.

Rui Chen: Over 400,000 participants attended the three-day event, 60% more than last year, making it one of the largest offline animation expos in China. The strong turnout reflects the vitality of our brand and the power of our community, showing the tremendous potential of our young users. Their tastes are already shaping mainstream trends, and countless more interests within our community are waiting to be unleashed. Looking ahead, we will sharpen our focus on delivering the best PUGV community experience, attracting more users and growing alongside them. At the same time, we will continue to proactively invest in monetization initiatives to drive sustainable profitability. Through these efforts, we are confident in our ability to create long-term value for all of our stakeholders. With that overview, let us take a closer look at our core pillars of content, community, and commercialization.

Speaker #4: Over 400,000 participants attended the three-day event, 60% more than last year, making it one of the largest offline animation expos in China. The strong turnout reflects the vitality of our brand and the power of our community.

Through these efforts we are confident in our ability to create long term value for all of our stakeholders.

With that overview, let's take a closer look at our core pillars of content community and commercialization.

Speaker #4: Showing the tremendous potential of our young users. Their tastes are already shaping mainstream trends, and countless more interests within our community are waiting to be unleashed.

Beginning with content and community, we remain firm believers that high quality content and an engaging community are essential to the lives of today's young generation.

Speaker #4: Looking ahead, we will sharpen our focus on delivering the best PUGV community experience, attracting more users and growing alongside them. At the same time, we will continue to proactively invest in monetization initiatives to drive sustainable profitability.

Gen Z plus comes to availability not for a quick hit but for meaningful content they care about.

And we're seeing that translate into stronger influence longer watch time, and greater commercial potential across every corner of our platform.

Driven by high quality <unk> content. The average daily time spent reached 105 minutes in the second quarter up six minutes year over year.

Speaker #4: Through these efforts, we are confident in our ability to create long-term value for all of our stakeholders. With that overview, let's take a closer look at our core pillars of content, community, and commercialization.

Notably the watch time for videos longer than five minutes increased nearly 20% year over year in Q2, proving <unk> undeniable user mindshare to consume mid to long form meaningful contents.

Rui Chen: Beginning with content and community, we remain firm believers that high-quality content and an engaging community are essential to the lives of today's young generation. Gen Z+ comes to Bilibili not for quick hits, but for meaningful content they care about. We are seeing that translate into stronger influence, longer watch time, and greater commercial potential across every corner of our platform. Driven by high-quality PUGV content, the average daily time spent reached 105 minutes in the second quarter, up 6 minutes year-over-year. Notably, the watch time for videos longer than 5 minutes increased nearly 20% year-over-year in Q2, proving Bilibili's undeniable user mindshare to consume mid-to-long form meaningful content. Not only are people spending more time, but more people are paying for premium content. Monthly paying users increased by 9% year-over-year to 31 million, driven by premium memberships, fan charging program, and live broadcasting.

Speaker #4: Beginning with content and community, we remain firm believers that high-quality content and an engaging community are essential to the lives of today's young generations.

Not only are people spending more time.

But more people are paying for premium content.

Speaker #4: Gen Z+ comes to Bilibili not for quick hits, but for meaningful content they care about. We're seeing that translate into stronger influence, longer watch time, and greater commercial potential across every corner of our platform.

Paying users increased by 9% year over year to $31 million.

Driven by membership and charging and live broadcasting.

In the meantime, our community remains engaged and loyal.

The number of official members was up by 11% year over year to $270 million.

Speaker #4: Driven by high-quality PUGV content, the average daily time spent reached 105 minutes in Q2, up 6 minutes year-over-year. Notably, the watch time for videos longer than 5 minutes increased nearly 20% year-over-year in Q2.

With a 12 month retention rates remaining around 80%.

We maintained our dominant leadership in ACG content.

Chinese anime content performed strongly during the second quarter with watch time up 34% year over year, driven by popular titles, such as a record of mortals turning to immortality financials handler.

Speaker #4: Proving Bilibili's undeniable user mindshare to consume mid- to long-form meaningful content. Not only are people spending more time, but more people are paying for premium content.

The tales of hurting gone motion team.

Speaker #4: Monthly paying users increased by 9% year-over-year to 31 million, driven by membership, fan charging, and live broadcasting. In the meantime, our community remains engaged and loyal.

And linkage season, two mainland DRC <unk>.

<unk> content remain one of our top categories with watch time, increasing by 21% year over year, making <unk>, an essential platform for game developers to engage deeply with the game of community and strengthen their IP.

Rui Chen: In the meantime, our community remains engaged and loyal. The number of official members was up by 11% year-over-year to 270 million, with a 12-month retention rate remaining around 80%. We maintained our dominant leadership in ACG content. Chinese anime content performed strongly during the second quarter, with watch time up 34% year-over-year, driven by popular titles such as A Record of Mortals Journey to Immortality, 白人修仙传, The Tales of Herding God, 牧神记, and Ling Cage Season 2, 玲珑第二季. Game content remained one of our top categories, with watch time increasing by 21% year-over-year, making Bilibili an essential platform for game developers to engage deeply with the gamer community and strengthen their IP. It is also no surprise that AI-related content continues to be a breakout category. Watch time grew 61% year-over-year, cementing Bilibili's role as the go-to platform for Gen Z+ to learn, explore, and create with AI.

Speaker #4: The number of official members was up by 11% year-over-year to 270 million, with a 12-month retention rate remaining around 80%. We maintained our dominant leadership in ACG content.

It is also no surprise that AI related content continues to be a breakout category.

Watch time grew 61% year over year, cementing <unk> role as the go to platform for Gen Z plus to learn explore and create with AI.

Speaker #4: Chinese anime content performed strongly during the second quarter, with watch time up 34% year-over-year, driven by popular titles such as "A Record of Mortal's Journey to Immortality."

Likewise, AI advertiser demand increased by about 150% highlighting the great synergy between content value and commercial potential.

Speaker #4: ?????, The Tales of Hurting Gods, ???, and Ling Cage Season 2, ?????. Game content remained one of our top categories, with watch time increasing by 21% year over year.

Meanwhile, consumption related content categories continue to grow driven by evolving user behavior.

As our Gen Z plus users become more financially independent they increasingly rely on pure creators for trusted reviews, and tutorials when making purchase decisions.

Speaker #4: Making Bilibili an essential platform for game developers to engage deeply with the gamer community and strengthen their IP. It is also no surprise that AI-related content continues to be a breakout category.

This has boosted engagement across verticals watch time for home appliance content rose, 14% year over year.

Speaker #4: Watch time grew 61% year-over-year, cementing Bilibili's role as the go-to platform for Gen Z+ to learn, explore, and create with AI. Likewise, AI advertiser demand increased by about 150%, highlighting the great synergy between content value and commercial potential.

Printing and early education rose more than 50% and travel and lodging saw an 11% increase.

Reflecting growing interest and experience driven consumption.

Rui Chen: Likewise, AI-generated ad content demand increased by about 150%, highlighting the great synergy between content value and commercial potential. Meanwhile, consumption-related content categories continue to grow, driven by evolving user behavior. As our Gen Z+ users become more financially independent, they increasingly rely on peer creators for trusted reviews and tutorials when making purchase decisions. This has boosted engagement across verticals. Watch time for home appliance content rose 14% year-over-year, parenting and early education rose more than 50%, and travel and lodging saw an 11% increase, reflecting growing interest in experience-driven consumption. We continue to enhance our products and services to help creators make more money. In the first half of the year, about 2 million creators earned income on Bilibili through various channels.

We continue to enhance our products and services to help creators make more money.

In the first half of the year about 2 million creators earn income on Billy Billy through various channels creators total income from our fast charging program more than doubled in the first half of the year.

Speaker #4: Meanwhile, consumption-related content categories continue to grow, driven by evolving user behavior. As our Gen Z+ users become more financially independent, they increasingly rely on peer creators for trusted reviews and tutorials.

Once again, showing users increasing willingness to pay for quality content.

Speaker #4: When making purchase decisions, this has boosted engagement across verticals. Watch time for home appliance content rose 14% year-over-year, while parenting and early education rose more than 50%.

The number of creators monetizing through sparkle ads and video and live streaming E. Commerce also grew 19% and 49% year over year, respectively. In the first half of the year.

Now, let's talk about our commercial businesses.

Speaker #4: And travel and lodging saw an 11% increase, reflecting growing interest in experience-driven consumption. We continue to enhance our products and services to help creators make more money.

And their progress.

Our commercial growth demonstrates how our growing influence among younger users is directly translating into commercial value advertising is one of the most direct business line that shows this.

Speaker #4: In the first half of the year, about 2 million creators earned income on Bilibili through various channels. Creators' total income from our fan charging program more than doubled in the first half of the year.

In the second quarter, our AD business grew 20% year over year, reaching RMB, two 4 billion and continuing to outpace the industry average growth rates.

Rui Chen: Creators' total income from our fan charging program more than doubled in the first half of the year, once again showing users' increasing willingness to pay for quality content. The number of creators monetizing through Sparkle ads and video and livestream e-commerce also grew 19% and 49% year-over-year, respectively, in the first half of the year. Now, let's talk about our commercial businesses and their progress. Our commercial growth demonstrates how our growing influence among younger users is directly translating into commercial value. Advertising is one of the most direct business lines that shows this. In the second quarter, our ad business grew 20% year-over-year, reaching RMB 2.4 billion and continuing to outpace the industry's average growth rate. During the second quarter, we continued to advance our ad infrastructure, improving ad conversion efficiency through recommendation algorithms, creative generation, and smart ad placement.

Speaker #4: Once again, this shows users' increasing willingness to pay for quality content. The number of creators monetizing through Sparkle ads, as well as video and livestream e-commerce, also grew 19% and 49% year-over-year, respectively, in the first half of the year.

During the second quarter, we continue to advance our AD infrastructure improve.

Improving AD conversion efficiency through recommendation algorithms creative generation and smart AD placements through deeper integration with multimodal content understanding we are capturing user intent more precisely and delivering smarter more personalized AD recommendations the upgrade.

Speaker #4: Now, let's talk about our commercial businesses and their progress. Our commercial growth demonstrates how our growing influence among younger users is directly translating into commercial value.

We have made to the Aig's. These tools are also helping advertisers generate high performing creative ads at scale.

Speaker #4: Advertising is one of the most direct business lines that shows this. In the second quarter, our ad business grew 20% year-over-year, reaching RMB 2.4 billion.

In the second quarter, roughly 10% of new AD titles.

And over 30% of that covers were created using these tools, helping advertisers reach users more effectively with content that resonates with their target audiences. We also offer smart <expletive> placement tools to allocate sequence and monitor AD performance in real time significantly reducing manual operations at the same.

Speaker #4: And continuing to outpace the industry's average growth rate. During Q2, we continue to advance our ad infrastructure, improving ad conversion efficiency through recommendation algorithms, creative generation, and smart ad placements.

Rui Chen: Through deeper LLM integration with multimodal content understanding, we are capturing user intent more precisely and delivering smarter, more personalized ad recommendations. The upgrades we've made to the AIGC tools are also helping advertisers generate high-performing creative ads at scale. In the second quarter, roughly 10% of new ad titles and over 30% of ad covers were created using these tools, helping advertisers reach users more effectively with content that resonates with their target audiences. We also offer smart ad placement tools to allocate, sequence, and monitor ad performance in real time, significantly reducing manual operations at the same ad spend. These enhancements are boosting both efficiency and scalability, improving ECPM by more than 10% year-over-year and fueling around 30% year-over-year growth in performance-based advertising revenue in the second quarter. Revenues for brand and native advertising also maintained healthy momentum.

Speaker #4: Through deeper LLM integration with multimodal content understanding, we are capturing user intent more precisely and delivering smarter, more personalized ad recommendations. The upgrades we've made to the AIGC tools are also helping advertisers generate high-performing creative ads at scale.

AD spend these enhancements are boosting both efficiency and scalability, improving ECP and by more than 10% year over year and fueling around 30% year over year growth in performance based advertising revenue in the second quarter revenues for brand and native advertising also maintained healthy momentum.

Speaker #4: In the 2nd Quarter, roughly 10% of new ad titles and over 30% of ad covers were created using these tools, helping advertisers reach users more effectively with content that resonates with their target audiences.

Industry wide games digital products and home appliances E Commerce Internet services in automotive, where our top five advertising verticals in the second quarter the.

The number of advertisers increased by over 20% year over year, reflecting our growing appeal to brands leveraging our dominant user mindshare.

Speaker #4: We also offer smart ad placement tools to allocate sequence and monitor ad performance in real time, significantly reducing manual operations at the same ad spend.

Developers are allocating larger AD budgets to bill ability to engage more deeply with young gamers.

Speaker #4: These enhancements are boosting both efficiency and scalability, improving eCPM by more than 10% year-over-year, and fueling around 30% year-over-year growth in performance-based advertising revenue in Q2.

Demand for <unk> and digital products remained robust supported by our leadership in these categories and national subsidy tailwind.

In E Commerce, <unk> delivered an average new customer acquisition rate of about 60% for advertisers across industries under the simple plan. During this year 608 season.

Speaker #4: Revenues for brand and native advertising also maintained healthy momentum. Industry-wise, games, digital products, home appliances, e-commerce, internet services, and automotive were our top five advertising verticals in Q2.

Rui Chen: Industry-wise, games, digital products, home appliances, e-commerce, internet services, and automotive were our top five advertising verticals in the second quarter. The number of advertisers increased by over 20% year-over-year, reflecting our growing appeal to brands. Leveraging our dominant user mindshare, game developers are allocating larger ad budgets to Bilibili Inc. to engage more deeply with young gamers. Demand for 3C and digital products remained robust, supported by our leadership in these categories and national subsidy tailwind. In e-commerce, Bilibili Inc. delivered an average new customer acquisition rate of about 60% for advertisers across industries under the SIMPLE plan during this year's 618 season. GMV from products priced above RMB 1,000 increased nearly 50% year-over-year, further demonstrating our users' strong purchasing power and our ability to convert user engagement into high-intent transactions.

<unk> from product priced above RMB 1000 increased nearly 50% year over year.

Further demonstrating our users' strong purchasing power and our ability to convert user engagement into high intent transaction.

Speaker #4: The number of advertisers increased by over 20% year-over-year, reflecting our growing appeal to brands. Leveraging our dominant user mindshare, game developers are allocating larger ad budgets to Bilibili to engage more deeply with young gamers.

Turning to our games business in the second quarter revenues increased by 60% year over year to RMB, one 6 billion owing to some most enduring strength in its first year and evergreen titles, Fgo and as our lane, which recently celebrated their <unk> anniversaries, respectively Tomorrow.

Speaker #4: Demand for 3C and digital products remained robust, supported by our leadership in these categories and national subsidy tailwinds. In e-commerce, Bilibili delivered an average new customer acquisition rate of about 60% for advertisers across industries under the Simple Plan during this year's 618 season.

<unk> first year anniversary, we rolled out and upgraded season eight on May 31, featuring.

Featuring new gameplay characters and in game events.

Asked by a targeted marketing push both engagement and retention have been solid as we enhanced on boarding monetization path and returning user experiences.

Speaker #4: GMV from products priced above RMB 1,000 increased nearly 50% year-over-year, further demonstrating our users' strong purchasing power and our ability to convert user engagement into high-intent transactions.

Building on the strong momentum we are developing new game seasons piloting mini program offerings and preparing for symbols International rollout later this year.

Rui Chen: Turning to our games business, in the second quarter, revenues increased by 60% year-over-year to RMB 1.6 billion, owing to San Mo's enduring strength in its first year and evergreen titles FGO and Azur Lane, which recently celebrated their 9th and 8th anniversaries, respectively. To mark San Mo's first-year anniversary, we rolled out and upgraded Season 8 on May 31, featuring new gameplay, characters, and in-game events, backed by a targeted marketing push. Both engagement and retention have been solid as we enhanced onboarding, monetization paths, and returning user experiences. Building on this strong momentum, we are developing new game seasons, piloting mini-program offerings, and preparing for San Mo's international rollout later this year. Looking at our game pipeline, we have a number of games in the approval process, including multiple ACG titles and casual games.

Speaker #4: Turning to our games business, in Q2, revenues increased by 60% year-over-year to R&B 1.6 billion, owing to Sammo's enduring strength in its first year and evergreen titles FGO and Azur Lane, which recently celebrated their 9th and 8th anniversaries, respectively.

Looking at our game pipeline, we have a number of games in the approval process.

Including multiple ACG title and casual games. Once approved we are prepared to bring them to our community and further expand our presence in the gaming space.

Speaker #4: To mark Sammo's first-year anniversary, we rolled out and upgraded Season 8 on May 31. Featuring new gameplay, characters, and in-game events, backed by a targeted marketing push, both engagement and retention have been solid as we enhanced onboarding, monetization paths, and returning user experiences.

And finally, let's look at our VA business.

Revenues grew 11% year over year to RMB, two 8 billion driven by steady momentum across live broadcasting premium memberships and other value added services.

Our focus remains on refining live broadcasting operations by fostering more quality content and diversified monetization features to support steady growth.

Speaker #4: Building on this strong momentum, we are developing new game seasons, piloting mini-program offerings, and preparing for Sammo's international rollout later this year. Looking at our game pipeline, we have a number of games in the approval process.

Through refined operation gross profit margin for live broadcasting continued to improve in the second quarter premium memberships maintained stable growth.

Speaker #4: Including multiple ACG titles and casual games. Once approved, we are prepared to bring them to our community and further expand our presence in the gaming space.

Reaching $23 7 million at the end of the period with over 80% on annual auto renewal plans, demonstrating their loyalty and commitment to our platform.

Rui Chen: Once approved, we are prepared to bring them to our community and further expand our presence in the gaming space. Finally, let's look at our VAS business. Revenues grew 11% year-over-year to RMB 2.8 billion, driven by steady momentum across live broadcasting, premium memberships, and other value-added services. Our focus remains on refining live broadcasting operations by fostering more quality content and diversifying monetization features to support steady growth. Through refined operations, gross profit margin for live broadcasting continued to improve in the second quarter. Premium memberships maintained stable growth, reaching 23.7 million at the end of the period, with over 80% on annual or auto-renewal plans, demonstrating their loyalty and commitment to our platform.

Speaker #4: And finally, let's look at our VAS business. Revenues grew 11% year-over-year to RMB 2.8 billion, driven by steady momentum across live broadcasting, premium memberships, and other value-added services.

Meanwhile, our other <unk> products continued to grow rapidly in the second quarter, especially our fan charging program, which increased by more than 100% year over year with more users showing their support for the creators and high quality content. They love looking ahead, our focus remains on what sets <unk> apart.

Speaker #4: Our focus remains on refining live broadcasting operations by fostering more quality content and diversifying monetization features to support steady growth. Through refined operations, gross profit margin for live broadcasting continued to improve in Q2, and premium memberships maintained stable growth.

Alrighty content that resonates with China's Gen Z plus generation. This is the foundation of our growing influence and the engine behind our expanding commercial opportunities at the same time, we are actively embracing the transformative opportunities brought by AI from enhancing operational efficiency to elevating user experience.

Speaker #4: Reaching 23.7 million at the end of the period, with over 80% on annual or auto-renewal plans, demonstrating their loyalty and commitment to our platform.

Accelerating monetization and expanding our global reach these.

Rui Chen: Meanwhile, our other VAS products continued to grow rapidly in the second quarter, especially our fan charging program, which increased by more than 100% year-over-year, with more users showing their support for the creators and high-quality content they love. Looking ahead, our focus remains on what sets Bilibili apart: high-quality content that resonates with China's Gen Z+ generation. This is the foundation of our growing influence and the engine behind our expanding commercial opportunities. At the same time, we are actively embracing the transformative opportunities brought by AI, from enhancing operational efficiency to elevating user experience, accelerating monetization, and expanding our global reach. These advancements further strengthen our foundation for sustained growth and long-term profitability. With that, I will turn the call over to Sam to share more financial details. Sam, please go ahead.

Speaker #4: Meanwhile, our other VAS products continue to grow rapidly in Q2. Especially our fan charging program, which increased by more than 100% year-over-year, with more users showing their support for the creators and high-quality content they love.

These advancements further strengthen our foundation for sustained growth and long term profitability.

With that I will turn the call over to Sam to share more financial details.

Please go ahead.

Mr. Chen Hello, everyone. This is Sam.

Speaker #4: Looking ahead, our focus remains on what sets Bilibili apart: high-quality content that resonates with China's Gen Z+ generation. This is the foundation of our growing influence and the engine behind our expanding commercial opportunities.

The interest of time on today's call I will review, our second quarter highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results.

Speaker #4: At the same time, we are actively embracing the transformative opportunities brought by AI. From enhancing operational efficiency to elevating user experience, accelerating monetization, and expanding our global reach.

In the second quarter, we continue to grow revenues expand our margins and grow our profitability driven by growth across our commercial businesses, particularly in our high margin advertising and games businesses.

Total net revenues for the second quarter were RMB, seven 3 billion up 20% year over year.

Speaker #4: These advancements further strengthen our foundation for sustained growth and long-term profitability. With that, I will turn the call over to Sam to share more financial details.

Our revenue breakdown for Q2 was approximately 39% from Bas, 33% from advertising, 22% from games and 6% from our IP derivatives and other businesses.

Speaker #4: Sam, please go ahead...

Sam Fan: Thank you, Mr. Chen. Hello, everyone. This is Sam. In the interest of time, on today's call, I will review our second quarter highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results. In the second quarter, we continued to grow revenues, expand our margins, and grow our profitability, driven by growth across our commercial businesses, particularly in our high-margin advertising and games businesses. Total net revenues for the second quarter were RMB 7.3 billion, up 20% year-over-year. Our revenue breakdown for Q2 was approximately 39% from VAS, 33% from advertising, 22% from games, and 6% from our IP derivatives and other businesses. Our cost of revenues increased by 9% year-over-year to RMB 4.7 billion in the second quarter, while our gross profit rose 46% year-over-year to RMB 2.7 billion.

Speaker #5: Thank you, Mr. Chen. Hello everyone. This is Sam. In the interest of time, on today's call, I will review our Q2 highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results.

Our cost of revenues increased by 9% year over year to RMB four 7 billion in the second quarter, while our gross profit rose, 46% year over year to RMB, two 7 billion.

Speaker #5: In the Q2, we continue to grow revenues, expand our margins, and grow our profitability, driven by growth across our commercial businesses, particularly in our high-margin advertising and games businesses.

Our gross profit margin reached 36, 5% in Q2 compared with 29, 9% in the same period last year.

Our expanded gross profit and margin so that our model is built to scale.

Speaker #5: Total net revenues for the second quarter were R&B 7.3 billion, up 20% year-over-year. Our revenue breakdown for Q2 was approximately 39% from VAS, 33% from advertising, 22% from games, and 6% from our IP derivatives and other businesses.

Our total operating expenses were RMB, two 4 billion remaining stable compared with the same period last year.

<unk> expenses increased 1% year over year to RMB 1 billion G&A expenses were RMB $510 million up 4% year over year, R&D expenses were RMB $866 million down 3% year over year, mainly related to R&D efficiency improvements.

Speaker #5: Our cost of revenues increased by 9% year-over-year to R&B 4.7 billion in the 2nd quarter, while our gross profit rose 46% year-over-year to R&B 2.7 billion.

These efforts allowed us to maintain positive operating results. Our operating profit was RMB $252 million and our adjusted operating profit was RMB 573 million, both compared with losses in Q2 2024, adjusted operating profit margin reached seven 8% in the second quarter.

Sam Fan: Our gross profit margin reached 36.5% in Q2, compared with 29.9% in the same period last year. Our expanding gross profit and margin show that our model is built to scale. Our total operating expenses were RMB 2.4 billion, remaining stable compared with the same period last year. S&M expenses increased 1% year-over-year to RMB 1 billion. G&A expenses were RMB 510 million, up 4% year-over-year. R&D expenses were RMB 866 million, down 3% year-over-year, mainly related to R&D efficiency improvements. These efforts allowed us to maintain positive operating results. Our operating profit was RMB 252 million, and our adjusted operating profit was RMB 573 million, both compared with losses in Q2 2024. Adjusted operating profit margin reached 7.8% in the second quarter. Net profit was RMB 218 million, and adjusted net profit was RMB 561 million versus losses in the prior year period.

Speaker #5: Our gross profit margin reached 36.5% in Q2, compared with 29.9% in the same period last year. Our expanding gross profit and margin show that our model is built to scale.

Speaker #5: Our total operating expenses were RMB 2.4 billion, remaining stable compared with the same period last year. S&M expenses increased 1% year-over-year to RMB 1 billion.

Net profit was RMB $218 million and adjusted net profit was RMB $561 million versus losses in the prior year period, our adjusted net profit ratio in the second quarter was seven 6% compared with an adjusted net loss ratio of four 4% in the same period a year ago.

Speaker #5: G&A expenses were R&B 510 million, up 4% year-over-year. R&D expenses were R&B 866 million, down year-over-year, mainly related to R&D efficiency improvements. These efforts allowed us to maintain positive operating results.

Cash flow wise, we generated about RMB 2 billion in operating cash flow in the second quarter.

As of the 30 of June 2025, we had cash and cash equivalents time deposits and short term investments of RMB $22 3 billion or USD three 1 billion.

Speaker #5: Our operating profit was RMB 252 million, and our adjusted operating profit was RMB 573 million, both compared with losses in Q2 2024. Adjusted operating profit margin reached 7.8% in the second quarter.

During the second quarter, we enhanced our shareholder return by repurchasing approximately $5 6 million classes that ordinary shares equal to $1.

Speaker #5: Net profit was R&B 218 million, and adjusted net profit was 3% R&B 561 million, versus losses in the prior year period. Our adjusted net profit ratio in the 2nd Quarter was 7.6%, compared with an adjusted net loss ratio of 4.4% in the same period a year ago.

For a total of $783 million, Hong Kong dollars or $100 million as part of our ongoing share repurchase program. These shares have all been canceled as of the end of the second quarter of 2025 under our $200 million share repurchase program approved by the board in November 2024.

Sam Fan: Our adjusted net profit ratio in the second quarter was 7.6%, compared with an adjusted net loss ratio of 4.4% in the same period a year ago. Cash flow-wise, we generated about RMB 2 billion in operating cash flow in the second quarter. As of June 30, 2025, we had cash and cash equivalents, time deposits, and short-term investments of RMB 22.3 billion, or $3.1 billion. During the second quarter, we enhanced our shareholder return by repurchasing approximately 5.6 million Class Z ordinary shares, each equal to 1 ADS, for a total of 783 million Hong Kong dollars, or $100 million, as part of our ongoing share repurchase program. These shares have all been canceled as of the end of the second quarter of 2025.

Speaker #5: Cash flow-wise, we generated about RMB 2 billion in operating cash flow in Q2. As of June 30, 2025, we had cash and cash equivalents, time deposits, and short-term investments of RMB 22.3 billion, or USD 3.1 billion.

We've repurchased a total of $6 4 million shares so far at a total cost of $116 million, leaving about $84 million available for future buybacks as of June 32025.

Speaker #5: During Q2, we enhanced our shareholder return by repurchasing approximately 5.6 million Class Z ordinary shares, each equal to one ADS, for a total of HKD 783 million, or USD 100 million, as part of our ongoing share repurchase program.

Thank you for your attention we would now like to open the call to your questions.

Operator.

Thank you.

To ask a question. Please press star one one on your telephone and wait for your name to be announced.

Speaker #5: These shares have all been canceled as of the end of the 2nd Quarter of 2025. Under our 200 million USD share repurchase program, approved by the Board in November 2024, we've repurchased a total of 6.4 million shares so far, and a total cost of 116 million USD, leaving about 84 million USD available for future buybacks as of June 30, 2025.

We still have your question. Please press star one on one again for.

Sam Fan: Under our $200 million share repurchase program approved by the Board in November 2024, we've repurchased a total of 6.4 million shares so far at a total cost of $116 million, leaving about $84 million available for future buybacks as of June 30, 2025. Thank you for your attention. We would now like to open the call to your questions. Operator.

For the benefit of all participants in today's call. If you wish to ask you a question to management in Chinese. Please immediately repeat your question in English the company will provide consecutive interpretation for management statement you in the Q&A session. Please note that English interpretation is for convenience.

Purposes, only indicated if any discrepancy that's meant such statements in the original language will prevail.

Speaker #5: Thank you for your attention. We would now like to open the call to your questions. Operator.

Sam Fan: Thank you. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. The company will provide consecutive interpretation for management's statement during the Q&A session. Please note that English interpretation is for convenience purposes only. In the case of any discrepancy, management's statements in their original language will prevail. We will now take the first question. From the line of Xueqing Zhang from CICC, please go ahead.

We will now take the first question.

Speaker #2: Thank you. To ask a question, please press *11 on your telephone and wait for your name to be announced. To whisper your question, please press *1 on one again.

From the line of Swishing Chang from CIC. Please go ahead.

Okay.

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Speaker #2: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

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Speaker #2: The company will provide consecutive interpretation for management's statement during the Q&A session. Please note that English interpretation is for convenient purposes only. In the case of any discrepancy, management's statements in their original language will prevail.

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Speaker #2: We will now take the first question. From the line of Xuexing Zhang from CICC, please go ahead.

Thanks management for taking my question and congratulations on this chunk of cash on my question is bounces that use our ecosystem.

Xueqing Zhang: Thanks management for taking my question and congratulations on the strong quarter. My question is about the user ecosystem. We have noticed that the company's DAU and MAU growth accelerated in the first half of this year, and the average daily time spent has also continued to increase. What are the main drivers and what is your outlook for the future? In addition, this summer, Bilibili World set a record with 400,000 participants. What opportunities can we see for the Bilibili community from Bilibili World's success? Thank you.

Speaker #6: Okay. 关于陈接受我的提问, 恭喜公司二季度取得非常亮眼的一个成绩。那我的问题是关于用户生态的, 有关注到公司今年上半年DAO和MLO的增长相比去年有所加速。那单用户的使用时长也是一直保持增长, 想请问一下主要的驱动力是什么? 那后续该如何展望? 此外的话, 我们今年夏天的BW活动也是创下了40万人参与的一个纪录。那我们能从BW成功看到B站社区的哪些机会? 谢谢。 Thanks, management, for taking my question and the congratulations on this strong quarter. My question is about the user ecosystem.

I have noticed that the companies <unk> and EMEA growth accelerated in the first half of this year.

The average daily time spent has also continued to increase.

So what does it mean drivers and what's there.

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Speaker #6: We have noticed that the company's DAO and MAO growth accelerated in the first half of this year, and the average daily time spent has also continued to increase.

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Speaker #6: So, what are the main drivers, and what's your overall outlook for the future? In addition, this summer, Bilibili will set a record with 400,000 participants.

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In the past 16 years, we have been focusing on providing the highest quality content and fostering grinding won't come in community culture and under the current Internet environment, We think high quality content and support.

Speaker #6: So what opportunities can we see for the Bilibili community from BW's success? Thank you.

Rui Chen: Okay, 那我回答一下吧。我觉得过去的16年我们一直在做的事就是去做好优质内容和做好社区氛围, 然后把它们做到极致。我觉得在当前的一个互联网环境里面, 优质内容跟好的社区氛围是更具稀缺的竞争力吧。

Speaker #7: Okay.那我回答一下吧。我觉得过去的16年, 我们一直在做的事就是去做好优质内容和做好社区氛围, 然后把它们做到极致。我觉得在当前的一个互联网环境里面, 优质内容跟好的社区氛围是更具稀缺的竞争力吧。

Community environment.

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Xueqing Zhang: In the past 16 years, we have been focusing on providing the highest quality content and fostering a thriving and welcoming community culture. Under the current internet environment, we think the high-quality content and supportive, constructive community environment is what is in scarcity.

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Speaker #2: In the past 16 years, we have been focusing on providing the highest quality content and fostering a thriving, welcoming community culture. Under the current internet environment, we believe that high-quality content and a supportive, constructive community environment are in scarcity.

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And the current media landscape.

There's an oversupply.

New content people are not lacking content to watch, but they're lacking high quality content to watch.

Same thing goes well our content.

Rui Chen: 我觉得当前的互联网环境，它的信息已经是过载的了。现在是不缺内容供给，大家是不缺视频看的，但它缺的是优质的一个内容。而且现在大家也不缺听到所谓网民的声音，大家需要的是听到和自己能够产生共鸣的这种声音。

Speaker #5: 我觉得当前的互联网环境, 它的信息已经是过载的了, 就是现在是不缺内容供给。大家是不缺视频看的, 但它缺的是优质的一个内容, 然后而且现在大家也不缺听到所谓网民的声音, 然后大家需要的是听到和自己能够产生共鸣的这种声音。

The feedback from <unk> from the net percent, there's plenty of voices.

Across all apps.

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Xueqing Zhang: In the current video landscape, we think there is an oversupply of video content. People are not lacking content to watch, but they are lacking high-quality content to watch. The same thing goes with the content, the feedback, the voice from the netizens. There is plenty of voices across all apps, but what is truly missing is those supportive, resonating voices from welcoming, friendly communities.

Speaker #2: And in the current video landscape, we think there's an oversupply of video content. People are not lacking content to watch, but they're lacking high-quality content to watch.

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Fostering a welcoming community environment allows people to connect over the ethane inkjet in Boston, namely with each other.

Speaker #2: The same thing goes with the content that the feedback—the voice from the netizens. There's plenty of voices across all apps, but what's truly missing is those supportive, resonating voices from welcoming, friendly communities.

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I believe that by mastering both high quality content that we're flagging community culture user will naturally come it will be drawn into <unk>.

Rui Chen: resonate with them.

Speaker #5: 所以B站要做的就是做一个能够持续提供优质内容的一个平台, 并且在这个平台上, 就是大家看到的跟互动的, 其实是能够跟自己产生共鸣的人。

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Xueqing Zhang: That's what Bilibili Inc. will continue to focus on by curating the highest quality content and also fostering a welcoming community environment that allows people to connect over the same interest and resonate with each other.

Speaker #2: So that's what Bilibili will continue to focus on: curating the highest quality content and fostering a welcoming community environment that allows people to connect over the same interests and resonate with each other.

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And the users.

Thank you.

I think in second quarter, our <unk> grew by 7%.

Rui Chen: 我们相信的是如果我们做到了这两点, 用户他自己就会过来, 因为就这种体验是用户真正需要的体验。

Speaker #5: 我们相信的是, 如果我们做到了这两点, 用户他自己就会过来。因为就这种体验是用户真正需要的体验。

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Xueqing Zhang: We believe that by mastering both high-quality content and a thriving community culture, users will naturally come; they will be drawn into this unique experience.

Speaker #2: We believe that by mastering both high-quality content and a thriving community culture, users will naturally come. They will be drawn into this unique experience.

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Rui Chen: 对, 所以的话就是我认为就是我们看到今年我们平台的一个增长, 就DAUs第二季度涨了7%, MAUs涨了8%, 然后它就是来自于就是我们聚焦在做好这两件事上。

Speaker #5: 对, 所以的话, 就是我认为, 就是我们看到今年我们平台的一个增长, 就是DAO第二季度涨了7%, MAO涨了8%, 然后它就是来自于, 就是我们聚焦在做好这两件事上。

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Xueqing Zhang: The user statistics in Q2, our DAU grew by 7%, MAU grew by 8%. That is a result of us focusing on the quality content as well as a welcoming community environment.

Speaker #2: In the 2nd quarter, our DAO grew by 7%, and our MAO grew by 8%. This is a result of our focus on quality content, as well as fostering a welcoming community environment.

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Rui Chen: including beyond video, like podcasts, graphic content, and even AI virtual companionship, there are still many directions that can be extended in the future.

Speaker #5: 而且我们也相信, 就是做好这两点, 它也能够带来未来B站用户增长的一个空间。因为我认为, 就是其实用户对于内容质量的要求, 以及对于这个审美的这个品味, 它的它是一个升级的单向升级的一个方向。就一旦用户看了好的内容之后, 他不会再去看不好的一个内容。所以的话, 就是我觉得B站它其实在很多的品类, 就无论在动漫, 在游戏, 在知识, 在一些比如说生活娱乐兴趣方面, 这些品类上面, 它的这种高质量的PUGV的内容, 它已经形成了用户的一个心智。然后其实这个心智, 它就会让用户, 他愿意在这里去寻找更多的高质量的内容。就是它符合他兴趣延展的一些内容。所以的话, 就是我觉得未来, 就是除了这种现在的这些品类之外, 未来我们对于更多品类的一个挖掘, 包括视频之外, 像播客, 像图文, 包括像这种AI的这种虚拟的一个陪伴, 它未来能够延展的方向还是很多的。

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Just like we see in lifestyle consumption content consumption is also evolving.

Importantly, the upgrade in content consumption, particularly in Asia.

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We see that have been launched high quality client base.

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Over the past.

So really establish a strong presence.

There is mind share in categories, like and maintain and knowledge based content and there are still a lot of things we can do to further expand so rounding users' interests.

Xueqing Zhang: Just like the upgrade we see in lifestyle consumption, content consumption is also evolving. More importantly, the upgrade in content consumption, particularly in statistics and taste, is largely one way. Once someone receives and has been watching high-quality content, it is very hard for them to go backwards. Over the past 16 years, we have really established a strong presence in users' mindshares in categories like anime, games, and knowledge-based content. There is still a lot of things we can do to further extend surrounding the user's interest networks. In addition to that, we think there are more to be done beyond just PUGV, for example, podcasts, picture and text-based content, AI-based virtual companionship. There are lots of potentials and a tremendous room for us to expand into.

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Speaker #2: Just like the upgrade we see in lifestyle consumption, content consumption is also evolving. More importantly, the upgrade in content consumption, particularly in statistics and taste, is largely one way.

In addition to that we think there more to be done beyond just 10 GB for example, podcasts.

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Speaker #2: Once someone receives and has been exposed to high-quality content, it's very hard for them to go backwards. Over the past 16 years, we have really established a strong presence in users' mindshare in categories like anime, games, and knowledge-based content.

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Speaker #2: And there's still a lot of things we can do to further expand surrounding the user's interest networks. In addition to that, we think there is more to be done beyond just PUGV.

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Speaker #2: For example, podcasts, picture- and text-based content, AI-based virtual companionship—there is a lot of potential and tremendous room for us to expand into.

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Rui Chen: 对, 而且我觉得优质内容和好的社区的氛围本身它就是相互促进的, 它其实是一体的。那个优质的内容它是能够吸引更热爱内容的用户, 更懂这些内容和更热爱内容的用户, 而这些更懂这些内容的用户, 他也能够去做出更高质量的评论, 然后这些评论和弹幕他也能够去激励这些好的创作者, 给这些创作者更好的一个灵感, 让他们有更强的情绪价值。对, 所以我们会发现就是那个好的作者, 他往往在 Bilibili Inc.上面他就能够更快的成长起来, 而且的话就是 Bilibili Inc.的用户也更能够去在一些好的作者刚刚涌现的时候去发掘这些好的作者。

Speaker #5: 对, 而且我觉得优质内容和好的社区的氛围, 本身它就是相互促进的。它其实是一体的。那个优质的内容, 它是能够吸引更热爱内容的用户, 更懂这些内容和更热爱内容的用户。而这些更懂这些内容的用户, 他也能够去做出更高质量的评论, 然后这些评论和弹幕, 他也能够去激励这些好的创作者, 给这些创作者更好的一个灵感, 让他们有更强的情绪价值。对, 所以我们会发现, 就是那个好的作者, 他往往在B站上面, 他就能够更快地成长起来。而且的话, 就是B站的用户也更能够去在一些好的作者刚刚涌现的时候去发掘这些好的作者。

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It's an integral part.

Our high quality clients.

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And while coming clean any environment, that's actually self sustaining and operating policy. For example, we think the high quality clients and attracting people who can truly appreciate this type of content and when the world coming supportive from the users will continue to.

No debate.

Content creator to continuously create content.

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A talented talented content creators can be easily discover.

Xueqing Zhang: To summarize, we think that it's an integral part for high-quality content, as well as a good and welcoming community environment. It's actually self-sustaining and ever-evolving. For example, we think the high-quality content can attract those people who can truly appreciate this type of content. The friendly, welcoming, supportive from the users will continue to motivate the content creator to continuously create good content. That's why on Bilibili, we've noticed that a talented content creator can be easily discovered by our users. At the same time, they can quickly adapt and evolve into a larger, more influential content creator.

Speaker #2: So, to summarize, we think that it's an integral part for high-quality content, as well as a good and welcoming community environment that is actually self-sustaining and ever-evolving.

By our users and at the same time.

Can quickly adapt and evolving into a larger more influential content leader.

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Speaker #2: For example, we believe that high-quality content can attract those people who can truly appreciate this type of content. Additionally, the friendly, welcoming, and supportive environment created by our users will continue to motivate them.

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Speaker #2: Content creators continue to create good content. That's why, on Bilibili, we've noticed that a talented content creator can be easily discovered by our users, and at the same time, they can quickly adapt and evolve into a larger, more influential content creator.

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Rui Chen: authors across the entire network.

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Speaker #5: 对, 所以的话, 就是我们会发现, 即使是就是全网都发的这些那个作者, 然后在B站上面, 那个他们的评论弹幕的互动的质量和数量, 往往都是最好的。而且的话, 就是做高质量的内容的作者, 在B站上的这个粉丝粘性也是最好的。所以就是这个其实基本上已经形成了一个那个全网作者之间的一个共识。

The high quality content creators.

Someday their stake.

Yes.

The higher the strongest on bidding on that is how well establish and karma knowledge, our mind the content creators and China.

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Xueqing Zhang: Even for the same content that can fit everywhere, the number of interactions and the quality of that interaction is always the best on Bilibili. Also, for those high-quality content creators, their fan base, their stickiness is the highest, the strongest on Bilibili. That is a well-established and common knowledge among the content creators in China.

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Speaker #2: And even for the same content, I can see everywhere, but the number of interactions and the quality of that interaction is always the best on Bilibili.

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Speaker #2: And also for those high-quality content creators, their fan base and their stickiness are the highest, the strongest on Bilibili. This is well-established and common knowledge among the content creators in China.

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And that's why you see many high quality content has been.

Rui Chen: 所以我们也会看到就是挺多的好的内容, 它往往都是从B站开始最早获得用户认可, 然后开始出圈, 就比如说就是几年前那个黑神话悟空在我们这发的第一支游戏的PV就一下就爆掉了, 然后就开始出圈. 再比如说就是我们现在看这个浪浪山的这个小妖怪, 然后它最早的短片啊, 就是那个小妖怪的夏天也是在B站那个受到用户欢迎, 然后开始出圈. 我们很高兴现在看到这个它的这个大电影的这个票房突破了10个亿。

Speaker #5: 所以我们也会看到, 就是挺多的好的内容, 它往往都是从B站开始最早获得用户认可, 然后那个开始出圈。就比如说, 就是几年前那个黑神话悟空在我们这儿发的第一支游戏的PV, 就一下就爆掉了, 然后就开始出圈。再比如说, 就是我们现在看这个浪浪山的这个小妖怪, 然后他最早的短片, 啊, 就是那个小妖怪的夏天, 也是在B站那个受到用户欢迎, 然后开始出圈。我们很高兴现在看到这个他的这个大电影的这个票房突破了10个亿。

Scott.

But it is a platform for example, a few years ago.

First PV blacksmiths <unk> Kong.

Discovered by visiting the user and quickly become viral and so.

So influential across the Internet and also here I think all we cope with this.

Meaning animation nobody Lala <unk> that was also upward by ability to user and become Byron popular.

Recognizing by visibility with community and now we are very glad to see that.

Movie is now.

Xueqing Zhang: That is why you see many high-quality content has been discovered on Bilibili platform. For example, a few years ago, the first PV of Black Myth: Wukong was discovered by Bilibili users and quickly became viral and so influential across the internet. Also, a few years ago, we co-produced the mini animation Nobody: 浪浪山的小妖怪 that was also discovered by Bilibili users and became viral and popular, recognized by Bilibili's community. Now we are very glad to see that its big movie is now getting even more wide recipients from the audience. Its box office has exceeded 1 billion RMB.

Speaker #2: And that's why you see many high-quality content pieces have been discovered on the Bilibili platform. For example, a few years ago, the first PV of Black Mist Wukong was discovered by a Bilibili user and quickly became viral and so influential across the internet.

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Speaker #2: And also, a few years ago, we co-produced the meaning animation, Nobody, ???????, that was also discovered by Bilibili users and became viral and popular.

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Speaker #2: Recognized by Bilibili's community, we are very glad to see that its big movie is now receiving even wider reception from audiences.

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Speaker #2: And its boxing grossing has exceeded 1 billion RMB.

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Rui Chen: after and go viral among users on Bilibili.

Speaker #5: 对, 昨天是昨天凌晨4点钟是那个黑神话悟空的续作, 黑神话中魁在B站上面发了他就首发了他的那个第一个那个游戏的一个PV。昨天凌晨4点钟发的, 到现在应该不到两天时间吧, 那个播放量是超过了1200万。所以我们就可以看到, 就是只要你是好的内容, 在一定是在B站上面, 它是最早的, 被用户所这个追捧以及出圈。

Total video views has already exceeded $12 million.

And that's why you see many many good content.

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Xueqing Zhang: Another example would be yesterday at 4 A.M., Black Wukong's Black Myth: 终馗 was premiered on Bilibili platform. Within less than two days, its total video views have already exceeded 12 million. That is why you see many good content will be most appreciated and be discovered by Bilibili users because we have established that environment that allows high-quality content to thrive.

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Speaker #2: And another example would be, just yesterday at 4 AM, Black Wukong's Black Mist Zhong Kui premiered on the Bilibili platform. Within less than two days, its total video views have already exceeded 12 million.

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Speaker #2: And that's why you see that many good content creators are the most appreciated and discovered by Bilibili users. We have established an environment that allows high-quality content to thrive.

This year's visibility well would have broke many records.

We have attractive audience for more than 20 countries region with over 400000 people attend the events.

Rui Chen: 70% 的观众来自于上海以外, 而且的话那个海外护照的购票比例达到了 11%, 是有来自 20 多个国家和地区的用户专门来到上海去参加我们的这个 Bilibili World。

More than 70%.

Speaker #5: 对, 我接下来说一下Bilibili World, 今年的这个BWorld应该是人数的一个纪录吧。就是我们的这个线下参展的这个人数, 人次是超过了40万。其中70%的观众来自于上海以外。而且的话, 那个海外护照的购票比例达到了11%, 是有来自20多个国家和地区的用户专门来到上海去参加我们的这个BW。

Came from outside of Shanghai, a 11% will tickets were purchased by far impossible.

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Xueqing Zhang: This year's Bilibili World has broken many records. We have attracted an audience from more than 20 countries and regions with over 400,000 people attending the events. Among them, 70% came from outside of Shanghai, and 11% of the tickets were purchased by foreign passports.

Speaker #2: This year's Bilibili World has broken many records. We have attracted an audience from more than 20 countries and regions. With over 400,000 people attending the events, among them, 70% came from outside of Shanghai.

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Speaker #2: And 11% of the tickets were purchased by foreign passport holders.

Okay.

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Rui Chen: China 最大的 ACG 的聚会。

Speaker #5: 对, 所以可以说, 今年的Bilibili World无论是从规模还是从影响力来看, 肯定已经是中国最大的ACG的聚会。

Because the event through a large number one people to Shanghai boosting local offline consumption and even become a new cultural landmark for the city.

Xueqing Zhang: It is safe to say that Bilibili has become the largest ACG event in China, both in terms of scale and influence.

Speaker #2: And it's safe to say that Bilibili has become the largest ACG event in China, both in terms of scale and influence.

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Rui Chen: 发明了一个词叫二次元经济, 因为确实那个 Bilibili World 是带动了这个上海的一个本地的一个线下消费, 而且呢也成为了上海城市文化的一个新名片。

Speaker #5: 对, 而且那个上海还专门为BWorld发明了一个词, 叫二次元经济。因为确实, 呃, 那个Bilibili World是带动了这个上海的一个本地的一个线下消费。而且呢, 也成为了上海城市文化的一个新名片。

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Xueqing Zhang: Even for the Shanghai city, it has invented the word of ACG consumption for Bilibili because the event drew a large number of young people to Shanghai, boosting local offline consumption, and even becoming a new cultural landmark for the city.

Speaker #2: And even for the Shanghai City, it has invented the word of ACG consumption for Bilibili. Because the event drew a large number of young people to Shanghai, boosting local offline consumption and even become a new cultural landmark.

A reflection of the brand and community offline people not only use the product. They also come to offline events named after visibility. This is shows and we have farms the influence of <unk>.

IP asphalt and our community.

Speaker #2: For the city.

Rui Chen: Inc. 的一个社区品牌在现实世界的一个映射。它其实代表的就是用户对于 Bilibili Inc. 社区品牌的认同吧，他们不仅会用我们的产品，他们还来参加就是以这个产品为名的线下聚会。

Speaker #5: 我觉得Bilibili World的本质其实是B站的一个社区品牌, 在现实世界的一个映射。它其实代表的就是用户对于B站社区品牌的认同吧。他们不仅会用我们的产品, 他们还来参加就是以这个产品为名的线下聚会。

So you didn't have these undergoing tightened chung whaler some growth from one entity very shortly both on level.

It's safe to say that sustainable brand has become a part of the lifestyle of the generation in China.

Thank you operator.

Next question please.

Thank you.

Xueqing Zhang: At its core, Bilibili is a real-world reflection of Bilibili's brand and community offline. People not only use Bilibili's products, they also come to offline events named after Bilibili. This just shows the influence of IP as well as our community.

Speaker #2: And And it's core Bilibili is a real-world reflection of Bilibili brand. And community, offline, people not only use Bilibili product, they also come to offline events, name after Bilibili.

We will now take the next question.

From the line of me when that song from Bank of America Securities. Please go ahead.

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Speaker #2: This shows and reaffirms the influence of IP as well as our community.

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Finally to conclude thanks, John just in Asia.

Rui Chen: 对, 所以我觉得就一定程度上来说B站这个品牌已经成为了很多中国年轻人生活的一部分了吧。

Speaker #5: 对, 所以我觉得就一定程度上来说, B站这个品牌已经成为了很多中国年轻人生活的一部分了吧。

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Yeah, So challenge that.

Xueqing Zhang: is safe to say that Bilibili's brand has become a part of the lifestyle of the young generation in China. Thank you, operator. Next question, please.

You're doing you're kind of on that issue.

Speaker #2: It's safe to say that Bilibili brand has become a part of the lifestyle of the young generation in China. Thank you, Operator. Next question, please.

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Sam Fan: Thank you. We will now take the next question. From the line of Miranda Zhuang from Bank of America Securities, please go ahead.

Speaker #3: Thank you. We will now take the next question. From the line of Miranda Zhuang from Bank of America Securities, please go ahead.

Thank you mentioned and for taking my question. My question is about the advertising business, So second quarter Ad business.

Asian games can management share with other drivers and looking into second half.

Xueqing Zhang: 晚上好, 各位管理层, 感谢接受我的提问。我的提问是有关于我们的广告业务。我们看到 Q2 广告业务非常强, 超预期。请管理层可不可以分享一下我们具体的一些驱动的这个原因？展望下半年, 我们在行业端有看到哪些趋势？如何看待咱们公司广告业务的一个趋势？公司从产品和技术端还会有哪些新的这个东西推出？Thank you, management, for taking my question. My question is about the advertising business. Our Q2 ad business beat expectations again. Can management share what are the drivers? Looking ahead into the second half, what are the trends you are seeing for the industry? What is your expectation about Bilibili Inc.'s ad business trends? What kind of new products and technologies will you roll out? Thank you.

Speaker #6: ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. My question is about the advertising business. So, I see that the second quarter ad business was a bit above expectations.

What are the trends you are seeing for the industry and what's your expectation about companies add business trends and what kind of new products and technologies will you rollout. Thank you.

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In the second quarter, our advertising business maintained a strong growth outpacing the overall industry quarterly revenue reached a record high of RMB, two 4 billion up 20% year over year.

Speaker #6: Can management share what the drivers are? And looking ahead into the second half, what trends are you seeing for the industry? Also, what's your expectation about companies' ad business trends?

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Speaker #6: And what kind of new products and technologies will you roll out? Thank you. ???????????????????????????????????????????????????????????24?????????20%?

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We've continued to focus on the one horizontal and vertical strategy.

Xueqing Zhang: In the second quarter, our advertising business maintained a strong growth, outpacing the overall industry. Quarterly revenue reached a record high of RMB 2.4 billion, up 20% year-over-year.

Speaker #2: And the second quarter, our advertising business maintained a strong growth, outpacing the overall industry. Quarterly revenue reached a record high of R&B 2.4 billion, up 20% year-over-year.

Quarter, we continued strengthening our AD infrastructure product and technology efficiency.

Allow us to further unleash our users value at <unk> capital.

Kali Li: 在驱动上来说的话, 我们还是坚持原来的策略, 一横一纵。首先在第一点可以看到, 我们还是特别重视广告的基建, 产品跟技术的提效, 还是一样用户价值跟流量价值在这个 Q 得到了很明显的提升的。

Speaker #6: 在驱动上来说的话, 还是我们还是坚持原来的策略, 一横一纵嘛。就首先在第一点可以看到, 我们还是特别重视广告的基建, 产品跟技术的提效, 还是一样用户价值跟流量价值在这个Q得到了很明显的提升的。

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Xueqing Zhang: Speaking of the driver behind that growth, we continue to focus on the one horizontal and vertical strategy. In this quarter, we continue to strengthen our ad infrastructure, product, and technology efficiency, and allow us to further unleash our users' value and traffic value.

Speaker #2: Speaking of the driver behind that growth, we've continued to focus on the One Horizontal and Vertical strategy. In this quarter, we continue strengthening our ad infrastructure, product, and technology efficiency.

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Speaker #2: Allow us to further unleash our user's value and traffic value.

Kali Li: advertising CPM increase in this quarter is also very obvious.

Speaker #6: ??????????????????????????????????????????? QR ????? 50% ? UP ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? QR ????????????????????????? Q????????????????

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During the quarter, we further enhanced our intent integrated campaign, combining feeding and conversion in the second quarter over 50% of the Sparkle App also leveraged our shipping program reaches the Catholic acquisition program.

We have in our App system.

Number two is that we continue to strengthen our marketing data and Fox structure, leveraging the multi model large model to significantly improve our asset.

As delivery efficiency lasting as we continue to optimize the steep conversion capabilities the share of deep conversion.

Xueqing Zhang: The following three points will support that. One is during the quarter, we further enhanced our integrated campaign, combining seeding and conversion. In the second quarter, over 50% of the Sparkle ads also leveraged our GB program, which is the traffic acquisition program we have in our ad system. Number two is that we continue to strengthen our marketing data infrastructure, leveraging the multimodal large model to significantly improve our ad delivery efficiency. The last thing is we continue to optimize the deep conversion capabilities. The share of deep conversion doubled in the second quarter year over year, and there's still room for us to improve. That directly leads to an uplift in our overall ad ECPM.

Speaker #2: The following three points will support that. One is during the quarter, we further enhanced our integrated campaign, combining seeding and conversion. In the second quarter, over 50% of the Sparkle ads also leveraged our QFA program, which is the traffic acquisition program.

In the second quarter year over year, and Theres still room for us to include in that directly leads to.

Uplift in our overall.

CPM.

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Speaker #2: We have in our ad system. Number two is that we continue to strengthen our marketing data and thought structure. Leveraging the multimodal large model to significantly improve our ad delivery efficiency.

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Speaker #2: The last thing is, we continue to optimize our deep conversion capabilities. The share of deep conversion doubled in the second quarter year-over-year. And there's still room for us to improve.

And from a industry standpoint in the second quarter on top five advertiser some burden caused the slight change.

Which are paid digital products and home appliances E Commerce online services on automotive and the number of advertisers increased over 20% year over year in the second quarter.

Speaker #2: And that directly leads to an uplift in our overall ad ECPM.

Kali Li: 第二个从行业垂直预算来看, Q2我们的五大广告主的行业有一些变化, 但不多. 游戏、数码家电、电商、网服跟汽车, 就是整个广告主的数量同比增长还是有20%.

Speaker #6: 第二个从行业垂直预算来看, 其实QR我们的五大的广告主的行业有一些些变化, 但不多。就游戏、数码家电、电商、网服跟汽车。就是整个广告主的数量同比增长还是有20%。

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Xueqing Zhang: From an industry standpoint, in the second quarter, our top five advertisers' verticals, there is a slight change, which are games, digital products, home appliances, e-commerce, online services, and automotive. The number of advertisers increased over 20% year over year in the second quarter.

Speaker #2: And from an industry standpoint, in the second quarter, our top five advertisers, vertically, there’s a slight change. They are games, digital products, and home appliances.

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Looking in more detail game remains our largest verticals.

Speaker #2: E-commerce, online services, and also motive. The number of advertisers increased over 20% year-over-year in the second quarter.

We continue to leverage our high quality food chain conversion capability.

Kali Li: 游戏行业依旧是我们第一大的广告客户, Bilibili Inc.还是通过比较全链路高质量的转化, 依靠我们的生态的质量, 还是把优质游戏客户的预算牢牢的锁在我们这里的。就包括精品游戏的广告市场份额, 我们还是看到进一步的提升。同时呢, 就包括小游戏、游戏直播等场景的新开拓, 也带来了比较多新的增量。

Speaker #6: 游戏行业依旧是我们第一大的广告客户。就B站还是通过比较全链路高质量的转化, 依靠我们的生态的质量。还是把优质游戏客户的预算牢牢锁在我们这里的。就包括精品游戏的广告市场份额, 我们还是看到进一步的提升。同时呢, 就包括小游戏, 游戏直播等场景的新开拓, 也带来了比较多新的增量。

Further strengths, our strengths and our market share in premium game advertising, while expanding to new scenarios, such as building, meaning games and game live streaming creating incremental revenue opportunity.

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Xueqing Zhang: Looking at more details, game remains our largest verticals. We continue to leverage our high-quality full-chain conversion capability. We further strengthened our market share in premium game advertising while expanding to new scenarios such as Bilibili mini games and game live streaming, creating incremental revenue opportunities.

Speaker #2: Looking at more details, gaming remains our largest vertical. We continue to leverage our high-quality 4-chain conversion capability. We further strengthened our market share in premium game advertising.

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Speaker #2: While expanding to new scenarios such as Bilibili Meaning Games and game live streaming, we are creating incremental revenue opportunities.

Two targeted at young consumers in second quarter home decorations AD revenue grew nearly 70% year over year.

Kali Li: 同时，UP master的专业测评跟深度内容也持续吸引了更多年轻人跟消费相关的广告主进行投放。Q2的话，家装相关，家具跟家装相关的广告收入同比增长接近70%。

Speaker #6: 同时的话, up主这个专业的测评跟深度的内容, 也持续吸引了更多年轻人跟消费。消费相关的广告主进行投放, QR的话呢, 就是加装加装相关, 就加剧跟加装相关的广告收入同比增长, 接近70%。

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We will continue to deepen our vertical marketing solutions, while consolidating our leadership in key industry.

Xueqing Zhang: The professional review of professional content pieces and in-depth content from those creators continue to attract advertisers to target the young consumers. In the second quarter, home decorations ad revenue grew nearly 70% year over year.

Speaker #2: And professional reviews from our professional content creators, along with in-depth content from those creators, continue to attract advertisers. To target young consumers in Q2, home decorations ad revenue grew nearly 70% year-over-year.

At the same time, we're looking to expanding into broader consumer categories.

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I won't go through its own visa I should die attach which is yeah, hi, xibalba as well whether it be told agenda. So each time, you generally see the crucial landmarks jonestown evolution.

Kali Li: 除此之外, 我们还是会持续深化垂直行业的营销方案, 在优势领域会持续的让市占可以进一步提升吧, 但也会拓展更多消费行业的客户。

Speaker #6: 除此之外, 我们还是会持续深化垂直行业的营销方案。在优势领域会持续的让四站可以进一步提升吧, 但也会拓展更多消费行业的客户。

The audience Econ dogs.

Actual sulfates or the tonnage unbleached tissue tissue Julia about <unk>, the gleam wall Mcdonald.

Xueqing Zhang: We will continue to deepen our vertical marketing solutions while consolidating our leadership in key industries. At the same time, we are looking to expand into broader consumer categories.

Speaker #2: We will continue to deepen our vertical marketing solutions. While consolidating our leadership in key industries, at the same time, we're looking to expand into broader consumer categories.

So time for Jim view Greenwald, it's how will your churn Linda Chang, Georgia.

Sure, Yes, how all of that <expletive> just hold the HOKA sequentially shots, Yeah sure sure Yeah, Todd I just showed you EBITDA down yet do you show much idea I won't Miss Alabama.

Kali Li: 的规模我们涨了 33%。带货 GMV 规模超过 1,000 万的创作者的数量也超过了 60%。最后的话可以关注一下这个行业。就是行业侧的一些数据也比较亮眼。

Speaker #6: 在这里可以补充一下, 618我们那些数据, 可以看到B站的一些趋势。就第一个, 我们肯定在坚持大开环的战略嘛。越来越多的广告主将B站还是在大促期间, 还是把我们作为了B头的阵地。所以参与这个时间周期的客户数量, 我们还增长了60%。第二点可以看到的话, 就是up主跟消费者的参与程度也持续提升。就618期间GNV的规模, 我们涨了33%。就带货GNV规模超过1000万的创作者的数量也超过了60%。最后的话可以关注一下这个行业, 就是行业侧的一些数据也比较亮眼。例如数码家电, 我们超过50%的增长。就家庭的日用品相关还超过了80%的增长。母婴护理啊, 食品、钟表, 这些看似在B站上的日常消费, 没那么强劲的也有60%以上的增长。所以可以在以上的些数据也能看到B站的消费力的趋势。跟往后在广告行业增长的空间。

So judging the Zhejiang Shanghai, how about the posture of the Jones Act <unk>. So is it kind of sits IBU Dian Tong shellfish mainland challenging the Yale.

So that turns out so quickly that you suddenly just fujian and conduct BJ on the shelf they leave it should.

Oh is that Guangzhou Hangzhou Zhengzhou Quintin.

I wanted to ask on.

Jim maintains data for your reference first of all we continue to platform our open loop strategy and a factor attracting more advertisers to come to bid ability.

Kali Li: 例如数码家电, 我们超过50%的增长, 就家庭的日用品相关还超过了80%的增长。母婴护理啊, 食品、钟表, 这些看似在Bilibili Inc.上日常消费没那么强劲的, 也有60%以上的增长。所以可以在以上的一些数据也能看到Bilibili Inc.的消费力的趋势跟往后在广告行业增长的空间。

As a marketing baas platform doing major sales season.

<unk> of Advertiser during the June 18th campaign increased 16% year over year and the engagement between creators and consumer continued to rise during the June 18 campaign. The total JV grew over 33%.

Year over year, and the number of creator exceeding RMB 10 billion GMB grew over 60% year over year and here are some data points to show.

Juliet Yang: I wanted to add some June 18th data for your reference. First of all, we continue to stress on our open loop strategy and attracting more advertisers to come to Bilibili and see us as a must-invest platform during major sales seasons. The number of advertisers during the June 18th campaign increased 60% year over year, and the engagement between creators and consumers continued to rise. During the June 18th campaign, the total GMV grew over 33% year over year, and the number of creators exceeding RMB 10 billion GMV grew over 60% year over year. Here is some data points to show the consumer's trend on Bilibili. Digital appliances grew over 50% during the season, households up 85%.

Speaker #2: I wanted to ask some June 18th data for your reference. First of all, we continue to press on our open-loop strategy and attract more advertisers to come to Bilibili and see us as a must-invest platform during major sell seasons.

Consumers trend umbrella.

Closer to our clients grew 50 over 50%.

During the season household.

85%, even core categories, such as maternity and childcare food and beverage and even watching all grew over 60% year over year, showing vulnerability equally strong consumption power as they grow with the crop corn.

Shannon you know why you are ones, who oh.

Oh, yeah, well be shipping out quite a hawk each home.

Sure.

Ken you said.

Joe didn't address Huntington's, it's usually Shlomo I should say too soon to say total onboard housing.

<unk>, well actually with habitual shift so any bulk pool, we shouldn't you shouldn't <unk> OTT doing a story about the woman the challenging social show them. So it's early to we each ratio C O towards onto a chunky do you include a true that Honeywell.

Juliet Yang: Even for categories such as maternity and child care, food and beverage, and even watches, all grew over 60% year over year, showing Bilibili's users' strong consumption power as they grow with the platform.

Cool cool cool Susiana, Jim yet.

So the English is that on your own won't be out Johnson.

Kali Li: 下半年的话, 如果要关注B站广告业务的一些变化的话, 可以从这两个方面应该是比较可以看到一些变化的。就第一个呢, 在产品跟技术上, 我们还是会深入在多端多场景的应用以及不同场景之间的链接, 我们还是会特别重视。这里包括也不限于像PC端、OTT端、Story, 包括我们的日常使用的直播场景、搜索、热门热搜等, 在这里就不一一赘述了。只要有多端多场景, 对于我们用户的触达, 还有我们的用户跟客户之间的界面, 我觉得这个应该是下半年我们比较重视的。

For the second half outlook there are two points.

We invite you to take a closer look at one is a broader application and linkage of products and technologies across multiple endpoints and scenarios, including but not limited to PUC OTT star and how life changing search.

Trending topics and then scenario that we can link the consumer read the advertisers, we will be putting more effort into.

The other the quad AI I simply think a woman gung torches, yet as long as I'll show you what that is as a teacher Jody how should we make sure that we get insurance.

Juliet Yang: For the second half outlook, there are two points we invite you to take a closer look. One is a broader application and linkage of products and technologies across multiple endpoints and scenarios, including but not limited to PC, OTP, store mode, live streaming, search, and trending topics. Any scenario that we can link the consumer with the advertiser, we will be putting more effort into.

And they only easiest suddenly get them come how finishes languishing. She did her leash that'd be the way to thinking won't go the tweaking it seems in that region.

And the other not just do you see the commentary coming out of the balloon.

I should say Bondswoman Datacom gaucho, Pinot quite essential go shipping fees.

He told me that won't Gulf wind down.

Beyond here since the fulfilling the El Nino excuse me mood Shinsei chasing sure you don't kind all that mustache for me additional AI Xi'an Chengdu. So a whole <unk> go go the yoga shoes hydrazone types out of a young woman.

Kali Li: to effectively improve clients' cost control and volume generation capabilities in the second half of the year.

A woman to cool the tender uncertainty young Tiger Chunghwa vehicle designed you know why not just AI the channel wholesale onshore machines out how should Charleston place, which was all acquired Bronco told downtime.

So you'll shell Ciego Kubota took a chunk of the coal so you Paul eminently Saturday lifestyle, Danielle how ashish.

You said she died about.

The second point will be on AI, we believe.

AI will continue to drive improvements not only on the efficiency, but also delivering actual advertising that's a new one.

We will continue to.

<unk>.

<unk> ongoing iteration of our recommendation algorithm, enabling deeper content understanding and more precise at targeting based on our user interest and historical behavior.

Another point would be the AIC advertising tools to help our advertisers to generate at carvers entitled or even content tailored to build those user's language and creative style at scale.

Juliet Yang: The second point will be on AI. We believe AI will continue to drive improvements, not only on efficiency, but also delivering actual advertising revenue. One thing is that we will continue to implement ongoing iteration of our recommendation algorithms, enabling deeper content understanding and more precise ad targeting based on our user interest and historical behavior. Another point would be the AIGC tools to help our advertiser to generate ad covers and titles or even content tailored to Bilibili's users' language and creative style at scale. Currently, about 30% of the ad covers are AI-generated, and there will be more room for us to push the number forward. Lastly, it is on AI-powered automated ad delivery products. We will be launching more of those products to improve our advertisers' cost control capability as well as scaling capabilities.

Only about 30% of the AD covers our AI generate Ed and there will be more room for us to push that number forward.

And lastly is an AI powered automated optical repair products.

We will be launching more of those products to improve our advertisers cost control capability as well as scaling capabilities.

Oh Cheng Hye Ashish.

Hum.

<unk> got the usual I suggest shortage homes at adoption Hi, Bob Cushing has anything changed she relies on Shanghai, how should they choose April cohort share that ashish.

Sure.

I was hoping you could talk on board a couple of you shouldn't see a dear audience.

I kind of Wow.

I was just wondering just how they should have a cool high super tongue shipping pilots, yes, sure while whole country Showtime quite a chunk Wow, chitchat, which we should talk to them quite well.

Oh, Yeah, Yeah, John <expletive>, choosing that 19 telephone pizza at all.

Sure the cause of cancer, they'll play ball not high tissue or this is a business which are.

Kali Li: some of the near and long-term trends we are observing in the industry.

G babies out Yoshi, Yeah, Boyo, Yonker, Yugo cool with Cushing South.

Maybe.

Oh, yes.

Yeah.

Sure.

Oh from.

Industry vertical standpoint in the near term, we think the advertisers' budget are migrating from multiple platforms to a few core popcorn.

<unk> that.

Are indispensable and unique will capture larger shares of client budget and in the longer term as chinas consumer.

Market involves.

Our tight there will be placing more emphasizing on building their brands.

On top of the pure self conversion budget, because no advertiser can afford to ignore the influence and purchasing power of young people are not on that aspect.

Juliet Yang: From an industry vertical standpoint, in the near term, we think the advertiser's budget on migrating from multiple platforms to a few core platforms, platforms that are indispensable and unique, will capture larger shares of the client budget. In the longer term, as China's consumer market evolves, advertisers will be placing more emphasis on building their brand on top of the pure sales conversion budget, because no advertiser can afford to ignore the influence and purchasing power of young people. On that aspect, Bilibili is at a very unique position.

<unk> is very.

Very unique.

Position.

Oh, Oh, Oh, I'm, there's such huge tissue sanyo to pizza in the Guangzhou Judge essentially Shazam play so that we can help with that.

So as I shall Danielle I'm sure you'll see things each she John Shaw go you got behind.

Yeah.

So in summary, rather than long term or short term as well as our community continued to price the value of dividends advertising business will become increasingly evident over time, we remain confident in our ability to sustain.

The growth above industry average thank.

Thank you operator next question please.

Thank you.

We'll now take the next question.

Kali Li: better answer over time. 所以在下半年我们还是有信心可以持续增速, 高于行业大盘的。谢谢。

From the line of Felix Liu from UBS. Please go ahead.

She said one is on schedule with the two of them one on tissue by New York.

It sounds you're always out womens chikungunya, which would assemble Scott Julian to inbound actually down in Mexico.

Juliet Yang: In summary, whether in long term or short term, as long as our community continues to thrive, the value of Bilibili Inc.'s advertising business will become increasingly evident over time. We remain confident in our ability to sustain the growth above industry average. Thank you. Operator, next question, please.

When the New York Handbags that most have on Yankee Dominion two shifts.

Mccandless, Ohio not ship it you don't want that.

Okay.

Thank you management for taking my question. My question is on the game business.

Management share any color on the recently concluded.

Some demo first anniversary season, eight how should we think about the second half trends for Sam Moore as well as for next year.

Operator: Thank you. We will now take the next question from the line of Felix Liu from UBS. Please go ahead.

Our new game pipeline what are the key games that you would like to highlight.

No.

Rui Chen: 谢谢管理层接受我的提问。我的问题是关于游戏业务的。想请问一下我们最近刚刚过去的三国谋定天下S8周年庆版本实现了哪些成绩？我们应该如何看待三国谋定天下下半年以及明年的趋势？另外，目前公司还有哪些值得我们期待的新游戏储备？Thank you, management, for taking my question. My question is on the game business. Can management share any color on the recently concluded San Mo First Anniversary Season 8? How should we think about the second half trend for San Mo as well as for next year? On your new game pipeline, what are the key games that you would like to highlight? Thank you.

Lewis is I'll call it somewhere in that sort of you can either be eager to Nanjing Hangzhou, Tony the tuna.

Tim T. J do you you know his honker alone neither cingal.

On June 13, some will celebrate its first anniversary and during that season, but <unk> a record a new record and within the year of 2025.

We didn't see that so in answering to your strategy.

Tony.

Some more you guys tongue.

Uh-huh pools.

<unk> two could talk all of who was at the end of the unions are tangible the yugo challenging Deirdre.

Good luck.

Tell us how well Mitchell quain CMT somewhat awesome <unk>.

Sam Fan: 在6月13日，San Mo应该迎来了第一个周年庆。在那个周年庆期间，DAU应该创下了年内的新高。

California, and you saw something go typically youll see a woman Tyler one thing, though you go I think youll see being so.

The achievement of planned more on its first anniversary truly demonstrates that the game has established itself and laid a foundation to become a long lasting title. We are confident that someone will become a lifestyle.

Juliet Yang: On June 13th, San Mo celebrated its first anniversary. During that season, the DAU broke a new record within the year of 2025.

Sam Fan: 我觉得这个周年庆的一个赛季还是证明了 San Mo 应该是从初上线第一年，走过了初上线的第一年，然后进入了一个长线运营的一个阶段。从目前来看，我们是很有信心 San Mo 至少是能够作为一款5年以上生命周期的一个游戏，为我们带来稳定的一个那个游戏的营收。

The lifecycle of over five years and continue to contribute solid game revenue for us.

So enhancing the spark idea women's youll see us for <unk> here.

I realize it's only all these screens answer about <unk>.

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She has assembled a task that chose <unk> compound in the equity and a shift of dollars from how the engine producers.

Juliet Yang: The achievement of San Mo on its first anniversary truly demonstrates that the game has established itself and laid a foundation to become a long-lasting title. We are confident that San Mo will become a lifestyle with a lifecycle of over five years and continue to contribute solid game revenue for us.

You've seen.

In the car life <unk> pension that's K foot.

Off to a woman does it.

So how are you guys at all on what maybe we can see our seafood our tongues handle.

Thank you.

Both ally.

Sure.

Anyone who is ultimately even with us so we have.

Sam Fan: 而且在周年庆的这个 S8 赛季，我们其实也是就是验证了一些，我认为在未来比较重要的一些运营方式吧。比如说这个我们的皮肤，因为其实 San Mo 它在抽新卡方面，在过去一年已经是得到了很好的验证，就是每个赛季用户都会为新的卡来付费。但是呢，这次 S8，就是我们的这个皮肤的一个消耗应该是达到了我们的一个预期，而皮肤在我看来是一种更长线的，这个能够带来那个就是长线用户消费的一种方式。所以的话，就是这种卡加皮肤，再加上可能未来会有更多的这种消费的一个方式，它也是一个能够更健康的做长线运营的一种模型。

The hydro to dig all cause option for Datong whaler indoor digital celebrating apologize higher should you go no go content commerce or sometime in the morning.

During the season.

Okay.

And that anniversary celebration event, we have launched multiple new.

Monetization tools, such as limited edition skin, which is well received by our users. We believe for example, like the skin cell.

During the anniversary has met with our expectations and.

Shows that we have explored new monetization tool, that's even more healthier and sustainable compared to other tools going forward will have the new card monetization at combining with the skin as well as new.

Juliet Yang: During the Season 8 and anniversary celebration event, we have launched multiple new monetization tools, such as the limited edition skins, which is well received by our users. We believe the skin sales during the anniversary have met with our expectations and showed that we have explored a new monetization tool that is even healthier and sustainable compared to other tools. Going forward, we will have the new card monetization combining with the skins as well as new innovative monetization models that will help us to make San Mo even more sustainable and healthy.

<unk> has a monetization model that will help us to make some more even more sustainable and healthy.

So this is another one that's only going to go through full hall.

Thank you Bob.

Thank you to the degree also joining so how might you go. Thank you.

The whole Yieldco would have put out.

At the end of the value that youll see that well do them with you.

So you can see this is a different world you don't want me handle you measure from Golar <unk>. So we'll go to the Lee who I think that indeed finally, besides your the name on total the confirmed for Argentina.

I'll make a QA steam cooking home gym.

The most important thing for us is to focusing on making every game season, the basketball season.

Sam Fan: each season richer, and they can also balance fun and balance.

As long as we continue to provide that experience, we think that users will naturally state and continue to play that game.

Thank you Bob.

I would actually equal size each of that you're able to join you saw how much volume could have put out.

<unk>.

On one hand, we think the overall development capacity per ton mile has improved quite a lot and each each new game season, we'll be featuring richer content and moving forward. We will continue to optimize the game play and make it more fun.

At the end of that you believe you will see it would be.

So you can see it's usually different what you don't want me, yes, Hello, English or to go to <unk>. So we'll go to the leaf or indeed.

Those are the confirmed for Argentina.

<unk>.

Rod I'll make a QA seen clips from home team Jim.

It makes the game, even more engaging the Dr. Joseph <unk>, maybe more frequently with rigorous genome quarter. You go 40, chiller warmer Wheeler, you're welcome Glenn through low quarter Hugo <unk>.

Juliet Yang: The most important thing for us is to focus on making every game season the best game season. As long as we continue to provide that experience, we think the users will naturally stay and continue to play with this game. On the one hand, we think the overall development capacity for San Mo has improved quite a lot. Each new game season will be featuring richer content. Moving forward, we will continue to optimize the gameplay, make it more fun, more balanced, and make the game even more engaging.

The most important thing for us is to focusing on making everything season the basket in season.

As long as we continue to provide that experience, we think that users will naturally state and continue to play with.

Yeah, just real quick we will talk to you doesn't seem like with your choice digital.

Core <unk> for the ego Quito.

<unk>.

Ah.

Continuing answers are somewhat tied to date, along with Heidrick way you've got a dollar figure on that so they are going to endo decelerate yanbu to hit those.

On one hand, we think the overall development capacity for Sangamo has improved quite a lot and each each new game season, we will be featuring richer content and moving forward. We will continue to optimize the game play and make it more fun.

I'm going to have a call with them.

Along the way if we go to it or the whole Patricia Cornwell, Colorado.

Hollywood and Sheila published.

<unk> <unk> Goldman <unk> Hello, if they don't they don't tell me all the Yugo sure Bill Tanona.

<unk>.

A woman does either.

It makes the game, even more engaging Dr. Joseph <unk>.

Sam Fan: 对, 第二呢, 就是除了我们那个会关注这个新用户的一个获取之外, 我们未来也会更关注老用户的一个活跃和留存, 以及就是我们会比如说阶段性的会去做一些这种活动去拉老用户的一个回流。因为过去一年其实 San Mo 它积累的老用户它就会越来越多了嘛, 随着我们再往第二个年度、第三个年度去走, 那么它的玩过 San Mo 的老用户也会越来越多, 然后把这些用户能够更好的让它活跃和留存起来。它会成为一个我们接下来非常非常重要的一个指标。从目前我们的这个就是数据来看的话, 就是 San Mo 的老用户的流程是处在一个很健康的状态的。

Fuji life kind of hard to assemble the volume corridor.

Frequently with rigorous genome quarter you go to July when my will weaken Guangzhou law you won't go there you go.

Jim Parmesan type.

On top of the new user acquisition going forward.

They are putting more emphasize on pending.

Just one more quick.

So to you doesn't seem like with your choice of digital.

Pending and activating the old users.

Legal corridor Scilla linked quarter you go <unk>.

This gain has sustained a ski season, and there will be a lot of user or dormant users. It's very important for us to activate and we can dose.

Fortunately that is somewhat equal.

Tragically.

Are you a dollar amount figure woman farewell Darwin Endo decelerate yanbu to hit those numbers.

Existing user who have placed on malls.

I'll go into more of the volume away. If we go to it or the whole Patricia you don't want to call the portfolio.

Labcorp left the game for some reason this won't be a very important channel for us to make.

You also I'm sure that publicly.

<unk> and where you go there Jay.

Maintaining a healthy gain community.

Sure Bill Martel woman does it go.

As far as we see so far user retention rate has been maintained at very healthy level.

Fuji that I kind of hard to assemble the volume corridor.

Jim commented on pipe.

Juliet Yang: On top of the new user acquisition, going forward, we will be putting more emphasis on retaining and activating the old users because this game has sustained eight game seasons and there will be a lot of old users or dormant users. It is very important for us to activate and awaken those existing users who have played San Mo but have left the game for some reason. This will be a very important channel for us to maintain a healthy game community. As far as we see so far, the user retention rate has been maintained at a very healthy level.

A lot of women empty exactly Pete who named the vantage will in the meantime.

On top of the new user acquisition going forward.

Volatile issue your home email me or call me.

Be putting more emphasize on.

Pending and activating the old users.

So at least 600 down to highlight.

This gain has sustained a ski seasons and there will be a lot of use there or dormant users. It's very important for us to activate and we can dose existing user who have placed on more half lap.

A highlight of the needle.

Our Q4 that you highlight departure.

We are expecting to launch the traditional Chinese version of some malls.

And the end of this year or early next year.

Two players in Hong Kong, Macau, and Taiwan, and we're also going to explore potential releases in overseas markets, such as Japan and Korea.

Left the game for some reason this will be a very important channel for us to.

Maintaining a healthy dealer community.

So as far as we see so far the user retention rate has been maintained at very healthy level.

Sure.

He was here.

Sam Fan: 对, 接下来我们在年底应该会推出那个繁体中文版, 面向港澳台地区, 然后明年我们也会考虑那个在类似于像日韩这样的那个海外的那种国家, 然后去做这个海外的发行。

Youll slow you will see so that on that the heart muscle.

L. A woman Danielle D exactly Pete who named the San Pedro.

These are tuned to whether you could tell me, it's Andy <unk>.

Volatile issue your home email me a quick call.

Oh.

Not about Halloween that real quick.

So at least 600, writing down to make up a highlight of the needle for you all.

<unk> total with either of them are kind of at all.

These are typically borgwarner exactly for Hugo <unk>.

You sort of highlighted bacci.

Juliet Yang: We are expecting to launch the traditional Chinese version of San Mo at the end of this year or early next year to the players in Hong Kong, Macau, and Taiwan. We are also going to explore potential releases in overseas markets such as Japan and Korea.

We are expecting to launch the traditional Chinese version of <unk>.

Did the hurricane what you do to do that.

Sure.

Looking at our pipeline. We currently have five games that waiting for licensing approval and once that approval is being.

The end of this year or early next year.

Two players in Hong Kong, Macau, and Taiwan, and we're also going to explore potential releases in oversea markets, such as Japan and Korea.

Obtained.

<unk> won't be that leasing accordingly in short time, we will be expecting to be a casual game based on <unk>, IP, which I believe is quite fun and entertaining too.

Sam Fan: 然后说一下那个其他的新游戏。我们现在其实有 4-5 款游戏是在等待版号。就是我们手上还是有比较充足的一个产品线的一个储备吧。然后那个拿到版号以后应该就会在网上曝光，到时候大家都能看得到。比较近会曝光的应该会是一个以三国为 IP 的一个休闲游戏。我觉得还是挺有意思的，敬请期待。

I'll shortly.

How does he was here.

Youll slow you'll see that on that the heart muscle.

These are tangible though you go well tell me if you're in the Eagle Ford.

To look forward to remove him tweaking.

Oh, maybe not about Halloween that real quick.

Switching to the CMO to a full quarter preliminary thing rather than on the yugo quota email women choices that youre seeing is off to her <unk>.

Caldwell total with either of them are kind of at all.

These are typically borgwarner exactly for you go <unk> wanted to hire talent useful thing to do that.

Who do you see.

Yeah.

You say youll see in the future. So we have a hydro <unk> conducted a woman that peer.

Juliet Yang: Looking at our pipeline, we currently have four to five games that are waiting for licensing approval. Once the approval has been obtained, the game will be releasing accordingly. In the short term, we will be expecting to release a casual game based on our Sangu IP, which I believe is quite fun and entertaining to look forward to.

Looking at our pipeline. We currently have five games that waiting for licensing approval and once that approval is being.

19 to Florida.

Do you guys how should they wish you Andreas harsher Nuncle corridor hospitable.

And going forward, we will continue to execute on this strategy.

Obtained that.

Game will be will be.

Same accordingly in short time, we will be expecting to be a casual game based on final IP, which I believe is quite fun and entertaining too.

Trading gains for inventing games for a new generation of gamers, and we will be exploring new game genre, and making innovation across different genre and there will be a number of potential categories and our pipeline.

Sam Fan: 对, 我们目前应该会推进之前我所说过的品类年轻化的这样的一个策略, 因为我们就是在去寻找年轻用户的一些对于一些游戏品类的一些新的需求吧。所以的话, 接下来大家应该可以看到就是我们在品类年轻化方面去做的呃, 好几个尝试。对, 我也希望这些尝试能够获得好的结果。

To look forward to <unk> <unk>.

Switching to have also a frugal pillay Nancy why.

You may all women.

Look forward to.

Children that youre seeing job managing.

Operator next question. Please thank you.

<unk> you too.

<unk>.

Thank you.

You say youll see later in the future so any the hydro.

We'll now take the next question.

Could you kind of just walk on that Peter.

Peeling Anti-war to Florida.

From the line of Lincoln Korn from Goldman Sachs. Please go ahead.

How do you guys feel about the way things are going?

So you wanted to add harsher Nuncle corridor hover table.

Juliet Yang: Going forward, we will continue to execute on the strategy of creating games, reinventing games for the new generation of gamers. We will be exploring new game genres and making innovation across different genres. There are a number of potential categories in our pipeline we are quite looking forward to. Operator, next question, please. Thank you.

Got it and then just so that you know what I want to explain to you early J codes.

And going forward, we will continue to execute on the strategy of creating game spray inventing games for the new generation of gamers. We will also be exploring new game genres.

Joe could you kind of a consistent that you really want me to.

As Peter said the gala.

A whole kind of.

Sure Jonathan.

But if you can do.

They stopped by to answer because you don't need a chartwell.

Making.

Im not sure we found that <unk>.

Ovation across different genre.

How long youll be able gtt's, yes. She can look we will oh, yeah, what's going on there.

And then what would be a number of potential categories, and now pipeline, and we're quite looking forward to.

Inkjet cartridges, just that way you talk to us.

Yes.

You don't watch sportswear Marcia whole sugarcoat it if thats your question on the phone.

Operator: Next question, please. Thank you.

Operator: Thank you. We will now take the next question from the line of Lincoln from Goldman Sachs. Please go ahead.

Oh, okay.

Thank you.

Cisco has done so.

We will now take the next question.

Thank you management for taking my question. So my question is about your our profit margin.

From the line of Lincoln Korn from Goldman Sachs. Please, go ahead.

We have seen her.

Group profit margin continued to kind of high so what are the potential areas of our cost efficiency.

Sam Fan: 谢谢管理层接受我的提问。那我的问题是关于利润率这一头。可以看到公司现在这个利润率其实持续的是在走高。那其实往后看，我们还有哪些这个可以控费降本的一些空间? 我们对下半年这个利润率的展望以及中期的一个有 15% 以上的 OP 利润率的这个展望有没有具体的一些实现的规划? 关于我们的现金这块，其实也想问一下，因为我们现金状况还是不错，所以后续的这个可能的这个使用的方向，包括股东回报后面的一些计划。谢谢。那我翻译一下。So thank you, management, for taking my questions. My question is about our profit margin. We have seen our group profit margin continue to trend high. What are the potential areas of our cost efficiency and cost discipline going forward? How should we think about the second half in terms of our profitability outlook and any timeline to achieve our media target? They are 15% above our operating margin. In terms of use of the cash, what are the future areas of our capital allocation? How should we think about our shareholder return policy? Thank you.

Got it. And then just so that you know, I want to explain to you our new J code.

Could you kind of give a consistent message that you really want me to just either side with Oklahoma?

Going forward, how should we think about the second half in terms of Barbara.

Okay.

Profitability outlook.

Sure Jonathan.

Any timeline to achieve our beat your targets.

But if you can do.

Please stop by to answer because you don't need a Chartwell.

But above all pretty margin and in terms of yourself the cash so what are the future area that's tougher.

I'm not sure we found that, uh, got.

How long will you be able to ECS? You can't look. We will. Oh, yes.

Capital allocation, how should we think about an hour.

Inkjet cartridges. Just that way you talk to us.

Yes.

Shareholder return policy. Thank you.

So you don't want that supports all of our shareholders.

To your question on the phone.

Thank you <unk>.

We've also looked at AK Steel.

Sam I will take your questions.

Just finally, John, thank you management for taking my question. So my question is about our profit margin.

In Q2, our top line grew by to defend our gross profit increased by 46%. So we saw very strong operating leverage here. Our gross margin has increased sequentially for 12 quarters. We expect the same trend to continue in the second half of this year, reaching around 37%.

We have seen her.

Our gross profit margin continued to trend higher, so what are the potential areas of our cost efficiency?

Going forward, how should we think about the second half in terms of Barbara?

Profitability outlook.

Bye Bye Q4, let's say, so we still maintain our midterm growth pocket margin target.

40% to 45% and for the Opex, we have continued to improve our efficient C of the operation. So if you look at the absolute dollar amount of our parks and the second in the first half of this year.

Our media targets are 50% above all, with pretty margins and in terms of the use of the cache. So what are the future areas for capital allocation? How should we think about our shareholder return policy? Thank you.

Sam Fan: Thank you, Lincoln. This is Sam. Our typical question: in Q2, our top line grew by 20%. Our gross profit increased by 46%. We saw very strong operating leverage here. Our gross margin has increased sequentially for 12 quarters. We expect the same trend to continue in the second half of this year, reaching around 37% by Q4, let's say. We still maintain our midterm gross profit margin target of 40% to 45%. For the OpEx, we have continued to improve our efficiency of the operation. If you look at the absolute dollar amount of our OpEx in the first half of this year, it is pretty flat year over year. We expect to see the year-over-year decline of the OpEx in the second half because in the second half last year, we had more marketing spending on San Mo in the first two quarters.

<unk> flat year over year, so we expect to achieve.

The decline of the Opex in the second half because in the.

Half last year, we have more marketing spending some alright.

The first two quarters. So further profitability over the past two years, our gross profit margin grow very well and our operating policy, how grow even faster outpacing our growth margin improvement.

In Q2, the <unk> module was.

Seven 8%. So we are confident that we can achieve no quarter over quarter improvement to achieve like 10% adjusted operating margin in Q4 this year.

Again, we made to our mid term target of 15% to 20% for our op margin.

Regarding to the cash usage.

To enhance our shareholder returns, we already reproach or the $100 million shares.

Hong Kong line in Q2, although we have canceled all of those repurchase shares.

Sam Fan: For the profitability, over the past two years, our gross profit margin grew very well and our operating profit has grown even faster, outpacing our gross margin improvements. In Q2, the OP margin was 7.8%. We are confident that we can achieve quarter over quarter improvement to achieve like 10% adjusted operating margin in Q4 this year. Again, we maintain our midterm target of 15% to 20% for our OP margin. Regarding cash usage, to enhance our shareholder returns, we already repurchased $100 million U.S. dollar shares in our Hong Kong line in Q2, and we have canceled all those repurchased shares. Under the current $200 million buyback program, we still have $83 million remains available. As we have sufficient U.S. dollar cash reserve offshore, the purchase will continue based on the market conditions. Thank you for your question.

So under the current 200 million buyback program, we still have $83 million remains available.

We have sufficient U S dollar cash with the offshore.

We still, uh, mental midterm, growth profit, margin Target, uh, 40 40% to 45%. And for the old packs, we have continued to improve our efficiency of the operation. So you have to look at the absolute dollar amount of our op packs in the second, in the first half of this year, is p flat year over year. So we expect to achieve the year year, decline of the old packs in the second half because in the in the second half last year, we have more marketing, you know spending on some more right uh at at the at the first 2 quarters. So for the profitability, over the past 2 years, our growth profit margin grow, very well and our operating policy has grown even faster. Operating, our growth margin improvements.

Well continue based on the market condition.

Thanks for your question.

Thank you operator next question please.

Thank you.

We will now take the next question.

From the line of Hugh Wynne sang from China Renaissance. Please go ahead.

Uh, in Q2, the operating margin was 7.8%. So we are confident that we can achieve, you know, cost-over-quarter improvement to achieve like 10% adjusted operating margin in 2024 this year. So again, we met our midterm target of 15% to 20% for our operating margin.

Sure sure.

And that does require your summer.

I Wonder what's your thoughts on the nature, you won't talk about it we're not sure how much can I mean, it seems like just from me on this this year. So it does for taking my question. So my question is.

And regarding the cache usage to enhance our share of the returns, we have already repurchased $100 million in shares in our Hong Kong line in Q2, and we have canceled all those purchased shares.

Can you just tell us what kind of application with have all performed well.

Looking at the latest.

Thank you.

Jim with him.

Yes.

<unk> Eugene.

So, under the current $200 million buyback program, we still have $83 million for the men's segment available. As we have sufficient U.S. dollar cash reserves offshore, our purchases will continue based on market conditions.

Operator: Thank you. Operator, next question, please. Thank you. We will now take the next question from the line of Yiwen Zhang from China Renaissance. Please go ahead.

so, then for your question,

So which will Joshua to her woman kind of woman that's either we would hope on that further with them down, but I'm not sure I don't give them the bulk or tickets you do them and does it with D. A.

Thank you. I'll bring your next question, please.

Thank you.

We will not take the next question.

That can be drawn down, leaving yeah excuse me.

Xueqing Zhang: 谢谢管理层接受我的提问。我的问题是关于咱们主专项的 AI 应用的。目前看到咱们的一些 AI 应用大概有哪些？目前他们的进展是怎么样的？Thank you. My question is on AI. Can you discuss what kind of AI application we have on platform and what is the latest progress? Thank you.

With its absolutely somehow ekati is going down.

From the line of E1 tank from China Renaissance, please go ahead.

And then either portfolio.

So don't turn some form of a convertible tie Shenandoah agenda. She got here you go.

Now that you've got to Avago <unk> bulk.

Volkov contact works, you're about to hear you'll generic sure.

Sure sure well that's in their clean floor too severe.

Quarter regarding ruins, the whole <unk> learned that Nick <unk>, let's hit the nail on those either shifting there.

So, thanks for taking my question. My question is about our AI. Can you discuss what kind of applications we have on the platform and what the latest progress is? Thank you.

Sam Fan: video content, which has also yielded very good data benefits.

When we you should see that lever.

For holiday, we showed you the English only.

Matter of fact, the AI application of our adoption of cross multiple scenarios on visibility has already starting to generate value for example.

Advertising revenue grew by 20% a year.

And Colleen mentioned, yeah play the important role our behind that number for example, the AIG C Hubbard.

Hubbard Hydro generation has meaningfully improved click through rates and also.

For.

From behind the EMEA U D number increases.

Also played a vital role in terms of.

Delivering the right content to the right users.

Juliet Yang: As a matter of fact, the AI application or adoption across multiple scenarios on Bilibili has already started to generate value. For example, the advertising revenue grew by 20% year over year. Kali Li mentioned AI has played an important role behind that number. For example, the AIGC cover title generation has meaningfully improved the click-through rate. Also, from behind the MAU and DAU number increases, AI played a vital role in terms of delivering the right content to the right users. On the topic of providing high-quality content and fostering a friendly community, we have also leveraged the AI capability to amplify Bilibili's strength through early identification of high-quality content through understanding the user's commentary session. That has helped a lot, helped us to promote high-quality content at a very early stage and allow that content to be seen by more people.

On the topic of <unk>.

matter of fact,

<unk> high quality client clustering.

Friendly community, we have also leveraged AI capability to amplify.

These strengths through early identification of high quality content to understanding the users commentary section and that has helped a lot helped us too.

Promote high quality content at very early stage and allowed that content to be seen by people.

Has already shown in our user matrix and community engagement.

Or adoption across multiple scenarios on. The building has already started to generate value. For example, uh, the advertising Revenue growth by 20% year-over-year and Collie mentioned. Uh, yeah, I have played a important role behind that number, for example, the aigc, um, cover title, generation, has meaningfully improved, a click through rate. And also, um, from behind the Mao, and do number increases, and I also played a vital role in terms of

Running the console were down others are tightening Rudolph it sounds either ego.

Going downhill Mega solar was undrawn at the end of July to Hollywood, Thank John Saturday.

Celebrating the right content to the right users and on the topic of providing high-quality content and fostering.

But even that Joe sure Glenn.

We will go from that is that you want you need only to grow your share.

So you've only got about there's a woman.

Peter Chen Tong.

Sheila.

Can you talk about your battle until towards the mineral controlling their own team Dr. James Hondo, Qunar and Ctrip those are women.

A friendly community. We have also leveraged the AI capability to amplify availability strength through the early identification of high-quality content by understanding the user's commentary session, and that has helped us a lot.

Jim.

Culinary rounds of Orange and do you need on tour. There you go you go hurdle.

Juliet Yang: This has already shown in our user matrix and community engagement.

Sure.

Sure.

Hello, So suddenly you made your bandwagon onwards, you'll be able to make.

Sam Fan: soon be reflected in our judgment of such high-quality content, especially in the early stage of judging high-quality content.

The name of the future.

Promote high-quality content at a very early stage and allow that content to be seen by more people. This has already shown in our user matrix and community engagement.

Sure thing.

Yes women.

Sure maybe I'll leave it easier bulk or do you think.

If you could help there you got few days.

Sure.

Mckinsey only the hotel its owner and well talk to you all of them.

So you don't have to make sure.

They usually will come under you got to get the whole ship Y J. This is hunting book.

You want to and they don't show at the end of Hugo who don't know Hugo glasses.

Touch on maybe the chartering up <unk> two of a woman.

Turning on the diesel megawatt Panda and Youll see Sir.

Consult <unk> general legal tender.

Ill elaborate on three aspects of how AI is helping diligently to become better one as that AI can really amplified vulnerabilities.

From one aspect. One example would be every day it will be over 1 million long comment generated by our users.

Yeah.

Era of AI.

That means about 1 million people, helping to AI to mapping the content to <unk>.

Densify the content as good content good data points.

Asset those type of long the long comment generated by real deliberate user is such a truly unique data assets for us to identify high quality content at a very early stage and promote that across our platform and we already have.

Juliet Yang: will elaborate on three aspects of how AI is helping Bilibili to become better. One is that AI can really amplify Bilibili's strength. From one aspect, one example would be every day there will be over 1 million long comments generated by our users. In that era of AI, that means about 1 million people helping the AI to map the content, to identify the content as good content, good data points. This asset, this type of long long comment generated by real Bilibili users is a truly unique data asset for us to identify high-quality content at a very early stage and promote that across our platform. We already have specific tools to help us to amplify that strength. We will be adapting that technology going forward across multiple content categories and scenarios.

um, I

I can really amplify the ability strength.

Specific tools to help us to amplify that strength and we will be adopting that technology going forward.

<unk> multiple content categories and scenarios.

From one aspect, one example would be every day. There will be over 1 million long comments generated by our users in Q2 2025.

that era of AI.

Hi, This is Nick.

Good homes, or <unk> to whom than it typically does.

It seems that she understands the need to win some share team joining on glass shrinking two sir.

But that kind of thought guys, even though you can create political told us in June than April.

Those are the portola passionate team.

Hi.

So shouldn't I'll go through that.

You may make a parmesan Oakland uncertainties going down there you go you depend on Toledo to recover no doubt me with him then tushar.

She thought should how should we not to have you on that.

That means about 1 million people, helping the AI to mapping the content to identify the content as good content, good data points. And this asset, this type of Long View, long comments generated by real Billy Bill, user is a truly unique data asset for us, to identify high-quality content at a very early stage and promote that across our platform. And we already have a a a specific tools to help us to amplify that.

And I'm wondering if you saw you guys don't have a team here at home could you kind of if or when a company is having to contribute towards that I've.

Sam Fan: able to demonstrate it to everyone relatively soon, whether AI can create a video with the "flavor" of an up-loader. Our answer is yes.

Strength, and we will be adapting that technology going forward across multiple content categories and scenarios.

Obviously, you guys have before the Yugo shipping better tell me, but when you come to a budget pressure he had to work.

Besides example, Yahwism E mail me or harder.

Would you say the equatorial sure Hamzah I'll wait although recently, yeah nuclear going away touch, we actually don't homebuilder getting with.

Do you want the Jo Mill Kombucha original Thunder to go yes.

Ruble annual visit to originally from the young Lee It sounds issue.

For.

Pedro with outsourced rather to quickly add to work harder.

Thank you Danielle.

You said it seems that you met with our team.

In aggregate.

You may make.

Sure sure no more than go down towards where you got to go opposite with or without what whether you go to Azure Cleveland.

The second is on.

Since that content creation.

Our mid to longer form video we've seen other players have made even more open source tools for short lead equation, but that's merely just on the.

The video material itself.

Longer than 30 seconds.

Whether AI can make mid to longer form video question. We think the answer is yes.

On the one hand, we've seen other two other of their players in the market have that tool to make mid to longer form videos.

And it seems at first.

Juliet Yang: The second is on AI-assisted content creation for mid to longer form video. We have seen other players have made even for open source tools for short video creation, but that is merely just on the video material itself, a little longer than 30 seconds. Whether AI can make mid to longer form video, the question we think the answer is yes. On the one hand, we have seen other tools, other players in the market have that tools to make mid to longer form videos, but it just seems at first look it is produced by AI. However, we think we have the ability to make a human-like mid to longer form video because we have best and most talented content creators on our platform who can help us to make this into reality. We will be launching that product very soon.

Look it's produced by AI. However, we think we have the ability to make.

Humanlike mid to longer form video because we have the best and most talented content creators on our platform, who can help us too.

<unk> sensing to reality and we will be launching that product very soon I would think.

And the second is on AI assisted content creation for Mid to longer form video. We've seen other players have made even for open source, uh, tools for short video creation but that's merely just on the M. The video material itself, uh, no longer than 30 seconds

It might be the best human like mid to longer form.

Video creation tool that's out there.

Whether AI can make mid- to longer-form video. The question we think the answer is yes.

Aren't you don't add of those funds or are you going to achieve for the mortgage market. The applicable to some of them are able to Cumulus and Omega.

The season with hospitals that don't hit the radar or what's your sort of labor.

Number two the other two Hugo just the opposite with that you've got a ton of our Saudi probably you've all asked a lot of hydro to ruin your thoughts on kind of.

Initially yeah, how should they could have something to tell me your table top tablets.

Our financials at Hudson's Bay, we're Borden.

Wow.

Most of that tour of course goes back to help our content creator to lower their barriers and improve their production efficiency and contributing to overall content supply rather than making AI produced video. So we think another analogies to makeup.

Juliet Yang: We think it might be the best human-like mid to longer form AI video creation tool that is out there.

We have the best and most talented content creators on our platform. They can help us make this a reality, and we will be launching that product very soon.

Sam Fan: 对, 当然这种AI的辅助创作的一个技术目的其实是拿给我们的up主用, 就相当于是我们up主用了这样的AI辅助创作的技术, 他做出来的东西就是自己的味道, 而不是所谓的AI的味道。这个能够极大的提高就是我们up主的一个创作效率。打个比方来说的话, 就是如果你要做中餐, 你首先还是得给他准备酱油和这种炒菜的铲子, 而不能只给他准备微波炉。

And I think, um, it might be the best human-like, me to longer form, AI video creation tool that's out there.

Very good Chinese food will have the Chinese ingredients.

To offer them microwave.

We are here to offer the ingredients.

The design carbohydrates or granuloma sent home.

So I think on senior Abu is holding well.

Well when you face a challenging.

Yeah Tom.

Remember yugo photos Hangzhou EG senior Abu there you go.

Juliet Yang: The purpose of that tool, of course, goes back to help our content creators to lower their barriers and improve their production efficiency and contribute to overall content supply rather than making an AI-produced video. We think another analogy is to make a very good Chinese food. You will have the Chinese ingredients, not just to offer them a microwave. We are here to offer the ingredients.

Payback to Parliament, then able to me the vessel will be more than that from a shovel it till the future market.

Yeah, it's BJ.

<unk> <unk> Dumas, hartzell logical <unk> treated as usual.

And an area that didn't really have a key advantage for example, such as animation Virtualized <unk> virtual streamers.

Sam Fan: 我们应该也可以是让这个AI来实现动漫的一个辅助创作以及虚拟 up主的一个情感的一个陪伴。这块我们在内部的那个也是在小规模的在做内测, 效果也挺好。这个其实我们可以认为就是用AI解决 Bilibili 很多这种动漫爱好者和这种虚拟 up主爱好者的这个具体的需求。

So um the purpose of that tool, of course goes back to help our content creator to lower their barriers and improve their production efficiency, and contributing to overall content Supply rather than making an AI produced video. So, uh, we think another analogy is to make a very good Chinese food. You will have the Chinese ingredients, not just to have offered them microwave and we are here to offer the ingredients.

I also have a strong potential to help us to meet.

To meet the demand of those ACG lovers.

For example, the virtual companionship by a virtual stream or our virtual idol stock can be very effectively resolved by the hub are for AI and we have already tapped on that area and they will be product.

Launch soon to to the market.

Alright. Thank you operator that concludes the question and answer session.

Juliet Yang: On areas that Bilibili has key advantages, for example, such as animation, virtual idol, and big virtual streamers, AI also has a strong potential to help us to meet the demand of those ACG lovers. It can, for example, the virtual companionship by a virtual streamer or virtual idol, that can be very effectively resolved by the help of the AI. We have already dabbed on that area, and there will be products launched soon to the market. All right. Thank you, operator. That concludes the question and answer session. Back to you.

The design card.

and on areas,

Back to you.

And that concludes the question and answer session. Thank you once again for joining <unk> second quarter 2025 financial results and business update conference call. Today. If you have any further questions. Please contact Juliet Yang <unk> IR director or if you send the financial community.

Patients contact information for IR in both China and the U S can be found on today's press release, Thank you and have a great day.

Okay.

Key advantage on, for example, such as animation virtual Idol and big virtual streamers AI also have a strong potential to help us to um meet the demands of those ACG lovers it can. For example, the virtual companionship by a virtual streamer or virtual Idol. That can be very effectively resolved by the help of the AI. And we have already dabbed on that area and they will be product, uh, to launch soon to to the market.

Operator: That concludes the question and answer session. Thank you once again for joining Bilibili's second quarter 2025 financial results and business update conference call today. If you have any further questions, please contact Juliet Yang, Bilibili's Executive IR Director, or Piacenta Financial Communications. Contact information for IR in both China and the U.S. can be found on today's press release. Thank you and have a great day.

All right. Thank you, operator. That concludes the question-and-answer session.

Back to you.

And that concludes the question and answer session. Thank you, once again, for joining Bilibili's Q2 2025 financial results and business update conference call. Today, if you have any further questions, please contact Juliet Yang, Bilibili's Executive Director, or present financial communication. Contact information for IR in both China and the U.S. can be found in today’s press release. Thank you, and have a great day.