Q1 2026 Bilibili Inc Earnings Call

May 19, 2026

Operator: Good day, and welcome to Bilibili's Q1 2026 Financial Results and Business Updates Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

Speaker #1: Please go ahead.

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

Speaker #2: 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.

Speaker #2: 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 the SEC and Hong Kong Stock Exchange.

Juliet Yang: The non-GAAP financial measure we provide are for comparison purpose 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.

Speaker #2: 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.

Speaker #2: 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.

Juliet Yang: Joining us today from Bilibili senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer, Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, and Mr. Sam Fan, Chief Financial Officer. I will now turn the call to Mr. Chen.

Speaker #2: Joining us today from Bilibili Senior Management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms. Kali Lee, Vice Chairwoman of the Board; and Chief Operating Officer.

Speaker #2: And Mr. Xin Fan, Chief Financial Officer. I will now turn the call to Mr. Chen.

Rui Chen: Thank you, Juliet. Thank you to everyone joining us today. 2026 is off to a great start for Bilibili. In Q1, we kept up the momentum from last year, delivering solid growth across our community, commercialization, and profitability. Let's start with the community. High-quality content and authentic experience continue to drive organic growth and deepen user engagement. In Q1, DAUs grew 8% year-over-year to 115 million, and MAUs increased to 376 million. Average daily time spent reached a new high of 119 minutes, up 11 minutes year-over-year, which led to a 19% surge in total user time spent. We see this level of engagement as a powerful engine for our commercial business.

Speaker #3: Thank you, Juliet. And thank you to everyone joining us today. 2026 is off to a great start for Bilibili. In the first quarter, we kept up the momentum from last year delivering solid growth across our community, commercialization, and profitability.

Rui Chen: High-quality content and authentic experience continue to drive organic growth and deepen user engagement. In Q1, DAUs grew 8% year-over-year to 115 million, and MAUs increased to 376 million. Average daily time spent reached a new high of 119 minutes, up 11 minutes year-over-year, which led to a 19% surge in total user time spent.

Speaker #3: Let's start with the community. High-quality content and authentic experience continue to drive organic growth and deepen user engagement. In Q1, DAUs grew 8% year over year to 115 million, and MAUs increased to 376 million.

Speaker #3: Average daily time spent reached a new high of 119 minutes, up 11 minutes year over year, which led to a 19% surge in total user time spent.

Rui Chen: We see this level of engagement as a powerful engine for our commercial business. In Q1, we delivered robust advertising revenue growth of 30% year over year, further accelerating from 2025. Meanwhile, MPUs increased by 7% year over year to 34.4 million, as more users directly pay for content and services they truly care about on our platform.

Speaker #3: We see this level of engagement as a powerful engine for our commercial business. In the first quarter, we delivered robust advertising revenue growth of 30% year over year, further accelerating from 2025.

Rui Chen: In Q1, we delivered robust advertising revenue growth of 30% year over year, further accelerating from 2025. Meanwhile, MPUs increased by 7% year over year to 34.4 million, as more users directly pay for content and services they truly care about on our platform. This commercial momentum led to a strong financial performance. Total revenues grew 7% year over year to RMB 7.5 billion. Gross profit was up 9% year over year, and gross margin reached 37.1%, marking our 15th consecutive quarter of margin expansion. Thanks to our top-line growth and increased operating leverage, our operating profit was over 10 times what it was a year ago. On a non-GAAP basis, net profit grew by 62% year over year, with our adjusted net profit margin expanding to 7.8%.

Speaker #3: Meanwhile, MPUs increased by 7% year over year, to 34.4 million. As more users directly pay for content and services they truly care about on our platform.

Rui Chen: This commercial momentum led to a strong financial performance. Total revenues grew 7% year over year to RMB 7.5 billion. Gross profit was up 9% year over year, and gross margin reached 37.1%, marking our 15th consecutive quarter of margin expansion. Thanks to our top-line growth and increased operating leverage, our operating profit was over 10 times what it was a year ago.

Speaker #3: This commercial momentum led to a strong financial performance. Total revenues grew 7% year over year, to RMB 7.5 billion. Gross profit was up 9% year over year, and gross margin reached 37.1%, marking our 15th consecutive quarter of margin expansion.

Speaker #3: Thanks to our top-line growth and increased operating leverage, our operating profit was over 10 times what it was a year ago. On a non-GAAP basis, net profit grew by 62% year over year, with our adjusted net profit margin expanding to 7.8%.

Rui Chen: On a non-GAAP basis, net profit grew by 62% year over year, with our adjusted net profit margin expanding to 7.8%. To us, this set of results confirms a fundamental shift in user behavior. In a world full of quick hits, more users are choosing to spend more time on quality content. That is exactly what Bilibili stands for, and it will continue to drive our growth.

Rui Chen: To us, this set of results confirms a fundamental shift in user behavior. In a world full of quick hits, more users are choosing to spend more time on quality content. That is exactly what Bilibili stands for, and it will continue to drive our growth. With our average user now around 26.5 years old, our cohort is starting to spend more and spend better. As their needs evolve, we are staying close to them, offering the products and experiences they care about most. The content ecosystem we have built remains our most durable asset. Today, we are using AI to make this ecosystem even more powerful. We are focusing our investments on three key areas: how we understand videos, how we recommend them, and how we help creators build them.

Speaker #3: To us, this set of results confirms a fundamental shift in user behavior. In a world full of quick hits, more users are choosing to spend more time on quality content.

Speaker #3: That is exactly what Bilibili stands for, and it will continue to drive our growth. With our average user now around 26.5 years old, our cohort is starting to spend more and spend better.

Rui Chen: With our average user now around 26.5 years old, our cohort is starting to spend more and spend better. As their needs evolve, we are staying close to them, offering the products and experiences they care about most.

Speaker #3: As their needs evolve, we are staying close to them, offering the products and experiences they care about most. The content ecosystem we have built remains our most durable asset.

Rui Chen: The content ecosystem we have built remains our most durable asset. Today, we are using AI to make this ecosystem even more powerful. We are focusing our investments on three key areas: how we understand videos, how we recommend them, and how we help creators build them.

Speaker #3: Today, we are using AI to make this ecosystem even more powerful. We are focusing our investments on three key areas: how we understand videos, how we recommend them, and how we help creators build them.

Rui Chen: Ultimately, we are not just evolving with AI, we are using it to reinforce the very thing that makes Bilibili unique. Having said that, we remain very disciplined with our capital. Although AI requires an upfront investment, the returns in engagement and monetization are already tangible. At the same time, AI is driving meaningful efficiencies across our operations, which is directly supporting our margin expansion. By combining the heart of our community with the power of our technology, we are creating lasting value for our users and shareholders. With that, let me walk you through our core pillars of content, community, and commercialization. Starting with content and community. As content options multiply, users are becoming even more selective. They are coming to Bilibili for high-quality PUGV content and a unique community experience that they cannot find anywhere else. Across our content categories, ACG remains our cultural anchor.

Speaker #3: Ultimately, we are not just evolving with AI; we are using it to reinforce the very thing that makes Bilibili unique: having said that, we remain very disciplined with our capital.

Speaker #3: Although AI requires an upfront investment, the returns in engagement and monetization are already tangible. At the same time, AI is driving meaningful efficiencies across our operations.

Rui Chen: At the same time, AI is driving meaningful efficiencies across our operations, which is directly supporting our margin expansion. By combining the heart of our community with the power of our technology, we are creating lasting value for our users and shareholders. With that, let me walk you through our core pillars of content, community, and commercialization.

Speaker #3: Which is directly supporting our margin expansion. By combining the heart of our community with the power of our technology, we are creating lasting value for our users and shareholders.

Speaker #3: With that, let me walk you through our core pillars of content, community, and commercialization. Starting with content and community. As content options multiply, users are becoming even more selective.

Rui Chen: Starting with content and community. As content options multiply, users are becoming even more selective. They are coming to Bilibili for high-quality PUGV content and a unique community experience that they cannot find anywhere else. Across our content categories, ACG remains our cultural anchor.

Speaker #3: They are coming to Bilibili for high-quality PUGV content, and a unique community experience that they cannot find anywhere else. Across our content categories, ACG remains our cultural anchor.

Rui Chen: In Q1, watch time for games and Chinese anime grew 27% and 20% year over year, respectively, proving our enduring appeal to the younger generation. Beyond our ACG legacy, knowledge-based content, including AI-related information, grew 20% year over year as users turn to us for deeper insights. Music categories also saw robust growth with a 25% year over year increase in time spent, largely driven by AIGC music. Consumption-related categories kept rising, with watch time for parenting and early education and outdoor-related categories surging by more than 50% year over year. The breadth of our content library is only one part of the story. Our deeper competitive moat lies in the humanity of the community. Every month, our users generate over 17 billion real human interactions. In an AI-driven world, they are the most authentic human signals available.

Speaker #3: In the first quarter, watch time for games and Chinese anime grew 27%, and 20% year over year, respectively. Improving our enduring appeal to the younger generation.

Speaker #3: Beyond our ACG legacy, knowledge-based content, including AI-related information, grew 20% year over year, as users turn to us for deeper insights. Music categories also saw robust growth, with a 25% year over year increase in time spent.

Rui Chen: Music categories also saw robust growth with a 25% year over year increase in time spent, largely driven by AIGC music. Consumption-related categories kept rising, with watch time for parenting and early education and outdoor-related categories surging by more than 50% year over year.

Speaker #3: Largely driven by AIGC music. Consumption-related categories kept rising, with watch time for parenting and early education and outdoor-related categories surging by more than the story.

Rui Chen: The breadth of our content library is only one part of the story. Our deeper competitive moat lies in the humanity of the community. Every month, our users generate over 17 billion real human interactions. In an AI-driven world, they are the most authentic human signals available.

Speaker #3: Our deeper competitive moat lies in the humanity of the community. Every month, our users generate over $17 billion real human interactions. In an AI-driven world, they are the most authentic human signals available.

Rui Chen: While high-quality data is becoming a global scarcity, our hundreds of billions of organic interactions provide us with the gold standard for understanding true human preferences. This profound insight is what fuels our engagement and loyalty. In Q1, total user time spent rose 19% year-over-year, and 291 million official members maintained an 80% twelve-month retention rate. Meanwhile, we continue to see AI as an amplifier for our ecosystem's flywheel. On the supply side, the unique creative spirit of our community has found new momentum through the AI-powered tools that scale creativity across the platform. By lowering the barriers to entry and boosting productivity, we have seen a significant influx of creators and content. In Q1, the number of daily active creators and daily submissions grew by 6% and 19% year-over-year, respectively. This isn't just a game of volume.

Speaker #3: While high-quality data is becoming a global scarcity, our hundreds of billions of organic interactions provide us with the gold standard for understanding true human preferences.

Speaker #3: This profound insight is what fuels our engagement and loyalty. In the first quarter, total user time spent rose 19% year over year. And $291 million official members maintained an 80% 12-month retention rate.

Rui Chen: In Q1, total user time spent rose 19% year-over-year, and 291 million official members maintained an 80% twelve-month retention rate. Meanwhile, we continue to see AI as an amplifier for our ecosystem's flywheel.

Speaker #3: Meanwhile, we continue to see AI as an amplifier for our ecosystem's flywheel. On the supply side, the unique creative spirit of our community has found new momentum through the AI-powered tools that scale creativity across the platform.

Rui Chen: On the supply side, the unique creative spirit of our community has found new momentum through the AI-powered tools that scale creativity across the platform. By lowering the barriers to entry and boosting productivity, we have seen a significant influx of creators and content.

Speaker #3: By lowering the barriers to entry and boosting productivity, we have seen a significant influx of creators and content. In Q1, the number of daily active creators and daily submissions grew by 6% and 19% year over year, respectively.

Rui Chen: In Q1, the number of daily active creators and daily submissions grew by 6% and 19% year-over-year, respectively. This isn't just a game of volume. With AI assisting the creative process, more talent is producing high-quality breakout content right out of the gate. Our recent AI creation contest is a perfect example.

Rui Chen: With AI assisting the creative process, more talent is producing high-quality breakout content right out of the gate. Our recent AI creation contest is a perfect example. We attracted the most talented creators to join our platform, creating nearly 150 breakout works with over 1 million views each. By deepening our comprehension of both content and user behavior, we've made content discovery more efficient, directly accelerating growth for our creators. In Q1, the number of creators with over 1,000 followers grew by more than 30% year-over-year, and those with 10,000, 100,000, and 1 million or more followers each grew over 20%. Naturally, as their audiences grow, earnings follow. Average income per creator rose 24% this quarter, creating a powerful virtuous cycle. Now let us take a closer look at our commercial businesses and their progress.

Speaker #3: But this isn't just a game of volume. With AI assisting the creative process, more talent is producing high-quality, breakout content right out of the gate.

Speaker #3: Our recent AI creation contest is a perfect example. We attracted the most talented creators to join our platform, creating nearly 150 breakout works with over a million views each.

Rui Chen: We attracted the most talented creators to join our platform, creating nearly 150 breakout works with over 1 million views each. By deepening our comprehension of both content and user behavior, we've made content discovery more efficient, directly accelerating growth for our creators.

Speaker #3: By deepening our comprehension of both content and user behavior, we've made content discovery more efficient, directly accelerating growth for our creators. In the first quarter, the number of creators with over 1,000 followers grew by more than 30% year over year, and those with 10,000, 100,000, and 1 million or more followers each grew over 20%.

Rui Chen: In Q1, the number of creators with over 1,000 followers grew by more than 30% year-over-year, and those with 10,000, 100,000, and 1 million or more followers each grew over 20%. Naturally, as their audiences grow, earnings follow. Average income per creator rose 24% this quarter, creating a powerful virtuous cycle.

Speaker #3: Naturally, as their audiences grow, earnings follow. Average income per creator rose 24% this quarter, creating a powerful virtuous cycle. Now, let us take a closer look at our commercial businesses and their progress.

Rui Chen: Now let us take a closer look at our commercial businesses and their progress. First, our advertising business once again delivered standout results in Q1. Revenues grew 30% year-over-year, reaching RMB 2.6 billion.

Rui Chen: First, our advertising business once again delivered standout results in Q1. Revenues grew 30% year-over-year, reaching RMB 2.6 billion. This ongoing acceleration reflects the value of our community that we continue to unlock and how we are turning user engagement into real results for advertisers. In Q1, our top five ad verticals were games, internet services, digital products and home appliances, e-commerce, and automotive. Game ads delivered strong incremental revenue growth this quarter. In the internet services sector, AI advertisers kept scaling, with ad budgets surging over 170% year-over-year. At the same time, our maturing user base is also capturing more advertisers' budgets. Ad revenues from digital products and home appliances and automotive both grew over 30% year-over-year in Q1. Home decoration was a particular standout, with ad spending jumping more than 130% year-over-year.

Speaker #3: First, our advertising business once again delivered standout results in Q1. Revenues grew 30% year over year, reaching RMB 2.6 billion. This ongoing acceleration reflects the value of our community that we continue to unlock and how we are turning user engagement into real results for advertisers.

Rui Chen: This ongoing acceleration reflects the value of our community that we continue to unlock and how we are turning user engagement into real results for advertisers. In Q1, our top five ad verticals were games, internet services, digital products and home appliances, e-commerce, and automotive.

Speaker #3: In Q1, our top five ad verticals were games, internet services, digital products, and home appliances. E-commerce and automotive. Game ads delivered strong incremental revenue growth this quarter.

Rui Chen: Game ads delivered strong incremental revenue growth this quarter. In the internet services sector, AI advertisers kept scaling, with ad budgets surging over 170% year-over-year. At the same time, our maturing user base is also capturing more advertisers' budgets.

Speaker #3: In the internet services sector, AI advertisers kept scaling, with ad budgets surging over $170% year over year. At the same time, our maturing user base is also capturing more advertisers' budgets.

Rui Chen: Ad revenues from digital products and home appliances and automotive both grew over 30% year-over-year in Q1. Home decoration was a particular standout, with ad spending jumping more than 130% year-over-year.

Speaker #3: Ad revenues from digital products and home appliances and automotive both grew over 30% year over year in Q1. Home decoration was a particular standout, with ad spending jumping more than $130% year over year.

Rui Chen: Using AI to improve efficiency and drive ad business is a core priority this year. By integrating AI more deeply into our algorithms, we've gained much sharper insights into user interests and long-term patterns. This clarity has meaningfully optimized how we match users with ads, resulting in a 25% year-over-year increase in CTCVR of performance-based ads this quarter. Furthermore, our AIGC tools are streamlining creative production and crafting ads that resonate with users, helping advertisers connect with our community more effectively and drive higher click-through rates. We are also unlocking growth across diverse platforms and touchpoints. In Q1, ad revenues from PC and OTT platforms grew by over 50% year-over-year, while new scenarios like search and mini-programs more than doubled. We're exploring new integrated formats within Video Player, finding new ways to turn user time into commercial value.

Speaker #3: Using AI to improve efficiency and drive ad business is a core priority this year. By integrating AI more deeply into our algorithms, we've gained much sharper insights into user interests and long-term patterns.

Rui Chen: This clarity has meaningfully optimized how we match users with ads, resulting in a 25% year-over-year increase in CTCVR of performance-based ads this quarter. Furthermore, our AIGC tools are streamlining creative production and crafting ads that resonate with users, helping advertisers connect with our community more effectively and drive higher click-through rates.

Speaker #3: This clarity has meaningfully optimized how we match users with ads. Resulting in a 25% year over year increase in CTCVR of performance-based ads this quarter.

Speaker #3: Furthermore, our AIGC tools are streamlining creative production, and crafting ads that resonate with users, helping advertisers connect with our community more effectively and drive higher click-through rates.

Rui Chen: We are also unlocking growth across diverse platforms and touchpoints. In Q1, ad revenues from PC and OTT platforms grew by over 50% year-over-year, while new scenarios like search and mini-programs more than doubled. We're exploring new integrated formats within Video Player, finding new ways to turn user time into commercial value.

Speaker #3: We are also unlocking growth across diverse platforms and touchpoints. In the first quarter, ad revenues from PC and OTT platforms grew by over 50% year over year.

Speaker #3: While new scenarios like search and mini programs more than doubled. We're exploring new integrated formats within video player, finding new ways to turn user time into commercial value.

Rui Chen: With expanding traffic, diverse new scenarios, and continuous efficiency gains, we remain confident in the sustained momentum of our ad business. Now turning to our games business. Game revenues were RMB 1.5 billion, down 12% year-over-year and flat quarter-over-quarter. The year-over-year decline was mainly due to the high base set by Sanmo, 三国：谋定天下 in the same period last year. While the latest seasons of Sanmo performed steadily quarter-over-quarter, we're focused on the game's long-term life cycle, keeping the experience balanced and the IP strong. Meanwhile, our evergreen titles, FGO and Azur Lane, remain stable and continue to provide a solid revenue base. In 2026, we're building on Sanmo's success and expanding our presence in the Three Kingdoms IP. In April, we soft-launched NCard, 三国：百将牌, a lighter casual card game that has received positive feedback on its core gameplay.

Speaker #3: With expanding traffic, diverse new scenarios, and continuous efficiency gains, we remain confident in the sustained momentum of our ad business. Now turning to our games business.

Speaker #3: Game revenues were RMB 1.5 billion, down 12% year over year, and flat quarter over quarter. The year-over-year decline was mainly due to the high base set by some in the same period last year.

Rui Chen: The year-over-year decline was mainly due to the high base set by Sanmo, 三国：谋定天下 in the same period last year. While the latest seasons of Sanmo performed steadily quarter-over-quarter, we're focused on the game's long-term life cycle, keeping the experience balanced and the IP strong.

Speaker #3: While the latest seasons of some performed steadily quarter over quarter, we're focused on the game's long-term lifecycle, keeping the experience balanced and the IP strong.

Rui Chen: Meanwhile, our evergreen titles, FGO and Azur Lane, remain stable and continue to provide a solid revenue base. In 2026, we're building on Sanmo's success and expanding our presence in the Three Kingdoms IP. In April, we soft-launched NCard, 三国：百将牌, a lighter casual card game that has received positive feedback on its core gameplay.

Speaker #3: Meanwhile, our evergreen titles FGO and Azure Land remain stable and continue to provide a solid revenue base. In 2026, we're building on some success and expanding our presence in the Three Kingdoms IP.

Speaker #3: In April, we soft-launched NCARD, a lighter casual card game that has received positive feedback on its core gameplay. We're iterating the product and optimizing user acquisition as we prepare for its official launch this July.

Rui Chen: We're iterating the product and optimizing user acquisition as we prepare for its official launch this July. Meanwhile, our new SLG title, Sanwang, Sanguo Zhi: Wang Dao Tianxia, began initial testing in late March. Built on the original Sanguo Zhi IP with enhanced 3D visuals, Sanwang targets a differentiated group of SLG fans and complements Sanmo. Early user feedback was encouraging. We plan to roll the game out late this year. Beyond N-Card and Sanwang, our self-developed simulation game, Lumi Master, Xiaoyao Ba Lumi, entered its paid testing in May. It has been well-received for its cozy art style and accessible gameplay. We plan to bring it to global gamers in Q4 this year. Our jointly operated pipeline for the coming quarters is also expanding into more genres, giving us broader player coverage and a more balanced portfolio.

Speaker #3: Meanwhile, our new SLG title began initial testing in late March. Built on the original IP with enhanced 3D visuals, San Wang targets a differentiate group of SLG fans and complements early user feedback was encouraging, and we plan to roll the game out late this year.

Rui Chen: Early user feedback was encouraging. We plan to roll the game out late this year. Beyond N-Card and Sanwang, our self-developed simulation game, Lumi Master, Xiaoyao Ba Lumi, entered its paid testing in May.

Speaker #3: Beyond NCARD and San Wang, our self-developed simulation game Lumi Master entered its paid testing in May. It has been well received for its cozy art style and accessible gameplay.

Rui Chen: It has been well-received for its cozy art style and accessible gameplay. We plan to bring it to global gamers in Q4 this year. Our jointly operated pipeline for the coming quarters is also expanding into more genres, giving us broader player coverage and a more balanced portfolio.

Speaker #3: And we plan to bring it to global gamers in Q4 this year. Our jointly operated pipeline for the coming quarters is also expanding into more genres, giving us broader player coverage and a more balanced portfolio.

Rui Chen: Turning to our VAS business, VAS revenue grew by 4% year-over-year to RMB 2.9 billion in Q1. We kept refining our live broadcasting operations, delivering a stable performance with improved gross margin. Premium members reached 24.8 million by the end of Q1, up 5% year over year. Around 80% are on annual or auto-renewal plans. Our fan charging program also kept growing at a healthy pace. Revenue was up over 50% year over year, driven by stronger creator user relationships and users' growing willingness to directly support content they love. In April, we published our 2025 ESG report outlining our continued focus on high quality content, healthy community development, and steady improvements in governance and operations.

Speaker #3: Turning to our VAS business, VAS revenue grew by 4% year over year to RMB 2.9 billion in Q1. We kept refining our live broadcasting operations, delivering a stable performance with improved gross margin.

Speaker #3: Premium members reached 24.8 million by the end of the first quarter, up 5% year over year. Around 80% are on annual or auto renewal plans.

Rui Chen: Our fan charging program also kept growing at a healthy pace. Revenue was up over 50% year over year, driven by stronger creator user relationships and users' growing willingness to directly support content they love.

Speaker #3: Our fan charging program also kept growing at a healthy pace. Revenue was up over 50% year-over-year, driven by stronger creator-user relationships and users' growing willingness to directly support content they love.

Rui Chen: In April, we published our 2025 ESG report outlining our continued focus on high quality content, healthy community development, and steady improvements in governance and operations.

Speaker #3: In April, we published our 2025 ESG report, outlining our continued focus on high-quality content, healthy community development, and steady improvements in governance and operations.

Rui Chen: Given our reach and influence among China's young generation, we take this responsibility very seriously, and we have maintained our A rating by MSCI, reflecting our consistent approach to long-term sustainable growth. To close, we believe great content and a strong community bring people together. The value we have built is just beginning to show its potential. With AI as the accelerator, our community and commercial ecosystems are reinforcing each other more than ever. We will stay focused on strengthening that flywheel and investing in areas that support long-term growth, taking Bilibili to the next level. We are excited about what is ahead. With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?

Speaker #3: Given our reach and influence among China's young generation, we take this responsibility very seriously, and we have maintained our A-rating by MSCI, reflecting our consistent approach to long-term sustainable growth.

Speaker #3: To close, we believe great content and a strong community bring people together. The value we have built is just beginning to show its potential.

Rui Chen: The value we have built is just beginning to show its potential. With AI as the accelerator, our community and commercial ecosystems are reinforcing each other more than ever. We will stay focused on strengthening that flywheel and investing in areas that support long-term growth, taking Bilibili to the next level. We are excited about what is ahead. With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?

Speaker #3: With AI as the accelerator, our community and commercial ecosystems are reinforcing each other more than ever. We will stay focused on strengthening that flywheel and investing in areas that support long-term growth, taking Bilibili to the next level.

Speaker #3: We are excited about what is ahead. With that, I will turn the call over to Sam to walk through our financials in more detail.

Sam Fan: Thank you, Rui Chen. Hello, everyone. This is Sam Fan. In the interest of time on today's call, I will review our Q1 highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results. Total revenues for Q1 was RMB 7.5 billion, up 7% year-over-year. Our total revenues breakdown by revenue stream for Q1 was approximately 39% VAS, 35% advertising, 20% mobile games, and 6% from our IP derivatives and other businesses. Our cost of revenues increased by 5% year-over-year to RMB 4.7 billion in Q1. While our gross profit rose 9% year-over-year to RMB 2.8 billion.

Speaker #3: Sam: Thank you, Mr. Chen. Hello everyone, this is Sam. In the interest of time, on today's call, I will review our first quarter highlights.

Speaker #3: We encourage you to refer to our press release issued earlier today for a closer look at our results. Total revenues for the first quarter was RMB 7.5 billion.

Speaker #3: Up 7% year over year. Our total revenues breakdown by revenue stream for Q1 was approximately 39% VAS, 35% advertising, 20% mobile games, and 6% from our IP derivatives and other businesses.

Sam Fan: Our total revenues breakdown by revenue stream for Q1 was approximately 39% VAS, 35% advertising, 20% mobile games, and 6% from our IP derivatives and other businesses. Our cost of revenues increased by 5% year-over-year to RMB 4.7 billion in Q1. While our gross profit rose 9% year-over-year to RMB 2.8 billion.

Speaker #3: Our cost of revenues increased by 5% year over year to RMB 4.7 billion in the first quarter, while our gross profit rose 9% year over year to RMB 2.8 billion.

Sam Fan: Our gross profit margin reached 37.1% in Q1, up from 36.3% in the same period last year, marking our 15th consecutive quarter of margin expansion. In Q1, we continued to improve monetization efficiency with disciplined spending. Our total operating expenses were up 3% year over year to RMB 2.6 billion. Sales and marketing expenses decreased by 1% year over year. G&A expenses increased by 3%, and R&D expenses increased by 9%, primarily due to expanded AI investments and partially offset by efficient spending control. Our operating profit was RMB 167 million, up over 10 times year over year.

Speaker #3: Our gross profit margin reached 37.1% in Q1, up from 36.3% in the same period last year, marking our 15th consecutive quarter of margin expansion.

Speaker #3: In the first quarter, we continued to improve monetization efficiency with disciplined spending. Our total operating expenses were up 3% year over year to RMB 2.6 billion.

Sam Fan: Sales and marketing expenses decreased by 1% year over year. G&A expenses increased by 3%, and R&D expenses increased by 9%, primarily due to expanded AI investments and partially offset by efficient spending control. Our operating profit was RMB 167 million, up over 10 times year over year.

Speaker #3: Sales and marketing expenses decreased by 1% year over year. GNA expenses, increased by 3%, and R&D expenses increased by 9%. Primarily due to expanded AI investments and partially offset by efficient spending control.

Speaker #3: Our operating profit was RMB 167 million, up over 10 times year over year. Our adjusted operating profit reached RMB 524 million, and our adjusted operating profit margin reached 7.0% in the first quarter, versus 4.9% in the same period a year ago.

Sam Fan: Our adjusted operating profit reached RMB 524 million, and our adjusted operating profit margin reached 7.0% in Q1 versus 4.9% in the same period a year ago. Net profit was RMB 202 million, versus an RMB 11 million net loss in Q1 2025. Our adjusted net profit was RMB 585 million, up 62% year-over-year, and our adjusted net profit margin was 7.8%, improved from 5.2% in the same period a year ago. As of 31 March 2026, we had cash and cash equivalents, time deposits, and short-term investments of RMB 24.2 billion or $3.5 billion.

Speaker #3: Net profit was RMB 202 million, versus an RMB 11 million net loss in Q1 2025. Our adjusted net profit was RMB 585 million, up 62% year over year.

Sam Fan: Our adjusted net profit was RMB 585 million, up 62% year-over-year, and our adjusted net profit margin was 7.8%, improved from 5.2% in the same period a year ago. As of 31 March 2026, we had cash and cash equivalents, time deposits, and short-term investments of RMB 24.2 billion or $3.5 billion.

Speaker #3: And our adjusted net profit margin was 7.8%, improved from 5.2% in the same period a year ago. As of March 31, 2026, we had cash and cash equivalents.

Speaker #3: Time deposits, and short-term investments of RMB 24.2 billion, were US$3.5 billion. In Q1, we repurchased $2.5 million shares for a total cost of US$60.3 million, under our US$200 million share repurchase program.

Sam Fan: In Q1, we repurchased 2.5 million shares for a total cost of $60.3 million under our $200 million share repurchase program. As of today, we have completed this share repurchase program, purchasing a total of 9.9 million shares. We remain committed to enhancing long-term shareholder return, and our board is considering renewing the share repurchase program at an appropriate time. Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

Speaker #3: As of today, we have completed this share repurchase program, purchasing a total of 9.9 million shares. We remain committed to enhancing long-term shareholder return, and our board is considering renewing the share repurchase program at an appropriate time.

Sam Fan: We remain committed to enhancing long-term shareholder return, and our board is considering renewing the share repurchase program at an appropriate time. Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

Speaker #3: Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

Operator: Thank you. We will now begin the question and answer session. To ask a question now, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one 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 statements during the Q&A session. Please note that English interpretation is for convenience purposes only. In the case of any discrepancy, management statements in the original language will prevail. A moment for our first question. We will now take our first question from the line of Lincoln Kong of Goldman Sachs. Please go ahead, Lincoln, your line is open.

Speaker #2: Thank you. We will now begin the question and answer session to ask a question now. Please press star 11 on your telephone and wait for your name to be announced.

Speaker #2: To withdraw your question, please press star 11 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.

Operator: The company will provide consecutive interpretation for management statements during the Q&A session. Please note that English interpretation is for convenience purposes only. In the case of any discrepancy, management statements in the original language will prevail. A moment for our first question. We will now take our first question from the line of Lincoln Kong of Goldman Sachs. Please go ahead, Lincoln, your line is open.

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

Speaker #2: A moment for our first question. And we will now take our first question for from the line of Lincoln Kong of Goldman Sachs. Please go ahead, Lincoln.

Speaker #2: Your line is open.

Lincoln Kong: Hey. Thank you management for taking my question. Congrats on a very solid Q1 result. My question is about the community. We have seen our user metrics have continued to deliver stellar performance. How significant is this AI has been a driver in terms of the user acquisition and engagement duration? Also, what's our perspective on the strategic role that sort of this AI created assisted creation tools has played with the Bilibili's content ecosystem? Thank you.

Speaker #3: 谢谢王宇晨接受我的提问。那也恭喜咱们一季度取得了强劲的业绩。我是想问一下关于我们这个社区和用户，其实看到整体的这种社区和这个市场的一些数据表现都非常的亮眼。想问就是说AI在整个这个用户增长和市场中大概有多大的一个助力呢？我们如何看待就AI辅助创作的这些工具在B站的创作者生态中的一个作用？自己翻译一下。 Thank you management for taking my question. Congrats on a very solid first quarter result. My question is about the community. So we have seen a user metrics continue to deliver stellar performance.

Speaker #3: So how is the AI has been a driver in terms of the user acquisition and engagement duration? Also, what's our perspective on the strategic role that sort of this AI created assisted creation tools has played with the Billy's content ecosystem?

Lincoln Kong: [Foreign language] Thank you.

Speaker #3: Thank you.

Rui Chen: 在B站用户增长和时长增长的背后，最核心的驱动力仍然是B站优质的内容供给和独一无二的社区体验。

Rui Chen: [Foreign language]

Speaker #4: 在B站用户增长和市场增长的背后，最核心的驱动力仍然是B站优质的内容供给和独一无二的社区体验。

Juliet Yang: What's really driving our user growth and time spent is still Bilibili's rich supply of high quality content and our very unique community experience.

Speaker #2: What's really driving our user growth and time spend is still Bilibili's rich supply of high-quality content and our very unique community experience.

Rui Chen: AI 并没有改变 B 站的底层逻辑，但是它放大了 B 站的这两个特性。

Rui Chen: [Foreign language]

Speaker #4: AI并没有改变B站的底层逻辑，但是它放大了B站的这两个特性。

Juliet Yang: AI doesn't change that fundamental logic. If anything, it's making our strength even stronger.

Speaker #2: AI doesn't change that fundamental logic. If anything, it's making our strength even stronger.

Rui Chen: 首先，AI放大了B站的内容供给。正如我上个季度提到的，现在对于短视频来说，内容的供给已经过剩了。但是对于优质的中长视频来说，内容的供给其实是远远不足的。

Rui Chen: [Foreign language]

Speaker #4: 首先，AI放大了B站的一个内容供给。正如我上个季度提到的，就是现在对于短视频来说，内容的供给已经过剩了。但是的话，对于优质的中长视频来说，内容的供给其实是远远不足的。

Juliet Yang: From a high quality content supply perspective, as I mentioned last quarter, AI is bringing greater leverage.

Speaker #2: So, from a high-quality content supply perspective, as I mentioned last quarter, AI is bringing greater leverage. Ladies and gentlemen, please remain on the line.

Operator: Ladies and gentlemen, please remain on the line. Your conference will resume shortly.

Speaker #2: Your conference will resume shortly. Pushing their expression boundaries, and unleash so much more productivity.

Juliet Yang: Pushing their expression boundaries and unleash so much more productivity.

Rui Chen: 所以我们可以看到，就是在第一季度，我们的日均活跃的up主的数量和日均的投稿量分别提升了6%和19%。

Rui Chen: [Foreign language]

Speaker #4: 所以我们可以看到就是在第一季度，我们的日均活跃的up主的数量和日均的投稿量分别提升了6%和19%。

Juliet Yang: That's why you're seeing in during Q1 that the average active daily active content creator and their daily submission grew by 6% and 19% year-over-year, respectively.

Speaker #2: That's why you're saying during the first quarter, that the average active daily active content creator at their daily submission grew by 6% and 19% year over year, respectively.

Rui Chen: 而且AI不仅是提高了我们内容供给的数量，它更是能够提高我们内容供给的质量。

Rui Chen: [Foreign langauge]

Speaker #4: 而且AI不仅是提高了我们内容供给的数量，它更是能够提高我们内容供给的质量。

Juliet Yang: It's not just about efficiency. AI is not only helping us to increase supply, but we are seeing it bringing so much quality into our content offering.

Speaker #2: And it's not just about efficiency. AI is not only helping us to increase supply, but we are seeing it bringing in so much quality into our content offering.

Rui Chen: 我们可以看到在一些品类上，就是创作的方式跟以前已经不一样了。比如说，过去一个好的影视作品是需要一个拍摄团队，再加上后期团队，然后才能够实现的。而现在的话，我们可以认为核心的一两个创作者，他就可以做出一个很惊艳的影视作品。

Rui Chen: [Foreign langauge]

Speaker #4: 我们可以看到在一些品类上，就是创作的方式跟以前已经不一样了。比如说过去一个好的影视作品，你是需要一个拍摄团队再加上后期团队，然后才能够实现的。而现在的话，我们可以认为核心的一两个创作者，他就可以做出一个很惊艳的影视作品。

Juliet Yang: For example, in some category, AI is already fundamentally changing how content gets made. For example, in the film industry, it requires a full crew to work on the shooting, production, and post-production area. Now with the help of AI, we only need one or two very core production and creativity people, and they can make the equivalent or even better content.

Speaker #2: For example, in some category, AI is already fundamentally changing how content gets made. For example, in the film industry, it requires a full crew to work on the shooting and production and post-production.

Speaker #2: But now with the help of AI, we only need one or two very core production and creativity people, and they can make the equivalent or even better content.

Rui Chen: 就再比如说像音乐类的作品，过去一个好的歌曲，它是需要创作加演唱加演奏加表演什么的，就是多个角色去配合的。而现在来说的话，可能也是一两个核心的创作者，他就可以实现过去一整个团队，甚至是一个公司才能够实现的作品的创作效率。

Rui Chen: [Foreign language]

Speaker #4: 就再比如说像音乐类的作品，过去一个好的歌曲，它是需要创作家演唱家演奏加表演，就是多个角色去配合的。而现在来说的话，可能也是一两个核心的创作者，他就可以实现过去一整个团队，甚至是一个公司才能够实现的作品的创作效果。

Juliet Yang: Is that another example would be music. In the traditional music industry, it requires a full crew and team to work on music productions. Now with the help of AI, just one talented content creator can make very high quality music content.

Speaker #2: In another example would be music. In a traditional music industry, it requires a full crew and team to work on music productions。 But now with the help of AI, just one talented content creator can make very high-quality music content。

Rui Chen: 所以我们很高兴地看到，就是在AI时代，过去这种非常复杂的、昂贵的创作结果，现在能够被一两个个人创作者就可以实现。

Rui Chen: [Foreign language]

Speaker #4: 所以我们很高兴地看到，就是在AI时代，过去这种非常复杂的昂贵的创作结果，现在能够被一两个个人创作者就可以实现。

Juliet Yang: That's why we're very delighted to see that in the past, some categories that was very hard and expensive to make. Now with the help of AI, those talented content creator can make those production very easily.

Speaker #2: That's why we're very delighted to see that, in the past, some categories that were very hard and expensive to make, now, with the help of AI, those talented content creators can make those productions very easily.

Rui Chen: 我们最近组织了一些AI的创作大赛，我们可以看到，就是我们的UP主做出了多个让人眼前一亮、非常惊艳的作品。然后这些比赛啊，就是累计获得了超过7亿次播放，其中有150条的那个播放量是超过了百万。所以的话，就现在已经可以看到，就是AI它对于提高创作质量有个非常好的效果。

Rui Chen: [Foreign language]

Speaker #4: 我们最近是组织了一些AI的创作大赛，我们可以看到就是我们的up主做出了多个让人眼前一亮、非常惊艳的一个作品，然后这些比赛就是累计获得了超过7亿次播放，其中有150条的播放量超过了百万。所以的话，就现在已经可以看到就是AI它对于提高创作质量有着非常好的效果。

Juliet Yang: In our most recent AI creation context, we're seeing that AIGC videos are very, very impressive in terms of the quality that, over this contest, we saw over 150 videos each surpassed 1 million views. In summary, we are seeing that AI is bringing so much more quality and quantity into the PV-PUGV field.

Speaker #2: In our most recent AI creation context, we're seeing that AIGC videos are very, very impressive in terms of the quality that over this contest, we saw over 150 videos each surpassed one million views.

Speaker #2: In summary, we are seeing that AI is bringing so much more quality and quantity into the PUGV field.

Rui Chen: 同时，AI还能够放大B站社区的价值。我们知道，B站之所以能够产生这么多的好的作品，它的一个重要的原因，就是我们社区里的用户，他有着对内容的热爱，并且有着对内容极高程度的一个审美。

Rui Chen: [Foreign language]

Speaker #4: 同时的话，AI还能够放大B站社区的价值，就是我们知道就是B站之所以能够产生这么多的好的作品，它的一个重要的原因的话，就是我们社区里的用户，他有着对内容的热爱，并且有着对内容极高程度的一个审美。

Juliet Yang: Another booster is that AI amplifies the power of Bilibili community. In a community like Bilibili, where user love content, know what they want, have high standards, have strong taste, high quality content is naturally more likely to stand out.

Speaker #2: And another booster is that AI amplifies the power of Bilibili community. In a community like Bilibili, we're user-loved content, know what they want, have high standards, have strong taste, high-quality content is naturally more likely to stand out。

Rui Chen: AI是可以放大就是B站社区这种识别优质内容的能力。我们现在社区每个月啊，有一百七十多亿次的就真实的用户的一个交互，然后这些数据在AI时代其实都是非常珍贵的真人标注。而且这些真人就像我刚才所说的，就是它是整个中国对内容最有热情和最有审美鉴赏能力的人。

Rui Chen: [Foreign language]

Speaker #4: AI是可以放大就是B站社区这种识别优质内容的能力。我们现在社区每个月有170多亿次的真实的用户的一个交互，然后这些数据在AI时代其实都是非常珍贵的，真人标准。而且这些真人就像我刚才所说的，就是它是整个中国对内容最有热情和最有审美鉴赏能力的人。

Juliet Yang: Every. We're seeing AI is making that effect even more stronger. Every month, our user generates more than 17 billion real human interactions on Bilibili. In the AI era, this kind of human, real human feedback and tagging is becoming even more valuable. Like I said, those tagging, those feedbacks are from people who know what they want, who have strong taste, and have a high desire for high quality content.

Speaker #2: Everywhere we're seeing, AI is making that effect even stronger. Every month, our users generate more than 17 billion real human interactions on Bilibili. And in the AI era, this kind of real human feedback and tagging is becoming even more valuable.

Speaker #2: And like I said, those tagging, those feedbacks are from people who know what they want, who has strong taste, and has high desire for high-quality content.

Rui Chen: 所以我们现在内部其实是做了一系列的模型，能够更好地去理解内容，也能够更早地去发现爆款。

Rui Chen: [Foreign language]

Speaker #4: 所以我们现在内部其实是做了一系列的模型，能够更好地去理解内容，也能够更早地去发现爆款的内容。

Juliet Yang: Our internally developed model, we are spending a lot of time to making it understand what is high quality content and identify those high quality content in a much earlier stage.

Speaker #2: So, our internally developed model—we are spending a lot of time to make it understand what is high-quality content and to identify those high-quality content in a much earlier stage.

Rui Chen: 这种对优质内容的识别能力是直接体现在了我们现在就是UP主涨粉的数据上。第一季度，我们千粉UP主的人数的同比增长是超过30%，万粉、十万粉和百万粉的UP主的这个人数的同比增长也超过了20%。

Rui Chen: [Foreign language]

Speaker #4: 这种对优质内容的识别能力是直接体现在了我们现在就是up主涨粉的数据上。第一季度我们千粉up主的人数的同比增长是超过了30%，万粉十万粉和百万粉的up主的这个人数的同比增长也超过了20%。

Juliet Yang: We are seeing this ability to directly translate on creators' followers growth. In Q1, the number of content creators with more than 1,000 followers grew by over 30% year over year. Creators with 10,000, 100,000, and 1 million followers also grew by more than 20% year over year.

Speaker #2: We are seeing this ability to directly translate into creators' follower growth. In the first quarter, the number of content creators with more than 1,000 followers grew by over 30% year over year. Creators with 10,000, 100,000, and 1 million followers also grew by more than 20% year over year.

Rui Chen: 因为UP主的涨粉变得更多，所以他们的收入也涨得更快。一季度的话，我们的UP主的人均收入同比上涨了24%。

Rui Chen: [Foreign language]

Speaker #4: 因为up主的涨粉变得更多，所以他们的收入也涨得更快。一季度的话，我们的up主的人均收入同比上涨了24%。

Juliet Yang: As creators get more followers, they also make more money. In Q1, average income per creator was up 24% year-over-year.

Speaker #2: As creators get more followers, they also make more money. In Q1, average income per creator is up 24% year-over-year.

Rui Chen: 对，我刚才其实也是讲了一系列的这个逻辑吧，就讲AI能够放大优质创作者的一个能力。B站很大的一个财富啊，是我们聚集了中国最具创造力，也最愿意去做深度表达的创作者。

Rui Chen: [Foreign language]

Speaker #4: 对，我刚才其实是也是讲了一系列的这个逻辑吧，就是讲AI能够放大优质创作者的一个能力。B站很大的一个财富是我们聚集了中国最具创造力也最愿意去做深度表达的创作者。

Juliet Yang: To summarize, AI is making our great content creator even more powerful. Bilibili is the home to many of the most creative creators, the one who really wanted to express themselves and build lasting connection with users.

Speaker #2: To summarize, AI is making our great content creators even more powerful, and Bilibili is the home to many of the most creative creators—the ones who really want to express themselves and build lasting connections with users.

Rui Chen: 对，所以我认为就是因为AI能够放大创作者的生态，放大社区的一个沉淀，所以我觉得这一波的这个AI对于B站来说，它是一个十倍放大的一个机遇，我们也会好好地去抓住这一波机遇。

Rui Chen: [Foreign language]

Speaker #4: 所以我认为就是因为AI能够放大创作者的生态，放大社区的一个沉淀，所以我觉得这一波的这个AI对于B站来说，它是一个十倍放大的一个机遇。我们也会好好地去抓住这一波机遇。

Juliet Yang: Over the years, we've built a very strong creator ecosystem and community culture, and AI is really amplifying that effect. We believe this historical opportunity of AI can bring the opportunity that makes Bilibili 10 times more valuable. We will really invest and seize that opportunity for us. Thank you. Operator, next question, please.

Speaker #2: Over the years, we've built a very strong creator ecosystem, and community culture, and AI is really amplifying that effect. And we believe this historical opportunity of AI can bring the opportunity that makes Bilibili 10 times more valuable, and we will really invest and seize that opportunity for us.

Speaker #2: Thank you. Operator, next question, please. Thank you.

Operator: Thank you. We will now take our next question from Daniel Chen of J.P. Morgan. Please ask your question. Daniel, your line is open.

Operator: Thank you. We will now take our next question from Daniel Chen of JPMorgan. Please ask your question. Daniel, your line is open.

Speaker #3: We will now take our next question from Daniel Chen of JPMorgan. Please ask your question. Daniel, your line is open.

Daniel Chen: 谢谢管理层给我这个机会问问题哈。这个我的问题是关于广告的。恭喜咱们这个一季度的广告收入继续加速增长。想问一下，是，我们看到是哪些行业或者广告产品，是有超预期呢？然后我们如何去展望这个二季度和全年的广告收入的。We see that the ad revenue grows accelerate to 30% year-over-year in Q1, which is very strong. May we know which industry for the ads product actually exceed your expectation? How should we expect the outlook for Q2 and the full year advertising revenue? Thank you.

Speaker #5: 谢谢管理层给我这个机会问问题。我的问题是关于广告的。恭喜咱们这个一季度的广告收入继续加速增长。想问一下，是我们看到哪些行业或者广告产品有超预期表现呢？然后我们如何展望第二季度和全年的广告收入趋势？谢谢。 So my question is on the advertising revenue. We see that the ad revenue growth accelerates to 30% year over year in the first quarter.

Daniel Chen: [Foreign language] We see that the ad revenue grows accelerate to 30% year-over-year in Q1, which is very strong. May we know which industry for the ads product actually exceed your expectation? How should we expect the outlook for Q2 and the full year advertising revenue? Thank you.

Speaker #5: Which is very strong. May we know which industry or the ad product actually exceeds your expectation? Also, how should we expect the outlook for the second quarter and the full year advertising revenue?

Speaker #5: Thank you.

Carly Li: 我们今年一季度的收入有26个亿，同比还增长了30%，已经连续有十三个季度是双位数的增长。

Carly Li: [Foreign language]

Speaker #3: 我们今年一季度的收入有26亿，同比还是增长了30%。已经连续有13个季度是双位数的增长。

Juliet Yang: Our advertising revenue reported RMB 2.6 billion in Q1, up 30% year over year, marking our 13th consecutive quarter of a double-digit growth.

Speaker #2: Our advertising revenue reported R&B 2.6 billion in the first quarter, up 30% year over year. Marking our 13th consecutive quarter of a double-digit growth.

Carly Li: 广告，其实B站广告的增长的最底层的驱动其实还是B站的社区以及用户。而B站的用户现在平均年纪二十六点几岁嘛，正处于一个个人消费力跟家庭消费力都在快速上升的一个阶段，也是广告客户最希望获取的这一群核心的增量人群。

Carly Li: [Foreign language]

Speaker #3: 广告及B站广告的增长的最底层的驱动其实还是B站的社区以及用户。B站的用户现在平均年纪有26点几岁，正处于一个个人消费力跟家庭消费力都在快速上升的一个阶段。也是广告客户最希望获取的这一群核心的增量人群。

Juliet Yang: The very core, the biggest driver behind our advertising growth is still the value of Bilibili's community and our users. The average age of our user is about 26.5 years old, which means they are entering a stage of life where both personal spending power and household decision-making power are rising rapidly. That is exactly the kind of high-value user group advertisers are most eager to reach.

Speaker #2: The very core, the biggest driver behind our advertising growth is still the value of Bilibili's community and our users. The average age of our user is about 26.5 years old, which means they are entering a stage of life where both personal spending power and household decision-making power are rising rapidly.

Speaker #2: And that is exactly the kind of high-value user group advertisers are most eager to reach.

Carly Li: [Foreign language]

Carly Li: 区别于纯流量的这种平台来说的话，其实B站的投放价值也不是一次性的，这个是能深度影响用户的消费心智。就我往往会说，就能帮助客户去实现只是从一次性的认知，其实我们可以做到循环多次认知。从单一转发，就是在其他平台里面，可能你只能实现单一的转化，但在B站可以实现就是长期的品牌的沉淀。

Speaker #3: 区别于纯流量的这种平台来说的话，其实B站的投放价值也不是一次性的。这个是能深度影响用户的消费心智。就我往往会说，就能帮助客户去实现只是从一次性的认知，其实我们可以做到循环多次认知。从单一转发，就是在其他平台里面可能你只能实现单一的转化，但在B站可以实现就是长期的品牌的沉淀。

Juliet Yang: What sets us apart from platform that's purely traffic-driven is that the value of advertising on Bilibili is never one-off spending. Instead, we run much deeper into users mind share. We help our brands to move from a single one-off impression to repeated continuous touchpoints, and from a single isolated transaction to build lasting brand equity.

Speaker #2: And what set us apart from platform that's purely traffic-driven is that the value of advertising on Bilibili is never one-off spending. Instead, we run much deeper into users' mind share.

Speaker #2: We help single one-off impression to repeated, continuous touchpoints. And from a single isolated transaction to build lasting brand equity.

Carly Li: [Foreign language]

Carly Li: 在Q1我们可以看到，从品牌类来看，包括效果类来看，包括创作者的广告来看，都实现了双位数以上的增长，甚至有很多其实是大双位数的增长。前五大广告行业分别是游戏、网服、数码家电、电商跟汽车，在Q1里。

Speaker #3: 其实在Q1我们可以看到，我们是从品牌来，品牌类来看，包括效果类来看，包括创作者的广告来看，都能实现了双位数以上的增长，甚至有很多其实是大双位数的增长。而前五大广告行业分别是游戏、网服务、数码家电、电商跟汽车。在Q1里。

Juliet Yang: That is exactly why we saw a continuous growth of our advertising efficiency. During Q1, our brand ads, performance ads, and native ads all delivered a strong double-digit growth, and for certain category is in high double-digit growth. For Q1, our top five advertising verticals were games, internet services, digital products and home appliances, e-commerce, and automotive.

Speaker #2: That is exactly why we saw a continuous growth of our advertising efficiency. During Q1, our brand ads performance ads and native ads all delivered a strong double-digit growth double-digit growth.

Speaker #2: And for Q1, our top five advertising verticals were games, internet services, digital products, and home appliances. E-commerce and automotive.

Carly Li: [Foreign language]

Carly Li: 就怎么展望Q2或者今年整体广告的预期呢？其实从几个方面，刚才提到以外，可以从几个方面去看到。我觉得第一个大家还是比较关注AI在广告体系的一些变化，就在短期看来的话，AI在广告系统深化的应用还是会提升整体广告效率的。但除此以外，其实我们更应该关注中长期变革性带来的价值。

Speaker #3: 就怎么展望，Q2或者今年整体广告的预期呢？其实从几个方面，刚才提到以外，可以从几个方面去看到。我觉得第一个，大家还是比较关注AI在广告体系的一些变化。就在短期看来的话，AI在广告系统深化的应用还是会提升整体广告效率的。但除此以外，其实我们更应该关注中长期变革性带来的价值。

Juliet Yang: Well, looking ahead into Q2 and onwards is that we do see a deeper integration of AI into our advertising system will continue to improve our ad efficiency in the near term. More importantly, we believe the bigger value will come from the long-term transformation that AI can bring to ads business.

Speaker #2: Well, looking ahead into Q2 and onwards, we do see a deeper integration of AI into our advertising system. We'll continue to improve our ad efficiency in the near term.

Speaker #2: But more importantly, we believe the bigger value will come from the long-term transformation that AI can bring to ads business.

Carly Li: [Foreign language]

Carly Li: 那就是我们先从今年来看吧，我觉得分发效率跟算法的提效还是会比较明显的。就例如我们对用户的兴趣、消费意图、内容理解和能力会进一步得到增强，就结合我们推荐的模型，我们能很准确地匹配到什么用户喜欢什么内容，同时它适配于什么样的广告。在Q1我们也能看到，就匹配效率的这个提升，推动了效果广告相应的这个涨幅，就是CTCVR的涨幅的效率还是超出我们的预期。

Speaker #3: 那就是我们先从今年来看吧。我觉得分发效率跟算法的提效还是会比较明显的。就例如我们对用户的兴趣、消费意图、内容理解和能力会进一步得到增强。就结合我们推荐的模型，我们能很准确地匹配到什么用户喜欢什么内容，同时它适配于什么样的广告。在Q1我们也能看到，就匹配效率的这个提升，推动了效果广告相应的这个涨幅。就CTCVR的涨幅的效率还是超出我们的预期。

Juliet Yang: This year, we've continued to improve both distribution efficiency and recommendation algorithms. We have further leveled up our ability to understand user interest, purchase intents, and our content themselves. By plugging those into our recommendation models, we can now match user content and ads so much more precisely. That's the reason why you see the strong growth in our advertising revenue in Q1. This is driving a more accurate matching capability delivered and a strong CTCVR growth for our performance ads in Q1.

Speaker #2: This year we continue to improve both distribution efficiency and recommendation algorithms. We have further leveled up our ability to understand user interest, purchase intent, and our content themselves.

Juliet Yang: By plugging those into our recommendation models, we can now match user content and ads so much more precisely. That's the reason why you see the strong growth in our advertising revenue in Q1. This is driving a more accurate matching capability delivered and a strong CTCVR growth for our performance ads in Q1.

Speaker #2: By plugging this into our recommendation models, we can now match user content in ads so much more precisely that's the reason why you see the strong growth in our advertising revenue in Q1.

Speaker #2: And this is driving a more accurate matching capability delivered, and a strong CTCVR growth for our performance ads in the first quarter.

Carly Li: [Foreign language]

Carly Li: 所以为了广告主，我们在AI上也提供了这个托管的投放以及智能创意的这个能力，就持续还是提升了广告主投放的效率，也让他们省心省力吧。Q1在自动广告的消耗渗透上，我们提升至了85%。我觉得这个应该在往后Q2到Q4也会陆续有进一步的体现的。

Speaker #3: 所以为了广告主，我们在AI上也提供了这个托管的投放以及智能创意的这个能力。就持续还是提升了广告主投放的效率，让他们省心省力吧。就Q1在自动广告的消耗渗透上，我们提升至了85%。我觉得这个应该在往后Q2到Q4也会陆续有进一步的体现的。

Juliet Yang: We are also providing advertisers with more automated campaign management and AI-powered creative tools to help them to improve ads delivery efficiency. In Q1, penetration of our automated ad spending increased to about 85%. We will continue to see this penetration to further increase into Q1 and for the rest of the year.

Speaker #2: We are also providing advertisers with more automated campaign management and AI-powered creative tools to help them improve ad delivery efficiency. In Q1, penetration of our automated ad spending increased to about 85%.

Speaker #2: And we will continue to see this penetration to further increase into Q1 and for the rest of the year.

Carly Li: [Foreign language]

Carly Li: AIGC的工具其实也正在帮助广告主可以更高效地生成适配B站社区的一些素材，所以相关的素材消耗的持续提升其实也对广告效率提升其实有帮助的。AIGC的素材，现在我们看到整体的CTR，CTR相比传统素材平均提升是双位数的。

Speaker #3: AIGC的工作的话，AIGC的工具其实也正在帮助广告主可以更高效地生成适配B站社区的一些素材。所以相关的素材消耗的持续提升，其实也对广告效率提升极其有帮助的。AIGC的素材现在我们看到整体的CTR，CTR相比传统素材平均提升是双位数的。

Juliet Yang: On top of that, AIGC tools are helping advertisers to create the materials that perfectly vibe with Bilibili community style, and the adoption of AIGC creative continue to increase. At the same time, these AIGC creatives are delivering much better ad performances with improved click-through rates, generally around double digits better.

Speaker #2: On top of that, the AIGC tools are helping advertisers to create materials that perfectly vibe with the Bilibili community style. And the adoption of AIGC creative continues to increase.

Speaker #2: At the same time, this AIGC creatives are delivering much better ad performances with improved click-through rate generally around double digit better.

Carly Li: [Foreign language]

Carly Li: 以上可能就是AI对于我们Q1以及往后Q的持续的一些对我们正向的影响吧。那在明年跟后年，在往后的沟通里面可以更多的交流。今天主要分享今年的一些变化。那第二点的话呢，其实多屏跟多场景的拓展，对于广告整体收入提升还是具有帮助的。所以从APP端到PC、iPad、OTT、车载全场景我们会陆续覆盖，现在已经基本覆盖了大部分了。那从场景来说的话，我们会看到从信息流到搜索到评论，甚至最近我们可以尝试在Video Player内，包括小程序等全触点的覆盖，这会为我们广告提供更多的广告素材的投放的位置，和更高的效率的提升吧，匹配用户。

Speaker #3: 就以上可能就是AI对于我们Q1以及往后Q的持续的一些对我们正向的影响吧。那在明年跟后年，在往后的沟通里面可以更多的交流。今年主要分享今年的一些变化。那第二点的话呢，其实多频跟多场景的拓展，对于广告整体收入提升还是极有帮助的。所以从App端到PC、Pad、OTT、车载，全场景我们会陆续覆盖。现在已经基本覆盖了大部分了。那从场景来说的话，我们会看到从信息流到搜索到评论，甚至最近我们可以尝试在播放期内，包括小程序等全触点的覆盖。这会为我们广告提供更多的这个广告的素材的投放的位置和更高的一个效率的提升吧，匹配用户。

Juliet Yang: That summarize how AI is helping us to improve our ad efficiency. I will be sharing more information next quarter and going forward. We believe there's so much more that AI can bring into our ad system. On top of that, we're also expanding ad inventory across different screens and more user scenarios. From the mobile app to our PC, iPad, OTT, and in-car screens. We currently already cover a majority of that scenarios. On different products or ad scenarios, we are also trying new inventories from feed to search, comments, and in-player ads and mini programs. This is covering Bilibili's users time spent across the major product touchpoints. This will bringing additional ad inventory and ad volume for our business.

Speaker #2: That summarizes how AI is helping us to improve our ad efficiency. I will be sharing more information next quarter and going forward. We believe there is so much more that AI can bring into our ad system.

Speaker #2: And on top of that, we're also expanding ad inventory across different screens and more user scenarios. From the mobile app to our PC, iPad, OTT, and in-car screens.

Juliet Yang: From the mobile app to our PC, iPad, OTT, and in-car screens. We currently already cover a majority of that scenarios. On different products or ad scenarios, we are also trying new inventories from feed to search, comments, and in-player ads and mini programs. This is covering Bilibili's users time spent across the major product touchpoints. This will bringing additional ad inventory and ad volume for our business.

Speaker #2: And we currently already cover a majority of that scenarios. And on different products or ad scenarios, we are also trying new inventories from feed to search, comments, and in-player ads, and mini programs with this covering Bilibili's users' time spent across the major product touch points.

Speaker #2: This will bring in additional ad inventory and ad volume for our business.

Carly Li: [Foreign language]

Carly Li: 除此以外的话，我觉得还是得关注这垂直行业的策略，所以我们垂直行业的策略会进一步深化。从历史我们关注从行业销售到行业运营的一些深度的结合，那我们还会结合着行业技术体系，为垂直行业客户提供更完整的解决方案。所以预期下半年有些高价值的行业同时会集中爆发，例如我们预期到的AI科技、汽车、家装家电，会同时像Q1一样实现进一步的高速增长。那B站原来的优势品类，像游戏、电商、教育等行业还是能持续地扩大市占率的。

Speaker #3: 除此以外的话，我觉得还是得关注这个垂直行业的策略。所以我们垂直行业的策略会进一步深化。从历史我们关注，从行业销售到行业运营的一些深度的结合。那我们还会结合着行业技术体系为垂直行业客户提供更完整的解决方案。所以预期下半年有些高价值的行业同时会集中爆发，例如我们预期到的AI科技、汽车、家装家电、会同时像Q1一样实现进一步的高速增长。那B站原来的优势品类像游戏电商、教育等行业还是能持续的扩大市占率的。

Juliet Yang: Well, on top of that ad inventory and scenario growth, our strategy across different ad industry is also very important, and we will continue to deepen our services into different industry verticals. By aligning our sales, operation, tech capabilities, we can now offer a full stack solution tailored to each specific industry. Looking into the H2 of this year, we expect stronger growth momentum from those high-value categories such as AI technology, automotive, home decoration, and appliances, which we believe will continue to lead a very strong growth. Meanwhile, we will also continue to expand our market share in our core verticals such as games, e-commerce, and education.

Speaker #2: Well, on top of that, ad inventory and scenario growth are strategy across different ad industry is also very important. And we will continue to deepen our services into different industry verticals.

Speaker #2: By aligning our operations and tech capabilities, we can now offer a full-stack solution tailored to each specific industry. Looking into the second half of this year, we expect stronger growth momentum from those high-value categories such as AI technology, automotive, home decoration, and appliances, which we believe will continue to lead very strong growth.

Juliet Yang: Looking into the H2 of this year, we expect stronger growth momentum from those high-value categories such as AI technology, automotive, home decoration, and appliances, which we believe will continue to lead a very strong growth. Meanwhile, we will also continue to expand our market share in our core verticals such as games, e-commerce, and education.

Speaker #2: Meanwhile, we will also continue to expand our market share in our core verticals such as games, e-commerce, and education.

Carly Li: [Foreign language]

Carly Li: 不免俗说一下，就我们对今年广告还保持健康的增长还是有信心的。谢谢。

Speaker #3: 还是不免俗说一下吧，就我们对今年广告保持健康的增长还是有信心的。谢谢。

Juliet Yang: To summarize, we remain confident in maintaining a very healthy advertising growth for the rest of the year. Thank you. Operator, next question, please.

Speaker #2: So to summarize, we remain confident in maintaining a very healthy advertising growth for the rest of the year. Thank you. Operator, next question, please.

Operator: Thank you. We will now take our next question from Yang Liu of Morgan Stanley. Please ask your question. Yang, your line is open.

Speaker #3: Thank you. We will now take our next question from Yang Liu of Morgan Stanley. Please ask your question. Yang, your line is open.

Yang Liu: [Foreign language] Let me translate my question.

Yang Liu: 感谢提问的机会。我的问题是关于游戏的，想问一下三国：百将牌在这个soft launch之后的表现如何？那我们对这款游戏后面有什么样的预期？我们也关注到公司的自研游戏闪耀吧！噜咪在这个月开始了付费测试，现在能否分享一下测试的结果和接下来的具体上线时间。那除此以外，三国：王道天下这款游戏应该怎样预期，然后还有没有其他的值得期待的游戏储备。Let me translate my question.

Speaker #4: 感谢提问的机会。我的问题是关于游戏的。想问一下《三国百将牌》在这个Soft Launch之后的表现如何。那我们对这款游戏后面有什么样的预期。我们也关注到公司的自研游戏《闪耀吧，Lumi》在这个月也开始了付费测试。那现在能否分享一下测试的结果和接下来的具体的上线时间。那除此以外，《三国王道天下》这款游戏应该怎样预期？然后还有没有其他的值得期待的游戏储备？ Let me translate my question. My question is about the game segment. Could management comment on the Three Kingdoms and cards soft launch performance?

Yang Liu: My question is about the game segment. Could management comment on the NCard soft launch performance? Let me translate my question. My question is about the game segment. Could management comment on the NCard soft launch performance? What is our expectation for this game? Also another self-developed game, Lumi Master, started the paid test this month. What's the test result and what is the expectation on launch timing? Another game, Sanguo Zhi: Wang Dao Tianxia, how to expect this game's contribution?

Yang Liu: What is our expectation for this game? Also another self-developed game, Lumi Master, started the paid test this month. What's the test result and what is the expectation on launch timing?

Speaker #4: And what is now our expectation for this game? And also, another self-developed game, Lumi Master, started the paid test this month. What's the test result, and what is the expectation on launch timing?

Yang Liu: Another game, Sanguo Zhi: Wang Dao Tianxia, how to expect this game's contribution? Could management comment if there's any other game pipeline, except for the three games I mentioned before? Thank you.

Speaker #4: And another game, Three Kingdoms王道天下， how to expect this game's contribution? And could management comment if there's any other game pipeline except for the Three Games I mentioned before?

Yang Liu: Could management comment if there's any other game pipeline, except for the three games I mentioned before? Thank you.

Rui Chen: [Foreign language]

Speaker #4: Thank you.

Rui Chen: 三国：百将牌在四月份的soft launch是符合预期的，我们计划在七月份正式上线。

Speaker #1: 《三国百将牌》在4月份的那个soft launch是符合预期的。然后我们计划在7月份正式上线。

Juliet Yang: The NCard soft launch performance is generally in line with expectation. We plan to official launch this game in July this year.

Speaker #2: The in-car soft launch performance is generally in line with expectation. We plan to officially launch this game in July this year.

Rui Chen: [Foreign language]

Rui Chen: 我们这款游戏应该是业界第一款英雄技能加上卡牌竞技的融合玩法。就在我们过去几个月的测试当中，我们感觉到年轻用户是非常喜爱这个游戏的。

Speaker #1: 我们这款游戏应该是业界第一款，就是英雄技能加上卡牌竞技的一个融合的一个玩法。就在我们那个过去几个月的测试当中，我们应该是感觉到年轻用户是非常喜爱这个游戏的。

Juliet Yang: This game is one of a kind game and the first of its kind that features a very unique gameplay system that blends hero skills with poker mechanisms. From the soft launch feedback, we find this gameplay has resonate with young user groups quite nicely.

Speaker #2: This game is one of a kind game and the first of its kind that features a very unique gameplay system that blends hero skills with poker, mechanism, and from the soft launch feedback our user we find this gameplay has resonated with young user group quite nicely.

Rui Chen: [Foreign language]

Rui Chen: 因为这个游戏的玩法确实很创新，就是没有，我们没有什么可以参考的这个，那个案例啊。所以的话，我们会用这种边改边发的一个策略，然后不断地去吸收用户的反馈，然后做大这个游戏的DAU。

Speaker #1: 因为这个游戏的玩法确实很创新，就是没有我们没有什么可以参考的这个案例。所以的话我们会用这种边改边发的一个策略，然后不断的去吸收用户的反馈，然后做大这个游戏的DAU。

Juliet Yang: Because this game is very creative and innovative, we take the approach to iterate the game as we launch, as we collect more user feedbacks. We believe this is a more sustainable approach to make this game even better.

Speaker #2: Because this game is very creative and innovative, we take the approach to iterate the game as we launch, as we collect more user feedbacks.

Speaker #2: We believe this is a more sustainable approach to make this game even better.

Rui Chen: [Foreign language]

Rui Chen: 我们认为这个游戏有潜力成为一款长线运营的大 DAU 的休闲游戏。如果我们真的做成这个目标，我觉得它这个价值是非常大的。

Speaker #1: 我们认为这个游戏有可能，就是有潜力成为一款常见运营的大DAU的休闲游戏。如果我们真的做成这个目标，我觉得它这个价值是非常大的。

Juliet Yang: We believe this game has the potential to become a large DAU title that can last for a very long time, in this casual category, and we believe it has, it has the right elements to get to that. We are putting a lot of resource and hoping this game will continue to refine its game plan operation. By the time it's ready, we will be launching it to a mass audience.

Speaker #2: We believe this game has the potential to become a large DAU title that can last for a very long time in this casual categories.

Speaker #2: And we believe it has the right elements to get to that. So we are putting more a lot of resource and hoping this game will continue to refine its gameplay and operation by the time it's ready.

Speaker #2: We will be launching it to a mass audience.

Rui Chen: [Foreign language]

Rui Chen: 因为说到那个百将牌，我就顺便把这个三国志：王道天下也一起说了。三王的特点的话，第一个呢，它是三国志正版IP授权，然后第二呢，就是它是在原汁原味的这个三国志原汁原味的美术的基础上，我们是做了这个3D的一个换新。所以呢，就是它的目标用户群是，就是年龄段稍微高一些的，非常在意这个品质和品位的这个玩家。

Speaker #1: 因为说到那个百将牌，我就顺便把这个《三国之王道天下》也一起说了。《三王》的特点的话，就第一个呢，它是《三国志》正版IP授权，然后第二呢，就是它是原汁原味的这个《三国志》原汁原味的美术的基础上，我们是做的这个3D的一个换新。所以呢，就是它的目标用户群是就是年龄段稍微高一些的，非常在意这个品质和品味的这个玩家。

Juliet Yang: Well, as we mentioned the NCard Three Kingdoms, I will briefly touch upon the San Wang title. The San Wang title is a very unique SLG title based on the very authentic Three Kingdoms IP by Koei. This game has stayed true to the original Three Kingdoms IP and experience while introducing so much refreshed 3D visual style. It's targeting a more mature SLG audiences and has higher taste towards the game's quality and visual experience.

Speaker #2: Well, as we mentioned, the in-car Three Kingdoms, I will briefly touch upon the《三王》 title. So the《三王》 title is a very unique SLG title based on the very authentic Three Kingdoms IP by Kao.

Speaker #2: And this game has stayed true to the original Three Kingdoms IP and experience while introducing so much refreshed 3D visual style. It's targeting a more mature SLG audiences and has higher taste, towards the game's quality and visual experience.

Rui Chen: [Foreign language]

Rui Chen: 对，这个游戏就是三王，它刚好是和我们之前运营的三谋，它是一个互补的关系。因为三王是三国志的IP，再加上这个，就比如说我们可以认为它是高品质的一个美术的定位，然后而三谋的话，它是年轻化加降杆减克的一个定位，所以它刚好是一个互补的关系，这个也是我们要在推出三谋之后还要继续推出三王的原因。

Speaker #1: 对，这个游戏就是《三王》它刚好是和就是我们之前运营的《三谋》它是一个互补的关系。因为《三王》是《三国志》的IP，再加上这个就比如我们可以认为它是高品质的一个美术的一个定位，然后而《三谋》的话，它是年轻化加降甘减克的一个定位。所以它刚好是一个互补的关系，这个也是我们要在推出《三谋》之后还要继续推出《三王》的原因。

Juliet Yang: We think San Wang and Sanmo really complement each other, but with a differentiate target user group, where San Wang is target to the IP fans who has strong taste and preferences towards a better visual quality, where Sanmo targets a younger cohort that doesn't want to spend so much time and money into the SLG title. That is the reason why after launching Sanmo, we choose to license another title in the Three Kingdoms IP. We think these two title has great synergies and really complement each other.

Speaker #2: We think《三王》 and《三谋》 really complement each other but with a differentiated target user group. Where《三王》 is targeted to the IP fans, who has strong taste and preferences to towards better visual quality.

Speaker #2: Where《三谋》 targets a younger cohort that doesn't want to spend so much time and money into the SLG title. That is the reason why after launching《三谋》 we choose another choose to license another title in the Three Kingdoms IP.

Juliet Yang: That is the reason why after launching Sanmo, we choose to license another title in the Three Kingdoms IP. We think these two title has great synergies and really complement each other.

Speaker #2: We think these two titles have great synergies and really complement each other.

Rui Chen: [Foreign language]

Rui Chen: 三月底我们进行了三王的第一个付费测试，玩家的反馈是很积极的，然后我们接下来会继续打磨产品。我们的计划是今年内会正式上线三王这个产品。

Speaker #1: 我三月底我们是进行了《三王》的第一轮付费测试，玩家的反馈是很积极的。然后我们接下来会继续打磨产品，我们的计划是今年内会正式上线《三王》这个产品。

Juliet Yang: We already completed the first round of beta test paid testing at the end of March for Sanwang title, we saw very positive user feedback and we are currently continuing refine and polishing the title and listening closely to user feedback. We are planning to launch this title within this year.

Speaker #2: We already completed the first round of beta test pay testing at the end of March for《三王》 title, and we saw a very positive user feedback.

Speaker #2: And we are currently continuing refine and polishing the title and listening closely to user feedback. And we are planning to launch this title within this year.

Rui Chen: [Foreign language]

Rui Chen: 我接下来说一下闪耀吧！噜咪。这个游戏它也是我可以认为它行业里面也是首创的，把多宠跟休闲两种玩法融合起来的一个游戏。

Speaker #1: 对，我接下来说一下闪耀吧Lumi，这个游戏它也是我可以认为它是行业里面也是首创的把多重跟休闲两种玩法融合起来的一个游戏。

Juliet Yang: Next, I'll talk about our self-developed game Lumi Master. For Lumi Master, it is also one of its kind, the very first title that combines pet hatching with casual gameplay.

Speaker #2: Next I'll talk about our self-developed game Lumi Master. For Lumi Master it is also one of its kind, the very first title that combines tech hatching with casual gameplay.

Rui Chen: [Foreign language]

Rui Chen: 我们在五月初是做了全球的测试，目前看来用户的反馈也是很积极的。我们会在今年Q4全球同步发行这个游戏。

Speaker #1: 我们在五月初是做了全球的测试，目前看来用户的反馈也是很积极的。我们会在今年Q4全球同步发行这个游戏。

Juliet Yang: We started a global user testing in early May this year, and we have received a very encouraging user feedback and we are targeting a global launch for this title in Q4 this year.

Speaker #2: We started a global user testing in early May this year, has and we have received a very encouraging user feedback. And we targeted we are targeting a global launch for this title, in Q4 this year.

Rui Chen: [Foreign language]

Rui Chen: 对，然后我最后提一下Escape from Duckov，那个因为我还是想宣布一下，就是Escape from Duckov在这个叫那个今年已经其实悄悄的销量突破了四百万份，它的这个销量是一直在持续。

Speaker #1: 对，然后我最后提一下陶黎亚科夫，那个因为我还是想宣布一下，就是陶黎亚科夫在这个叫那个今年已经其实悄悄的销量突破了400万份。它的这个销量是一直在持续的。

Juliet Yang: Lastly, I wanted to briefly touch upon Escape from Duckov, which is a Bilibili self-development title. This year we broke another record by selling over 4 million copies of this game.

Speaker #2: Lastly I wanted to briefly touch upon Escape from Tarkov, which is a Bilibili self-development title. This year we broke another record by selling over 4 million copies of this game.

Rui Chen: [Foreign language]

Rui Chen: 我们现在就是在继续去运营优化它的同时，我们还在积极地推进，第一个是在推进它的主机端的版本，第二个呢，就是我们也在开发它的手游版本。我们的目标呢，是希望把这个亚克夫打造成为一个常青的年轻人喜爱的游戏IP。

Speaker #1: 我们现在就是在那个继续去这个那个运营优化它的同时，我们呢还在积极的去第一个是在推进它的这个主机端的版本，第二个呢就是我们也在开发它的这个手游版本。我们的目标呢是希望把这个亚克夫打造成为一个常青的年轻人喜爱的游戏IP。

Juliet Yang: As we continue to promote this game on the PC front, we are actively working on the console version and the mobile version. Our goal is to continue to enhance the IP and over time, make this IP Escape from Duckov IP become a well known franchise for young gamers.

Speaker #2: As we continue to promote this game on the PC front, we are actively working on the console version and the mobile version. Our goal is to continue to enhance the IP and over time make this game as make this IP Escape from Tarkov IP become a well-known franchise for young gamers.

Rui Chen: [Foreign language]

Rui Chen: 其实过去的几年，我也一直在这个财报会上和大家讲这个B站的游戏。总结起来，我觉得B站游戏的打法就是三句话。第一句话是长线运营，我们非常重视游戏的长线运营，包括我们现在手上的FGO、碧蓝马上会迎来他们的十周年和九周年，包括三谋已经稳定地运营了两年，我们的目标也是把它运营成一款玩家可以玩到老的产品。所以长线运营是B站会一直坚持的一个游戏策略。我们以后发行的每一款游戏，包括单机的亚克夫，我们的目标都是把它做成长线运营。

Speaker #1: 其实那个过去的几年我也一直在这个财报会上和大家讲这个B站的游戏嘛，然后其实总结起来我觉得B站游戏的打法就是三句话，然后第一句话是长线运营，然后我们我们非常重视游戏的这个长线运营，包括我们现在手上的FGO必览，马上会迎来他们的十周年和九周年，包括《三谋》已经稳定的运营了两年，然后我们的目标也是把它运营运营成一款玩家可以玩到老的产品。所以的话就长线运营是B站会一直坚持的一个游戏策略。我们以后发行的每一款游戏，包括单机的亚克夫，那个我们都我们的目标都是把它做成长线运营的游戏。

Juliet Yang: Over the past few years, I've been sharing our game strategy. I think it summarized to three points. One is long term operation. We've seen that into our legacy title, FGO, and Azur Lane, which are celebrating its 10th year anniversary and ninth year anniversary respectively this year. Sanmo is going to celebrate its second year anniversary very soon. Going forward for all Bilibili game title, we are targeting a very long term operation, even for console one off games like Escape from Duckov. We're hoping this game will have lasting impact and will continue to generate sales over time. Long term operation is definitely one of the most important strategy for our game business.

Speaker #2: Over the past few years I've been sharing our game strategy. I think if summarized to three points: one is long-term operation, we've seen that into our legacy title FGO and the Zero Lane, which was celebrating its 10th year anniversary and 9th year anniversary respectively this year.

Speaker #2: And《三谋》 is going to celebrate its second year anniversary very soon. And going forward for all Bilibili game title, we're targeting a very long-term operation.

Juliet Yang: Going forward for all Bilibili game title, we are targeting a very long term operation, even for console one off games like Escape from Duckov. We're hoping this game will have lasting impact and will continue to generate sales over time. Long term operation is definitely one of the most important strategy for our game business.

Speaker #2: Even for console one-off games like Escape from Tarkov, we're hoping this game will have a lasting impact when you continue to generate sales over time.

Speaker #2: So long-term operation is definitely one of the most most important strategies for our game business.

Rui Chen: [Foreign language]

Rui Chen: 第二句话的话就是垂类头部，我们绝对不做那种打一枪换个地方的这种打法。我们一般的话决定去做一个方向，我们就会把它就在这个垂类上深耕下去。就是我们要么就是做这个垂类的第一名，要么就是做垂类的第一个。而且做了以后一定是持续去做，包括就是我们做SLG，我们不会说是做一款就算了。包括我们做三国这个题材，大家会发现就是现在除了三谋之外，有百将牌，还有三王，然后我们接下来还会有三国这个题材的游戏推出，就是你可以认为在游戏领域我们可以做出一个三国宇宙，然后包括像做单机，我们也不是说忽发奇想就想做单机，而是我看到就是未来就是单机独立游戏的这样的一个方向。我们后续也会有这个方向的这个游戏持续上市。所以的话就是我认为垂类头部是我们这个就是游戏打法的第二句话。

Speaker #1: 对，第二句话的话就是垂类头部。我们绝对不做那种打一枪换个地方的这种打法，我们一般的话决定去做一个方向，我们就会把它就在这个垂类上深耕下去，就是我们要么就是做这个垂类的第一名，要么就是做垂类的第一个。而且做了以后一定是持续去做，包括就是我们做SLG，我们不会说是做一款就算了，包括我们做三国这个题材，大家会发现就是现在除了《三谋》之外有《百将牌》还有《三王》，然后我们接下来还会有《三国》这个题材的游戏推出，就是你可以认为在游戏领域我们可以做出一个三国宇宙，然后包括像做单机我们也不是说忽发奇想就想做单机，而是我很看好就是未来就是单机独立游戏的这样的一个方向。我们后续也会有这个这个方向的这个游戏持续问世。所以的话就是我认为垂类头部是我们这个就是游戏打法的第二句话。

Juliet Yang: The second strategy is to become the leader in the segment genre. First of all, our strategy into game genre is very, very focused. We will be deciding a good direction how we will dig deep into this genre to become either the best or the first in this genre. For example, the SLG, the Three Kingdoms IP, we've launched one game, we have two in the pipeline, and we have more that's coming up. Potentially in the near future, we will build a Three Kingdoms universe. Another example is the console game, the PC copy-based game. This is also a direction we believe has very large opportunity and strong user demand, and we will be focusing to produce the best or become the first in its own kind. This will be another important strategy for our game business.

Speaker #2: And the second strategy is to become the leader in the segment genre. So first of all, our strategy into game genre is very very focused.

Speaker #2: We will be deciding a good direction how we will dig deep into this genre. To be become either the best or the first in this genre.

Speaker #2: For example, the SLG, the Three Kingdom IP we've launched—one game, we have two in the pipeline, and we have more that's coming up. Potentially, in the near future, we will build a Three Kingdom universe.

Juliet Yang: Potentially in the near future, we will build a Three Kingdoms universe. Another example is the console game, the PC copy-based game. This is also a direction we believe has very large opportunity and strong user demand, and we will be focusing to produce the best or become the first in its own kind. This will be another important strategy for our game business.

Speaker #2: Another example is the console game, the PC copy-based game. This is also a direction we believe has very large opportunity and strong user demand.

Speaker #2: And we will be focusing to produce the best or become the first in its own kind. This will be another important strategy for our game business.

Rui Chen: [Foreign language]

Rui Chen: 第三句话是品类年轻化。因为B站是年轻的游戏玩家最活跃的一个社区。所以的话就是这些年轻玩家有什么样的需求，我们肯定是行业里面第一个知道的。而且游戏它永远是一个面对年轻人的一个品类。就只要你朝年轻人的方向做，就一定有新机会。所以的话就是大家可以看到，就是无论像三国：百将牌的这种就是创新式的融合，还是包括像闪耀吧！噜咪，它也是一种创新式的一个融合。就年轻化本质上它就是在玩法或者在游戏的一些设计方面，我们会去做出最符合年轻人需求的一个创新。这个也是我们就是游戏业务长期会坚持的一个方向。

Speaker #1: 对，第三句话是品类年轻化。因为B站是年轻的游戏玩家最活跃的一个社区，所以的话就是这些年轻玩家有什么样的需求，我们肯定是行业里面第一个知道的。而且游戏它永远是一个面对年轻人的品类，就只要你朝年轻人的方向做就一定有新机会。所以的话就是大家可以看到就是无论像《三国百将牌》的这种就是创新式的融合，还是包括像《闪耀吧Lumi》它也是一种创新式的一个融合。就年轻化本质上它就是在玩法或者是在游戏的一些设计方面，我们会去做出最符合年轻人需求的一个创新。这个也是我们就是游戏业务长期会坚持的一个方向。

Juliet Yang: The last one is we're creating games for young generation of gamers. We believe that for all game business, that focusing on young user is a must. As a young generation community hub, we're the platform that is closest to this young cohort. Understanding their desire, inventing games to cater to their preferences is that is Bilibili bread and butter. By staying close to the young generation, there will always be good opportunities. This is showing on our NCard and our Lumi Master titles. Fundamentally, we are just creating a new title. We are creating or reinventing this title to catering to this generation of gamers that fits their taste the best. By staying close to the young gamers, we believe this brings us so much more opportunity. That concludes this question and this question. Operator, next question, please.

Speaker #2: The last one is recreating games for the young generation of gamers. We believe that for all game businesses, focusing on young users is a must.

Speaker #2: And as a young generation community hub, we're the platform that is closest to this young cohort. And understanding their desire, inventing games to cater to their preferences, that is Bilibili's bread and butter.

Juliet Yang: By staying close to the young generation, there will always be good opportunities. This is showing on our NCard and our Lumi Master titles. Fundamentally, we are just creating a new title.

Speaker #2: And by staying close to the young generation, there will always be good opportunities. This is showing on our end card and our Lumi master titles. Fundamentally, we are just creating a new title—we are creating or reinventing this title to cater to this generation of gamers, to fit their tastes the best.

Juliet Yang: We are creating or reinventing this title to catering to this generation of gamers that fits their taste the best. By staying close to the young gamers, we believe this brings us so much more opportunity. That concludes this question and this question. Operator, next question, please.

Speaker #2: So by staying close to the young gamers, we believe this brings us so much more opportunity. So that concludes this question and this question, the operator next question please.

Operator: Thank you. Our next question comes from Xueqing Zhang of CICC. Please ask your question, Xueqing.

Speaker #3: Thank you. Our next question comes from Xueqing Zhang of CICC. Please ask your question, Xueqing, your line is open.

Xueqing Zhang: [Foreign language] Thank you.

Xueqing Zhang: 谢谢管理层接受我的提问，我的问题是关于财务的。那上个季度公司提到2026年要增加对AI的投入，想请问到目前为止有哪些值得分享的进展？然后AI的投入的产出我们预计在什么时候可以看到？也想请管理层分享一下AI相关的OpEx和CapEx的最新展望，以及2季度和全年利润率的一个展望。谢谢。Thanks management for taking my question, and my question about financials. Last quarter, company mentioned that it would increase investments in AI.

Speaker #4: 谢谢王宇晨，这是我提问我的问题是关于财务的。那上个季度公司提到2026年要增加对AI的投入，想请问到目前为止有哪些值得分享的进展，然后AI的投入的产出我们预计在什么时候可以看到，也想请管理层分享一下AI相关的OPEX和CAPEX的最新展望，以及说二季度和全年利润率的一个展望。谢谢。 Thanks management for taking my question and my question about financials. Last quarter company mentioned that it would in this investment in AI in management.

Xueqing Zhang: I could manage progress actually so far. When should we expect to see meaningful returns from these AI investments? Also, could you provide some color on the outlook for OpEx and CapEx related to AI, as well as the margin outlook for Q2 and the full year? Thank you.

Speaker #4: Progress such as so far. 万事未 expect to see a meaningful returns from this AI investment. Also, could you provide some color on the outlook for OPEX and the CAPEX as the margin outlook for the second quarter and the full year?

Sam Fan: Thanks, Xueqing. This is Sam. I will take this question. First of all, about the direction of our AI investment.

Speaker #4: Thank you.

Sam Fan: Thanks, Xueqing. This is Sam. I will take this question. First of all, about the direction of our AI investment. As mentioned by Mr. Chen, we are very focused primarily on keywords of Bilibili video. We are investing three main areas: video understanding, video distribution, and video creation.

Speaker #5: Thank you, Xueqing. This is Sam. I will take this question. First of all, about the direction of our AI investment. As mentioned by Mr. Chen, we are very focused primarily on the keyword of Bilibili.

Sam Fan: As mentioned by Mr. Chen, we are very focused primarily on keywords of Bilibili video. We are investing three main areas: video understanding, video distribution, and video creation. We believe these investments will significantly enhance the value of Bilibili's content ecosystem and community, and it directly benefit all monetization lines. In Q1, we have already began exploring and applying these efforts. Recent initiative results evidenced in our DAU growth, user time spent growth, and advertising revenue growth. We expect the positive feedback loop has just begun, and will continue to deliver greater efficiency. Regarding to the CapEx, in Q1, our CapEx increased about 80% year-over-year, around RMB 200 million, mainly driven by higher investment in servers and computing resources to support AI improvements. For the full year, we expect our AI related CapEx to increase by approximately RMB 1 billion with an impact on P&L of around RMB 500 million.

Speaker #5: We are investing in three main areas: video understanding, video distribution, and video creation. We believe this investment will significantly enhance the value of Bilibili's content ecosystem and community.

Sam Fan: We believe these investments will significantly enhance the value of Bilibili's content ecosystem and community, and it directly benefit all monetization lines. In Q1, we have already began exploring and applying these efforts. Recent initiative results evidenced in our DAU growth, user time spent growth, and advertising revenue growth.

Speaker #5: And directly benefit all monetization lines. In Q1, we have already begun exploring and applying these efforts. Recent initiative results evidence in our deal growth, user time spend growth, and advertising revenue growth.

Sam Fan: We expect the positive feedback loop has just begun, and will continue to deliver greater efficiency. Regarding to the CapEx, in Q1, our CapEx increased about 80% year-over-year, around RMB 200 million, mainly driven by higher investment in servers and computing resources to support AI improvements.

Speaker #5: We expect this positive feedback loop has just begun and will continue to deliver greater efficiency. Regarding CAPEX, in Q1 our CAPEX increased about 80% year over year, to around RMB 200 million.

Speaker #5: Mainly driven by higher investment in servers and computing resources to support AI improvements. For the full year, we expect our AI-related CAPEX to increase by approximately 1 billion RMB, with an impact on P&L of around 500 million RMB.

Sam Fan: For the full year, we expect our AI related CapEx to increase by approximately RMB 1 billion with an impact on P&L of around RMB 500 million. Meanwhile, we will cut certain OpEx expenses to offset part of such impact. Using our Q1 result as an example, when we see R&D expenses increase by 9% year over year, while we still deliver solid bottom line results.

Sam Fan: Meanwhile, we will cut certain OpEx expenses to offset part of such impact. Using our Q1 result as an example, when we see R&D expenses increase by 9% year over year, while we still deliver solid bottom line results. Driven by revenue growth and continued operating leverage, our adjusted net profit increased by 62% year over year, with adjusted net profit margin rising to 7.8%. We expect Q2 advertising revenue to maintain rapid growth with the contribution from our AI initiatives, with gross margin steadily improving and the net profit margin have further room to increase. We also maintain our mid to long term gross margin target, 40% to 45%, and operating profit ratio target of 15% to 20% unchanged. Thank you for this question.

Speaker #5: Meanwhile, we will cut certain OPEX expenses to offset part of such impact. Using our Q1 result as an example, when we see R&D expenses increase by 9% year over year, while we still deliver solid bottom line results.

Sam Fan: Driven by revenue growth and continued operating leverage, our adjusted net profit increased by 62% year over year, with adjusted net profit margin rising to 7.8%. We expect Q2 advertising revenue to maintain rapid growth with the contribution from our AI initiatives, with gross margin steadily improving and the net profit margin have further room to increase.

Speaker #5: Driven by revenue growth and continued operating leverage, our adjusted net profit increased by 62% year over year. With the adjusted net profit margin rising to 7.8%.

Speaker #5: We expect Q2 advertising revenue to maintain rapid growth, with the contribution from AI initiatives. With gross margin steadily improving, the net profit margin has further room to increase.

Sam Fan: We also maintain our mid to long term gross margin target, 40% to 45%, and operating profit ratio target of 15% to 20% unchanged. Thank you for this question.

Speaker #5: We also maintain our mid- to long-term gross margin target of 40% to 45% and operating profit ratio target of 15% to 20% unchanged. Thank you for this question.

Operator: Thank you. That concludes the question and answer session. Thank you once again for joining Bilibili's Q1 2026 financial results and business updates conference call today. If you have any further questions, please contact Juliet Yang, Bilibili's executive IR director, or Piacente Financial Communications. Contact information for IR in both China and the US can be found on today's press release. Thank you. Have a great day.

Speaker #3: Thank you. And that concludes the question-and-answer session. Thank you once again for joining Bilibili's first quarter 2026 financial results and business updates conference call today.

Speaker #3: If you have any further questions, please contact Juliet Yang, Bilibili's Executive IR Director, or Pichante Financial Communications. Contact information for IR in both China and the US can be found in today's press release.