Q2 2026 Bilibili Inc Earnings Call

August 27, 2026

Operator: Good day, and welcome to Bilibili's Q2 2026 financial results and business update conference call. Today's conference is being recorded. At this time, I would like to turn the call over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

Speaker #1: Please go ahead.

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.

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

Speaker #2: The non-GAAP financial measures we provide are for comparison purposes only. The definition of these measures 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.

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.

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

Speaker #3: Thank you, Juliet. And thank you to everyone joining us today. Our strong momentum carried into the second quarter, and we delivered another set of solid results. Both our community and top-line growth remained healthy, and profitability continued to expand.

Rui Chen: Thank you, Juliet, and thank you to everyone joining us today. Our strong momentum carried into Q2, and we delivered another set of solid results. Both our community and top-line growth remained healthy, and profitability continued to expand. As users increasingly seek substance over noise, our high-quality content and authentic community experience keep attracting new users and driving deeper engagement. In Q2, DAUs increased by 7% year-over-year to 117 million, while MAUs grew to 371 million. Average daily time spent rose to 113 minutes from 105 minutes a year ago, which drove total time spent up over 14%. That engagement is translating into stronger commercial results. Advertising revenue grew 28% year-over-year, marking another quarter of industry-leading growth. Meanwhile, MPUs increased 7% year-over-year to 33.4 million, reflecting users' increasing willingness to pay for the content and community experiences they truly value.

Speaker #3: As users increasingly seek substance over noise, our high-quality content and authentic community experience keep attracting new users and driving deeper engagement. In Q2, DAUs increased by 7% year over year to 117 million, while MAUs grew to 371 million.

Speaker #3: Average daily time spent rose to 113 minutes from 105 minutes a year ago, which drove total time spent up over 14%. That engagement has translated into stronger commercial results.

Speaker #3: Advertising revenue grew 28% year over year, marking another quarter of industry-leading growth. Meanwhile, MPUs increased 7% year over year to 33.4 million, reflecting users' increasing willingness to pay for the content and community experiences they truly value.

Speaker #3: You can also see that momentum in our financial results. Total revenues for Q2 rose 8% to RMB 7.9 billion, and gross profit grew 10% year over year.

Rui Chen: You can also see that momentum in our financial results. Total revenues for Q2 rose 8% to RMB 7.9 billion, and gross profit grew 10% year-over-year. Gross margin expanded to 37.2%, marking our 16th consecutive quarter of margin improvement. Our top-line growth and increased operating leverage drove our net profit up 55% year-over-year, and our adjusted net profit reached RMB 704 million, with our adjusted net profit margin expanding to 8.9%. In the AI era, we see two major tailwinds. First, AI tools help our creators produce great content much faster, while AI-empowered content understanding is making our recommendations far more efficient. Second, and perhaps more importantly, in a world full of passive algorithmic content, real human connection becomes a rare commodity. People choose Bilibili because they want meaningful content, shared interests, and genuine interactions, and that makes our community even more attractive.

Speaker #3: Gross margin expanded to 37.2%, marking our 16th consecutive quarter of margin improvement. Our top-line growth and increased operating leverage drove our net profit up 55% year over year, and our adjusted net profit reached RMB 704 million, with our adjusted net profit margin expanding to 8.9%.

Speaker #3: In the AI era, we see two major tailwinds. First, AI tools help our creators produce great content much faster, while AI-empowered content understanding is making our recommendations far more efficient.

Speaker #3: Second, and perhaps more importantly, in a world full of passive, algorithmic content, real human connection becomes a rare commodity. People choose Bilibili because they want meaningful content, shared interests, and genuine interactions.

Speaker #3: And that makes our community even more attractive. That is why we remain committed to our AI strategy, while staying highly disciplined in how we invest.

Rui Chen: That is why we remain committed to our AI strategy while staying highly disciplined in how we invest. We will use AI to improve content and efficiency without losing sight of our community roots and unique advantage. Strengthening this flywheel of community and monetization will continue to build lasting, compounding value for our users, our creators, and our shareholders. With that, let me walk you through our core pillars of content, community, and commercialization. Let's start with our content. Across our 17-year history, various content formats have come and gone, but Bilibili's distinct blend of quality content and vibrant interest-driven communities continues to capture users' intentional, high-value time. In Q2, total time spent on our platform expanded by 14% year-over-year. Notably, watch time from videos over five minutes grew by 18% year-over-year, demonstrating users' growing demand for meaningful and high-quality content.

Speaker #3: We'll use AI to improve content and efficiency, without losing sight of our community roots and unique advantage. Strengthening this flywheel of community and monetization will continue to build lasting, compounding value for our users, our creators, and our shareholders.

Speaker #3: With that, let me walk you through our core pillars of content, community, and commercialization. Let's start with our content. Across our 17-year history, various content formats have come and gone, but Bilibili's distinct blend of quality content and vibrant, interest-driven communities continues to capture users' intentional, high-value time.

Speaker #3: In Q2, total time spent on our platform expanded by 14% year over year. Notably, watch time from videos over five minutes grew by 18% year over year, demonstrating users' growing demand for meaningful and high-quality content.

Speaker #3: Turning to our interest-based content categories, we're seeing steady growth across both core and emerging hubs. Total watch time for game-related content and general entertainment content increased by 20% and 35% year over year, respectively.

Rui Chen: Turning to our interest-based content categories, we are seeing steady growth across both core and emerging hubs. Total watch time for game-related content and general entertainment content increased by 20% and 35% year-over-year respectively. Baby and maternity also grew by 36% year-over-year as more of our users step into parenthood. At the same time, AI tools are expanding creative boundaries across our platform. For instance, watch time for music content grew 24% year-over-year, catalyzed by AIGC-driven creation. Beyond content consumption, AI is also supercharging creator output. In Q2, daily video submissions jumped by 28% compared to the same period last year. Video podcasts offer another compelling example of our users embracing immersive content. Last month, average daily watch time for video podcasts exceeded 100 million minutes. This remarkable engagement shows that even in today's world of fast-paced content, there is still a huge and growing appetite for in-depth storytelling.

Speaker #3: Baby and maternity also grew by 36% year over year, as more of our users stepped into parenthood. At the same time, AI tools are expanding creative boundaries across our platform.

Speaker #3: For instance, watch time for music content grew 24% year over year, catalyzed by AIGC-driven creations. Beyond content consumption, AI is also supercharging creator output.

Speaker #3: In Q2, daily video submissions jumped by 28% compared to the same period last year. Video podcasts offer another compelling example of our users embracing immersive content.

Speaker #3: Last month, average daily watch time for video podcasts exceeded 100 million minutes. This remarkable engagement shows that even in today's world of fast-paced content, there is still a huge and growing appetite for in-depth storytelling.

Speaker #3: Behind these figures empowering creators remains a top priority. Through refined algorithms, we now match quality content with interested users much earlier. In Q2, the number of creators with over 1,000 followers grew by 30% year over year.

Rui Chen: Behind these figures, empowering creators remains a top priority. Through refined algorithms, we now match quality content with interested users much earlier. In Q2, the number of creators with over 1,000 followers grew by 30% year-over-year. The diverse monetization channels we provide also helped average creator income increase by 21% year-over-year in the second quarter. Turning to our community. As we touched on earlier, authentic human connection has become rare and valuable in the era of automated, bite-sized content. That is why Bilibili's interactive community feels like a true oasis in today's digital world. Here, hundreds of millions of users connect over shared passions, expressing their feelings through comments and bullet chats to find a genuine sense of belonging. In Q2, monthly interactions grew 9% year-over-year to 17.4 billion, while deeper connections like long comments jumped over 67%.

Speaker #3: The diverse monetization channels we provide also helped average creator income increase by 21% year over year, in the second quarter. Turning to our community.

Speaker #3: As we touched on earlier, authentic human connection has become rare and valuable in the era of automated, bite-sized content. That is why Bilibili's interactive community feels like a true oasis in today's digital world.

Speaker #3: Here, hundreds of millions of users connect over shared passions, expressing their feelings through comments and bullet chats to find a genuine sense of belonging.

Speaker #3: In Q2, monthly interactions grew 9% year over year to 17.4 billion, while deeper connections like long comments jumped over 67%. Meanwhile, by processing these rich user interactions, our algorithms can spot and elevate high-quality content much faster.

Rui Chen: Meanwhile, by processing these rich user interactions, our algorithms can spot and elevate high-quality content much faster, driving healthy, steady growth in both our user base and time spent. This level of engagement and interaction naturally keeps users coming back and expands our network of trust. In Q2, the average active user followed 96 creators, up 11% from a year ago. By the end of Q2, our official members reached 299 million, with 12-month retention remaining solid at around 80%. Ultimately, our community doesn't just surface the best content, it builds lasting user loyalty and drives enduring platform value. This summer, we brought our community offline once again through our signature events, Bilibili World and Bilibili Macro Link.

Speaker #3: Driving healthy, steady growth in both our user base and time spent. This level of engagement and interaction naturally keeps users coming back and expands our network of trust.

Speaker #3: In Q2, the average active user followed 96 creators, up 11% from a year ago. By the end of Q2, our official members reached 299 million.

Speaker #3: With 12-month retention remaining solid at around 80%. Ultimately, our community doesn't just surface the best content; it builds lasting user loyalty and drives enduring platform value.

Speaker #3: This summer, we brought our community offline once again through our signature events: Bilibili World and Bilibili Macro Link. Over the 3-day event, more than 400,000 fans gathered in person in Shanghai, making it one of the largest offline ACG Expos in China and a vibrant new cultural landmark for the city.

Rui Chen: Over the three-day event, more than 400,000 fans gathered in person in Shanghai, making it one of the largest offline ACG expos in China and a vibrant new cultural landmark for the city. Seeing so many young people come together to share their passions was a powerful reminder of what community means. This is what Bilibili looks like off-screen, authentic, energetic and deeply connected. Now, let's turn to our commercial businesses, beginning with advertising. In Q2, advertising revenue increased by 28% year-over-year to RMB 3.1 billion, marking our 14th straight quarter of 20% year-over-year growth. This industry-leading growth reflects our high-value, deeply engaged user base alongside ongoing enhancements to our ad products and technical infrastructure. Growth was broad-based across industries, games, digital products and home appliances, internet services, e-commerce and automotive were our five largest advertising verticals in Q2.

Speaker #3: Seeing so many young people come together to share their passions was a powerful reminder of what community means. This is what Bilibili looks like off-screen, authentic, energetic, and deeply connected.

Speaker #3: Now, let's turn to our commercial businesses, beginning with advertising. In Q2, advertising revenue increased by 28% year over year to RMB 3.1 billion, marking our 14th straight quarter of 20% year over year growth.

Speaker #3: This industry-leading growth reflects our high value, deeply engaged user base, alongside ongoing enhancements to our ad products and technical across industries, games, digital products, and home appliances, internet services, e-commerce, and automotive were our 5 largest advertising verticals in Q2.

Speaker #3: While our core gaming vertical maintained healthy growth, new verticals are also flourishing as our users mature into new life stages, with expanding consumption needs.

Rui Chen: While our core gaming vertical maintained healthy growth, new verticals are also flourishing as our users mature into new life stages with expanding consumption needs. Ad revenues from home decoration, footwear and apparel, and automotive each grew more than 60% year-over-year. We also captured incremental budget from emerging industries. AI advertisers continued to scale, and revenues from this vertical more than doubled year-over-year, driving sustained growth in internet services. Our ads are also becoming more efficient. By deepening our understanding of product information, creative assets, user interests, and conversion goals, AI helps us deliver more relevant ads and drive better conversion. Our CTCVR continued to improve, increasing 19% year-over-year in Q2. Beyond matching, we are extending AI across creative production and campaign operations, from AIGC tools to ad placement AI agents, making advertising easier and more efficient for a broader range of clients.

Speaker #3: Ad revenues from home decoration, footwear, and apparel, and automotive each grew more than 60% year over year. We also captured incremental budget from emerging industries.

Speaker #3: AI advertisers continue to scale, and revenues from this vertical more than doubled year over year, driving sustained growth in internet services. Our ads are also becoming more efficient.

Speaker #3: By deepening our understanding of product information, creative assets, user interests, and conversion goals, AI helps us deliver more relevant ads and drive better conversion.

Speaker #3: Our CTCVR continued to improve, increasing 19% year over year in Q2. Beyond matching, we are extending AI across creative production and campaign operations. From AIGC tools to ad placement AI agents, making advertising easier and more efficient for a broader range of clients.

Speaker #3: We are also extending monetization into deeper high-intent user scenarios. Take search, for example, a high-value scenario sitting right at the moment of decision-making, search revenues doubled year over year in Q2.

Rui Chen: We are also extending monetization into deeper high-intent user scenarios. Take search, for example, a high-value scenario sitting right at the moment of decision-making. Search revenues doubled year-over-year in Q2. At the same time, we are unlocking growth across additional scenarios including PC, Smart TV, and the watch page. As monetization expands across the entire user journey, we see vast commercial potential ahead. Turning to our games business. Game revenues for the quarter were CNY 1.4 billion, down 14% year-over-year, mainly due to the high base, Sanmo: Sanguo: Mou Ding Tianxia set last year. Sanmo's latest second anniversary Season 15 went well with players, ranking number 2 on China's iOS top-grossing chart. We will keep focusing on the game's long-term lifecycle by delivering fresh content and carefully balancing user experience with monetization.

Speaker #3: At the same time, we are unlocking growth across additional scenarios including PC, Smart TV, and the watch page. As monetization expands across the entire user journey, we see vast commercial potential ahead.

Speaker #3: Turning to our games business. Game revenues for the quarter were RMB 1.4 billion, down 14% year over year, mainly due to the high-base, sound-mole 三国谋定天下 set last year.

Speaker #3: Sanmo's latest second anniversary season 15 went well with players. Ranking number 2 on China's iOS top grossing chart. We'll keep focusing on the game's long-term lifecycle by delivering fresh content and carefully balancing user experience with monetization.

Speaker #3: Meanwhile, our legacy titles including FGO and Azure Lane continue to deliver stable performance during the quarter. In July, we officially launched our casual card game Endcard, 三国百将牌.

Rui Chen: Meanwhile, our legacy titles including FGO and Azur Lane continued to deliver stable performance during the quarter. In July, we officially launched our casual card game, Sanguo: Bai Jiang Pai. We continue to refine the game and enrich its gameplay while approaching user acquisition with a long-term focus on ROI and retention. Looking at H2 2026, our self-developed simulation game, Lumi Master, was well-received by global players in recent tests. Building on this encouraging reception, we plan to launch the game on 17 September globally. Sanwang: Sanguo Zhi Wang Bao Tianxia, our new licensed SLG title, is scheduled to roll out in Q4, complementing Sanmo with a differentiated gameplay experience.

Speaker #3: We continue to refine the game and enrich its gameplay while approaching user acquisition with a long-term focus on ROI and retention. Looking at the second half of 2026, our self-developed simulation game LumiMaster 闪耀吧 Lumi was well received by global players in recent tests.

Speaker #3: Building on this encouraging reception, we plan to launch the game on September 17 globally. 三王三国志王道天下. Our new licensed SLG title is scheduled to roll out in Q4, complementing Sanmo with a differentiated gameplay experience.

Speaker #3: Beyond Lumi and 三王, we also introduced three new titles at Bilibili World, including two licensed games: Ragnarok Online 3, 仙境传说3, and MMORPG based on a globally recognized IP that has already secured its publication license.

Rui Chen: Beyond Lumi and Sanwang, we also introduced three new titles at Bilibili World, including two licensed games, Ragnarok Online 3, an MMORPG based on a globally recognized IP that has already secured its publication license, and MISTBOUND, which is adapted from another well-known IP. We also announced a new self-developed tactical RPG, The Three Kingdoms: The Ravages of Time. All three titles will be released next year. Together, these titles expand our pipeline across genres and development models while attracting new player segments. Turning to our VAS business. In Q2, VAS revenues grew 5% year-over-year to CNY 3.0 billion. Our live broadcasting business maintained its steady performance, and we continued to refine our operations to ensure stable and sustainable growth with better margins.

Speaker #3: And Misbound: Guild Wars card game, 机甲大牌英雄, which is adapted from another well-known IP. We also announced a new self-developed tactical RPG, Three Kingdoms: The Ravages of Time, 三国火凤燎原.

Speaker #3: All three titles will be released next year. Together, these titles expand our pipeline across genres and development models while attracting new player segments. Turning to our VAS business.

Speaker #3: In Q2, VAS revenues grew 5% year over year to RMB 3.0 billion. Our live broadcasting business maintained its steady performance, and we continue to refine our operations to ensure stable and sustainable growth with better margins.

Speaker #3: At the end of Q2, premium members reached 25.7 million, up 9% year over year, with around 80% on annual or auto-renewal plans. Fan charging also kept its momentum, with revenue up nearly 50% year over year.

Rui Chen: At the end of Q2, premium members reached 25.7 million, up 9% year-over-year, with around 80% on annual or auto-renewal plans. Fan charging also kept its momentum, with revenue up nearly 50% year-over-year. Fan charging turns audience appreciation into direct financial support, so creators across a wide range of categories can do what they love and produce quality content over the long term. Beyond the numbers, we remain deeply committed to shaping a healthy culture and community for China's young generation. ESG principles are central to that mission. This year, MSCI ESG upgraded Bilibili to an AA rating from an A rating, recognizing our ongoing progress in using technology and culture to create meaningful social impact. At the end of the day, we found that across every technological shift, one thing remains constant. People crave rich, meaningful content, and real human connection.

Speaker #3: Fan charging turns audience appreciation into direct financial support, so creators across a wide range of categories can do what they love and produce quality content over the long term.

Speaker #3: Beyond the numbers, we remain deeply committed to shaping a healthy culture and community for China's young generation. ESG principles are central to that mission.

Speaker #3: This year, MSCI ESG upgraded Bilibili to an AA rating from an A rating. Recognizing our ongoing progress in using technology and culture to create meaningful social impact.

Speaker #3: At the end of the day, we found that across every technological shift, one thing remains constant: people crave rich, meaningful content, and real human connection.

Speaker #3: Bilibili is uniquely built at the intersection of both. As AI enables us to fulfill this mission with greater precision and scale, I couldn't be more confident in our path ahead.

Rui Chen: Bilibili is uniquely built at the intersection of both. As AI enables us to fulfill this mission with greater precision and scale, I couldn't be more confident in our path ahead. With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?

Speaker #3: With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?

Speaker #1: Thank you, Mr. Chen, and hello everyone. In the interest of time, on today's call, I will focus on our second quarter financial highlights. We encourage you to refer to our press release issued earlier today for a closer results.

Sam Fan: Thank you, Mr. Chen, and hello everyone. In the interest of time on today's call, I will focus on our Q2 financial highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results. Total revenues for the Q2 were RMB 7.9 billion, up 8% year over year. The breakdown of total revenues by revenue stream was approximately 39% advertising, 37% VAS, 18% mobile games, and 6% from our IP derivatives and other businesses. Cost of revenues increased by 7% year over year to RMB 5.0 billion. Gross profit increased around 10% year over year to RMB 3.0 billion, while gross margin expanded to 37.2% from 36.5% in the same period last year, marking our 16th consecutive quarter of margin improvement. Our total operating expenses were up 7% year over year to RMB 2.6 billion.

Speaker #1: Total revenues for the second quarter were RMB 7.9 billion, up 8% year over year. The breakdown of total revenues by revenue stream was approximately 39% advertising, 37% VAS, 18% mobile games and 6% from our IP derivatives and other businesses.

Speaker #1: Cost of revenues increased by 7% year over year to RMB 5.0 billion, gross profit increased around 10% year over year to RMB 3.0 billion, while gross margin expanded to 37.2% from 36.5% in the same period last year.

Speaker #1: Marking our 16th consecutive quarter of margin improvement. Our total operating expenses were up 7% year over year to RMB 2.6 billion, sales and marketing expenses increased by 1% year over year, G&A expenses were flat, and R&D expenses increased by 16%, primarily due to continued investment in our AI capabilities.

Sam Fan: Sales and marketing expenses increased by 1% year over year, G&A expenses were flat, and R&D expenses increased by 16%, primarily due to continued investment in our AI capabilities. Operating profit increased 48% year over year to RMB 373 million, while adjusted operating profit increased 21% to RMB 696 million, lifting adjusted operating profit margin to 8.8% from 7.8% in the same period last year. Net profit increased by 55% year over year to RMB 339 million, while adjusted net profit increased 25% to RMB 704 million, and adjusted net profit margin reached 8.9%. As of 30 June 2026, we had cash and cash equivalents, time deposits, and short-term investments of RMB 24.3 billion or $3.6 billion. In June, our board approved a new two-year $300 million share repurchase program.

Speaker #1: Operating profit increased 48% year over year to RMB 373 million, while adjusted operating profit increased 21% to RMB 696 million, lifting adjusted operating profit margin to 8.8% from 7.8% in the same period last year.

Speaker #1: Net profit increased by 55% year over year to RMB 339 million, while adjusted net profit increased 25% to RMB 704 million, and adjusted net profit margin reached 8.9%.

Speaker #1: As of June 30, 2026, we had cash and cash equivalents, time deposits, and short-term investments of RMB 24.3 billion or 3.6 billion USD. In June, our board approved a new 2-year 300 million USD share repurchase program.

Speaker #1: Under this new program, a total of 1.9 million shares had been purchased for a total cost of 31 million USD. As of June 30, 2026, from the beginning of the year through today, a total of 5.8 million shares had been purchased for a total cost of 118 million USD.

Sam Fan: Under this new program, a total of 1.9 million shares had been purchased for a total cost of $31 million as of 30 June 2026. From the beginning of the year through today, a total of 5.8 million shares had been purchased for a total cost of $118 million. Moving forward, we will continue to evaluate market conditions and execute our repurchase program accordingly to enhance long-term shareholder value. Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

Speaker #1: Moving forward, we will continue to evaluate market conditions, and execute our repurchase program accordingly to enhance long-term shareholder value. Thank you for your attention.

Speaker #1: We would now like to open the call to your questions. Operator, please go ahead.

Speaker #2: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. For the benefit of all participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. The company will provide consecutive interpretation for the management statement during the Q&A session. Please note that the English interpretation is for the convenience purposes only. In the case of any discrepancy, management statements in their original language will prevail. Now we are going to take our first question. Just give us a moment. The question comes line of Lincoln Kong from Goldman Sachs. Your line is open. Please ask the question.

Speaker #2: To withdraw a question, please press star 1 and 1 again. For the benefit of all participants on today's call, if you wish to ask a question, to management in Chinese, please immediately repeat your question in English.

Speaker #2: The company will provide consecutive interpretation for the management statement during the Q&A session. Please note that the English interpretation is for the convenience purposes only.

Speaker #2: In the case of any discrepancy, management statements in their original language will prevail. And now we're going to take our first question. Just give us a moment.

Speaker #2: The question comes along of Lincoln Kong from Goldman Sachs. Your line is open. Please ask a question.

Speaker #3: 谢谢管理层接受我的提问。那也恭喜咱们二季度取得了非常稳健的一个业绩。那我是想问，就是说我们看过去几年，整个这个短视频的内容其实快速崛起，然后这些长视频的这个时长呢，其实也在逐步的一些下降。但B站在这个变化中呢，其实还是保持了非常健康的一个增长。我想问这个背后主要还是什么样的一些原因。那之后在这个AI这个时代，这个用户在内容喜好和消费习惯上又可能会有怎样的一些变化呢？那我翻译一下。 Thank you, management, for taking my question and congrats on a very solid quarter. So looking back over the past few years, Xiaofeng Contents has surged, while the average length of the long-form video has also steadily decreased.

Sam Fan: Thank you management for taking my question, and congrats on a very solid quarter. Looking back over the past few years, short-form contents have surged, while the average length of the long-form video has also steadily decreased. Bilibili has sustained a very healthy growth throughout this dynamic period. What is driving this resilience? Looking ahead to the AI era, how do we expect user preference and the consumption habits to evolve over time? Thank you.

Lincoln Kong: Thank you management for taking my question, and congrats on a very solid quarter. Looking back over the past few years, short-form contents have surged, while the average length of the long-form video has also steadily decreased. Bilibili has sustained a very healthy growth throughout this dynamic period. What is driving this resilience? Looking ahead to the AI era, how do we expect user preference and the consumption habits to evolve over time? Thank you.

Speaker #3: But Bilibili has sustained a very healthy growth throughout this dynamic period. So what's driving this resilience? Looking ahead to the AI era, how do we expect user preference and the consumption habits to evolve over time?

Speaker #3: Thank you.

Speaker #4: 其实过去几年无论是短视频还是长视频，都是爆炸式的增长。只不过呢，是短视频它增长的这个速度更快。而且的话，我觉得我们并不是在短视频和长视频当中去做选择。我们选择的是好的内容，选择的是高质量的内容。而高质量的内容大多数确实是在长视频当中。

Rui Chen: 其实过去几年，无论是短视频还是长视频，都是爆炸式的增长，只不过是短视频它增长的这个速度更快。而且我觉得我们并不是在短视频和长视频当中去做选择，我们选择的是好的内容，选择的是高质量的内容，而高质量的内容大多数确实是在长视频当中。

Juliet Yang: Actually, over the past few years, we have seen an explosive growth for both short video content and long-form content, and the shorter form content grow much faster. Looking at Bilibili, we are not choosing the length of the content to be focused on, but rather we are focusing on good content, high quality content, and naturally for those high quality content, they are generally more inclined to be in the format of long-form, mid to long-form content.

Speaker #5: Actually, over the past few years, we've seen an explosive growth for both short video content and long-form content. And the shorter-form content grows much faster.

Speaker #5: And looking at Bilibili, we're not choosing the length of the content to be focused on, but rather we are focusing on good content, high-quality content.

Speaker #5: And naturally, for those high-quality content, they are generally more inclined to be in a format of long-form, mid to long-form content.

Speaker #4: 我们一直认为，就是无论是长视频还是短视频，无论用户他是用电脑看还是用手机看还是用电视看，其实用户他不变的追求是想看更好的内容。

Rui Chen: 我们一直认为，无论是长视频还是短视频，无论用户他是用电脑看，还是用手机看，还是用电视看，其实用户他不变的追求是想看更好的内容。

Juliet Yang: We believe whether the length of the content or on the device of the consumption scenario, the ultimate goal from users is everyone wants to watch good content.

Speaker #5: Well, we believe whether it's whether the length of the content or on the device of the consumption scenario, the ultimate goal from users is everyone wants to watch good content.

Juliet Yang: We believe whether the length of the content or on the device of the consumption scenario, the ultimate goal from users is everyone wants to watch good content.

Speaker #4: 刚才说过了，就是过去几年因为这个短视频在供给上它增长得非常快，所以的话确实用户在过去几年他会去看各种各样的短视频。但是呢，就是当它经过了这一轮碎片化的内容的一个洗礼过后，然后他们也会意识到，就是很多的这种短内容它只能带来视听上的一个刺激，而它自己的话还是更希望把时间就花在它认为值得看的一个东西上。所以我觉得这个也是那个B站能在过去几年一直持续这个健康增长的一个原因。因为我们一直在提供优质有趣且能够去产生这个情绪共鸣的一个内容，然后用户呢也越来越认同就是B站的这种高质量内容的一个心智。所以的话，他们会下意识地把更多的时间花在B站上。尤其是这个年轻的用户。

Rui Chen: 我刚才说过了，就过去几年，因为短视频在供给上它增长得非常快，所以的话，确实用户在过去几年会去看各种各样的短视频。但是当他经过了这一轮碎片化的内容的一个洗礼过后，他们也会意识到，很多的这种短内容，它只能带来视听上的一个刺激，而他自己还是更希望把时间花在他认为值得看的一个东西上。所以我觉得这个也是B站能在过去几年一直持续健康增长的一个原因，因为我们一直在提供优质、有趣且能够去产生情绪共鸣的内容，然后用户也越来越认同B站的这种高质量内容的一个心智，所以他们会下意识地把更多的时间花在B站上，尤其是年轻用户。

Juliet Yang: Well, over the past year, we do see an exponential supply growth for short video content. But over time, as people are used to have watched enough low quality, repetitive content, they naturally develop a taste for high quality content. They are no longer satisfied with the content that just grab their attention for one second. They care more and more about whether the time they spend on the content is actually worth it. That is exactly why Bilibili have been able to keep growing in the past few years. We have been focusing on providing a high quality content that is interesting, in-depth and really connects with user emotionally, and that is why user are willing to slow down and spend their intentional time on Bilibili.

Speaker #5: Well, over the past year, we do see a exponential supply growth for short video content. But over time, as people are used to have watched enough low-quality repetitive content, they naturally develop a taste for high-quality content.

Speaker #5: They are no longer satisfied with the content that just grabbed their attention. For one second, they care more and more about whether the time they spend on the content is actually worth it.

Speaker #5: And that is exactly why Bilibili has been able to keep growing in the past few years. We have been focusing on providing a high-quality content that is interesting, in depth, and really connects with user emotionally.

Speaker #5: And that's why users are willing to slow down and spend their intentional time on Bilibili.

Speaker #4: 我们能够一直产生这个高质量的内容，我觉得主要是有几个原因吧。首先就是那个我们有一个非常有才华的UP主的一个群体，然后这些高质量的创作者他确实是很认同我们B站的理念的。他们会一直在我们这儿创作，然后第二个那个因素呢，就是我们有一个就是长期形成的一个高质量的社区。因为大量的喜欢高质量内容且有着这个审美能力的那个用户，他在过去的十几年聚集了在我们的那个平台上形成了一个社区。然后这个社区呢，它也会成为高质量内容的一个筛选器。就它能够更好地把一些高质量内容从每天上百万个投稿当中去筛出来，然后这个是一个非常良性的一个循环。

Rui Chen: 我们能够一直产生高质量的内容，我觉得主要是有几个原因。首先就是我们有一个非常有才华的UP主的群体，这些高质量的创作者他确实是很认同我们B站的理念的，他们会一直在我们这儿创作。第二个因素就是我们有一个长期形成的高质量的社区，因为大量的喜欢高质量内容且有着审美能力的用户，他在过去的十几年聚集在我们的平台上，形成了一个社区。这个社区它也会成为高质量内容的一个筛选器，它能够更好地把一些高质量内容从每天上百万的投稿当中筛出来，这个是一个非常良性的循环。

Juliet Yang: The reason why Bilibili are able to constantly curate high quality content for the two reasons. One is that we have amassed a very talented group of content creator who believes in the community, who believes in the Bilibili platform. Secondly is over the past decade, we have built a very engaging community with a lot of user who truly appreciate high quality content. They have the view of what is good high quality content and forms a community that appreciate and also can select and define the quality, what is the good quality content. They can choose and promote among millions of daily video submissions and allow this high quality content and talented content creator to emerge from our platform.

Speaker #5: The reason why Bilibili are able to constantly create curate high-quality content for two reasons. One is that we have amassed a very talented group of content creator who believes in the community, who believes in the Bilibili platform.

Speaker #5: Secondly, is over the past decade, we have built a very engaging community with a lot of user who truly appreciate high-quality content. They have the view of what is good high-quality content.

Speaker #5: And forms of community that appreciate and also can select and define the quality what is the good quality content. They can choose and promote among millions of daily video submissions and allow this high-quality content and talented content creator to emerge from our platform.

Speaker #4: 再那个第二季度，B站用户的月均的互动量是超过174亿次，同比增长9%。百次以上长评论是同比增长了67%。这种真实的高浓度的一个互动，它是能够帮助我们更快更好地去识别出优质内容。

Rui Chen: 在第二季度，B站用户的月均互动量是超过174亿次，同比增长9%，百字以上长评论是同比增长了67%。这种真实的高浓度的互动，它是能够帮助我们更快更好地去识别出优质内容。

Juliet Yang: In the Q2, our monthly user interaction were over 17 billion, up 9% year over year. Long comments that over 100 characters grew even faster, up by 67%. This high level of real human interaction help us to better identify high quality content.

Speaker #5: In the second quarter, our monthly user interaction were over 17 billion up 9% year over year, long comments that over 100 characters were even faster by 67%.

Speaker #5: This high level of real human interactions help us to better identify high-quality content.

Speaker #4: 刚才你问到那个AI时代，我认为AI时代最大的一个变化会是，我认为视频本身它会变得不再稀缺，甚至会变得过剩。因为那个AI本身会创造大量的视频，对，它也会提高这个就是人做视频的一个效率。所以的话，就进入AI时代之后，我认为视频的数量它可能会万倍甚至是一倍的一个增长。就是视频本身会变得过剩。在这种情况下，优质内容会变成视频的唯一解。就不优质的视频是没有人看的。

Rui Chen: 刚才你问到AI时代，我认为AI时代最大的一个变化，我认为视频本身它会变得不再稀缺，甚至会变得过剩。因为AI本身会创造大量的视频，它也会提高人做视频的一个效率。所以进入AI时代之后，我认为视频的数量它可能会万倍甚至是亿倍的一个增长，就是视频本身会变得过剩。在这种情况下，优质内容会变成视频的唯一解，不优质的视频是没有人看的。

Juliet Yang: Regarding in the AI era, how the video landscape is going to change, we believe that the AI tools will exponentially unleash the supply of video content. Over time, the high quality content is the only solution or the only answer among those oversupply of video content. We believe over time, only high quality content will have viewership. Those low quality content will have no traffic.

Speaker #5: And regarding in the AI era, how the video landscape is going to change? We believe that AI, the AI tools will exponentially unleash the supply of video content.

Speaker #5: And over time, the high-quality content is the only solution or the only answer among those oversupply of video content. We believe over time, only high-quality content will have viewership.

Speaker #5: Those low-quality content will have no traffic.

Speaker #4: 我觉得在AI时代的话，我们会在生产和分发的两个方面借助AI有极大的提升。就在内容的生产和分发上，在内容的生产上，我会更关注有创意的作者如何地用AI。而不是就是那个AI去生产同质化的内容。我认为同质化的内容是没有意义的。但是好的创作者，有创意的创作者如何用AI是有很大意义的。因为这个会极大地提升优质创作者的一个生产力。我们在这方面在过去的那个半年是还是投入了挺大的一个关注度，也取得了不错的一个成效。就在今年的第二季度，我们的月均投稿量是增长了28%。然后这个是充分验证了，就确实AI对于好的创作者的生产力是有很大的解放。

Rui Chen: 我觉得在AI时代，我们会在生产和分发的两个方面，借助AI有极大的提升，就在内容的生产和分发上。在内容的生产上，我会更关注有创意的作者如何地用AI，而不是AI去生产同质化的内容。我认为同质化的内容是没有意义的，但是好的创作者、有创意的创作者如何用AI是有很大意义的，因为这个会极大地提升优质创作者的一个生产力。我们在这方面，在过去的半年还是投入了挺大的一个关注度，也取得了不错的一个成效。所以在今年的第二季度，我们的月均投稿量是增长了28%，这个是充分验证了，确实AI对于好的创作者的生产力是有很大的解放。

Juliet Yang: In the AI era, I will be very focused on two aspects. One is on video creation, content creation. Second is on content distribution. First of all, on the content creation, I will pay very close attention to those content creators with high intelligence and high creative power, how they are leveraging AI to create content, to realize their creation into actual work. We believe the repetitive low quality content will have no room for survival, but those talented content creators will be extremely beneficial from this evolution of creation tool. In the past H1, we have been paying very close attention on this aspect, and it is generating very positive results. As a matter of fact, in Q2, our monthly content submissions increased by 28%. This is a hard evidence to support that AI tool is enlarging, enhancing, uplifting our creators' creative output.

Speaker #5: In the AI era, I will be very focused on two aspects. One is on video creation, content creation. Second is on content distribution. First of all, on the content creation.

Speaker #5: I will pay very close attention to those content creator with high intelligence and high creative power, how they are leveraging AI to create content, to realize their creation into actual work.

Speaker #5: We believe the repetitive low-quality content will have no room to for survival, but those talented content creators will be extremely beneficial from this evolution of creation tools.

Speaker #5: And in the past, half year, we have been paying very close attention on this aspect, and it's generating very positive results. As a matter of fact, in the second quarter, our monthly content submissions increased by 28%.

Speaker #5: This is a hard evidence to support that AI tools is enlarging enhancing uplifting our creators' creative output.

Speaker #4: 然后第二个呢，就是在那个内容的分发上，我认为AI也是能够帮我们显著地提高内容的分发的能力。为什么呢？是因为中长视频的信息量更大，而且那个用户他去决策去看中长视频，他的意图也是更复杂的。他并不是说他这个只要是那个好的内容他都看的，因为他还有喜好等等的这些原因。而过去的那个推荐的那个技术在这方面应该是达不到用户的一个期望的。但是呢，就是新一代的AI的话，因为它在内容理解能力上有了质的提升，所以它确实能够帮助我们去提高这个就是明显地去提高这个推荐的一个体验。这个也是我们在过去的那个半年我们能够看到我们的数据在这方面是有比较明显的一个增长。我们在那个Q2 DAU的同比增长是7%，而且我们的总时长的同比增长是4%。我们先很up主的人数的同比增长是30%。这里面就包含了就是AI给我们带来的一个能力的一个提升。

Rui Chen: 第二个就是在内容的分发上，我认为AI也是能够帮我们显著地提高内容的分发的能力。为什么呢？是因为中长视频的信息量更大，而且用户他去决策，去看中长视频，他的意图也是更复杂的。他并不是说只要是好的内容他都看的，因为他还有喜好等等的这些原因。而过去的推荐的技术，在这方面应该是达不到用户的一个期望的。但是新一代的AI，因为他在内容理解能力上有了质的提升，所以他确实能够帮助我们明显地去提高推荐的一个体验。这个也是我们在过去的半年，我们能够看到我们的数据在这方面是有比较明显的一个增长。我们在Q2，DAU的同比增长是7%，而且我们的总时长的同比增长是4%，我们千人UP主的人数的同比增长是30%。这里面就包含了AI给我们带来的一个能力的一个提升。

Speaker #5: Secondly, on content distribution. Compare with the short videos that only have few seconds. The longer form video content is much comprehensive information. And structures traditional recommendation algorithm often struggle to fully understand and recommend this type of content and also user generally have more complex intent when they come to choose much longer form content.

Juliet Yang: Secondly, on content distribution, compared with the short videos that only have a few seconds, the longer form videos contain much comprehensive information and structures. Traditional recommendation algorithm often struggle to fully understand and recommend this type of content. Also, users generally have more complex intent when they come to choose much longer form content. That is why we are focusing on our AI on helping our content distribution become more efficient. We think this new generation of AI tool is helping us to comprehend, understand the meaning of the content, and better understand our user intention. Here are a few numbers to support our progress. In Q2, DAU grew by 7% year-over-year, and our total user time spent increased by 14% year-over-year. The number of creators with over 1,000 followers grew by 30% year-over-year.

Speaker #5: That's why we are focusing on our AI on helping our content distribution become more efficient and we think this new generation of AI tool is helping us to comprehend understand the content the meaning of the content and better understand our user intention.

Speaker #5: And here's a few number to support our progress. In second quarter, DAU grew by 7% year over year, and our total user time spent increased by 14% year over year.

Speaker #5: And the number of creator with over 1,000 followers grew by 30% year over year. A lot of the driver behind those numbers are from using AI to make our algorithm working better.

Juliet Yang: A lot of the driver behind those numbers are from using AI to make our algorithm working better. That concludes the first question's answer. Operator, next question, please.

Speaker #5: That concludes the first questions answer. Operator, next question please.

Speaker #2: Perfect. Thank you so much. Now we're going to take our next question. And the question comes to line of Yan Liu from Morgan Stanley.

Operator: Perfect. Thank you so much. Now we are going to take our next question. The question comes to line of Yang Liu from Morgan Stanley, your line is open. Please ask your question.

Speaker #2: Your line is open. Please ask a question.

Speaker #1: 谢谢感谢提问的机会。首先恭喜公司非常不错的业绩。那我这边的问题都是关于广告业务的。那我们看到2Q以来中国整体的宏观和消费数据都偏弱。那公司的广告业务目前看到下半年的这个增长预期是如何的？那然后来自AI行业的广告投放趋势是否有一些边际的变化？然后管理层如何拆分下半年2Q和下半年广告增长的驱动因素？尤其在下半年广告的基数就比较高了。在哪些垂类呢？还可以支撑广告收入维持较快的增长？ Let me translate my question. My question is about the advertisement business. Since 2Q, we start to see weakening macro and consumption data in China.

Yang Liu: 谢谢，感谢提问的机会。首先恭喜公司非常不错的业绩。那我这边的问题都是关于广告业务的。我们看到2Q以来，中国整体的宏观和消费数据都偏弱，那公司的广告业务目前看到下半年这个增长预期是如何的？那然后来自AI行业的广告投放趋势是否有一些边际的变化？然后管理层如何拆分2Q和下半年广告增长的驱动因素？尤其在下半年广告的基数就比较高了，那哪些垂类还可以支撑广告收入维持较快的增长？Let me translate my question.

Yang Liu: My question is about the advertisement business. Since Q2, we started to see weakening macro and consumption data in China. How to think about the future H2 advertisement business growth? What is the marginal change for the advertisement from the AI industry? Could management help to break down the Q2 and the H2 advertisement growth driver? In H2, we started to have a little bit higher base, which verticals can support the advertisement business to sustain relatively high growth? Thank you.

Speaker #1: How to think about the future second half advertisement business growth? And also what is the marginal change for the advertisement from the AI industry?

Speaker #1: And also could management help to break down the 2Q and the second half advertisement growth driver? And also in second half, we start to have a little bit higher base.

Speaker #1: Which verticals can support the advertisement business to sustain relatively high growth? Thank you.

Speaker #5: 在宏观消费环境的确实第二季度会面临一定的压力吧。那B站的广告收入这个Q是31.3亿，同比增长了28%。我们能够保持比较稳定的增长的原因，其实还是我们的用户跟社区的价值被得到认可，而且越来越更多人去知道为什么要投放B站广告。加上我们在行业的垂直打法以及场景的挖掘上也有阶段的一个结果吧。 Any the second quarter despite macroeconomic pressure on consumer spending are as business delivered a very strong performance with revenue reaching 3.13 billion RMB up 28% year over year.

Carly Li: 在宏观消费环境的确实第二季度会面临一定的压力吧。那B站的广告收入这个Q是31.3亿，同比增长了28%。我们能够保持比较稳定的增长的原因，其实还是我们的用户跟社区的价值被得到认可，而且越来越更多人去知道为什么要投放B站广告。加上我们在行业的垂直打法以及场景的挖掘上也有阶段的一个结果吧。

Juliet Yang: In Q2, despite macroeconomic pressure on consumer spending, our ad business delivered a very strong performance with revenue reaching CNY 3.13 billion, up 28% year-over-year. This resilient growth reflects a strong market recognition of our user base and our community value. More and more advertisers realize it is a must invest platform for them to gain access to the young generation. We also achieved early success in our vertical industry strategies and our ad scenario expansion.

Speaker #5: This resilient growth reflects a strong market recognition of our user base and our community value. More and more advertisers realize it's a must invest platform for them to gain access to the young generation.

Speaker #5: We also achieved early success in our vertical industry strategies and our ad scenario expansion.

Speaker #4: 对B站的事情生态里可以看到AI知识内容的消费时长是涨得很好的，因为同比有增长72%。用户在B站就是去持续去追踪AI的一个变化，以及去学习大模型啊，学习AI的工具。B站其实已经慢慢成为了全网最大的AI学习的一个视频社区。

Carly Li: 在B站的视频生态里可以看到，AI知识内容和消费时长是长得很好的，因为同比有增长72%。用户在B站持续去追踪AI的一个变化，以及去学习大模型、学习AI的工具。B站其实已经慢慢成为了全网最大的AI学习的一个视频社区。

Juliet Yang: In our content ecosystem, users' time spent on AI related knowledge content surged by 72% year-over-year. Bilibili has become the largest AI learning video community across the Internet, as users actively come to our platform to track and learn about large language models and AI tools.

Speaker #5: Our content ecosystem users time spend on AI related knowledge content search by 72% year over year. Bilibili has become the largest AI learning video community across the internet, as user actively come to our platform to track and learn about large language models and AI tools.

Speaker #4: 所以我们可以看到基于此生态，我们在AI广告第二季度的同比增长也超过了100%。AI用户跟B站用户其实是高度重叠的。AI是行业的大趋势了，所以虽然不同的阶段会有不同的需求，但是我们对就是存在不同阶段的需求的承接上，趋势上增量上都是保持整体乐观的。

Carly Li: 所以我们可以看到基础生态，我们在AI广告第二季度的同比增长也超过了100%。AI用户跟B站用户其实是高度重叠的。AI是行业的大趋势了，所以虽然不同的阶段会有不同的需求，但是我们对存在不同阶段的需求的承接上，趋势上，增量上都是保持整体乐观的。

Speaker #5: At the same time, AI spend ad spend from AI sector grew by over 100% year over year in the second quarter. Benefiting from the strong match between AI target audiences and our user base.

Juliet Yang: At the same time, ad spend from AI sector grew by over 100% year-over-year in Q2, benefiting from the strong match between AI target audiences and our user base. As AI is a major long-term trend, we expect continuous demand from various clients across different stages, and we remain very optimistic about this incremental opportunity.

Speaker #5: As an AI is a major long-term trend, we expect continuous demand from various clients across different stages and we remain very optimistic about this incremental opportunity.

Speaker #4: 那对于下半年的话，可能广告主对于预算的短期的要求可能很直接，会要求转化率，转化率更高更好，但其实所有的客户都会更希望找到一个一致性投放，但持续有效的渠道就不是一次性消耗，那就结束了。那可以建立，可以借此可以建立长期的品牌价值，其实也更愿意把有限的预算可以投入到价值更高或者有真实购买力的人群身上。所以以上这几点刚好也是B站区别于其他平台比较独特的价值吧。

Carly Li: 那对于下半年的话，广告主对于预算的短期要求可能很直接，会要求转化率更高更好。但其实所有的客户都会更希望找到一个一次性投放，但持续有效的渠道，就不是一次性消耗，那就结束了。可以借此建立长期的品牌价值，其实也更愿意把有限的预算投入到价值更高或者有真实购买力的人群身上。所以以上这几点刚好也是B站区别于其他平台比较独特的价值。

Juliet Yang: As for the H2 outlook, we are seeing that more advertisers demand higher conversion efficiency in the short term. At the same time, they also want channels that deliver sustained long-term impacts rather than just one-off impressions to help them to build lasting brand value. They are also prioritizing their limited budget on high-value users with genuine purchasing power. All of these demands precisely match with Bilibili's unique strengths.

Speaker #5: As for the second half outlook, you're seeing that more advertisers are demanding higher conversion efficiency. In the short term, but at the same time, they also want channels that deliver sustained long-term impact rather just one-off impressions to help them to be lasting brand value.

Speaker #5: They are also prioritizing their limited budget on high value users with genuine purchasing power. All of this demand precisely match with Bilibili's unique strength.

Speaker #4: 那B站用户的平均年纪已经要16.5岁左右了，他们已经是社会上最主要的核心消费的人群。最近两年其实他们也在B站去多去看视频啊，互动啊，就是成为很好的朋友啊。其实最近两年也逐渐在B站形成了消费的新字。就呈现出来的是我愿意为平台推荐的广告，以及up主推荐的广告买单。Q1我们也可以看到收入前五的行业分别是游戏、数码家电、网服、电商以及汽车。广告主的数量同比增长也是超过三位数的。

Carly Li: B站用户的平均年纪已经26.5岁左右了，他们已经是社会上最主要的核心消费的人群。最近两年其实他们也在B站多去看视频、互动，成为很好的朋友。其实最近两年也逐渐在B站形成了消费的心思，呈现出来的是我愿意为平台推荐的广告，以及UP主推荐的广告买单。Q1我们也可以看到收入前五的行业分别是游戏、数码家电、网服、电商以及汽车。广告主的数量同比增长也是超过三位数的。

Juliet Yang: The average age of Bilibili user now is 26.5 years old, making them the primary driver or the main consumption force in the current Chinese society. Over the past two years, they also have established a strong purchasing mindset on Bilibili, demonstrating a clear willingness to buy products recommended by the platform or by the content creators. In Q2, our top five ad verticals were game, consumer electronics, internet services, e-commerce, and automotive, while our total advertiser base expanded by 14% year-over-year.

Speaker #5: The average age of Bilibili user now is 26.5 years old, making them the primary driver or the main consumption force. In the current Chinese society, over the past two years, they also have established a strong purchasing mindset on Bilibili, demonstrating a clear willingness to buy products recommended by the platform or by the content creators.

Speaker #5: In the second quarter, our top five ad verticals were gain consumer electronics, internet services, e-commerce, and automotive, while our total advertiser base expanded by 14% year over year.

Speaker #4: 就B站区别其他内容平台还有一个很坚实的策略，叫多平多场景的一个战略。其实这个是可以实现B站的内容全天候去陪伴用户在不同时间段的需求的。无论你在独自在做家用工具啊，就时候你可以去听B站，或你在坐车的时候可以去看视频，也可以去听B站的视频。那你在家里就陪伴家人跟小孩的时候，你可以一起打开电视去看B站的这个B站的内容。同时也可以投屏，你在空余的时间也可以打开B站的APP去看，以及打开iPad去用于学习等等。

Carly Li: B站区别其他内容平台还有一个很坚实的策略，叫多屏幕场景的一个战略。其实这个是可以实现B站的内容全天候去陪伴用户在不同时间段的需求的。无论你在独自在做交通工具，这时候你可以去听B站，或者你在坐车的时候可以去看视频，也可以去听B站的视频。那你在家里陪伴家人跟小孩的时候，你可以一起打开电视去看B站的内容，同时也可以投屏。你在空余的时间也可以打开B站的app看，以及打开iPad去用于学习等等。

Juliet Yang: Unlike other platforms, we have a multi-screen, multi-scenario strategy that allows Bilibili to accompany users seamlessly throughout their day. Whether it is listening or watching Bilibili during commutes, or casting Bilibili content on TV screen at home with their family, or using our apps or iPad during spare time for learning.

Speaker #5: Like other platforms, we have multi-screen, multi-scenario strategy that allows Bilibili to accompany users seamlessly throughout their day. Whether it's listening or watching Bilibili, during commute or casting Bilibili content on TV screen at home with their family, or using our apps or iPad during spare time for learning.

Speaker #4: 当你使用不同屏幕的B站的时候，我们又会做什么呢？其实我们可以去看视频，可以去发弹幕。我们也可以去发视频，就是我们可以反复的搜索你喜欢的内容，以及创作者。同时你也看直播互动，你也看动画片、纪录片、玩游戏等等等等。其实这些不同的场景跟不同的端口，广告都可以伴随用户全天候的这个消费的情况的。所以上半年无论是APP中的搜索跟播放页，还是OTT，还是PC，还是我们的小程序，都为我们提供了新的广告的有效库存。这些场景对于整体的广告收入的增速都是超过50%以上的。

Carly Li: 当你使用不同屏幕的B站的时候，我们又会做什么呢？其实我们可以去看视频，可以去发弹幕，我们也可以去发视频，我们可以反复地搜索你喜欢的内容以及创作者，同时你也看直播互动，你也看动画片、纪录片，玩游戏等等。其实这些不同的场景跟不同的端口，广告都可以伴随用户全天候的消费的情况。所以上半年无论是app中的搜索跟播放页，还是OTT，还是PC，还是我们的小程序，都为我们提供了新的广告的有效库存。这些场景对于整体的广告数的增速都超过50%以上的。

Juliet Yang: Across these different streams, user can watch and upload video, interact through bullet chats, commentaries, search their favorite content or creators during live stream, watch anime or documentaries, and play games. Ads naturally follow users throughout their daily touch points. That is why in H1 of this year, we have seen in-app search, watch page, Smart TV portal, PC, and mini programs have all unlocked valuable new ad inventories, with revenue from this multi-scenario placement grew by 50% year-over-year in H1.

Speaker #5: Across these different screens, users can watch and upload video interact with bullet chats, commentaries, search their favorite content, or creators during live stream, watch anime or documentaries, and play games.

Speaker #5: In ads, naturally follow users throughout their daily touchpoints. That's why in the first half of this year, you see in-app search, watch page, smart TV portal, PC, and mini programs have all unlocked valuable new ads inventories with revenue from this multi-scenario placement to provide 50% year over year in the first half.

Speaker #4: 那当然还有一个是特别重要，但是还有很大空间的，其实是AI。那AI对于我们还是投了比较大的精力去改造整个广告的投放系统，就用于对用户的理解，包括内容的匹配、素材的生成，以及算法效率的提升等等。这都会对广告往后的持续的效率的变化，以及增长是有帮助的。所以现在其实可以看到一些具体的数据是，我们自动投放的系统也为我们更多的新客就是可以无缝进入更低成本的进入B站，实现了双位数的增长吧。

Carly Li: 当然还有一个是特别重要，但是还有很大空间的，其实是AI。AI对我们还是投入比较大的精力去改造整个广告的投放系统，用于对用户的理解，包括内容的匹配、素材的生成以及算法效率的提升等等。这个都会对广告往后的持续的效率的变化以及增长是有帮助的。所以现在其实可以看到一些具体的数据是我们自动投放的系统，也为我们更多的新客可以无缝进入，更低成本地进入B站，实现了双位数的增长。

Juliet Yang: Last but not least is AI is also empowering our ad efficiency from several angles, including improving our user comprehension, including user profiling, content matching, ad creative generation, and algorithm efficiency to continuously lift our monetization. We have also launched our automated ad placement system that also has made it much easier for new advertisers to join us. This is driving a double-digit growth for our new advertisers client base.

Speaker #5: Lots of knowledge is AI is also empowering our ad efficiencies. From several angles, including improving our user comprehension, including user profiling, content matching, ad creative generation, and algorithm efficiency, to continuous lift our monetization.

Speaker #5: And also we have launched our automated ad placement system that also has made it much easier for new advertisers to join us. This is driving a double digit growth for our new advertisers client base.

Speaker #4: 就是如果你所说的，就未来的行业预算，我认为还是会有不少的一个变化的。就自然也会对我们带来不少新的一个挑战，但是我们对广告收入持续增长还是有信心的。谢谢。

Rui Chen: 就是如你所说的，就未来的行业预算，我认为还是会有不少的变化的，自然也会对我们带来不少新的挑战。但是我们对广告收入持续增长还是有信心的。谢谢。

Carly Li: 就是如你所说的，就未来的行业预算，我认为还是会有不少的变化的，自然也会对我们带来不少新的挑战。但是我们对广告收入持续增长还是有信心的。谢谢。

Juliet Yang: As we mentioned, it is indeed a very challenging macro environment, and there will be a lot of changes across different industry players. However, given what we just mentioned, we still remain quite confident about our continuous growth for our ads business. Thank you. Operator, next question, please.

Speaker #5: As you mentioned, it is indeed a very challenging macro environment, and there will be a lot of changes among across different industry players. However, given what we just mentioned, we still remain quite confident about our continuous growth for our ad business.

Speaker #5: Thank you. Operator, next question please.

Speaker #1: Yes, of course. And now we're going to take our next question. And the question comes line of Daniel Chan from JP Morgan. Your line is open.

Operator: Yes, of course. Now we are going to take our next question. The question comes from the line of Daniel Chen from JP Morgan. Your line is open. Please ask your question.

Speaker #1: Please ask your question.

Speaker #2: 这个晚上好啊，谢谢给我这个机会问问题。我想问一下这个游戏这块哈，就公司刚刚的分享中呢提到很多游戏的这个管线。这些项目里面呢，我们看到最值得期待的项目有哪些呢？然后我们预计这这些游戏的上线时间是什么时候？然后另外呢，就是三谋这个现在已经是两周年了，这个最新的情况是怎么样？我们怎么去看这款游戏后续的一个表现啊？谢谢。 So my question is on the online game. So the company just shared quite a lot of information on the game pipelines. I was wondering which one is the most anticipated ones, and also what's the expectation for the launch timing?

Daniel Chen: 晚上好，谢谢给我这个机会问问题。我想问一下游戏这块。公司刚刚的分享中提到很多游戏的管线，这些项目里面我们看到最值得期待的项目有哪些呢？然后我们预计这些游戏的上线时间是什么时候？另外就是《三谋》，现在已经是两周年了，最新的情况是怎么样？我们怎么去看这款游戏后续的表现？谢谢。So my question is on the online game.

Daniel Chen: The company just shared quite a lot of information on the game pipelines. I was wondering which one is the most anticipated one? What is the expectation for the launch timing? Besides this, Sanmo, the Three Kingdom strategy game, has been launched for two years. How should we look at the future performance of this game? Thank you.

Speaker #2: And on and besides this, Sanmo, the the Three Kingdom strategy game has has been launched for two years. So how should we look at the the future performance of this game?

Speaker #2: Thank you.

Speaker #3: 今年下半年到明年应该是B站游戏的收获季。

Rui Chen: 今年下半年到明年，应该是B站游戏的收获季，会有多款值得期待的项目。

Speaker #2: 会有多款值得期待的项目？

Speaker #5: The second half to next year it will be a harvesting season for Bilibili games. We do have several exciting titles line up for launch.

Juliet Yang: From the H2 to next year, it will be a harvesting season for Bilibili games. We do have several exciting titles lined up for launch.

Speaker #3: 首先说一下今年下半年的两款游戏。第一款是闪耀吧Lumi，这个是B站自研的一个桌宠的休闲游戏。我们这个玩法应该还是有充分的创新的，也是针对这个年轻用户特别去做的。在今年5月份的全球测试里面应该还是收到了挺多的好评。我们计划在9月17号全球上线，然后我们也希望就这款游戏能够成为就是在年轻用户群体当中休闲游戏的一个标杆作品。

Rui Chen: 首先说一下今年下半年的两款游戏。第一款是《闪耀吧，Lumi》。这个是B站自研的一个捉宠的休闲游戏。我们这个玩法应该还是有充分的创新的，也是针对年轻用户特别去做的。在今年5月份的全球测试里面应该还是收到了挺多的好评。我们计划在9月17号全球上线，然后我们也希望这款游戏能够在年轻用户群体当中成为休闲游戏的一个标杆作品。

Juliet Yang: The first title in our pipeline is Lumi Master. Lumi Master is Bilibili self-developed light casual game that involves pet hatching and simulation gameplay. It received a lot of positive feedback during its global test in May, and also recent testing feedback has been very well. We are planning for a global launch on 17 September next month. We have developed a very innovative gameplay and artistic graphic design to cater to young generations' needs. We believe with its lighter gameplay and appeal to younger players, we hope this game can catch a broader casual gaming audiences on a global base, especially for young gamers.

Speaker #5: The first title in our pipeline is Lumi Master. Lumi Master is a self Bilibili self-developed light casual light casual game that evolves pack catching and simulation gameplay.

Speaker #5: It received a lot of positive feedback during its global test in May, and also recent testing feedback has been very well. We are planning for a global launch in September 17th next month.

Speaker #5: And we have innovate we have developed developed a very innovative gameplay and artistic graphic designs to cater to young generations' needs. We believe with its lighter gameplay and appeal to younger players, we hope this game can catch a broader casual gaming audiences on a global base, especially for young gamers.

Speaker #3: 第二款游戏是三国之王道天下。这是一款三国志正本正版授权的一个策略的游戏，然后我们计划是在今年年底上线。这个游戏它的目标用户群是对三国志IP有感情的更成熟的一个玩家群体，就差不多是我这个岁数吧。然后呢，它的这个画质和玩法都在原来三国志的这个技术上有很大的一个提升。我们为什么又会推出一款三国题材的SRG呢？是因为这一个作品它和这个三谋在用户群上是有明显的差异化，在玩法上也会很互补。它能够进一步完善我们在SRG领域的一个布局。我们是刚刚结束这个游戏的一个二测吧，然后也是拿到了很多用户反馈。我们会继续的调优我们这一个产品，然后我们也希望就是再年底上线的时候，它能够受到用户的欢迎。

Rui Chen: 第二款游戏是《三王·三国之王霸天下》。这是一款三国志正版授权的策略游戏。我们计划在今年年底上线。这个游戏的目标用户群是对三国志IP有感情的更成熟的玩家群体，差不多是我这个岁数吧。它的画质和玩法都在原来三国志的技术上有很大的提升。我们为什么又会推出一款三国题材的SLG呢？是因为这一个作品它和《三谋》在用户群上有明显的差异化，在玩法上也会很互补。它能够进一步完善我们在SLG领域的布局。我们刚刚结束这个游戏的二测，也拿到了很多用户反馈，我们会继续调优这一个产品，我们也希望在年底上线的时候，它能够受到用户的欢迎。

Speaker #5: And the second title in our pipeline is 三王, which is a strategy game officially licensed from the classic Three Kingdom 三国志 Three Kingdom IP.

Juliet Yang: The second title in our pipeline is Sanwang, which is a strategy game officially licensed from the classic Three Kingdom IP, Sanguozhi Three Kingdom IP. We expect to launch this game towards end of this year. Compared to Sanmo, it targets a more mature audience with a strong interest in Sanguozhi IP, and both of the visual style and gameplay have been significantly upgraded from the classic IP. Why we are launching another Three Kingdom title, we think it really complements Sanmo in both gameplay and target audiences, and it can further strengthen our presence in the strategy game genre. We also gain a lot of valuable feedback from the second beta testing we just finished, and we will continue to fine-tune this game. We hope our goal is to build another strategy game that can be lasting and popular for our audiences.

Speaker #5: We expect to launch this game towards the end of this year. Compared to 三谋, it targets a more mature audience with a strong interest.

Speaker #5: In 三国志 IP, and both of the visual style and gameplay have been significantly upgraded from the classic IP. And why we are launching another Three Kingdom title?

Speaker #5: We think it really complements 三谋 in both gameplay and target audiences, and it can further strengthen our presence in this strategy game genre. We also gain a lot of valuable feedback from the second beta testing we just finished, and we continue to fine-tune this game.

Speaker #5: We hope our goal is to build another strategy game that can be lasting and popular. For our audiences.

Speaker #3: 然后在那个刚刚过去的BW上，我们也是那个发布了几款明年会上线的产品。我这也做一下这个介绍。第一个呢是三国火风燎原，它是我们团队自研的一款策略战棋类的这个那个RPG的游戏。然后首先火风燎原，它是一个20年的一个漫画IP，同时的话它也是我们自己出品的这个那个那个动画，也出品过这个火风燎原的动画。然后我们是想把这一个经典的IP，然后做成一个就是年轻人喜欢的有创新玩法的一个战棋类的一个游戏。这个游戏呢，我们是计划明年会上线。

Rui Chen: 然后在刚刚过去的BW上，我们也是发布了几款明年会上线的产品，我这里做一下介绍。第一个是《三国：火攻燎原》，它是我们团队自研的一款策略战棋类的RPG游戏。首先《三国：火攻燎原》是一个有20年历史的漫画IP，同时它也是我们自己出品的动画，出品过《三国：火攻燎原》的动画。我们是想把这一个经典的IP做成一个年轻人喜欢的、有创新玩法的一个战棋类游戏。这个游戏我们计划明年会上线。

Juliet Yang: Beyond that, we have also introduced several new pipelines titles in the Bilibili World and will be launched next year. The first one is The Three Kingdoms: The Ravages of Time. This is another self-developed title that is focused on tactical RPG genre. This title is based on a classic manga IP with a history of over 20 years. Bilibili platform has also produced and published the anime that based on this IP. Our goal is to revitalize this classic IP and make it a great tactical RPG for younger generation.

Speaker #5: And beyond that, we have also introduced several new pipelines titled Innovative Bilibili World. And we'll be launched next year. The first one is Three Kingdom: The Ravage of Time, 三国火风燎原.

Speaker #5: This is another self-developed title that is focused on tactical RPG genre. This title is based on a classic manga IP with a history of over 20 years, and Bilibili platform has also produced and published the anime that based on this IP.

Speaker #5: Our goal is to make this classic IP revitalize this classic IP and make it a great tactical RPG for younger generations.

Speaker #3: 那第二个游戏是仙境传说3，就是RO3。然后这个RO的话，我就不多说了，这应该是差不多20年影响力的一个经典的一个MMO的一个IP。然后也是有大量的这个这个RO的老玩家吧，就希望这个IP能够回归。然后这个也是我们去做这一个那个那个代理这一个作品的这么一个初衷。然后这个游戏目前已经拿到了这个版号，而且的话它是在今天开始开启了这个国服的技术测试。目前的这个玩家的这个反馈还是挺好的，这个也是我们计划在明年上线。

Rui Chen: 第二个游戏是《仙境传说3》，就是RO3。这个RO的话我就不多说了，这应该是差不多有20年影响力的一个经典的一个MMO的IP。也是有大量的RO的老玩家，就希望这个IP能够回归。这个也是我们去做代理这一个作品的初衷。这个游戏目前已经拿到了版号，而且它是在今天开启了国服的技术测试，目前的玩家的反馈还是挺好的。这个也是我们计划在明年上线。

Speaker #5: And the second title for next year is RO3. Needless to say, this is a very classic IP with a large audiences that last over 20 years.

Juliet Yang: The second title for next year is RO3. Needless to say, this is a very classic IP with a large audience that lasts over 20 years. It is a very classic MMORPG, and we have received a lot of users' demand for bringing this title back to them. That is why we have signed and licensed this IP and hopefully to bring this classic IP back to its fan base. Currently, this game has already secured its license, and actually we started to launch technical testing today within mainland. Currently, the user feedback has been quite positive and we are targeting to launch this game next year.

Speaker #5: It's a very classic MMORPG, and we received a lot of users demand for bringing this title back to them. That is why we have signed and licensed this IP and hopefully to bring this classic IP back to it's been it's fan base.

Speaker #5: Currently, this game has already secured its license, and we actually we started to launch technical testing today. Within mainland, currently the user feedback has been quite positive, and we are targeting to launch this game next year.

Speaker #3: 对，然后再说一下你问到的那个三谋。三谋是在今年的6月份迎来了两周年版本的更新，然后玩家的这个反馈也是挺正面挺积极的。这个从这个去年S8就一周年庆到今年的这个S15两周年庆，三谋过去一年的所有的赛季都保持在这个畅销搒的前五。所以的话，我们可以看出这过去两年的时间，我们可以看出三谋是一个表现非常稳定的一个长线运营的一个作品。然后未来呢，我们会继续就是认真的去做每一个赛季吧，然后保持这个三谋的一个长线健康的运营。因为我在过去每一次财报会当中，我都会强调就是垂泪精品长线运营就是我们这个做B站做游戏的一个战略。所以的话，那个我们会一直就是叫坚持把三谋的每一个赛季都做好。我对团队提的要求就是要把三谋做成一款能够让玩家玩到老的游戏。

Rui Chen: 然后再说一下你问到的那个《三谋》。《三谋》是在今年6月份迎来了两周年版本的更新，玩家的反馈也是挺正面、挺积极的。从去年S8，就是一周年庆到今年的S15，两周年庆，《三谋》过去一年的所有的赛季都保持在畅销榜的前五。所以我们可以看出，过去两年的时间，《三谋》是一个表现非常稳定的、在线运营的一个作品。未来我们会继续认真地去做每一个赛季，保持《三谋》的一个长线、健康的运营。因为我在过去每一次财报会当中，我都会强调：垂类精品长线运营就是我们做B站做游戏的一个战略。所以我们会一直坚持把《三谋》的每一个赛季都做好。我对团队提的要求就是要把《三谋》做成一款能够让玩家玩到老的游戏。

Speaker #5: And to answer your question on our classic 三谋 game, this game has just celebrated its second year anniversary with a major update in June, and the new content has been well received by our players.

Juliet Yang: To answer your question on our classic Sanmo game, this game has just celebrated 2nd year anniversary with a major update in June, and the new content has been well received by our players. As a matter of fact, from season 8, our first anniversary season last year, throughout season 15, our second anniversary season in this year, Sanmo has ranked among the top 5 on the iOS top closing chart every game season, which is quite impressive. For this game, our goal has remained unchanged. Our target is to build it the lasting strategy game that can accompany gamers for life. Our goal or strategy for our game business remains to focus on the vertical genre to either become the best or first in its own segment and make sure every title has a long life cycle. That is the strategy we will continue to be focusing on.

Speaker #5: As a matter of fact, from season 8, our first anniversary season last year, throughout season 15, our second anniversary season in this year, 三谋 has ranked among the top five on the ILS top grossing chart.

Speaker #5: Every game season which is quite impressive and for this game our goal has remained unchanged. Our target is to build as a lasting strategy game that can accompany gamers for life.

Speaker #5: And our goal or strategy for our game business remains to focus on the vertical genre, to either do become the best or first in its own segment and make sure every title has a long life cycle.

Speaker #5: That is the strategy we'll continue to be focusing on.

Speaker #3: 最后说一下那个三国百战牌，因为百战牌我们是在那个今年早些时候我们是发布了嘛，然后百战牌7月份的这个ARTV是比4月份提升了一倍，而且的话那个10月份我们会推出S2赛季，然后目标是这个提升产品的长期留存和增加赛事玩法。刚才那个大家也都听到了，就是我们在过去的两年确实推出了一系列就是以三国为故事题材的游戏，我们内部也是戏称为三国宇宙。这个的好处呢，就是这些玩家本身他是能够在这些游戏当中是良性的流动，然后这些游戏里面他既有像这个百战牌这种三分钟一把非常轻松休闲且有社交那个那个乐趣的游戏，也有像这个那个就是三谋和三王这样子比较重度的就是能够让玩家沉浸式体验的一个游戏。再加上B站的这个我们有一个视频社区，然后有大量的内容是能够在这个社区上那个去传播以及和用户进行交互，就他是能够形成一个很好的一个玩家生态。这个也是让我们能够把这一个系列的就把这一系列的游戏都能够去做长线运营的一个良好的一个基础。

Rui Chen: 最后说一下《三国：百将牌》。因为《百将牌》我们是在今年早些时候发布了。百将牌7月份的ARPU是比4月份提升了一倍，而且10月份我们会推出S2赛季，目标是提升产品的长期留存和增加赛事玩法。刚才大家也听到了，我们在过去的两年确实推出了一系列以三国为故事题材的游戏，我们内部也戏称为三国宇宙。这个的好处是这些玩家本身能够在这些游戏当中良性地流动。这些游戏里它既有像百将牌这种三分钟一把、非常轻松休闲且有社交乐趣的游戏，也有像三谋和三王这样比较重度的、能够让玩家沉浸式体验的一个游戏。再加上我们有一个视频社区，有大量的内容能够在社区上去传播，以及和用户进行交互，它是能够形成一个很好的玩家生态。这个也是让我们能够把这一系列的游戏都能够去做长线运营的一个良好的基础。

Juliet Yang: When I mentioned based on the end card game, which was recently launched officially, we have noticed that the LTV for July version has doubled compared to the April version, and we also plan to launch the game season 2 in October with a focus on improving long-term retention and adding more interactive fun gameplay. You would notice that recently we have launched many different Three Kingdom IP titles, including this light casual poker game, and also we have immersive hardcore strategy game like Sanmo and Sanwang. The reason why we are exploring this IP in such a dynamic way is first of all, we think that there is a lot of overlap for users who are interested in this IP and they can cross-sell from each other.

Speaker #5: And I want to mention touch based on the end card game, which was recently launched officially. We've noticed that the LTV for July version has doubled compared to the April version, and we also plan to launch the game season two in October, with a focus on improving long-term retention and adding more interactive fun gameplay.

Speaker #5: You would notice that recently we have launched many different three kingdom IP titles including this light casual poker game, and also we have immersive hardcore strategy game like Sunmo and Sunwang.

Speaker #5: The reason why we are exploring this IP in a such dynamic way is first of all, we think that there's a lot of overlap for users who are interested in this IP and they can cross sell from each other.

Speaker #5: And secondly is that we have a very high quality video community that with a lot of gamers who can share their experience and promote this game and also provides a very good platform for us to engage with users and continue to improve our games.

Juliet Yang: Secondly is that we have a very high quality video community that with a lot of gamers who can share their experience and promote this game, and also provides a very good platform for us to engage with users and continue to improve our games. That is why we are hoping to achieve long-term operation across different IPs and different titles and continue to provide good gaming experience for our gamers. That concludes this question. Operator, next question, please.

Speaker #5: That is why we are hoping to achieve long-term operation across different IPs and different titles and continuous provide good gaming experience for our gamers.

Speaker #5: That concludes the this questions. Operator, next question please.

Speaker #1: Thank you so much. Now we're going to take our next question. And the question comes line of Xueqing Jiang from CICC. Your line is open.

Operator: Thank you so much. Now we are going to take our next question. The question comes from the line of Xueqing Zhang from CICC. Your line is open. Please ask your question.

Speaker #1: Please ask a question.

Speaker #5: Okay. 谢谢管理层接受我提问，然后恭喜公司这次度稳健的业绩。我的问题是关于AI的，公司之前在投资者日的活动上有分享AI对于广告算法提升，还有对像一些PM这样的帮助。那能不能再详细给我们分享一下AI对于B站社区生态用户活跃以及其他各项业务的一个赋能，然后公司之前宣布的10亿AI相关的一个CapEx投入，目前的一个进度花的怎么样了。谢谢。 Thanks management for taking my question and congratulations on the solid quarter. My question about AI, the company discussed how AI has improved its advertising and helped increase ECPM at the investor day.

Xueqing Zhang: 谢谢管理层接受我提问，恭喜公司这季度稳健的业绩。我的问题是关于AI的。公司之前在投资者日的活动上有分享AI对于广告算法提升，还有对像eCPM这样的帮助。能不能再详细给我们分享一下AI对于B站社区生态、用户活跃以及其他各项业务的一个赋能？然后公司之前宣布的10亿AI相关的一个CapEx投入，目前的一个进度，花的怎么样了？谢谢。Thanks management for taking my question and congratulations on the solid quarter.

Xueqing Zhang: My question is about AI. The company discussed how AI has improved its advertising and helped increase eCPM at the Investors Day. Could management elaborate a little more on how AI is enhancing Bilibili's community, ecosystem, user engagement, and different business lines? In addition, how much of the previously announced CNY 1 billion in AI-related CapEx has been deployed so far? What is the expected pace of spending going forward? Thank you.

Speaker #5: Could management elaborate a little more on how AI is enhancing Bilibili's communication ecosystem user engagement and different baselines? In addition, how much of the previously announced one billion in AI-related CapEx has been deployed so far?

Speaker #5: And what's expected pace of spending going forward? Thank you.

Speaker #3: 下一个实在是AI的时代，这一点应该是已经是行业共识了。所以的话，那个我觉得我们要思考的并不是说那个就AI有多重要，而是我们公司应该去做哪些事。AI领域的大部分的事情是不需要我们公司去做的。我觉得我们公司在那个AI方面的投入是就是集中在于我们B站业务紧密相关的这个视频这一个方向上。说的更精确的来说的就是视频的理解、视频的分发和视频的创作，就是这三件事。所以呢，就是我觉得我们过去在AI的就过去几个季度在AI上面的投入是非常聚焦的，就是只做这三件事情。这三件事之外的事情我们应该是完全都没有做。

Rui Chen: 下一个时代是AI的时代，这一点已经是行业共识了。所以我觉得我们要思考的并不是说AI有多重要，而是我们公司应该去做哪些事。AI领域的大部分的事情是不需要我们公司去做的。我觉得我们公司在AI方面的投入就是集中在与我们B站业务紧密相关的视频这一个方向上。说得更精确一些就是视频的理解、视频的分发和视频的创作，就是这三件事。所以我觉得我们过去几个季度的AI上面的投入是非常聚焦的，只做这三件事情。这三件事之外的事情，我们应该是完全都没有做。

Speaker #5: So we believe AI is already a consensus for the next era and for us it's not not to think about how important AI is for us.

Juliet Yang: Well, we believe AI is already a consensus for the next era, and for us, it is not to think about how important AI is for us, it is to think about how we will use AI in our own business. As a matter of fact, there are a lot of things in the AI chain we will not be engaged with. The things where we invest will be very closely tied to our core business, which is video. To be more specific, some three areas: video understanding, video distribution, and video creation. All of our investments will be strictly focused on those three areas.

Speaker #5: It's to think about how we will use AI in our own business as a matter of fact there are a lot of things in the AI chain we won't be engaged with.

Speaker #5: The things we will invest will be very closely tied to our core business which is video. And to be more specific, some three areas: video understanding, video distribution, and video creation.

Speaker #5: All of our investment will be strictly focused on those three areas.

Speaker #3: 首先我们还是非常的那个就是重视那个AI如何帮助我们提升对视频的理解和对用户的理解。因为那个如何能够理解视频内容、理解用户需求是提升用户体验和提升商业效率的关键。通过这个AI增强视频理解，通过AI去增强分发和推荐和这个搜索的这个能力，我们是能够帮助用户更高效的发现有兴趣的内容，也帮助广告系统更精确的匹配用户的需求。然后这个呢就是既能够去提高我们的这个叫叫水，提高我们用增的一个能力，也能提高我们的一个商业收入。

Rui Chen: 首先我们还是非常地重视AI如何帮助我们提升对视频的理解和对用户的理解。因为如何能够理解视频内容，理解用户需求，是提升用户体验和提升商业效率的关键。通过AI增强视频理解，通过AI去增强分发和推荐和搜索的能力，我们是能够帮助用户更高效地发现有价值内容，也帮助广告系统更精确地匹配用户的需求。然后这个既能够去提高我们用增的能力，也能提高我们的商业收入。

Juliet Yang: First of all, AI is helping us to better understand both content and users. Bilibili has a huge amount of video library, and this video carries much more information, and our user has a very diverse interest. So, to be able to better understand the value of our content, the meaning of the content, and what user want, is a key component in both improving user experience and our commercialization efficiency. With AI, we are improving our video understanding, search, and recommendation capability. It is helping users to find content they are interested in a more efficient manner, while helping our ad system to better match ads with users' needs. For us, this investment not only is working on our user growth, it is also working on our commercialization results.

Speaker #5: First of all, AI is helping us to better understand both content and users. Bilibili has a huge amount of video library and this video carries much more information and you our user have a very diverse interest.

Speaker #5: So be able to better understand the value of our content that the meaning of the content and what user want is a key component in both improving user experience and our commercialization efficiency.

Speaker #5: With AI we're improving our video understanding search and recommendation capability it is helping users to find content they are interested in a more efficiently matter while helping our ad system to better match ads with users' needs.

Speaker #5: And for us this investment not only is working on our user growth it is also working on on our commercialization results.

Speaker #3: 然后第二的话我们是很重视如何用AI去提升我们的视频的一个供给。我们是那个我们在这个领域里面我们是非常看重就是我刚才提到的就是有创意的这些up主有能力的up主如何用好AI。然后我觉得过去的那个那个两个季度我们可以看到就是确实是很多的创作者他能够利用AI极大的加强他的一个那个创作效率。过去需要一个专业团队甚至是需要一个公司才能够去做的这个动画和这种那个影视内容。现在一个创作者也可以把它做得很好。就是我们B站上面过去应该是就过去几个月应该是出现了多个就是一个创作者利用AI就能够做出非常好的质量并且达到千万以上的这个那个播放量的一个作品。而且的话我们可以看到就是在动画影视音乐鬼畜这些领域就是AI极大的解放了创作者的这个这个创意。让这这几块的这个那个投稿量和精品数量都明显的在在增加。所以的话就是我认为这个方向也是我们会聚焦投入的一个方向。因为优质内容的源头就是来自于这些那个有创意的一个创作者。我们5月份呢就是那个我们发起的这个up主动画剧场短短的三个月的一个时间累计的播放时长就达到了2.7亿分钟。播放量就是1.8亿。然后有6部剧集的播放量是突破了千万。这个是我们可以明显的看到就是AI对于这种高质量的创作带来的一个一个增益。

Rui Chen: 然后第二的话，我们是很重视如何用AI去提升我们的视频的供给。我们在这个领域里面，我们是非常看重我刚才提到的，有创意的这些UP主，有能力的UP主如何用好AI。我觉得过去的两个季度我们可以看到，确实是很多的创作者他能够利用AI极大地加强他的创作效率。过去需要一个专业团队，甚至是需要一个公司才能够去做的动画和影视内容，现在一个创作者也可以把它做得很好。就我们B站上面，过去几个月应该是出现了多个就是一个创作者利用AI就能够做出非常好的质量，并且达到千万以上的播放量的作品。而且的话，我们可以看到，就是在动画、影视、音乐、鬼畜这些领域，AI极大地解放了创作者的创意，让这几块的投稿量和精品数量都明显地在增加。所以的话，我认为这个方向也是我们会聚焦投入的一个方向。因为优质内容的源头就是来自于这些有创意的创作者。我们5月份发起的UP主动画剧场，短短三个月的时间，累计的播放时长就达到了2.7亿分钟，播放量就是1.8亿，然后有6部剧集的播放量就突破了千万。这个是我们可以明显地看到AI对于这种高质量的创作带来的增益。

Juliet Yang: And secondly, AI is helping create new types of content and unleashing productivity on Bilibili. As I mentioned, we are very focused on seeing those high quality content creator, talented content creator, how they are using leveraging AI to produce good content. In the past two quarters, we have seen so many good examples of how AI tools is unleashing those talented brains to bring good content on our platform. We are seeing some animation or film content that used to require a whole professional team or even a company to create, now can be created by individual content creators, that the quality is so premium that they achieve tens of millions of video views. We are also seeing AI inspire new types of content across animation, film, music, auto-tune, remix categories. It is truly unleashing the creators' talent, their talent, their creativity. We have seen a surge in content submission, and the number of high quality content videos are emerging on our platform. Here is a very vivid example for your reference. In May, we launched our creator animation campaign on our platform. Just in three months, these videos in this campaign has generated 270 minutes of watch time and over 180 million views, and 6 series, each surpassing 10 million views. Those are the perfect example of how AI tools is helping Bilibili to unleashing creators' output and unleashing the supply of high quality content.

Speaker #5: And secondly is AI is helping creating new types of content and unleashing productivity on Bilibili. As I mentioned we are very focused on seeing those high quality content creator talented content creator how they are using leveraging AI to produce good content and in the past two quarters we've seen so many good examples of how AI tools is unleashing those talented brains to bring good content on our platform.

Speaker #5: We're seeing some animation or film content that is to require a whole professional team or even a company to create now can be created by individual content creators.

Speaker #5: That the quality is so premium that they achieve tens of millions of video views. We're also seeing AI inspire new types of content across animation, film, music, auto tune remix categories.

Juliet Yang: We are also seeing AI inspire new types of content across animation, film, music, auto-tune, remix categories. It is truly unleashing the creators' talent, their talent, their creativity. We have seen a surge in content submission, and the number of high quality content videos are emerging on our platform. Here is a very vivid example for your reference. In May, we launched our creator animation campaign on our platform. Just in three months, these videos in this campaign has generated 270 minutes of watch time and over 180 million views, and 6 series, each surpassing 10 million views. Those are the perfect example of how AI tools is helping Bilibili to unleashing creators' output and unleashing the supply of high quality content.

Speaker #5: It is truly unleashing their the creator's talent their talent their creativity we've seen a surge in content submission and the number of high quality content videos are emerging on our platform.

Speaker #5: Here's a very vivid example for your reference. In May we launched our creator animation campaign on our platform. Just in three months this videos in this campaign has generated 270 minutes of watch time and over 180 million views.

Speaker #5: And six series each surpassing 10 million views. Those are the perfect example of how AI tools is helping Bilibili to unleashing creators output and unleashing the supply of high quality content.

Speaker #3: 的那个AI的具体投入方面Sam会为大家做一个的介绍。

Rui Chen: 在AI的具体投入方面，Sam会为大家做一个介绍。

Sam Fan: Yeah. This is Sam. As Mr. Chen mentioned, our AI investment will remain highly focused. Regarding our previous target of CNY 1 billion, which is well on track. We have already achieved 70% to 80% of it in the H1 of the year. Currently, on the procurement of servers, computing power

Speaker #4: Yeah this is Sam. I've missed the 10 mention. Our AI investment where we're not highly focused regarding our previous target of 1 billion RMB which is well on track.

Speaker #4: We have already achieved 70% to 80% of this in the third half of the year. Annually on the procurement of servers computing power resources this was expected to impact R&D expenses for the whole year 2026 by 500 million RMB which remain unchanged.

Operator: Operator, next question, please. Yes, of course. Now we are going to take our last question for today. The question comes line of Thomas Chong from Jefferies. Your line is open, please ask your question.

Juliet Yang: Operator, next question, please.

Speaker #5: Operator next question please.

Operator: Yes, of course. Now we are going to take our last question for today. The question comes line of Thomas Chong from Jefferies. Your line is open, please ask your question.

Speaker #2: Yes of course and now we're going to take our last question for today. And the question comes line of Thomas Chong from Jefferies. Your line is open please ask your question.

Speaker #3: 晚上好谢谢管理层介绍我的提问。我的问题是关于公司如何看待不同业务线的利润率的提升的空间。以及在AI赋能下固定成本的账收比还有费率的下降的空间。对于未来几年的AI投入我们是否有一个方向性的一个指引。管理层如何看待在今一年下半年还有27年利润率的主要的上行还有上行的因素在基本配置上有哪一些想法。 Thanks good evening thanks management for taking my questions and congratulations on a very solid set of results. My question is how does management view the margin upside across different business lines.

Thomas Chong: Good evening. Thanks management for taking my questions and congratulations on a very solid set of results. My question is, how does management view the margin upside across different business lines? On AI, how should we think about AI empowerment to fixed cost leverage and rooms for the lowering in OpEx ratio? Any color about the AI spending over the next couple of years? On the other hand, how do management view the potential upside or downside to margin in H2 and 2027? Lastly, what are management thoughts on capital allocation? Thank you.

Speaker #3: On AI how should we think about AI empowerment to fix cost leverage and rooms for the lowering in opex ratio. And any color about the AI spending over the next couple of years.

Speaker #3: On the other hand how to management view the potential upside or downside to margin in second half and 2027. And lastly what are management thoughts on capital allocation.

Speaker #3: Thank you.

Speaker #4: Thank you. This is Sam I will take your question. In Q2 our financial performance continued a strong momentum. Both revenue and gross profit grow nicely.

Sam Fan: Thank you. This is Sam. I will take your question. In Q2, our financial performance continued its strong momentum. Both revenue and gross profit grew nicely, with our gross profit margin expanding to 37.2%, marking the sixth consecutive quarter of sequential improvement. Meanwhile, our operating leverage continued to expand. Net profit grew by 55% year-over-year, and our adjusted net profit margin increased to 8.9%. Looking at the mid to long term, we believe there is still significant room for Bilibili's commercialization, driven by the sustained and healthy development of our business lines, more efficient operation gains empowered by AI. We are highly confident in our future profitability improvement. First, our high margin advertising business continued to grow and has become our largest revenue contributor, accounting for 39% of total revenue. Despite some macroeconomic pressure, we expect our advertising revenue to maintain a sustainable and healthy growth trajectory going forward.

Speaker #4: With our gross profit margin expanding to 70 sorry 37.2% marking the 60 consecutive quarter of sequential improvement. Meanwhile our operating leverage continued to expand.

Speaker #4: Net profit grow by 55% year over year and our adjusted net profit margin increased to 8.9%. Looking at the mid to long term we believe there's still significant room for Bilibili's commercialization.

Speaker #4: Driven by the sustained and healthy development of our business lines more efficient operation gains empowered by AI we are highly confident in our future profitability improvement.

Speaker #4: First our high margin advertising business continued to grow and has become our largest revenue contributor. Accounting for 39% of total revenue. Despite some microeconomic you know pressure we expect our advertising revenue to maintain a sustainable and healthy growth trajectory going forward.

Speaker #4: On games we have a robust pipeline of five new titles set to launch in Q4 of this year and into next year. We are confident that our gaming revenue will resume a year over year growth trend starting the fourth quarter.

Sam Fan: On games, we have a robust pipeline of five new titles set to launch in Q4 of this year and into next year. We are confident that our gaming revenue will resume a year-over-year growth trend starting in the fourth quarter. We remain confident in our future profit expansion and our mid to long-term target remains unchanged. A gross profit margin of 40% to 45% and an operating profit margin around 15% to 20%. We are confident in maintaining healthy revenue growth while continuously improving our operating efficiency. Also to drive the profit realization. We will carefully balance our AI investment with commercial monetization, and we firmly believe that today's investment will play a virtual role in Bilibili's sustainable development in the future. Regarding the shareholder return, delivering shareholder return is also a priority for us.

Speaker #4: We remain confident in our future profit expansion and our mid to long term target remains unchanged. Our gross profit margin of 40 to 45% and the operating operating margin around 15 to 20%.

Speaker #4: We are confident in maintaining healthy revenue growth when continuously improving our operating efficiency. Also to drive the profit you know realization. We will carefully balance our AI investment with commercial monetization and we firmly believe that today's investment will play a virtual role in Bilibili's sustainable development in the future.

Speaker #4: Regarding to the shareholder return delivery shareholder return is also a priority for us. From the beginning of this year to date we have executed a cumulative 118 million US dollar in share repurchasing.

Sam Fan: From the beginning of this year to date, we have executed a cumulated $118 million in share repurchases. In June of this year, our board of directors approved a new $300 million share repurchase program. As of the end of June, we have already repurchased 1.9 million shares for over $31 million under this new program. Going forward, we will continue to execute repurchases during appropriate monthly market windows to create long-term sustainable value for our shareholders.

Speaker #4: In June of this year our board of directors approved a new 300 million US dollar share repurchase program. As of the end of June we are already repurchased 1.9 million shares for over 31 million US dollars under this new program.

Speaker #4: Going forward we will continue to execute repurchases during approaching major market windows to create long term sustainable value for our shareholders.

Speaker #5: Thank you operator. That concludes our question and answers.

Operator: Thank you, operator. That concludes our question and answer session for today. That concludes the question and answer session. Thank you once again for joining Bilibili's second quarter 2026 financial results and business update conference call today. If you have any further questions, please contact Juliet Yang, Bilibili's Executive IR Director, or PR Center Financial Communications. Contact information for IR in both China and the US can be found on today's press release. Thank you and have a great day.

Operator: Thank you, operator. That concludes our question and answer session for today.

Speaker #2: And that concludes the question and answer session. Thank you once again for joining Bilibili's second quarter 2026 financial results and business update conference call today.

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

Speaker #2: If you have any further questions please contact Juliet Chang Bilibili's executive IR director or PR center financial communications. Contact information for IR in both China and the US can be found on today's press release.