Thank you, operator. During this call, we'll discuss our business outlook and make forward-looking statements.

These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today's news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filings with SEC and Hong Kong Stock Exchange.

The non-GAAP financial measures 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.

Joining us today from Bilibili senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer; Ms.

Carly Lee, Vice Chairwoman of the Board and Chief Operating Officer; and Mr. Sam Fan, Chief Financial Officer.

I will now turn the call to Mr. Chen.

Thank you, Juliet. 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.

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 revenues 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.

You can also see that momentum in our financial results. Total revenues for Q2 rose 8% to RMB7.9 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 RMB704 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.

That is why we remain committed to our AI strategy while staying highly disciplined in how we invest. 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. 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 5 minutes grew by 18% year over year, demonstrating users' growing demand for meaningful and high-quality content.

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.

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 creations. 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.

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%. 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. 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 RMB3.1 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. 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 conversions. 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. 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 RMB1.4 billion, down 14% year over year, mainly due to the high base Sanmou, SanGuo: MouDingTianXia, set last year.

Sanmou's latest second-anniversary season 15 went well with players, ranking number two 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.

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, N-Card, SanGuo: BaiJiangPai.

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 2024, our self-developed simulation game, Lomi Master, Shan Yao Ba!

Lu Mi, was well-received by global players in recent tests. Building on this encouraging reception, we plan to launch the game on September 17 globally.

SanWang, SanGuoZhi: WangDaoTianXia, our new licensed SLG title, is scheduled to roll out in Q4, complementing Sanmou with a differentiated gameplay experience. Beyond Lomi and SanWang, we also introduced three new titles at Bilibili World, including two licensed games, Ragnarok Online 3, Xian Jing Chuan Shuo 3, an MMORPG based on a globally recognized IP that has already secured its publication license; and Mistbound: Guild Wars Card Game, Ji Jia!

Da Pai Ying Xiong, which is adapted from another well-known IP. We also announced a new self-developed tactical RPG, Three Kingdoms: The Ravages of Time, SanGuo: HuoFengLiaoYuan.

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 RMB3.0 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. 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.

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?

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 look at our results.

Total revenues for the second quarter were RMB7.9 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 RMB5.0 billion. Gross profit increased around 10% year over year to RMB3.0 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 RMB2.6 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. Operating profit increased 48% year over year to RMB373 million, while adjusted operating profit increased 21% to RMB696 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 RMB339 million, while adjusted net profit increased 25% to RMB704 million, and adjusted net profit margin reached 8.9%. As of June 30th, 2024, we had cash and cash equivalents, time deposits, and short-term investments of RMB24.3 billion, or $3.6 billion.

In June, our board approved a new two-year $300 million share repurchase program. Under this new program, a total of 1.9 million shares had been purchased for a total cost of $31 million as of June 30th, 2024.

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.

哎，谢谢管理层接受我的提问。那也恭喜咱们二季度取得非常稳健的一个业绩。那我只想问就说，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市场其实也在逐步的有一些下降。但B站在这个变化中，其实还是保持了非常健康的一个增长。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. Looking back over the past few years, short-form content has 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's driving this resilience?

Looking ahead to the AI era, how do we expect user preference and consumption habits to evolve over time? Thank you.

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作选择。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。

Actually, over the past few years, we see explosive growth for for both short-video content and long-form content, and the shorter form content grew much faster. Looking at Bilibili, we're not choosing the length of the content to 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.

我们一直认为就无论长视频还是短视频，无论用户他是用 电脑看还是用手机看还是用电视看， 其实用户他不便的追求是想看更好的内容。 We believe whether it's whether the length of the content or on the device of the consumption scenarios, the ultimate goal from users is everyone wants to watch good content.

我刚才说过，在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，就是当他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 很多这种短内容它只能带来视听上的一个刺激，而他自己的话

还是更希望把时间去花在他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。

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

They're no longer satisfied with content that just grabbed their attention for 1 second. They care more and more about whether the time they spend on the content is actually worth it.

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 users emotionally.

That's why users are willing to slow down and spend their in- intentional time on Bilibili. 我们能够一直产生这个高质量的内容，我觉得主要是由几个原因吧。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 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在了我们的这个平台上，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。然后这个是一个两非常良性的一个循环。

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

Secondly is over over the past decade, we have built a very engaging community with a lot of users who truly appreciate high-quality content. They have the view of what is good good high-quality content, and forms a a community that appreciates 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.

在那个第二季度，B站用户的月均的互动量是超过174亿次，同比能够增长9%。百字以上长评论是同比工长了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。

In the second quarter, our monthly user interaction were over 17 billion, up 9% year over year. Long comments that over 100 characters grew even faster to by 67%.

This high level of real human interaction help us to better identify high-quality content.

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，它也会提高这个就人做视频的一个一个效率。所以的话就进入AI时代之后，我认为视频的数量它可能会有万倍甚至是一亿倍的一个一个增长。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。

Regarding in the AI era how the video landscape is going to change, we believe that AI the the AI tools will exponentially unleash the supply of video content, 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.

Those low-quality content will have no traffic.

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，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半年是还是投入了挺大的一个一个关注度，也取得了不错的一个成效。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确实AI对于好的创作者的生产力是有很大的解放的。

In the AI era, I will be very focused on two aspects. One is on video creation, content creation; second is on content distribution.

On the content creation, 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. We believe the repetitive, low-quality content will have no room to for survival.

Those talented content creators will be extremely beneficial from this evolution of creation tools. In the past half year, we have been paying very close attention on this aspect, and it's generating a very positive results.

As a matter of fact, in the second quarter, our monthly content submissions increased by 28%. This is a hard evidence to support that AI tools is enlarging, enhancing, uplifting our creators' creative output.

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，它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希望的。但是呢，就是新一代的AI的话，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 去提高这个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的同比増长是7%，而且我们的总时长的同比増长是14%。我们千粉UP主的人数的同比増长是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。

Secondly, on content distribution, compare with the short videos that only have a few seconds, the longer-form video contain 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 mid- to longer-form content.

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

Here's a few numbers 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.

The number of creators 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.

That concludes the first first question's answer. Operator, next question, please.

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 二季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.

How to think about the future second half advertisement business growth? Also, what is the marginal change for the advertisement from the AI industry?

Also, could management help to break down the 2Q and the second half advertisement growth driver? Also in second half, we start to have a little bit higher base.

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

在宏观消费环境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，而且越来越多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。

In the second quarter, despite macro economic pressure on consumer spending, our ad business delivered a very strong performance with revenue reaching RMB3.13 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 advertiser realize it's it's 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.

在B站的视频生态里可以看到，AI知识内容的消费时长，是长得很好的，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学习的视频社区。

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.

所以我们可以看到，基于此生态，我们在AI广告第二季度同比增幅也超过了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、总增量上都是保持整体乐观的。

At the same time, AI 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. As a 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.

那至于下半年的话，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。那可以建立 藉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了。

For the second half outlook, we're seeing that more advertisers are demanding higher conversion efficiency in a 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 build lasting brand value. They are also prioritizing their limited budget on high-value users with genuine genuine purchasing power.

All of this demand precisely match with Bilibili's unique strength.

B站用户的平均年龄自己已经26.5岁左右了。他们已经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站去多看视频啊，互动啊，成为很好的朋友啊。这最近两年也逐渐在B站形成了消费的心智。 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。Q2我们也可以看到收入前五的行业分别是有游戏、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。

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 2 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 the second quarter, our top-five ad verticals were games, consumer electronics, internet services, e-commerce, and automotive, while our total advertiser base expanded by 14% year over year. 就B站区别其他内容平台还有一个很坚实的策略叫多屏多场景的一个战略。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。

无论你在独自在坐交通工具啊这时候你可以去听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。

那你在家里就陪伴家人和小孩的时候，你可以一击打开电视去看B站的这个B站的内容，同时也可以投屏。你在空隙的时间也可以打开B站的App看，也可以打开iPad去用于学习等等。

Unlike other platforms, we have a 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.

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。 就是我们可以反复地搜索你喜欢的内容以及创作者。

同时你也可以看直播互动，也可以看动画片、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。

Across this different screen, user can watch and upload video, interact through bullet chats, commentary, search their favorite content or creators, join live stream, watch anime or documentaries, and play games. Ads naturally follow users throughout their daily touch points.

That's why in the first half of this year, we see 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 the first half.

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对于我们还是投入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。

这对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地进入B站，实现了双位数的增长吧。

Last but not least is AI is also empowering our ad efficiency from several angles, more including improving our user comprehension, including user profiling, content matching, ad creative generation, and algorithm efficiency to continuously lift our monetization. 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. 确实如你所说的，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。 As you mentioned, it is 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. Thank you.

Operator, next question, please.

So, my question is on the online game. 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. On and besides this, Sanmou, the Three Kingdoms strategy game, has has been launched for 2 years.

How should we look at the the future performance of this game? Thank you.

今年下半年到明年，应该是B站游戏的一个收获季。 会有多款值得期待的项目。

From 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.

先说一下今年下半年的两款游戏。第一款是《闪耀吧！鲁咪》，这个是B站自研的一个 桌宠的休闲游戏。 我们的这种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，应该是受到了挺多的好评。

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。

The first title in our pipeline is Lomi Master. Lomi Master is a self- Bilibili's self-developed light casual light casual game that evolves pet-catching and simulation gameplay.

It received a lot of positive feedback during its global tests in May, and also recent testing feedback has been very well. We are planning for a global launch in September 17th next month, and we have innovate we have developed developed a very innovative gameplay and artistic graphic designs to cater to young generation's 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. 第二款游戏是《三国志·王道天下》，这是一款三国志正版正版授权的一个 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，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基础上有很大的一個提升。

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SLG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，我们会继续地调优我们这一个 产品，然后我们也希望就是在年底上线的时候， 它能够受到用户的欢迎。

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 Sanmou, 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 IP title, we think it really complements Sanmou 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.

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·火凤燎原》， 它是我们团队自研的一款策略战旗类的这个 那个RPG的游戏。 然后首先火凤燎原它是一个 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，就出品过火凤燎原的动画。

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旗类的一个游戏。 这个游戏呢我们是计划明年会上线。

Beyond that, we have also introduced several new pipelines titles in the recent Bilibili World, and will be launched next year. The first one is Three Kingdoms: The Ravages of Time, SanGuo: HuoFengLiaoYuan.

This is another self-developed title that is focus 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 based on this IP.

Our goal is to make this classic IP, revitalize this classic IP, and make it a great tactical RPG for younger generations.

第二款游戏是《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启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。

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.

It's a very classic MMORPG, and we've received a lot of users demand for bringing this title back to them. That is why we have sign and licensed this IP, and hopefully to bring this classic IP back to its fan its fan base.

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.

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这一周年庆到 今年的这个S15两周年庆，三谋过去一年的所有的赛季 都保持在这个畅销榜的前五。

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 认真地去做每一个赛季吧，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，就是垂类、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想把三谋做成一款能够让玩家玩到老的游戏。

To answer your question on our classic Sanmou 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.

As a matter of fact, from season 8, our first anniversary season last year, throughout season 15, our second anniversary season in this year, Sanmou has ranked among the top five on the iOS top-grossing chart every game season, which is quite impressive. For this game, our goal has remained unchanged.

Our target to build is a lasting strategy game that can accompany game gamers for life. Our goal or strategy for game business remain to focus on the vertical genre to either to become the best or first in its own own segment, and make sure every title has a long lifecycle.

That that is the strategy we'll continue to be focusing on. 最后说一下那个《三国百将牌》。

因为百将牌我们是在那个今年早些时候我们是发布了嘛，

然后百将牌7月份的这个LTV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地流动， 然后这些游戏里面它既有像这个百将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，就它是能够形成一个很好的一個玩家生态。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。

I want to mention touch base on the N-Card game, which is 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 2 in October with a focus on improving long-term retention and adding more and interactive fun gameplay.

You will 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 Sanmou and SanWang. The reason why we we are exploring this IP in a such dynamic way is, first of all, we think that there's a lot of overlaps for users who are interested in this IP, and they can cross-sell from each other.

Secondly is that we have a very and 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 operations across different IPs and different titles, and continuously provide good gaming experience for our gamers.

That concludes the this questions. Operator, next question, please.

哎，谢谢管理层接受我的提问，然后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。那能不能再详细地跟我们分享一下AI对于B站社区生态、用户活跃以及其他各商业化业务的一个赋能？然后公司之前宣布的10亿AI相关的一个CapEx投入，目前的一个进度花得怎么样了？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.

Could management elaborate a little more on how AI is enhancing Bilibili's communicate community ecosystem, user engagement, and different business lines? In addition, how much of the previously announced RMB1 billion in AI-related CapEx has been deployed so far, and what's the expected pace of spending going forward?

Thank you.

下一个时代是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与我们B站业务紧密相关的 这个视频这一个方向上。说得更精确的来说呢，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。

We believe AI is already a consensus for the next era, and for us, it's not a not to think about how important AI is for us, 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.

The things where we invest will be very closely tied to our core business, which is video, and to be more specific, found three areas: video understanding, video distribution, and video creation. All of our investments will be strictly focused on those three areas.

首先我们还是非常的那个人就是重视

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 分发和就推荐和这个搜索的這個能力，我们是能够 帮助用户更高效率地发现感兴趣的内容，也帮助广告系统更精确地匹配用户的需求。 然后这个呢就是既能够去 提高我们的这个叫 叫提高我们用户增长的一个能力，也能提高我们这个商业收入。

Is

AI is helping us to better understand both content and users. Bilibili has a huge amount of video library, and these videos carries much more information, and we our user have a very diverse interest.

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're improving our video understanding, search, and recommendation capabilities.

It is helping users to find content they're interested in a more efficiently 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 on our commercialization results.

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 极大地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极大地解放了创作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地在在增加。 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月份啊，就是那个我们发起的这个UP主动画剧场， 短短的3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地看到，就是AI对于这种 高质量的创作带来的一個一个增益。 Secondly is AI is helping creating new types of content and unleashing productivity on Bilibili.

As I mentioned, we are very focused on seeing this high-quality content creator, talented content creator, how they are using leveraging AI to produce good content. In the past two quarters, we've seen so many good examples if how AI tools is unleashing this talented brains to bring good content on our platform.

We're 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've achieved tens of millions of video views. We're also seeing AI inspire new types of content across animation, film, music, also to remix categories.

It is truly unleashing their the creators' talent their talent, their creativity. We've seen a surge in content submissions, and the number of high-quality content videos are emerging on our platform.

Here's a very vivid example for your reference. In May, we launched our creator animation campaign on our platform.

Just in 3 months, this videos in this campaign has generated 270 minutes of watch time and over 180 million views, 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.

在那个AI的具体投入方面，Sam会为大家做进一步的介绍。 This is Sam.

As Mr. Chen mentioned, our AI investment remained highly focused.

Regarding our previous guidance of RMB1 billion, it is well on track. We have already achieved 70% to 80% of it in the first half of the year, primarily on the procurement of servers, computing powers, and resources.

This will impact to impact the R&D expenses for the whole year, and it turns out by RMB500 million, which will remain unchanged.

Operator, next question, please.

晚上好，谢谢管理层接受我的提问。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赋能下固定成本的占收比还有费率的下降的空间。对于未来几年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年下半年还有2027年利润率的主要的上行还有上行的因素？在资本配置上有哪一些想法？ 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 second half and 2027? Lastly, what are management thoughts on capital allocation?

Thank you.

Thanks. Uh, this is Sam.

I will take your questions. In Q2, our financial performance continued its strong momentum.

Both revenue and gross profit grow nicely, with our gross profit margin expanding to 37 sorry, 37.2%, marking the 16th 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's 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. 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. 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 operating margin around 15% to 20%.

We are confident in maintaining healthy revenue growth when 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 crucial role in Bilibili's sustainable development in the future.

Regarding to the shareholder return, delivering shareholder return is also a priority for us. From the beginning of this year to date, we have executed, accumulated $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 in the appropriately market windows to create long-term, sustainable value for our shareholders.

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