Market Overview - The Hong Kong stock market continued to decline in the afternoon, with the Hang Seng Technology Index dropping over 2%, the Hang Seng Index falling by 1.4%, and the National Enterprises Index decreasing by 1.6% [1] Company Performance - Meituan saw a significant drop of 12.73%, with a year-to-date decline of 33.09% [2] - XPeng Motors experienced an 8.76% decrease, but has a year-to-date increase of 80.92% [2] - JD Group's stock fell by 4.78%, resulting in a year-to-date decline of 12.58% [2] - Alibaba's shares dropped by 4.69%, yet it has a year-to-date increase of 43.94% [2] - Li Auto's stock decreased by 4.21%, with a year-to-date decline of 6.81% [2] - Kingdee International fell by 3.92%, but has a year-to-date increase of 86.64% [2] - Bilibili's shares dropped by 3.70%, with a year-to-date increase of 19.30% [2] - BYD Electronics saw a decline of 3.62%, resulting in a year-to-date decrease of 10.07% [2] - BYD's shares fell by 3.48%, with a year-to-date increase of 27.09% [2] - SenseTime's stock decreased by 2.88%, with a year-to-date increase of 35.57% [2] - Kingsoft's shares dropped by 3.36%, with a year-to-date change of -0.36% [2] - Alibaba Health saw a decline of 2.95%, but has a year-to-date increase of 58.43% [2] - JD Health's stock fell by 2.76%, with a year-to-date increase of 119.04% [2] - NIO's shares decreased by 2.71%, with a year-to-date increase of 44.40% [2]

Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [4]. Core Insights - The company reported a revenue of 7.34 billion yuan for Q2 2025, which is in line with Bloomberg consensus expectations. Adjusted net profit reached 560 million yuan, exceeding Bloomberg consensus by 8.1% [1]. - The user metrics show a Daily Active Users (DAU) of 109 million and Monthly Active Users (MAU) of 363 million, with a daily average usage time of 105 minutes [1]. - The company is benefiting from a strong performance in its gaming and advertising segments, with significant growth in user engagement and creator monetization [1][2][3]. Revenue Breakdown 1) **Mobile Games**: - Revenue for the quarter was 1.61 billion yuan, a year-on-year increase of 60%, driven by strong performance from "Three Kingdoms: Strategize the World" and stable contributions from "Fate/Grand Order" and "Azur Lane" [2]. - The company is also focusing on new game releases and overseas expansion for existing titles [2]. 2) **Advertising**: - Revenue reached 2.45 billion yuan, up 20% year-on-year, primarily due to strong growth in performance advertising [3]. - The company has improved its advertising infrastructure, leading to a more than 10% increase in eCPM and approximately 30% growth in performance ad revenue [3]. 3) **Value-Added Services (VAS)**: - Revenue was 2.84 billion yuan, a year-on-year increase of 11%, supported by growth in live streaming and other value-added services [3]. - The number of paid members reached 23.7 million, with over 80% opting for annual or auto-renewal plans [3]. 4) **IP and Derivatives**: - Revenue was 440 million yuan, a year-on-year decline of 15% [3]. Profitability - The gross profit was 2.68 billion yuan, with a gross margin of 36.5%, reflecting a year-on-year increase of 6.6 percentage points. The adjusted net profit of 560 million yuan indicates a turnaround from previous losses [4]. - The company is expected to benefit from its strategy of "self-developed quality products and global distribution," with projected revenues for 2025-2027 of 30.1 billion, 32.6 billion, and 35.6 billion yuan respectively [4].

Investment Rating - The industry investment rating is "Outperform the Market" indicating a potential increase of over 10% relative to the market index in the next six months [3][6]. Core Insights - In August 2025, the number of game approvals reached a record high, with 166 domestic games and 7 imported games approved, marking a year-to-date total of 1,050 domestic games and 69 imported games [1][2]. - Notable games that received approval include Tencent's "Kareus Dream" and bilibili's "Escape from Duckov," both of which are expected to perform well in the market due to their unique gameplay and strong development teams [1][2]. - The report emphasizes the ongoing normalization of game approvals, suggesting a steady recovery in the industry, and recommends focusing on leading companies with diverse product portfolios and strong R&D capabilities [2]. Summary by Sections Industry Events - The National Press and Publication Administration announced the approval of 166 domestic and 7 imported games in August 2025, with significant titles like "Kareus Dream" and "Escape from Duckov" gaining attention [1][2]. Game Performance - "Kareus Dream," developed by Smilegate's SUPER CREATIVE, combines dark fantasy elements with innovative gameplay mechanics, while "Escape from Duckov" offers a unique blend of cute aesthetics and tactical gameplay, achieving over 200,000 players and a 93% positive rating during its Steam testing phase [1][2]. Investment Recommendations - The report suggests that the industry is on a recovery path with a consistent release of game approvals, and it advises investors to pay attention to top-tier companies with strong product reserves and diverse thematic strategies [2].

哔哩哔哩-W(09626)发布公告，于2025年8月26日，该公司因购股权获行使而合计发行7.31万股Z类普通 股。 ...

智通财经APP讯，哔哩哔哩-W(09626)发布公告，于2025年8月26日，该公司因购股权获行使而合计发行 7.31万股Z类普通股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 嗶哩嗶哩股份有限公司 呈交日期： 2025年8月27日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 不同投票權架構公司普通股 | | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 09626 | 說明 | Z類普通股 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | 佔有關事件前的現有已發 | 庫存股份變動 | 每股發行 ...

Core Viewpoint - Bilibili's Q2 2025 financial results show strong revenue growth and profitability, exceeding market expectations, driven by user engagement and advertising performance [1][2][3] Group 1: Financial Performance - Bilibili achieved revenue of 7.34 billion yuan in Q2 2025, a year-on-year increase of 20%, slightly surpassing Bloomberg consensus expectations [1] - Adjusted net profit attributable to shareholders reached 560 million yuan, corresponding to a profit margin of 7.7%, marking a year-on-year turnaround from loss and exceeding Bloomberg consensus expectations of 8% [1] Group 2: User Growth and Engagement - The overall Monthly Active Users (MAU) reached 36.3 million, a year-on-year increase of 8%, while Daily Active Users (DAU) reached 10.9 million, also up 7% [1] - The average daily usage time per user increased by 6 minutes to 105 minutes, indicating strong user engagement [1] - New users are younger, with an average age of 22 in Q2 2025, compared to 23 in Q1 2025 [1] Group 3: Advertising Business - Advertising revenue in Q2 2025 was 2.45 billion yuan, a year-on-year growth of 20%, maintaining the growth rate from Q1 2025 [1] - The number of advertisers increased by over 20% year-on-year, and performance advertising revenue grew by 30% [1] - Future advertising growth is expected to be driven by high user engagement and the effectiveness of AI in enhancing ad targeting and conversion rates [1] Group 4: Gaming and Value-Added Services - Gaming revenue for Q2 2025 was 1.61 billion yuan, a significant year-on-year increase of 60%, primarily driven by the new game "Three Kingdoms: Strategize the World" [2] - Value-added services revenue reached 2.84 billion yuan, growing 11% year-on-year, with a notable increase in the number of premium members [2] - Charging services have seen over 100% growth in the first half of 2025, indicating a positive trend in monetization [2] Group 5: Profitability and Cost Control - Gross margin for Q2 2025 was 36.5%, consistent with expectations and reflecting a continuous improvement over 12 consecutive quarters [2] - Operating profit margin improved to 7.8% in Q2 2025, with plans to reach 10% by Q4 2025 and a mid-term target of 15-20% [2]

Investment Rating - The report maintains a "Recommended" rating for the gaming industry, indicating a positive outlook for the sector [3][6]. Core Insights - In August 2025, a total of 173 game licenses were issued, with 166 being domestic and 7 imported, marking a significant increase in the number of licenses issued compared to the same period in 2024 [1][6]. - The report highlights key games that received approval, including titles from major companies such as Tencent, NetEase, and Bilibili, which are expected to contribute positively to their respective revenues [6]. - The issuance of game licenses has been stable and consistent throughout 2025, with a total of 1,050 domestic and 69 imported licenses issued so far this year, reflecting a strong recovery in the gaming market [6]. Industry Overview - The gaming industry is characterized by a total of 160 listed companies, with a total market capitalization of 2,014.6 billion and a circulating market capitalization of 1,832.2 billion [3]. - The absolute performance of the industry has shown a significant increase of 75.8% over the past 12 months, indicating strong growth potential [5]. - The report emphasizes the ongoing success of established games and the potential for new releases to drive revenue growth, particularly for companies like Tencent and Giant Network [6].

Summary of Bilibili Inc (BILI US) Conference Call Company Overview - **Company**: Bilibili Inc (BILI US) - **Industry**: Internet Software & Services - **Market Cap**: USD 10.553 billion - **Target Price**: USD 27.00 (previously USD 25.50) [5][10] Key Financial Highlights - **2Q25 Revenue**: RMB 7.338 billion, up 20% year-over-year (y-o-y) [38][39] - **Mobile Game Revenue**: RMB 1.612 billion, up 60% y-o-y [39] - **Non-Game Revenue**: RMB 5.725 billion, up 12% y-o-y [39] - **Advertising Revenue**: RMB 2.449 billion, up 20% y-o-y, beating estimates [39] - **Gross Margin**: 36.5%, up 6.5 percentage points y-o-y [39] - **Non-GAAP Operating Profit**: RMB 573 million, with a margin of 7.8% [39] - **Operating Cash Flow**: Positive at RMB 2.0 billion, up 14% y-o-y [38] User Engagement Metrics - **Monthly Active Users (MAU)**: 363 million, up 8% y-o-y [39] - **Daily Active Users (DAU)**: 109 million, up 7% y-o-y [39] - **Average Daily Time Spent per User**: 105 minutes, up 6% y-o-y [39] Advertising Outlook - **Ad Growth Drivers**: - Increased traffic due to user engagement and time spent [2] - Improved ad infrastructure through AI adoption [2] - eCPM increased by 10% y-o-y, driven by a 20% y-o-y growth in the number of advertisers [2] - **Ad Inventory**: Expected to increase, supporting strong ad growth into 2H25 [2] Game Segment Insights - **Game Growth Outlook**: Slower growth anticipated in 2H25 due to delays in the overseas launch of "Sanmou" [1][2] - **Sanmou Performance**: Season 9 performance tracked in line with expectations, not exceeding them [1] Shareholder Value Initiatives - **Share Repurchase Program**: Bilibili has repurchased USD 116 million worth of shares out of a USD 200 million program by the end of 2Q25 [1] - **Convertible Senior Notes**: Completed offering of USD 690 million due in 2030 with a 0.625% interest rate [38] Valuation and Risks - **Valuation Methodology**: Discounted cash flow with a target price increase to USD 27.00 [43] - **Risks**: - Weaker gross billing for key games like Sanmou [43] - Slower-than-expected ad growth [43] - Rising competition and regulatory challenges [43] Conclusion - **Investment Rating**: Maintain Buy rating based on improved ad outlook despite potential near-term challenges in game launches [1][10]

Summary of Bilibili Inc. (BILI) Conference Call Company Overview - **Company**: Bilibili Inc. (BILI) - **Market Cap**: $10.0 billion - **Enterprise Value**: $7.3 billion - **Industry**: Games, Entertainment & Healthcare Tech Key Points Advertising Outlook - Bilibili's advertising growth is expected to be robust, with a projected **20% year-over-year growth** for 2H25, driven by: - Increased ad inventory and higher ad load due to growing user traffic [2][25] - An upward trajectory in effective cost per mille (eCPM) supported by improved algorithms and a broader client base [2][25] - The company is refining its ad infrastructure, indicating ample room for improvement in monetization [2] Game Pipeline and Approvals - The near-term game outlook is cautious, with guidance for 2H25 indicating a potential **15% to high-teens percent decline** in game revenue year-over-year due to a tough comparison base from the previous year [3][22] - Bilibili received approvals for two games, **Trickcal RE:VIVE** and **Escape from Duckov**, which are expected to enhance visibility for its game pipeline [3][24] - The casual game **Sanguo: Ncard** is anticipated to launch by the end of 2025 or early 2026, contributing to future growth [3][27] Financial Estimates and Adjustments - Revenue estimates for 2025-2027 have been fine-tuned downwards by **-2% to -1%** due to a lighter game pipeline, although advertising performance is stronger than expected [4][18] - The revised revenue estimates are as follows: - **2025E**: Rmb 29,959.9 million (down from Rmb 30,376.6 million) - **2026E**: Rmb 32,992.4 million (down from Rmb 33,460.3 million) - **2027E**: Rmb 35,790.2 million (down from Rmb 36,608.4 million) [5][19] Margins and Profitability - The company aims to achieve a **10% adjusted operating profit margin** by the end of 2025, benefiting from operating leverage [26] - Gross profit margin is expected to improve sequentially, reaching approximately **37%** in Q4 [26] User Engagement and Growth Metrics - Monthly Active Users (MAU) are projected to grow from **341 million in 2024** to **373 million by 2027**, indicating a steady increase in user engagement [28] - Daily Active Users (DAU) are expected to rise from **104 million in 2024** to **120 million by 2027** [28] Competitive Landscape - Bilibili's advertising revenue is projected to grow significantly, with a focus on young users, which may help brands gain exposure beyond traditional circles [2] - The top verticals contributing to advertising growth include games, 3C digital products, e-commerce, internet services (including AI), and automotive sectors [27] Conclusion - Bilibili Inc. maintains a **Buy rating** with a 12-month price target of **$26.30**, reflecting a **9.7% upside** from the current price of **$23.98** [1] - The company is positioned to leverage its advertising growth while navigating challenges in the gaming segment, with a focus on improving margins and user engagement metrics [1][3][25]