Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is expected to achieve accelerated revenue growth driven by advertising and gaming, with a potential for profitability in a single quarter [5] - The company reported a significant reduction in net losses, with a projected path to profitability in the coming years [5] - The report maintains profit forecasts for 2024-2026, with expected net profits of -1.38 billion, 0.29 billion, and 7.43 billion respectively [5] Revenue and Profitability - For Q2 2024, the company reported revenue of 6.127 billion (up 15.5% year-on-year) and a gross margin of 29.9% (up 6.8 percentage points) [5] - The adjusted net loss for Q2 2024 was 271 million (a 71.9% year-on-year reduction) [5] - Operating cash flow turned positive at 1.751 billion for Q2 2024, compared to a negative 21.2 million in Q2 2023 [5] Business Segments Performance - Value-added services revenue reached 2.566 billion (up 11.5% year-on-year), driven by an increase in membership and payment [6] - Advertising revenue was 2.037 billion (up 29.5% year-on-year), attributed to optimized advertising products and a significant increase in the number of advertisers [6] - Mobile gaming revenue was 1.007 billion (up 13.1% year-on-year), primarily due to contributions from popular games [6] User Engagement and Growth - The platform's daily active users (DAU) reached 102.3 million (up 8% year-on-year), with a monthly active user (MAU) count of 339 million (up 6% year-on-year) [7] - The average user engagement time was 102 minutes per day (up 7.4% year-on-year), indicating increased user stickiness [7] - The retention rate for members over 12 months was 80%, with a significant increase in users engaging in consumption behaviors [7] Financial Projections - Revenue projections for the upcoming years are as follows: 26.813 billion for 2024, 30.474 billion for 2025, and 34.227 billion for 2026 [8] - The company is expected to improve its net profit margin significantly by 2026, with a projected net profit of 743 million [8] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are -3.3, 0.1, and 1.8 respectively [8]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [7]. Core Views - The company reported a revenue of 6.127 billion yuan in Q2 2024, representing a year-on-year increase of 16%, with a Non-GAAP net loss of 271 million yuan, narrowing by 72% year-on-year [2]. - The company experienced healthy growth in daily active users and video views, with an average of 102.3 million daily active users, up 6% year-on-year, and daily video views reaching 4.8 billion, up 18% year-on-year [2]. - The gaming segment is expected to see strong growth in the upcoming quarters, driven by the launch of new games, particularly the SLG game "Three Kingdoms: Strategizing the World," which ranked in the top 5 of the iOS game sales chart for 21 consecutive days after its launch [2]. - The company’s gross margin improved to 29.9%, up 6.78 percentage points year-on-year, indicating a positive operational cash flow [2]. Financial Summary - Revenue projections for 2024, 2025, and 2026 are 26.6 billion, 30.4 billion, and 33.8 billion yuan, respectively, with Non-GAAP net profits expected to be -15 million, 203 million, and 328.5 million yuan [2][5]. - The company’s P/E ratios for 2025 and 2026 are projected to be 20.20 and 12.49, respectively [2][5].

Financial Data and Key Metrics - Total revenues increased by 16% year-over-year to RMB 6.13 billion in Q2 2024 [5] - Gross profit rose by 49% year-over-year to RMB 1.8 billion, with gross profit margin reaching 29.9%, up from 23.1% in Q2 2023 [6] - Adjusted operating loss and adjusted net loss narrowed by 69% and 72% year-over-year, respectively [6] - Operating cash flow reached a record RMB 1.75 billion in Q2 2024 [6] - Deferred revenue balance increased by RMB 738 million from Q1 2024 [6] Business Line Data and Key Metrics - Advertising revenue grew by 30% year-over-year, contributing 33% of total revenue [5][20] - Games revenue increased by 13% year-over-year to RMB 1.01 billion, driven by new launches and legacy titles [15][20] - Value-added services (VAS) revenue grew by 11% year-over-year to RMB 2.57 billion, with premium members reaching 22.3 million [18][20] Market Data and Key Metrics - DAUs increased by 6% year-over-year to 102 million, while MAUs grew to 336 million [7] - Users spent an average of 99 minutes daily on the platform, up from 94 minutes in Q2 2023 [11] - Video views increased by 18% year-over-year to over 4.8 billion daily [9] Company Strategy and Industry Competition - The company focuses on content, community, and commercialization, with a strategy to attract high-quality creators and expand monetization channels [9][10] - The success of the strategy game "San Guo: Mou Ding Tian Xia" marks a breakthrough in genre diversification and long-term game operation [16][17] - The company aims to achieve non-GAAP breakeven in Q3 2024 and improve profitability thereafter [6][21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong growth in advertising and games businesses, driven by improved infrastructure and user engagement [12][15] - The company is confident in maintaining above-industry average advertising growth in the second half of 2024 [31] - Management emphasized the potential of AI applications in content creation and user experience enhancement [53][57] Other Important Information - The company celebrated its 15th anniversary, with nearly 70% of China's Gen Z+ population using the platform [8] - Bilibili held offline events "Bilibili World" and "Bilibili Macro Link," attracting over 250,000 participants [11] Q&A Session Summary Question: Drivers behind robust advertising growth and outlook for H2 2024 - Advertising growth was driven by healthy traffic growth and unlocking the commercial value of users, with a focus on infrastructure and vertical industry solutions [25][27][31] Question: Drivers for the successful launch of "San Guo: Mou Ding Tian Xia" and future game genres - The game's success was attributed to the company's strategy of reinventing games for younger audiences, with a focus on long-term operation and addressing user pain points [35][37][39] Question: Content strategy and consumption trends as user demographics evolve - The company is expanding content categories to cater to evolving user needs, with significant growth in consumption-related content such as home decor, automotive, and fashion [43][44][46] Question: Financial outlook for H2 2024 and mid-to-long term profitability - The company expects strong revenue growth in Q3 2024, driven by games and advertising, and aims to achieve meaningful operating profit on a non-GAAP basis [51] Question: AI applications and future potential - AI is being used to enhance content creation and user experience, with significant user engagement in AI-related content and partnerships with leading AI companies [53][57][59]

Investor Presentation August 2024 1 Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, quotations from m ...

Company Performance - Bilibili reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.10, and an improvement from a loss of $0.33 per share a year ago, indicating a 72.73% year-over-year improvement [1] - The company achieved revenues of $846.21 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.51% and showing a 11.76% increase from $757.02 million in the same quarter last year [1] - Over the last four quarters, Bilibili has exceeded consensus EPS estimates two times and revenue estimates three times [1] Market Performance - Bilibili shares have increased approximately 15.2% since the beginning of the year, while the S&P 500 has gained 17.8% during the same period [2] - The current Zacks Rank for Bilibili is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [4] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.01 billion, while for the current fiscal year, the estimate is -$0.07 on revenues of $3.72 billion [4] - The estimate revisions trend for Bilibili is mixed, and future earnings expectations will depend on management's commentary during the earnings call [2][3] Industry Context - The Internet - Services industry, to which Bilibili belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, which may impact the stock's performance [5] - Another company in the same industry, Zscaler, is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year change of +7.8%, with revenues projected at $567.62 million, up 24.8% from the previous year [5][6]

Financial Performance - For the six months ended June 30, 2024, total net revenue was RMB 11.79 billion, an increase of 14% compared to RMB 10.37 billion for the same period in 2023[2]. - Advertising revenue for the same period was RMB 3.71 billion, up 30% from RMB 2.84 billion year-over-year[2]. - Gross profit for the six months ended June 30, 2024, was RMB 3.44 billion, a 47% increase from RMB 2.33 billion in the prior year, resulting in a gross margin of 29.2% compared to 22.5%[2]. - Net loss narrowed to RMB 1.37 billion for the six months ended June 30, 2024, a 37% improvement from RMB 2.18 billion in the same period of 2023[2]. - Adjusted net loss for the same period was RMB 726.9 million, a 64% reduction from RMB 1.99 billion year-over-year[2]. - Total net revenue for the first half of the year reached RMB 11.79 billion, a year-on-year increase of 14%[6]. - Advertising and value-added service revenues grew by 30% and 14% respectively, indicating effective monetization of user traffic[6]. - Gross profit increased by 47% year-on-year, with gross margin rising from 22.5% to 29.2%[6]. - Adjusted operating loss and net loss narrowed significantly by 60% and 64% respectively[6]. - Revenue from value-added services reached RMB 5.09 billion, a year-on-year increase of 14%[10]. - The operating loss for the six months ended June 30, 2024, was RMB 1.40 billion, narrowing by 47% from RMB 2.65 billion in the same period of 2023[24]. User Metrics - Daily active users (DAUs) averaged 102.3 million, an 8% increase from 95.1 million in the prior year[2]. - Daily average video views increased by 20% to over 4.9 billion, reflecting a vibrant content ecosystem[7]. - The number of official members increased to 243.1 million, a year-on-year growth of 13%[8]. - Monthly active users averaged 338.6 million, representing year-on-year growth of 6%[6]. Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2024, was RMB 2.39 billion, compared to an outflow of RMB 651.2 million in the same period of 2023[2]. - As of June 30, 2024, the company's cash and cash equivalents, time deposits, and short-term investments totaled RMB 13.91 billion, down from RMB 15.04 billion as of December 31, 2023[28]. - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (651,158) thousand, while for the same period in 2024, it was RMB 2,388,237 thousand, indicating a significant turnaround[44]. - Cash and cash equivalents decreased to RMB 3,732,504 thousand as of June 30, 2024, from RMB 7,191,821 thousand as of December 31, 2023, indicating a liquidity contraction[41]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 31.32 billion, a decrease of 5.6% from RMB 33.16 billion at the end of 2023[3]. - Total liabilities decreased by 5.4% to RMB 17.74 billion as of June 30, 2024, from RMB 18.75 billion at the end of 2023[3]. - Shareholders' equity totaled RMB 13.58 billion, down 5.7% from RMB 14.40 billion at the end of 2023[3]. - The total accounts payable increased to RMB 4,566,128 thousand as of June 30, 2024, from RMB 4,333,730 thousand as of December 31, 2023[50]. Operational Efficiency - Operating costs for the six months ended June 30, 2024, were RMB 8.35 billion, a 4% increase from RMB 8.04 billion in the same period of 2023, mainly due to increased revenue-sharing costs[21]. - Operating expenses for the six months ended June 30, 2024, totaled RMB 4.84 billion, a decrease of 3% from RMB 4.98 billion in the same period of 2023[23]. - The company reported a significant decrease in other income, netting only RMB 26,359 thousand for the six months ended June 30, 2024, compared to RMB 530,157 thousand for the same period in 2023[39]. Future Outlook and Strategy - The company plans to enhance commercialization capabilities and integrate various value-added services to unlock more monetization potential from its content library[15]. - The company has transitioned its secondary listing on the Hong Kong Stock Exchange to a primary listing, effective October 3, 2022, enhancing its market presence[45]. Shareholder Information - The company has not established a dividend policy and does not plan to pay any cash dividends in the foreseeable future[32]. - The board of directors did not recommend any dividends for the six months ended June 30, 2023, and 2024[55]. - The company did not declare any interim dividend for the six months ended June 30, 2024[38].

Financial Performance - Total net revenues for the second quarter of 2024 were RMB6.13 billion (US$843.1 million), representing a 16% increase year over year [2][4] - Advertising revenues increased by 30% year over year to RMB2.04 billion (US$280.4 million) [2][4] - Mobile games revenues grew by 13% year over year to RMB1.01 billion (US$138.6 million) [2][4] - Gross profit reached RMB1.83 billion (US$252.3 million), a 49% increase year over year, with a gross profit margin of 29.9%, up from 23.1% in the same period last year [2][4][5] - Net loss narrowed by 61% year over year to RMB608.1 million (US$83.7 million) [2][8] - Adjusted net loss was RMB271.0 million (US$37.3 million), narrowing by 72% year over year [2][8] User Engagement - Average daily active users (DAUs) increased by 6% year over year to 102.3 million [2][3] - Monthly active users (MAUs) grew to 336 million, with daily average time spent per user increasing to 99 minutes from 94 minutes in the same period last year [3] Operational Efficiency - Operating cash flow was RMB1.75 billion (US$240.9 million), compared to negative RMB21.2 million for the same period last year [2][8] - Total operating expenses decreased by 3% year over year to RMB2.42 billion (US$332.8 million) [6] - Sales and marketing expenses increased by 13% year over year to RMB1.04 billion (US$142.5 million), primarily due to marketing for new game launches [6] Strategic Developments - The successful launch of the strategy game "San Guo: Mou Ding Tian Xia" attracted millions of players, showcasing the company's operational capabilities beyond ACG (Anime, Comic, and Games) [3] - The company aims to enhance its commercialization capabilities to unlock community value and position itself for future profitability and growth [3]

[Performance Highlights and Management Commentary](index=3&type=section&id=Q2%202024%20Highlights) The company achieved strong Q2 2024 results with 16% revenue growth, significant advertising and gaming increases, improved gross margin, and a 61% reduction in net loss, alongside healthy user growth Q2 2024 Key Financial and Operational Metrics | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | **Total Net Revenue** | RMB 6.127 billion | +16% | | **Advertising Revenue** | RMB 2.037 billion | +30% | | **Mobile Game Revenue** | RMB 1.007 billion | +13% | | **Gross Profit** | RMB 1.833 billion | +49% | | **Gross Margin** | 29.9% | vs. 23.1% (prior period) | | **Net Loss** | RMB 608 million | Narrowed 61% | | **Adjusted Net Loss** | RMB 271 million | Narrowed 72% | | **Operating Cash Flow** | RMB 1.751 billion | vs. outflow in prior period | | **Daily Active Users (DAU)** | 102.3 million | +6% | | **Average Daily User Time Spent** | 99 minutes | vs. 94 minutes (prior period) | - Management attributes improved monetization efficiency to community development and commercial product integration, maintaining strong advertising momentum. The successful launch of the new strategy game 'Three Kingdoms: The World Settled' demonstrates the company's operational capabilities beyond ACG games, with enhanced monetization driving profitability[13](index=13&type=chunk) - The CFO highlighted the eighth consecutive quarter of gross margin improvement, significant year-over-year narrowing of adjusted operating and net losses, and positive operating cash flow this quarter, laying a strong foundation for profitability and sustainable growth[14](index=14&type=chunk) [Detailed Financial Performance](index=4&type=section&id=Q2%202024%20Financial%20Performance) Total revenue reached **RMB 6.127 billion**, up 16% year-over-year, with advertising as the strongest segment at 30% growth, while effective cost and expense control led to a 49% increase in gross profit and a 54% reduction in operating loss [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) Total revenue grew 16% year-over-year to **RMB 6.127 billion**, driven by 30% growth in advertising, 11% in value-added services, and 13% in mobile games, while IP derivatives and other businesses saw a slight 4% decline Q2 2024 Revenue Composition | Business Segment | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Value-Added Services | RMB 2.566 billion | +11% | | Advertising | RMB 2.037 billion | +30% | | Mobile Games | RMB 1.007 billion | +13% | | IP Derivatives and Others | RMB 516 million | -4% | | **Total Net Revenue** | **RMB 6.127 billion** | **+16%** | [Cost and Expense Analysis](index=4&type=section&id=Cost%20and%20Expense%20Analysis) Operating costs increased 5% due to higher revenue-sharing, while total operating expenses decreased 3%, with R&D and G&A expenses down 15% and 10% respectively due to reduced headcount, offset by a 13% rise in sales and marketing expenses for new game promotion - **Operating Costs**: Increased **5%** year-over-year to **RMB 4.294 billion**, primarily due to higher revenue-sharing costs[15](index=15&type=chunk) - **Sales and Marketing Expenses**: Increased **13%** year-over-year to **RMB 1.036 billion**, mainly due to increased marketing for new game launches[16](index=16&type=chunk) - **General and Administrative Expenses**: Decreased **10%** year-over-year to **RMB 488 million**, primarily due to reduced headcount[18](index=18&type=chunk) - **Research and Development Expenses**: Decreased **15%** year-over-year to **RMB 895 million**, primarily due to reduced headcount[18](index=18&type=chunk) [Profit and Loss Analysis](index=4&type=section&id=Profit%20and%20Loss%20Analysis) Gross profit increased **49%** to **RMB 1.833 billion** due to strong revenue growth and effective cost control, leading to significant narrowing of both operating and net losses, with net loss down 61% to **RMB 608 million** and adjusted net loss down 72% to **RMB 271 million** Q2 2024 Profit and Loss Overview | Metric | Amount (RMB) | YoY Change | | :--- | :--- | :--- | | Gross Profit | RMB 1.833 billion | +49% | | Operating Loss | RMB 585 million | Narrowed 54% | | Adjusted Operating Loss | RMB 284 million | Narrowed 69% | | Net Loss | RMB 608 million | Narrowed 61% | | Adjusted Net Loss | RMB 271 million | Narrowed 72% | [Assets and Cash Flow](index=5&type=section&id=Assets%20and%20Cash%20Flow) As of June 30, 2024, the company held **RMB 13.912 billion** in cash, cash equivalents, time deposits, and short-term investments, with operating cash flow turning positive at **RMB 1.751 billion** for the quarter, a significant improvement from an outflow - **Cash Position**: As of June 30, 2024, cash and cash equivalents, time deposits, and short-term investments totaled **RMB 13.912 billion**[20](index=20&type=chunk) - **Operating Cash Flow**: Net cash provided by operating activities was **RMB 1.751 billion** in Q2 2024, a significant improvement from a net outflow of **RMB 21.2 million** in the same period of 2023[20](index=20&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including statements of operations, balance sheets, cash flow statements, and GAAP to Non-GAAP reconciliations, providing a comprehensive overview of the company's Q2 2024 financial position and results [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows total net revenue of **RMB 6.127 billion** in Q2 2024, a 16% increase from **RMB 5.304 billion** in the prior year, with gross profit up 49% to **RMB 1.833 billion**, and net loss significantly narrowed by 61% to **RMB 608 million** from **RMB 1.548 billion** Statements of Operations Summary (For the Three Months Ended June 30, RMB thousands) | Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Total Net Revenue | 6,127,144 | 5,304,199 | | Gross Profit | 1,833,201 | 1,227,534 | | Operating Loss | (585,135) | (1,277,683) | | Net Loss | (608,149) | (1,548,132) | [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of **RMB 31.318 billion** and total liabilities of **RMB 17.737 billion** as of June 30, 2024, with cash, cash equivalents, time deposits, and short-term investments totaling **RMB 13.912 billion**, indicating a stable financial position Balance Sheets Summary (RMB thousands) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash, Time Deposits, and Short-Term Investments | 13,911,929 | 15,039,777 | | Total Assets | 31,318,493 | 33,159,067 | | Total Liabilities | 17,736,790 | 18,754,800 | | Total Shareholders' Equity | 13,581,703 | 14,404,267 | [Unaudited Condensed Consolidated Cash Flow Data Summary](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Data%20Summary) The cash flow statement summary indicates net cash provided by operating activities of **RMB 1.751 billion** in Q2 2024, a significant improvement from a net outflow of **RMB 21.18 million** in the prior year, demonstrating enhanced operational cash generation - Net cash provided by operating activities in Q2 2024 was **RMB 1,750,540 thousand**, a significant improvement compared to a net outflow of **RMB 21,181 thousand** in the same period of 2023[41](index=41&type=chunk) [Unaudited Reconciliations of GAAP and Non-GAAP Results](index=13&type=section&id=Unaudited%20Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This table details the reconciliation from GAAP metrics (e.g., operating loss, net loss) to Non-GAAP metrics, primarily excluding the impact of share-based compensation, intangible asset amortization, and fair value changes of investments, with adjusted net loss for Q2 2024 at **RMB 271 million** Net Loss to Adjusted Net Loss Reconciliation (Q2 2024, RMB thousands) | Item | Amount | | :--- | :--- | | Net Loss (GAAP) | (608,149) | | Add: Share-based compensation expenses | 259,479 | | Add: Amortization of intangible assets | 41,776 | | Add: Income tax impact | (5,407) | | Add: Loss from fair value change of investments | 41,311 | | **Adjusted Net Loss (Non-GAAP)** | **(270,990)** | [Other Information](index=6&type=section&id=Other%20Information) This section includes details on the earnings conference call, company overview, explanation of Non-GAAP financial measures, exchange rate basis, and safe harbor statement for forward-looking statements - Company management will host an earnings conference call on August 22, 2024, at 8:00 AM U.S. Eastern Time[23](index=23&type=chunk) - The company explained its use of Non-GAAP measures like adjusted operating loss and adjusted net loss, stating that excluding items such as share-based compensation helps identify underlying business trends[27](index=27&type=chunk)

Core Viewpoint - Bilibili (BILI) is experiencing a potential stock bounce, with support around the $13 region, ahead of its second-quarter earnings report [1] Group 1: Stock Performance and Analysis - BILI is currently within one standard deviation of its 126-day moving average, having remained above it 80% of the time over the past two months and within the last 10 trading days [1] - Historical data shows that after similar signals in the past three years, BILI was higher one month later once, with a gain of 11.1% [1] - The stock has had mixed post-earnings reactions over the last two years, averaging a 9.3% swing regardless of direction, while the current options market is pricing in a 14.6% move [1] Group 2: Short Interest and Market Dynamics - Short interest represents 5.1% of BILI's available float, indicating potential for an unwinding that could support the stock [2] - It would take shorts nearly three days to cover their positions based on BILI's average trading pace [2]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of $24.71 per ADS and HKD 192.56 per share [1][5][9]. Core Insights - The company is expected to achieve total revenue of RMB 61.31 billion in Q2 2024, representing a year-over-year growth of 16% and a quarter-over-quarter growth of 8%. This growth is driven by strong performance in advertising and gaming sectors [1][5]. - The gross margin is projected to reach 29.6% in Q2 2024, an increase of 6 percentage points year-over-year and 1 percentage point quarter-over-quarter [1][5]. - The launch of the game "Three Kingdoms: Strategy" has positively impacted gaming performance, with expectations for significant contributions to revenue in the second half of 2024 and into 2025 [3][5][9]. Revenue Forecast - The company anticipates total revenue growth of 20% in 2024 and 16% in 2025, reaching RMB 270 billion and RMB 312 billion, respectively [5][9]. - Advertising revenue is expected to grow by 30% in 2024 and 23% in 2025, while live streaming and value-added services (VAS) are projected to grow by 15% in both years [6][9]. - Gaming revenue is forecasted to increase by 33% in 2024 and 9% in 2025, driven by new game launches and sustained user engagement [6][9]. Profitability Outlook - The adjusted net loss for Q2 2024 is expected to be RMB 3.4 billion, with a continuous narrowing of losses compared to previous quarters [1][5]. - The report predicts that the company's gross margin will improve to 31% in 2024 and 33% in 2025, reflecting a shift towards higher-margin revenue streams [9]. - Non-GAAP net profit is projected to reach RMB -622 million in 2024 and RMB 1.549 billion in 2025, indicating a path towards profitability [9].