2024-03-27 10:30Financial Performance - Total net revenue for the year ended December 31, 2023, was RMB 22,527,987 thousand, representing a 2.9% increase from RMB 21,899,167 thousand in 2022[6] - Gross profit for the same period was RMB 5,441,865 thousand, a significant increase of 41.4% compared to RMB 3,849,295 thousand in 2022[6] - The net loss attributable to Bilibili Inc. shareholders for the year was RMB 7,497,013 thousand, which is a 35.7% increase from RMB 4,822,321 thousand in the previous year[6] - The adjusted operating loss for the year was RMB 6,257,476 thousand, which is a 45.9% increase from RMB 3,384,962 thousand in 2022[6] - The adjusted net loss for the year was RMB 6,702,373 thousand, a 49.1% increase from RMB 3,414,113 thousand in 2022[6] - The company reported an operating loss of RMB 5.06 billion in 2023, reduced from RMB 8.36 billion in 2022[25] - Net loss narrowed by 36% to RMB 4.8 billion in 2023 from RMB 7.5 billion in 2022[37] Revenue Breakdown - Total revenue for 2023 reached RMB 22.5 billion, with advertising revenue increasing by 27% and contributing 28% of total revenue, up from 23% in 2022[13] - Value-added services revenue grew to RMB 9.9 billion in 2023, a 14% increase from 2022, primarily driven by live streaming[18] - Advertising revenue reached RMB 6.41 billion in 2023, a 27% increase from RMB 5.06 billion in 2022, driven by product optimization and improved advertising efficiency[28] - Mobile gaming revenue totaled RMB 4 billion in 2023, a decrease of 20% from RMB 5 billion in 2022, primarily due to a lack of new game launches[29] - The revenue from value-added services was RMB 9.91 billion in 2023, a 14% increase from RMB 8.72 billion in 2022, driven by growth in live streaming and other services[27] - The revenue from IP derivatives and others was RMB 2.18 billion in 2023, a decrease of 29% from RMB 3.1 billion in 2022, mainly due to reduced income from esports licensing[29] User Engagement and Growth - Daily active users (DAUs) exceeded 100 million in the second half of 2023, with an average of 98 million DAUs for the year, representing a year-on-year growth of 14%[12] - The number of active content creators increased by 24% year-on-year, with over 3 million creators earning income through various channels, a 30% increase from the previous year[15] - The average daily usage time per user reached 97 minutes, with total user engagement increasing by 17% year-on-year[12] - The community's official membership increased to 230 million by the end of 2023, an 18% year-on-year growth[16] - The number of premium members reached approximately 21.9 million by the end of December 2023, with over 80% being annual or auto-renewing subscribers[19] Cost Management and Expenses - Operating expenses decreased to RMB 10.51 billion in 2023, down 14% from RMB 12.21 billion in 2022[32] - Sales and marketing expenses decreased by 20% to RMB 3.9 billion in 2023 from RMB 4.9 billion in 2022, primarily due to reduced user acquisition promotion expenses[33] - General and administrative expenses decreased by 16% to RMB 2.1 billion in 2023 from RMB 2.5 billion in 2022, mainly due to a reduction in the number of general and administrative staff and a decrease in expected credit loss provisions[33] - Research and development expenses decreased by 6% to RMB 4.5 billion in 2023 from RMB 4.8 billion in 2022, primarily due to a reduction in the number of R&D personnel and decreased costs associated with the termination of certain game projects[33] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 41,830,570 thousand, reflecting a 20.7% increase from RMB 33,159,067 thousand in 2022[7] - Total liabilities increased by 29.5% to RMB 26,590,983 thousand from RMB 18,754,800 thousand in the previous year[7] - The total equity attributable to shareholders increased by 5.5% to RMB 15,239,587 thousand from RMB 14,404,267 thousand in the previous year[7] - As of December 31, 2023, cash and cash equivalents, restricted cash, time deposits, and short-term investments totaled RMB 15.1 billion, down from RMB 19.6 billion as of December 31, 2022, primarily due to the repurchase of notes[38] - The company's debt-to-asset ratio improved to 56.6% as of December 31, 2023, from 63.6% as of December 31, 2022[39] Corporate Governance and Structure - The company operates under a dual-class voting structure, allowing Class Y shareholders to have ten votes per share, while Class Z shareholders have one vote per share[89] - The board consists of more than 50% independent directors, ensuring independent judgment and protection of shareholder interests[154] - The company has adopted a corporate governance code that is not less stringent than the standard code, ensuring compliance among all directors and relevant staff[132] - The independent directors have confirmed their independence according to the listing rules, ensuring proper governance oversight[127] - The board is responsible for major decisions, including company policies, strategies, budgets, internal controls, risk management, and significant transactions[141] Risks and Challenges - The company operates in a rapidly evolving industry, facing significant risks related to the successful implementation of commercialization strategies and the ability to generate sustainable revenue and profits[50] - The company has incurred substantial losses and may continue to face losses in the future[50] - Increased content costs on the platform may negatively affect the company's business, financial condition, and operating performance[50] - Regulatory uncertainties exist regarding the management of online live streaming and e-commerce, as outlined in government notifications issued in 2020 and 2021[52] - The company faces risks related to its corporate structure, as it operates through variable interest entities and may be subject to penalties if its agreements are deemed non-compliant with Chinese laws[53] Shareholder Communication and Relations - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[173] - The company has implemented a shareholder communication policy to establish channels for interaction between the company, its shareholders, investors, and other stakeholders[174] - Shareholders can propose candidates for director positions, with procedures available on the company's website[171] - The company encourages shareholders and potential investors to visit its investor relations website for comprehensive information[173] Employee and Board Diversity - The company has adopted a board diversity policy, aiming to enhance diversity, including gender diversity, as a key factor in maintaining competitive advantage[152] - As of December 31, 2023, the company has 8,801 employees, with approximately 56.8% male and 43.2% female, indicating a commitment to gender diversity[153] - The board consists of 7 members, including 6 male directors and 1 female director, representing approximately 14.3% gender diversity on the board[152] Future Outlook and Strategy - The company aims to enhance its commercialization capabilities through improved technology infrastructure and product enhancements in 2024[24] - The company has adopted a "community-first" development strategy, focusing on high-quality content investment to attract the younger generation[116] - The company continues to innovate in technology, particularly in developing interactive features like bullet comments, which are crucial for user engagement[118]