BILIBILI(HK:09626) Di Yi Cai Jing·2025-08-21 14:30Core Insights - Bilibili (B站) reported its most profitable quarter in history for Q2, with total revenue of 7.34 billion RMB, a 20% year-on-year increase, and net profit reaching 220 million RMB, marking a significant turnaround from a net loss of 600 million RMB in the same period last year [1][3][4] Revenue Breakdown - The revenue from value-added services was 2.84 billion RMB, up 11% year-on-year, making it the largest source of income for the company [5] - Advertising revenue reached 2.45 billion RMB, a 20% increase year-on-year, with significant growth in effect advertising, which rose approximately 30% [4][5] - Game revenue surged to 1.61 billion RMB, reflecting a 60% year-on-year growth, driven by the success of the game "Three Kingdoms: Strategy of the World" [4][5] User Engagement - Daily active users (DAU) reached 109 million, a 7% increase year-on-year, while monthly active users (MAU) hit 363 million, up 8% year-on-year [5] - The average age of users increased to 26 years, with new users averaging 22 years old [5] Financial Health - As of June 30, 2025, Bilibili held cash and cash equivalents totaling 22.29 billion RMB [5] - The company achieved a gross margin increase from 29.9% in the previous year to 36.5% in Q2 [4] Future Outlook - Bilibili's CEO mentioned that AI content is the fastest-growing technology category, with advancements in AI-assisted content creation expected to enhance user engagement and content quality [5] - The company has 4-5 games awaiting approval, indicating a strong pipeline for future growth in the gaming sector [4]