Group 1 - Bilibili-W (09626) shares increased by nearly 5%, reaching 216 HKD with a trading volume of 731 million HKD [1] - On September 24, the National Press and Publication Administration released a new batch of gaming licenses, approving 156 games, including 145 domestic and 11 imported titles, marking the third month this year with over 150 licenses issued [1] - According to Open Source Securities, the current gaming industry cycle may exceed market expectations due to supply-demand resonance, and the sector's valuation remains attractive, suggesting continued investment in gaming [1] Group 2 - Guosen Securities reported that Bilibili's mobile gaming revenue for the first half of the year reached 3.34 billion CNY, a year-on-year increase of 68%, driven by the game "Three Kingdoms: Strategy of the World" [1] - Evergreen products such as "Fate/Grand Order" and "Azur Lane" continue to perform steadily [1] - In Q2 2025, Bilibili's gaming business generated 1.61 billion CNY in revenue, a 60% year-on-year increase, primarily due to the strong performance of "Three Kingdoms" [1] - The company is currently piloting a mini-game version of "Three Kingdoms" and plans to launch an international version in the second half of 2025 [1] - Bilibili has 4 to 5 games awaiting approval, including a casual game based on the Three Kingdoms IP [1]

Core Viewpoint - Bilibili is launching a new strategy card game titled "Three Kingdoms: Hundred Generals Card," which aims to attract younger users and expand its gaming portfolio, following the success of "Three Kingdoms: Strategize the World" [1][3][4] Group 1: Game Development and Strategy - The game "Three Kingdoms: Hundred Generals Card" is designed as a card game incorporating skills from Three Kingdoms generals, utilizing classic card game rules like "landlord" while adding unique elements [5][9] - Bilibili's strategy focuses on appealing to younger audiences by modernizing traditional gaming formats, as seen in the success of "Three Kingdoms: Strategize the World," which achieved a revenue of 1.61 billion yuan in Q2, a 60% year-on-year increase [7][8] - The game aims to create a new experience by lowering the entry barrier for players, targeting a broader audience rather than niche gamers [9][11] Group 2: Market Environment and Challenges - The gaming market is facing challenges, with a reported 8% decline in revenue for the mobile gaming sector, particularly affecting the two-dimensional game segment [8] - Despite the challenges, Bilibili is diversifying its gaming offerings to include card games, which have shown stable performance in the mobile gaming market [11][12] - The competitive landscape includes established titles like "Fate/Grand Order" and "Blue Archive," which continue to perform well, indicating a tough environment for new entrants [8] Group 3: Platform Integration and Marketing - Bilibili's integrated approach as a developer, publisher, and platform allows it to leverage its resources effectively for game promotion, including significant support for content creators [13][18] - The platform's user engagement is reflected in a 21% increase in game content viewing time in Q2, highlighting its role as a key marketing channel for new games [18][20] - The launch of "Three Kingdoms: Hundred Generals Card" is positioned as a strategic move to enhance user engagement and platform content, utilizing popular influencers for promotion [20]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company achieved revenue of 7.338 billion yuan in Q2 2025, representing a year-over-year increase of 19.8%, and adjusted net profit of 561 million yuan, marking a return to profitability [6] - The gross margin for Q2 was 36.5%, an increase of 6.5 percentage points year-over-year [6] - Mobile game revenue reached 1.61 billion yuan, up 60% year-over-year; value-added services revenue was 2.84 billion yuan, up 11% year-over-year; advertising revenue exceeded expectations at 2.45 billion yuan, up 20% year-over-year; while IP derivatives and other income decreased by 15% year-over-year to 440 million yuan [6][7] - The core user base is growing healthily, with daily active users (DAU) reaching 108 million, up 6% year-over-year, and monthly active users (MAU) at 365 million, up 8% year-over-year [8] - The company expects revenues of 30.08 billion yuan, 33.12 billion yuan, and 36.15 billion yuan for 2025, 2026, and 2027 respectively, with adjusted net profits of 2.11 billion yuan, 2.96 billion yuan, and 3.89 billion yuan for the same years [9] Financial Summary - Total revenue for 2024 is projected at 26.832 billion yuan, with a year-over-year growth of 19.1% [12] - Adjusted net profit for 2025 is expected to be 2.114 billion yuan, a significant increase from a loss of 22 million yuan in 2024 [12] - The company’s gross margin is projected to improve from 32.7% in 2024 to 39.7% in 2027 [14] - The earnings per share (EPS) is forecasted to rise from -0.05 yuan in 2024 to 9.42 yuan in 2027 [15]

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].

Core Insights - Bilibili has stabilized its operational rhythm after three months, reporting a significant turnaround in its Q2 2025 financial results with a revenue increase of 20% year-on-year to 7.34 billion yuan and achieving record net profits of 220 million yuan and adjusted net profits of 560 million yuan [1][5][28] Revenue Breakdown - The revenue composition for Q2 2025 is as follows: value-added services (39%), advertising (33%), gaming (22%), and other IP-related products (6%), with gaming's share slightly decreasing by 3% while advertising increased by 4% [6][9] - Value-added services remain the core revenue driver, with a year-on-year growth of 11% to 2.84 billion yuan, and over 80% of users are annual subscribers or auto-renewal users [9][10] User Engagement and Demographics - Monthly Active Users (MAU) increased by 8% year-on-year to 363 million, with a slight decline of 5 million users quarter-on-quarter, indicating improved operational efficiency and user stickiness [4][33] - The average age of Bilibili users has risen to 26, while new users average 22 years old, reflecting a shift in disposable income and consumption patterns [11][12] Advertising Performance - Advertising revenue grew by 20% year-on-year to 2.45 billion yuan, with performance ads seeing nearly 30% growth [12][15] - The top five advertising sectors in Q2 2025 were gaming, digital appliances, e-commerce, online services, and automotive, with gaming contributing significantly to new revenue streams [15][21] Gaming Business Growth - The gaming segment saw a remarkable 60% year-on-year growth, reaching 1.61 billion yuan, driven by popular titles and significant updates [21][25] - The game "Three Kingdoms: Strategy of the World" has been pivotal, achieving record daily active users during its anniversary and is expected to perform well in upcoming markets [26][27] Community and Content Consumption - Daily Active Users (DAU) reached a historical high of 109 million, with a 7% year-on-year increase, and the average daily usage time was 105 minutes, reflecting strong community engagement [33][37] - The platform has evolved from a niche community to a broader content platform, with significant growth in user-generated content across various categories [38] Cost and Profitability - Bilibili's gross profit increased by 46% year-on-year, with gross margin rising from 29.9% to 36.5% [28] - Operating costs grew by 9% to 4.66 billion yuan, with revenue-sharing costs increasing by 19% to 2.97 billion yuan, aligning with revenue growth [39] Future Outlook - Bilibili plans to enhance its advertising capabilities through AI technology, aiming to improve user value and advertising efficiency [18][43] - The company is confident in its long-term gaming strategy, with multiple titles in the pipeline and a commitment to maintaining user engagement over extended periods [30][31]

Core Viewpoint - Bilibili (B站) reported a record high revenue of 7.34 billion RMB for Q2 2025, with net profit and adjusted net profit reaching 220 million RMB and 560 million RMB respectively, aligning with market expectations and indicating a stable growth trajectory under its established strategy [2][3]. Financial Performance - Bilibili's revenue for the quarter was 73.4 billion RMB, with a year-on-year growth of approximately 17.5% to 20.3% [3]. - The advertising revenue was 2.45 billion RMB, showing a growth of around 20%, driven mainly by performance advertising [4]. - The revenue from value-added services reached 2.84 billion RMB, with an 11% increase, primarily supported by live streaming [4]. - The gaming segment, particularly the game "Three Kingdoms: Strategize the World," significantly contributed to profitability, achieving 1 billion RMB in revenue shortly after launch [4][5]. User Engagement and Growth - Bilibili's daily active users reached 109 million, a 7% year-on-year increase, while monthly active users hit 363 million, growing by 8% [7]. - The average daily usage time per user was 105 minutes, reflecting a 6-minute increase compared to the previous year [7]. - The number of monthly paying users reached 31 million, marking a 9% growth [7]. Content Ecosystem and Monetization - Bilibili is focusing on building a healthier content ecosystem, exploring avenues such as video podcasts and a more diversified monetization strategy for content creators (UP主) [3][14]. - The platform has seen a significant increase in advertising revenue from e-commerce, with a 41% year-on-year growth during the recent 618 shopping festival [10]. - The number of UP主 generating over 10 million GMV increased by 66%, indicating a robust growth in content-driven commerce [10]. Strategic Outlook - Bilibili aims to enhance its community atmosphere and explore valuable content creation, with video podcasts emerging as a promising area for growth [14][16]. - The platform's strategy includes connecting diverse user groups and creators, fostering a multi-faceted content ecosystem that supports both commercial and serious content creation [16].

Core Viewpoint - Bilibili (B站) reported a strong financial performance for Q2 2025, with revenue reaching 7.34 billion RMB, a year-on-year increase of 20%, driven by growth in advertising and gaming sectors, alongside a thriving community ecosystem [2][9]. Financial Performance - Total revenue for Q2 2025 was 7.34 billion RMB, marking a 20% year-on-year growth [2][14]. - Advertising revenue reached 2.45 billion RMB, also up 20% year-on-year [9][15]. - Gaming revenue surged to 1.61 billion RMB, reflecting a 60% year-on-year increase [10][15]. - Gross profit increased by 46% year-on-year, with a gross margin of 36.5%, marking the twelfth consecutive quarter of improvement [10][16]. - Adjusted net profit reached 560 million RMB, a historical high [2][14]. User Engagement and Community Growth - Daily active users reached 109 million, a 7% increase year-on-year, while monthly active users hit 363 million, up 8% [2][17]. - Users spent an average of 105 minutes daily on the platform, a 6-minute increase from the previous year [2][17]. - The number of monthly paying users grew to 31 million, reflecting a 9% year-on-year increase [2][17]. - The community's engagement is further evidenced by the high retention rate of "official members," which stands at 80% [4]. Content Ecosystem and Trends - The platform's focus on high-quality content has led to a 20% year-on-year increase in the viewing time of videos longer than 5 minutes [4]. - The anime and gaming content categories continue to thrive, with significant increases in viewing time [5][6]. - AI content emerged as the fastest-growing category, with a 61% increase in viewing time [6]. - The platform has successfully attracted a younger audience, with the average user age at 26, while new users average 22 years old [4][17]. Commercialization and Advertising Growth - The revenue structure is diversified, with value-added services contributing 39%, advertising 33%, gaming 22%, and IP derivatives and other businesses 6% [9][15]. - The number of advertisers increased by over 20% year-on-year, driven by the platform's appeal to young consumers [9][19]. - The effectiveness of advertising is highlighted by a nearly 50% year-on-year increase in GMV for products priced over 1,000 RMB during promotional events [9]. Game and Service Development - Gaming revenue growth is attributed to successful long-term operations and anniversary events for popular titles [10]. - The number of premium members reached 23.7 million, with over 80% being annual or auto-renewal subscribers [10][18]. - The platform continues to enhance monetization opportunities for creators, with approximately 2 million creators earning income through various channels [6][18].

Core Insights - Bilibili (B站) reported a total revenue of 7.34 billion RMB for Q2 2025, marking a 20% year-on-year growth [1][4] - The company's advertising revenue reached 2.45 billion RMB, also up 20% year-on-year, while game revenue surged by 60% to 1.61 billion RMB [1][4][6] - Bilibili's gross profit increased by 46% year-on-year, with a gross margin of 36.5%, the highest in twelve quarters [1][4] Revenue Breakdown - Revenue contributions for Q2 2025 were as follows: value-added services (39%), advertising (33%), games (22%), and IP derivatives and other businesses (6%) [4] - The advertising sector saw significant growth, with brand advertising maintaining healthy growth and performance advertising increasing by approximately 30% year-on-year [4] Game Business Highlights - The game segment was a standout performer, with a 60% increase in revenue, driven by popular titles such as "三国：谋定天下" and established games like "FGO" and "碧蓝航线" [3][6] - Bilibili's mobile game revenue for the first half of the year reached 3.34 billion RMB, reflecting a 68% year-on-year increase [6] AI Development and Content Creation - AI content became the fastest-growing tech category on Bilibili, with a 61% year-on-year increase in playback time and a 45% rise in daily submissions [10] - The company is developing AI-assisted tools to help creators produce high-quality content, aiming to eliminate the "AI taste" in videos [22][23] Community and User Engagement - Approximately 2 million creators (UP主) earned income through various channels, with significant growth in those benefiting from advertising and live streaming [4][5] - Bilibili World (BW) attracted over 400,000 attendees, showcasing the platform's influence in the ACG (Animation, Comics, Games) community [23]

Core Viewpoint - Bilibili (B站) reported its Q2 2025 earnings, achieving a revenue of 7.34 billion yuan, a 20% year-on-year increase, and a net profit of 220 million yuan, marking its most profitable quarter since going public [2][3]. Revenue and Profitability - Bilibili's revenue for Q2 reached 7.34 billion yuan, up 20% year-on-year, with a net profit of 220 million yuan and an adjusted net profit of 560 million yuan, compared to a net loss of 600 million yuan in the same quarter of 2024 [2][3]. - The gross margin has improved for 12 consecutive quarters, rising from 29.9% in the same period last year to 36.5% [2]. User Engagement - Daily active users (DAU) reached a historical high of 109 million, representing a 7% year-on-year increase, while monthly active users (MAU) reached 363 million, up 8% year-on-year [9][10]. - The average daily usage time per user increased to 105 minutes, up by 6 minutes compared to the same period last year [10]. Business Segments - The gaming segment saw a significant revenue increase of 60% year-on-year, reaching 1.61 billion yuan, driven by the performance of the game "Three Kingdoms: Strategy of the World" [3][4]. - Advertising revenue also showed strong growth, with Q2 income reaching 2.45 billion yuan, a 20% year-on-year increase, and effect advertising revenue growing approximately 30% [3][8]. Strategic Developments - Bilibili's CEO mentioned that "Three Kingdoms: Strategy of the World" has entered a stable operational phase and is expected to have a lifecycle of over five years [5]. - The company is focusing on long-term game operations, with several games awaiting approval for release [5]. Advertising and AI Integration - The advertising business benefited from improved integration capabilities, with over 50% of content creators participating in advertising campaigns [8]. - AI technology is expected to enhance advertising revenue by improving distribution efficiency and generating content for ads [9]. Community and Content Ecosystem - Bilibili is cultivating a unique cultural ecosystem that balances high-quality content with community engagement, which is seen as a pathway to long-term monetization [11]. - The platform's ability to attract quality content has been demonstrated by the successful launch of the game "Black Myth: Wukong," which garnered over 12 million views shortly after its release [11].

Core Viewpoint - Bilibili (NASDAQ:BILI; HKEX:9626) continues its growth momentum from Q1 into Q2 2025, achieving a revenue of 7.34 billion yuan, a year-on-year increase of 20% driven by its four main business segments: value-added services, advertising, gaming, and IP derivatives [1] Group 1: Financial Performance - The most notable highlight of this quarter is the breakthrough in profitability, with gross profit increasing by 46% year-on-year, reaching a gross margin of 36.5%, marking the twelfth consecutive quarter of growth [2] - Net profit and adjusted net profit both reached historical highs of 220 million yuan and 560 million yuan, respectively [2] Group 2: User Engagement - Daily active users reached a record high of 109 million, while monthly active users increased to 363 million, demonstrating the platform's strong content ecosystem [3] - Monthly paying users reached 31 million, with average daily usage time increasing by 6 minutes to 105 minutes, and the retention rate for members after 12 months remained stable at 80% [3][4] Group 3: Gaming Business - The gaming segment saw a significant revenue increase of 60%, reaching 1.61 billion yuan, driven by the success of flagship products [5] - The mobile game "Three Kingdoms: Strategize" achieved record user engagement during its anniversary, indicating the sustainability of its monetization models [6] - Bilibili's long-standing games also performed well, with "Fate/Grand Order" returning to the top five bestsellers during its ninth anniversary [7] Group 4: Advertising Business - The advertising segment maintained strong growth, with revenue increasing by 20% to 2.45 billion yuan [9] - Key drivers for advertising growth include a balanced advertising structure, an expanding client base, and enhanced conversion rates, with brand advertising revenue growing significantly [10] - AI technology is expected to further enhance advertising operations, improving targeting accuracy and operational efficiency [10] Group 5: Overall Strategy - Bilibili is on a path of "dual growth in scale and profit," leveraging its community ecosystem and quality content to solidify current advantages and lay the groundwork for future growth [11]