Core Viewpoint - Bilibili (B站) is entering a steady profitability cycle, with significant revenue growth and a shift towards positive net profit, contrasting with its competitor iQIYI's declining revenue and increasing losses [1][2]. Financial Performance - In Q2 2025, Bilibili's revenue increased by 20% year-on-year to 7.338 billion yuan, with a net profit of 218 million yuan, compared to a net loss of 608 million yuan in the same period of 2024 [1]. - Adjusted net profit for the same period was 561 million yuan, up from a loss of 272 million yuan in 2024 [1]. Revenue Breakdown - Bilibili's revenue sources in Q2 included: - Value-added services: 39% - Advertising: 33% - Gaming: 22% - IP derivatives and others: 6% [3]. - Advertising revenue grew by 20% to 2.45 billion yuan, with brand advertising and performance advertising increasing by approximately 30% [3][4]. User Engagement - Daily active users increased by 7% to 109 million, while monthly active users rose by 8% to 363 million [7]. - The average daily usage time per user was 105 minutes, a 6-minute increase from the previous year [7][8]. Market Trends - Bilibili's gaming revenue surged by 60% to 1.61 billion yuan, with popular titles maintaining user engagement [5]. - The company noted a significant increase in advertising revenue from home appliances, driven by national subsidy policies [4][5]. Cost Management and Profitability - Bilibili's gross margin improved by 6.6 percentage points to 36.5%, supported by high growth in gaming and advertising [11]. - The company aims to maintain a mid-term gross margin target of 40% to 45% and expects operational expenses to decrease in the second half of the year [11]. Cash Position - As of June 30, Bilibili had cash and cash equivalents, along with short-term investments, totaling 22.29 billion yuan [12].

Core Viewpoint - Bilibili's chairman Chen Rui's annual salary of 254 million yuan has sparked significant public outrage, especially given the company's history of losses and the stark contrast with other industry leaders like Tencent's Ma Huateng, whose salary is only 45.07 million yuan [1][3]. Group 1: Salary Breakdown - Chen Rui's reported salary is primarily composed of stock incentives, with 99.1% of the total being stock options rather than cash [3][5]. - The basic salary is 2.115 million yuan, accounting for approximately 0.83% of the total compensation [5]. Group 2: Company Performance - Bilibili is projected to turn a profit in 2024 after nine consecutive years of losses, marking a significant milestone for the company [7][9]. - The turnaround is attributed to two main factors: a 40% increase in game revenue, reaching 5.61 billion yuan, and a 40% growth in advertising revenue as brands increasingly target young users on the platform [9][12]. Group 3: Public Sentiment and Industry Context - The public reaction is fueled by the perception of disparity between high executive compensation and the struggles of regular employees, especially in light of recent industry layoffs [9][12]. - Concerns are raised about whether the high-level incentives are shared with lower-level employees and if the performance metrics for these incentives are genuinely tied to company success rather than superficial achievements [16][17].