Operator: Good day, and welcome to the Bilibili Second Quarter 2026 Financial Results and Business Update Conference Call. Today’s conference is being recorded. At this time, I would like to turn the call over to Juliet Yang, Executive Director of Investor Relations. Please go ahead.

Juliet Yang, Executive Director of Investor Relations, Bilibili: Thank you, operator. During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially from those mentioned in today’s news release and in this discussion due to a number of risks and uncertainties, including those mentioned in our most recent filing with the SEC and Hong Kong Stock Exchange. The non-GAAP financial measure we provide are for comparison purpose only. The definition of this measure and the reconciliation table are available in the news release we issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the Bilibili IR website at ir.bilibili.com.

Joining us today from Bilibili senior management are Mr. Rui Chen, Chairman of the Board and Chief Executive Officer, Ms. Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, and Mr. Sam Fan, Chief Financial Officer. I will now turn the call to Mr. Chen.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: Thank you, Juliet, and thank you to everyone joining us today. Our strong momentum carried into the second quarter, and we delivered another set of solid results. Both our community and top-line growth remained healthy, and profitability continued to expand. As users increasingly seek substance over noise, our high-quality content and authentic community experience keep attracting new users and driving deeper engagement. In Q2, DAUs increased by 7% year-over-year to 117 million, while MAUs grew to 371 million. Average daily time spent rose to 113 minutes from 105 minutes a year ago, which drove total time spent up over 14%. That engagement is translating into stronger commercial results. Advertising revenue grew 28% year-over-year, marking another quarter of industry-leading growth. Meanwhile, MPUs increased 7% year-over-year to 33.4 million, reflecting users’ increasing willingness to pay for the content and community experiences they truly value.

You can also see that momentum in our financial results. Total revenues for Q2 rose 8% to RMB 7.9 billion, and gross profit grew 10% year-over-year. Gross margin expanded to 37.2%, marking our 16th consecutive quarter of margin improvement. Our top-line growth and increased operating leverage drove our net profit up 55% year-over-year, and our adjusted net profit reached RMB 704 million, with our adjusted net profit margin expanding to 8.9%. In the AI era, we see two major tailwinds. First, AI tools help our creators produce great content much faster, while AI-empowered content understanding is making our recommendations far more efficient. Second, and perhaps more importantly, in a world full of passive algorithmic content, real human connection becomes a rare commodity. People choose Bilibili because they want meaningful content, shared interests, and genuine interactions, and that makes our community even more attractive.

That is why we remain committed to our AI strategy while staying highly disciplined in how we invest. We will use AI to improve content and efficiency without losing sight of our community roots and unique advantage. Strengthening this flywheel of community and monetization will continue to build lasting, compounding value for our users, our creators, and our shareholders. With that, let me walk you through our core pillars of content, community, and commercialization. Let’s start with our content. Across our 17-year history, various content formats have come and gone, but Bilibili’s distinct blend of quality content and vibrant interest-driven communities continues to capture users’ intentional high-value time. In Q2, total time spent on our platform expanded by 14% year-over-year. Notably, watch time from videos over five minutes grew by 18% year-over-year, demonstrating users’ growing demand for meaningful and high-quality content.

Turning to our interest-based content categories, we are seeing steady growth across both core and emerging hubs. Total watch time for game-related content and general entertainment content increased by 20% and 35% year-over-year respectively. Baby and maternity also grew by 36% year-over-year as more of our users step into parenthood. At the same time, AI tools are expanding creative boundaries across our platform. For instance, watch time for music content grew 24% year-over-year, catalyzed by AIGC-driven creations. Beyond content consumption, AI is also supercharging creator output. In Q2, daily video submissions jumped by 28% compared to the same period last year. Video podcasts offer another compelling example of our users embracing immersive content. Last month, average daily watch time for video podcasts exceeded 100 million minutes.

This remarkable engagement shows that even in today’s world of fast-paced content, there is still a huge and growing appetite for in-depth storytelling. Behind these figures, empowering creators remains a top priority. Through refined algorithms, we now match quality content with interested users much earlier. In Q2, the number of creators with over 1,000 followers grew by 30% year-over-year. The diverse monetization channels we provide also helped average creator income increase by 21% year-over-year in the second quarter. Turning to our community. As we touched on earlier, authentic human connection has become rare and valuable in the era of automated bite-sized content. That is why Bilibili’s interactive community feels like a true oasis in today’s digital world. Here, hundreds of millions of users connect over shared passions, expressing their feelings through comments and bullet chats to find a genuine sense of belonging.

In Q2, monthly interactions grew 9% year-over-year to 17.4 billion, while deeper connections like long comments jumped over 67%. Meanwhile, by processing these rich user interactions, our algorithms can spot and elevate high-quality content much faster, driving healthy, steady growth in both our user base and time spent. This level of engagement and interaction naturally keeps users coming back and expands our network of trust. In Q2, the average active user followed 96 creators, up 11% from a year ago. By the end of Q2, our official members reached 299 million, with 12-month retention remaining solid at around 80%. Ultimately, our community doesn’t just surface the best content, it builds lasting user loyalty and drives enduring platform value. This summer, we brought our community offline once again through our signature events, Bilibili World and Bilibili Macro Link.

Over the three-day event, more than 400,000 fans gathered in person in Shanghai, making it one of the largest offline ACG expos in China and a vibrant new cultural landmark for the city. Seeing so many young people come together to share their passions was a powerful reminder of what community means. This is what Bilibili looks like off-screen: authentic, energetic, and deeply connected. Let’s turn to our commercial businesses, beginning with advertising. In Q2, advertising revenue increased by 28% year-over-year to RMB 3.1 billion, marking our 14th straight quarter of 20% year-over-year growth. This industry-leading growth reflects our high-value, deeply engaged user base, alongside ongoing enhancements to our ad products and technical infrastructure. Growth was broad-based across industries, games, digital products and home appliances, internet services, e-commerce, and automotive were our five largest advertising verticals in Q2.

While our core gaming vertical maintained healthy growth, new verticals are also flourishing as our users mature into new life stages with expanding consumption needs. Ad revenues from home decoration, footwear and apparel, and automotive each grew more than 60% year-over-year. We also captured incremental budget from emerging industries. AI advertisers continued to scale, and revenues from this vertical more than doubled year-over-year, driving sustained growth in internet services. Our ads are also becoming more efficient. By deepening our understanding of product information, creative assets, user interests, and conversion goals, AI helps us deliver more relevant ads and drive better conversion. Our CTCVR continued to improve, increasing 19% year-over-year in Q2. Beyond matching, we are extending AI across creative production and campaign operations from AIGC tools to ad placement AI agents, making advertising easier and more efficient for a broader range of clients.

We are also extending monetization into deeper high-intent user scenarios. Take search, for example, a high-value scenario sitting right at the moment of decision-making. Search revenues doubled year-over-year in Q2. At the same time, we are unlocking growth across additional scenarios, including PC, smart TV, and the watch page. As monetization expands across the entire user journey, we see vast commercial potential ahead. Turning to our games business. Game revenues for the quarter were RMB 1.4 billion, down 14% year-over-year, mainly due to the high base Sanmo: 三国：谋定天下 set last year. Sanmo’s latest second anniversary season 15 went well with players, ranking number 2 on China’s iOS top-grossing chart. We’ll keep focusing on the game’s long-term life cycle by delivering fresh content and carefully balancing user experience with monetization.

Meanwhile, our legacy titles, including Fate/Grand Order and Azur Lane, continue to deliver stable performance during the quarter. In July, we officially launched our casual card game, N-Card: 三国：百将牌. We continue to refine the game and enrich its gameplay while approaching user acquisition with a long-term focus on ROI and retention. Looking at the second half of 2026, our self-developed simulation game, Lumi Master, 闪耀吧！噜咪, was well-received by global players in recent tests. Building on this encouraging reception, we plan to launch the game on September 17 globally. Sanwang: 三国志：王道天下, our new licensed SLG title, is scheduled to roll out in Q4, complementing Sanmo with a differentiated gameplay experience.

Beyond Lumi and Sanwang, we also introduced three new titles at Bilibili World, including two licensed games, Ragnarok Online 3, 仙境传说3, an MMORPG based on a globally recognized IP that has already secured its publication license, and MISTBOUND: Guild Wars Card Game, 激战：大牌英雄, which is adapted from another well-known IP. We also announced a new self-developed tactical RPG, Three Kingdoms: The Ravages of Time, 三国：火凤燎原. All three titles will be released next year. Together, these titles expand our pipeline across genres and development models while attracting new player segments. Turning to our VAS business. In Q2, VAS revenues grew 5% year-over-year to RMB 3.0 billion. Our live broadcasting business maintained its steady performance, and we continue to refine our operations to ensure stable and sustainable growth with better margins.

At the end of Q2, premium members reached 25.7 million, up 9% year-over-year, with around 80% on annual or auto-renewal plans. Fan charging also kept its momentum, with revenue up nearly 50% year-over-year. Fan charging turns audience appreciation into direct financial support, so creators across a wide range of categories can do what they love and produce quality content over the long term. Beyond the numbers, we remain deeply committed to shaping a healthy culture and community for China’s young generation. ESG principles are central to that mission. This year, MSCI ESG upgraded Bilibili to an AA rating from an A rating, recognizing our ongoing progress in using technology and culture to create meaningful social impact. At the end of the day, we found that across every technological shift, one thing remains constant. People crave rich, meaningful content and real human connection.

Bilibili is uniquely built at the intersection of both. As AI enables us to fulfill this mission with greater precision and scale, I couldn’t be more confident in our path ahead. With that, I will turn the call over to Sam to walk through our financials in more detail. Sam?

Sam Fan, Chief Financial Officer, Bilibili: Thank you, Mr. Chen, and hello, everyone. In the interest of time on today’s call, I will focus on our second quarter financial highlights. We encourage you to refer to our press release issued earlier today for a closer look at our results. Total revenues for the second quarter were RMB 7.9 billion, up 8% year-over-year. The breakdown of total revenues by revenue stream was approximately 39% advertising, 37% VAS, 18% mobile games, and 6% from our IP derivatives and other businesses. Cost of revenues increased by 7% year-over-year to RMB 5.0 billion. Gross profit increased around 10% year-over-year to RMB 3.0 billion, while gross margin expanded to 37.2% from 36.5% in the same period last year, marking our 16th consecutive quarter of margin improvement. Our total operating expenses were up 7% year-over-year to RMB 2.6 billion.

Sales and marketing expenses increased by 1% year-over-year. G&A expenses were flat, and R&D expenses increased by 16%, primarily due to continued investment in our AI capabilities. Operating profit increased 48% year-over-year to RMB 373 million, while adjusted operating profit increased 21% to RMB 696 million, lifting adjusted operating profit margin to 8.8% from 7.8% in the same period last year. Net profit increased by 55% year-over-year to RMB 339 million, while adjusted net profit increased 25% to RMB 704 million, and adjusted net profit margin reached 8.9%. As of June 30, 2026, we had cash and cash equivalents, time deposits, and short-term investments of RMB 24.3 billion, or $3.6 billion. In June, our board approved a new two-year, $300 million share repurchase program.

Under this new program, a total of 1.9 million shares had been purchased for a total cost of $31 million as of June 30, 2026. From the beginning of the year through today, a total of 5.8 million shares had been purchased for a total cost of $118 million. Moving forward, we will continue to evaluate market conditions and execute our repurchase program accordingly to enhance long-term shareholder value. Thank you for your attention. We would now like to open the call to your questions. Operator, please go ahead.

Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star one one again. For the benefit of all participants on today’s call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. The company will provide consecutive interpretation for the management statement during the Q&A session. Please note that the English interpretation is for convenience purposes only. In the case of any discrepancy, management statements in their original language will prevail. Now we are going to take our first question. Just give us a moment. The question comes line of Lincoln Kong from Goldman Sachs. Your line is open. Please ask the question.

Lincoln Kong, Analyst, Goldman Sachs: Thank you management for taking my question, and congrats on a very solid quarter. Looking back over the past few years, short-form contents have surged while the average length of the

long-form video has also steadily decreased. What is driving this resilience? Looking ahead to the AI era, how do we expect user preference and the consumption habits to evolve over time? Thank you.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 其实过去几年，无论是短视频还是长视频，都是爆炸式的增长，只不过呢，是短视频它增长的这个速度更快。而且我觉得我们并不是在短视频和长视频当中去做选择，我们选择的是好的内容，选择的是高质量的内容，而高质量的内容大多数确实是在长视频当中。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Actually, over the past few years, we have seen explosive growth for both short video content and long-form content, and the shorter form content grow much faster. Looking at Bilibili, we are not choosing the length of the content to be focused on, but rather we are focusing on good content, high-quality content. Naturally, for those high-quality content, they are generally more inclined to be in the format of mid to long-form content.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 我们一直认为，无论是长视频还是短视频，无论用户他是用电脑看，还是用手机看，还是用电视看，其实用户他不变的追求是想看更好的内容。

Juliet Yang, Executive Director of Investor Relations, Bilibili: We believe whether the length of the content or on the device of the consumption scenario, the ultimate goal from users is everyone wants to watch good content.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 我刚才说过了，就过去几年因为这个短视频在供给上它增长得非常快，所以的话确实，用户在过去几年他会去看各种各样的短视频。但是当他经过了这一轮碎片化的内容的一个洗礼过后，他们也会意识到很多的这种短内容，它只能带来视听上的一个刺激，而他自己的话，还是更希望把时间去花在他认为值得看的一个东西上。所以我觉得这个也是B站能在过去几年一直持续健康增长的一个原因。因为我们一直在提供优质、有趣且能够去产生情绪共鸣的内容。然后用户也越来越认同B站的这种高质量内容的一个心智，所以他们会下意识地把更多的时间花在B站上，尤其是年轻的用户。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Well, over the past year, we do see an exponential supply growth for short video content. But over time, as people are used to have watched enough low quality, repetitive content, they naturally develop a taste for high quality content. They are no longer satisfied with the content that just grab their attention for one second. They care more and more about whether the time they spend on the content is actually worth it. That is exactly why Bilibili have been able to keep growing in the past few years. We have been focusing on providing a high quality content that is interesting, in-depth, and really connects with user emotionally. That’s why user are willing to slow down and spend their intentional time on Bilibili.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 我们能够一直产生高质量的内容，我觉得主要是有几个原因。首先就是我们有一个非常有才华的UP主群体，这些高质量的创作者他确实是很认同我们B站的理念的，他们会一直在我们这儿创作。第二个因素就是我们有一个长期形成的一个高质量的社区。因为大量的喜欢高质量内容且有着审美能力的那个用户，他在过去的十几年聚集了在我们的这个平台上，形成了一个社区。然后这个社区它也会成为高质量内容的一个筛选器，它能够更好地把一些高质量内容从每天上百万的投稿当中筛出来，这个是一个非常良性的循环。

Juliet Yang, Executive Director of Investor Relations, Bilibili: The reason why Bilibili are able to constantly curate high quality content for two reasons. One is that we have amassed a very talented group of content creator who believes in the community, who believes in the Bilibili platform. Secondly is over the past decade, we have built a very engaging community with a lot of user who truly appreciates high quality content. They have the view of what is good high quality content and forms a community that appreciates and also can select and define the quality, what is the good quality content. They can choose and promote among millions of daily video submissions and allow this high quality content and talented content creator to emerge from our platform.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 在第二季度，B站用户的月均互动量是超过174亿次，同比增长9%。百字以上长评论是同比增长了67%。这种真实的高浓度的互动，它是能够帮助我们更快更好地去识别出优质内容。

Juliet Yang, Executive Director of Investor Relations, Bilibili: In the second quarter, our monthly user interaction were over 17 billion, up 9% year-over-year. Long comments that over 100 characters were even faster, up by 67%. This high level of real human interaction help us to better identify high quality content.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 刚才你问到AI时代，我认为AI时代最大的一个变化，我认为视频本身它会变得不再稀缺，甚至会变得过剩。因为AI本身会创造大量的视频，它也会提高人做视频的一个效率。所以的话，进入AI时代之后，我认为视频的数量它可能会万倍甚至是亿倍的一个增长，就是视频本身会变得过剩。在这种情况下，优质内容会变成视频的唯一解，就不优质的视频是没有人看的。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Regarding in the AI era, how the video landscape is going to change, we believe that the AI tools will exponentially unleash the supply of video content, and over time, the high quality content is the only solution or the only answer among those oversupply of video content. We believe over time, only high quality content will have viewership. Those low quality content will have no traffic.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 我觉得在AI时代，我们会在生产和分发的两个方面，借助AI有极大的提升，就在内容的生产和分发上。在内容的生产上，我会更关注有创意的作者如何地用AI，而不是AI去生产同质化的内容。我认为同质化的内容是没有意义的，但是好的创作者、有创意的创作者如何用AI是有很大意义的，因为这个会极大地提升优质创作者的一个生产力。我们在这方面，在过去的半年还是投入了挺大的一个关注度，也取得了不错的一个成效。就在今年的第二季度，我们的月均投稿量是增长了28%，这个是充分验证了，确实AI对于好的创作者的生产力是有很大的解放的。

Juliet Yang, Executive Director of Investor Relations, Bilibili: In the AI era, I will be very focused on two aspects. One is on video creation, content creation, second is on content distribution. First of all, on the content creation, I will pay very close attention to those content creator with high intelligence and high creative power, how they are leveraging AI to create content to realize their creation into actual work. We believe the repetitive low quality content will have no room for survival, but those talented content creators will be extremely beneficial from this evolution of creation tool. In the past half year, we have been paying very close attention on this aspect, and it is generating very positive results. As a matter of fact, in the second quarter, our monthly content submissions increased by 28%. This is a hard evidence to support that AI tool is enlarging, enhancing, uplifting our creators creative output.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 然后第二个就是在内容的分发上，我认为AI也是能够帮我们显著地提高内容的分发的能力。为什么呢？是因为中长视频的信息量更大，而且用户他去决策，去看中长视频，他的意图也是更复杂的。它并不是说只要是好的内容他都看的，因为他还有喜好等等的这些原因。而过去的推荐的技术在这方面应该是达不到用户的一个期望的。但是新一代的AI，因为它在内容理解能力上有了质的提升，所以它确实能够帮助我们明显地去提高推荐的一个体验。这个也是我们在过去的半年，我们能够看到我们的数据在这方面是有比较明显的一个增长。我们在Q2，DAU的同比增长是7%，而且我们的总时长同比增长是4%，我们粉丝UP主的人数的同比增长是30%，这里面就包含了AI给我们带来的一个能力的一个提升。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Secondly, on content distribution, compared with the short videos that only have a few seconds, the longer form videos contain much comprehensive information and structures. Traditional recommendation algorithms often struggle to fully understand and recommend this type of content. Also, users generally have more complex intents when they come to choose much longer form content. That is why we are focusing on our AI and on helping our content distribution become more efficient. We think this new generation of AI tool is helping us to comprehend, understand the meaning of the content, and better understand our user intention. Here are a few numbers to support our progress. In second quarter, DAU grew by 7% year-over-year, and our total user time spent increased by 14% year-over-year. The number of creator with over 1,000 followers grew by 30% year-over-year.

A lot of the driver behind those numbers are from using AI to make our algorithm working better. That concludes the first question’s answer. Operator, next question, please.

Operator: Perfect. Thank you so much. Now we are going to take our next question. The question comes to line of Yang Liu from Morgan Stanley. Your line is open. Please ask your question.

Yang Liu, Analyst, Morgan Stanley: 谢谢，感谢提问的机会。首先恭喜公司非常不错的业绩。那我这边的问题都是关于广告业务的。我们看到2Q以来，中国整体的宏观和消费数据都偏弱，那公司的广告业务目前看到下半年增长预期是如何的？然后来自AI行业的广告投放趋势是否有一些边际的变化？然后管理层如何拆分2Q和下半年广告增长的驱动因素？尤其在下半年广告的基数就比较高了，那哪些垂类还可以支撑广告收入维持较快的增长？Let me translate my question.

My question is about the advertisement business. Since 2Q, we start to see weakening macro and consumption data in China. How to think about the future second half advertisement business growth? What is the marginal change for the advertisement from the AI industry? Could management help to break down the 2Q and the second half advertisement growth driver? In second half, we start to have a little bit higher base. Which verticals can support the advertisement business to sustain relatively high growth? Thank you.

Juliet Yang, Executive Director of Investor Relations, Bilibili: 在宏观消费环境确实第二季度会面临一定的压力吧。那B站的广告收入这个Q是31.3亿，同比增长了28%。我们能够保持比较稳定的增长的原因，其实还是我们的用户跟社区的价值被得到认可，而且越来越更多人去知道为什么要投放B站广告。加上我们在行业的垂直打法以及场景的挖掘上也有阶段的一个结果吧。In the second quarter, despite macroeconomic pressure on consumer spending, our ads business delivered a very strong performance with revenue reaching RMB 3.13 billion, up 28% year over year.

This resilient growth reflects a strong market recognition of our user base and our community value. More and more advertisers realize it is a must-invest platform for them to gain access to the young generation. We also achieved early success in our vertical industry strategies and our ads scenario expansion.

[Foreign language] In our content ecosystem, users time spent on AI related knowledge content surged by 72% year-over-year. Bilibili has become the largest AI learning video community across the internet, as user actively come to our platform to track and learn about large language models and AI tools.

所以我们可以看到，在AI广告第二季度的同比增长也超过了100%。AI用户跟B站用户其实是高度重叠的。AI是行业的大趋势了，所以虽然不同的阶段会有不同的需求，但是我们对存在不同阶段的需求的承接上，趋势上，增量上都是保持整体乐观的。At the same time, ad spend from AI sector grew by over 100% year over year in the second quarter, benefiting from the strong match between AI target audiences and our user base.

As AI is a major long-term trend, we expect continuous demand from various clients across different stages, and we remain very optimistic about this incremental opportunity.

Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, Bilibili: 对于下半年的话，广告主对于预算短期的要求，可能很直接会要求转化率，转化率更高更好。但其实所有的客户都会更希望找到一个一次性投放但持续有效的渠道，就不是一次性消耗那就结束了。借此可以建立长期的品牌价值，其实也更愿意把有限的预算可以投入到价值更高或者有真实购买力的人群身上。所以以上这几点，刚好也是B站区别于其他平台比较独特的价值吧。

Juliet Yang, Executive Director of Investor Relations, Bilibili: As for the second half outlook, we are seeing that more advertisers demand higher conversion efficiency in the short term. At the same time, they also want channels that deliver sustained long-term impacts rather than just one-off impressions to help them to build lasting brand value. They are also prioritizing their limited budget on high-value users with genuine purchasing power. All of these demands precisely match with Bilibili’s unique strengths.

Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, Bilibili: B站用户的平均年纪已经26.5岁左右了，他们已经是社会上最主要的核心消费的人群。最近两年，其实他们也在B站多去看视频、互动，成为很好的朋友。其实最近两年也逐渐在B站形成了消费的心智，这呈现出来的是我愿意为平台推荐的广告，以及UP主推荐的广告买单。Q1我们也可以看到，收入前五的行业分别是游戏、数码家电、网服、电商以及汽车，广告主的数量同比增长也是超过三位数的。

Juliet Yang, Executive Director of Investor Relations, Bilibili: The average age of Bilibili user now is 26.5 years old, making them the primary driver or the main consumption force in the current Chinese society. Over the past two years, they also have established a strong purchasing mindset on Bilibili, demonstrating a clear willingness to buy products recommended by the platform or by the content creators. In the second quarter, our top 5 ad verticals were game, consumer electronics, internet services, e-commerce, and automotive, while our total advertiser base expanded by 14% year-over-year.

Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, Bilibili: B站区别其他内容平台，还有一个很坚持的策略，叫多屏幕场景的一个战略。其实这个是可以实现B站的内容全天候去陪伴用户在不同时间段的需求的。无论你在独自在做交通工具，这时候你可以去听B站，或者你在坐车的时候可以去看视频，也可以去听B站的视频。那你在家里陪伴家人跟小孩的时候，你可以一起打开电视去看B站的内容，同时也可以投屏。你在空余的时间也可以打开B站App看，以及打开iPad去用于学习等等。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Unlike other platforms, we have a multi-screen, multi-scenario strategy that allows Bilibili to accompany users seamlessly throughout their day. Whether it’s listening or watching Bilibili during commutes, or casting Bilibili content on TV screen at home with their family, or using our apps or iPad during spare time for learning.

Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, Bilibili: 当你使用不同屏幕的B站的时候，我们又会做什么呢？其实我们可以去看视频，可以去发弹幕，我们也可以去发视频，我们可以反复地搜索你喜欢的内容以及创作者。同时你也看直播互动，你也看动画片、纪录片，玩游戏等等。其实这些不同的场景跟不同的端口，广告都可以伴随用户全天候的消费的情况的。所以上半年无论是app中的搜索跟播放页，还是OTT，还是PC，还是我们的小程序，都为我们提供了新的广告的有效库存。这些场景对于整体的广告收入的增数都超过50%以上的。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Across these different streams, user can watch and upload video, interact through bullet chats, commentaries, search their favorite content or creators during live stream, watch anime or documentaries, and play games. Ads naturally follow users throughout their daily touch points. That’s why in the first half of this year, we’ve seen in-app search, watch page, smart TV portal, PC and mini programs have all unlocked valuable new ads inventories, with revenue from this multi-scenario placement grew by 50% year-over-year in the first half.

Carly Li, Vice Chairwoman of the Board and Chief Operating Officer, Bilibili: 当然还有一个是特别重要，但是还有很大空间的，其实是AI。那AI我们还是投了比较大的精力去改造整个广告的投放系统，用于对用户的理解，包括内容的匹配、素材的生成，以及算法效率的提升等等。这都会对广告往后的持续的效率的变化以及增长是有帮助的。所以现在其实可以看到一些具体的数据是我们自动投放的系统，也为我们更多的新客可以无缝进入，更低成本地进入B站，实现了双位数的增长吧。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Last but not least, AI is also empowering our ad efficiency from several angles, including improving our user comprehension, including user profiling, content matching, ad creative generation, and algorithm efficiency to continuously lift our monetization. We have also launched our automated ad placement system that also has made it much easier for new advertisers to join us. This is driving a double-digit growth for our new advertisers client base.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 就是如你所说的，未来的行业预算我认为还是会有不少的变化，自然也会对我们带来不少新的挑战。但是我们对广告收入持续增长还是有信心的。谢谢。

Juliet Yang, Executive Director of Investor Relations, Bilibili: As we mentioned, it is indeed a very challenging macro environment, and there will be a lot of changes across different industry players. However, given what we just mentioned, we still remain quite confident about our continuous growth for our ad business. Thank you. Operator, next question, please.

Operator: Yes, of course. Now we are going to take our next question. The question comes from the line of Daniel Chen from JP Morgan. Your line is open. Please ask your question.

Daniel Chen, Analyst, JP Morgan: 晚上好啊，谢谢给我这个机会问问题。我想问一下游戏这块。就公司刚刚的分享中提到很多游戏的管线。这些项目里面我们看到最值得期待的项目有哪些呢？然后我们预计这些游戏的上线时间是什么时候？然后另外就是三谋现在已经是两周年了，这个最新的情况是怎么样？我们怎么去看这款游戏后续的一个表现？谢谢。So my question is on the online game.

The company just shared quite a lot of information on the game pipelines. I was wondering which one is the most anticipated one? Also, what is the expectation for the launch timing? Besides this, Sanmo, the Three Kingdom strategy game, has been launched for 2 years. So how should we look at the future performance of this game? Thank you.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 今年下半年到明年应该是B站游戏的收获季，会有多款值得期待的项目。

Juliet Yang, Executive Director of Investor Relations, Bilibili: From the second half to next year, it will be our harvesting season for Bilibili games. We do have several exciting titles lined up for launch.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 首先说一下今年下半年的两款游戏。第一款是《闪耀吧！噜咪》。这个是B站自研的一个捉宠的休闲游戏。我们这个玩法应该还是有充分的创新的，也是针对年轻用户特别去做的。在今年5月份的全球测试里面应该还是收到了挺多的好评。我们计划在9月17号全球上线，然后我们也希望这款游戏能够在年轻用户群体当中成为休闲游戏的一个标杆作品。

Juliet Yang, Executive Director of Investor Relations, Bilibili: The first title in our pipeline is Lumi Master. Lumi Master is Bilibili self-developed light casual game that involves pet catching and simulation gameplay. It received a lot of positive feedback during its global test in May, and also recent testing feedback has been very well. We are planning for a global launch on September 17 next month. We have developed a very innovative gameplay and artistic graphic design to cater to young generations’ needs. We believe with its lighter gameplay and appeal to younger players, we hope this game can catch a broader casual gaming audiences on a global base, especially for young gamers.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 第二款游戏是《三国志：王道天下》。这是一款三国志正版授权的策略游戏，我们计划在今年年底上线。这个游戏的目标用户群是对三国志IP有感情的、更成熟的玩家群体，就差不多是我这个岁数吧。它的画质和玩法都在原来三国志的技术上有很大的提升。我们为什么又会推出一款三国题材的SLG呢？是因为这一个作品它和三谋在用户群上是有明显的差异化，在玩法上也会很互补。它能够进一步完善我们在SLG领域的布局。我们刚刚结束这个游戏的二测，也拿到了很多用户反馈，我们会继续调优这一个产品，我们也希望在年底上线的时候它能够受到用户的欢迎。

Juliet Yang, Executive Director of Investor Relations, Bilibili: The second title in our pipeline is Sanwang, which is a strategy game officially licensed from the classic Three Kingdom IP, Sanguozhi, Three Kingdom IP. We expect to launch this game towards end of this year. Compared to Sanmo, it targets a more mature audience with a strong interest in Sanguozhi IP, and both of the visual style and gameplay have been significantly upgraded from the classic IP. Why we are launching another Three Kingdom title, we think it really complements Sanmo in both gameplay and target audiences, and it can further strengthen our presence in the strategy game genre. We also gain a lot of valuable feedback from the second beta testing we just finished, and we have continued to fine-tune this game. Our goal is to build another strategy game that can be lasting and popular for our audiences.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 然后在刚刚过去的BW上，我们也是发布了几款明年会上线的产品，我这也做一下介绍。第一个是《三国：火凤燎原》，它是我们团队自研的一款策略战棋类的RPG的游戏。首先《三国：火凤燎原》是一个有20年的漫画IP，同时它也是我们自己出品的动画，出品过《三国：火凤燎原》的动画。我们是想把这一个经典的IP做成一个年轻人喜欢的、有创新玩法的一个战棋类游戏。这个游戏我们计划明年会上线。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Beyond that, we have also introduced several new pipelines of titles in the Bilibili World and will be launched next year. The first one is Three Kingdom: The Ravages of Time, 三国：火凤燎原. This is another self-developed title that is focused on tactical RPG genre. This title is based on a classic manga IP with a history of over 20 years. Bilibili platform has also produced and published the anime that based on this IP. Our goal is to make this classic IP, revitalize this classic IP, and make it a great tactical RPG for younger generation.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 第二个游戏是仙境传说3，就是RO3。这个RO的话我就不多说了，这应该是差不多有20年影响力的一个经典的一个MMO的IP。也是有大量的RO的老玩家，就希望这个IP能够回归。这个也是我们去做代理这一个作品的初衷。这个游戏目前已经拿到了版号，而且它是在今天开启了国服的技术测试。目前的玩家的反馈还是挺好的。这个也是我们计划在明年上线。

Juliet Yang, Executive Director of Investor Relations, Bilibili: The second title for next year is RO3. Needless to say, this is a very classic IP with a large audience that last over 20 years. It is a very classic MMORPG, and we have received a lot of users’ demand for bringing this title back to them. That is why we have signed and licensed this IP, and hopefully to bring this classic IP back to its fan base. Currently, this game has already secured its license, and actually we started to launch technical testing today within mainland. Currently, the user feedback has been quite positive, and we are targeting to launch this game next year.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 然后再说一下你问到的三谋。三谋是在今年的6月份迎来了两周年版本的更新，玩家的反馈也是挺正面、挺积极的。从去年S8，就是一周年庆到今年的S15，两周年庆，三谋过去一年的所有的赛季都保持在这个畅销榜的前五。所以的话，我们可以看出在过去两年的时间，三谋是一个表现非常稳定的、长线运营的一个作品。未来我们会继续认真地去做每一个赛季，保持三谋的一个长线健康的运营。因为我在过去每一次财报会当中，我都会强调垂类精品长线运营就是我们B站做游戏的一个战略。所以的话，我们会一直坚持把三谋的每一个赛季都做好。我对团队提的要求就是要把三谋做成一款能够让玩家玩到老的游戏。

Juliet Yang, Executive Director of Investor Relations, Bilibili: To answer your question on our classic Sanmo game, this game has just celebrated 2nd year anniversary with a major update in June, and the new content has been well received by our players. As a matter of fact, from Season 8, our first anniversary season last year, throughout Season 15, our second anniversary season in this year, Sanmo has ranked among the top 5 on the iOS top closing charts every game season, which is quite impressive. For this game, our goal has remained unchanged. Our target is to build a lasting strategy game that can accompany gamers for life. Our goal or strategy for our game business remains to focus on the vertical genre to either become the best or first in its own segment and make sure every title has a long life cycle. That is the strategy we will continue to be focusing on.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 最后说一下《三国：百将牌》。因为百将牌我们是在今年早些时候发布的，百将牌7月份的ARPV比4月份提升了一倍。而且10月份我们会推出S2赛季，目标是提升产品的长期留存和增加赛事玩法。刚才大家也都听到了，我们在过去的两年确实推出了一系列以三国为故事题材的游戏，我们内部也戏称为三国宇宙。这个的好处就是这些玩家本身他是能够在这些游戏当中是良性的流动，然后这些游戏里它既有像百将牌这种三分钟一把，非常轻松休闲，且有社交乐趣的游戏，也有像三谋和三王这样比较重度的，能够让玩家沉浸式体验的一个游戏。再加上B站我们有一个视频社区，有大量的内容能够在这个社区上去传播以及和用户进行交互，它是能够形成一个很好的玩家生态，这个也是让我们能够把这一系列的游戏都能够去做长线运营的一个良好的基础。

Juliet Yang, Executive Director of Investor Relations, Bilibili: When I mentioned touch based on the N-Card game, which was recently launched officially, we have noticed that the LTV for July version has doubled compared to the April version. We also plan to launch the game season 2 in October with a focus on improving long-term retention and adding more interactive fun gameplay. You will notice that recently we have launched many different Three Kingdom IP titles, including this light casual poker game, and also we have immersive hardcore strategy game like Sanmo and Sanwang. The reason why we are exploring this IP in such a dynamic way is, first of all, we think that there is a lot of overlap for users who are interested in this IP and they can cross-sell from each other.

Secondly is that we have a very high quality video community that with a lot of gamers who can share their experience and promote this game, and also provides a very good platform for us to engage with users and continue to improve our games. That is why we are hoping to achieve long term operation across different IPs and different titles and continue to provide good gaming experience for our gamers. That concludes this question. Operator, next question, please.

Operator: Thank you so much. Now we are going to take our next question. The question comes line of Xueqing Zhang from CICC. Your line is open. Please ask your question.

Xueqing Zhang, Analyst, CICC: 感谢管理层接受我提问，恭喜公司这一季度稳健的业绩。我的问题是关于AI的。公司之前在投资者日的活动上有分享AI对于广告算法提升，还有对像ECPM这样的帮助。那能不能再详细给我们分享一下AI对于B站社区生态、用户活跃以及其他各项业务的一个赋能。然后公司之前宣布的10亿AI相关的一个CapEx投入，目前的一个进度，花的怎么样了？谢谢。Thanks management for taking my question and congratulations on the solid quarter.

My question about AI. The company discussed how AI has improved its advertising and helped increase ECPM at the Investor Day. Could management elaborate a little more on how AI is enhancing Bilibili’s community ecosystem, user engagement and different business lines? In addition, how much of the previously announced CNY 1 billion in AI-related CapEx has been deployed so far? What is the expected pace of spending going forward? Thank you.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 因为下一个时代是AI的时代，这一点已经是行业共识了。所以我觉得我们要思考的并不是说AI有多重要，而是我们公司应该去做哪些事儿。AI领域的大部分的事情是不需要我们公司去做的。我觉得我们公司在AI方面的投入是集中在与我们B站业务紧密相关的视频这一个方向上。说得更精确一些就是视频的理解、视频的分发和视频的创作，就是这三件事。所以我觉得我们过去几个季度在AI上面的投入是非常聚焦的，就是只做这三件事情。这三件事之外的事情，我们应该是完全都没有做。

Juliet Yang, Executive Director of Investor Relations, Bilibili: Well, we believe AI is already a consensus for the next era. For us, it is not to think about how important AI is for us. It is to think about how we will use AI in our own business. As a matter of fact, there are a lot of things in the AI chain we will not be engaged with. The things where we invest will be very closely tied to our core business, which is video. To be more specific, some three areas: video understanding, video distribution, and video creation. All of our investments will be strictly focused on those three areas.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 首先，我们还是非常地重视AI如何帮助我们提升对视频的理解和对用户的理解，因为如何能够理解视频内容、理解用户需求，是提升用户体验和提升商业效率的关键。通过AI增强视频理解，通过AI去增强分发和推荐和搜索的能力，我们是能够帮助用户更高效地发现有兴趣的内容，也帮助广告系统更精确地匹配用户的需求。这个既能够去提高我们的用增的一个能力，也能提高我们的商业收入。

Juliet Yang, Executive Director of Investor Relations, Bilibili: First of all, AI is helping us to better understand both content and users. Bilibili has this huge amount of video library, and this video carries much more information, and our user have a very diverse interest. So be able to better understand the value of our content, the meaning of the content, and what user want, is a key component in both improving user experience and our commercialization efficiency. With AI, we are improving our video understanding, search, and recommendation capability. It is helping users to find content they are interested in a more efficiently matter, while helping our ad system to better match ads with users’ needs. For us, this investment not only is working on our user growth, it is also working on our commercialization results.

Rui Chen, Chairman of the Board and Chief Executive Officer, Bilibili: 然后第二的话，我们是很重视如何用AI去提升我们的视频的一个供给。我们在这个领域里面，我们是非常看重我刚才提到的，有创意的这些UP主，有能力的UP主如何用好AI。我觉得过去的两个季度我们可以看到，确实是很多的创作者他能够利用AI，极大地加强他的创作效率。过去需要一个专业团队，甚至是需要一个公司才能够去做的动画和影视内容，现在一个创作者也可以把它做得很好。就我们B站上面，过去几个月应该是出现了多个，就是一个创作者利用AI就能够做出非常好的质量，并且达到千万以上的播放量的一个作品。而且的话，我们可以看到，就是在动画、影视、音乐、鬼畜这些领域，AI极大地解放了创作者的创意，让这几块的投稿量和精品数量都明显地在增加。所以我认为这个方向也是我们会聚焦投入的一个方向。因为优质内容的源头就是来自于这些有创意的一个创作者。我们5月份，我们发起的UP主动画剧场，短短的三个月的一个时间，累计的播放时长就达到了2.7亿分钟，播放量就是1.8亿，有6部剧集的播放量就突破了千万。这个是我们可以明显地看到，AI对于高质量的创作带来的一个增益。

Juliet Yang, Executive Director of Investor Relations, Bilibili: And secondly is AI is helping creating new types of content and unleashing productivity on Bilibili. As I mentioned, we are very focused on seeing those high quality content creator, talented content creator, how they are using leveraging AI to produce good content. In the past two quarters, we’ve seen so many good examples of how AI tools is unleashing those talented brains to bring good content on our platform. We’re seeing some animation or film content that used to require a whole professional team or even a company to create, now can be created by individual content creators, that the quality is so premium that they achieve tens of millions of video views. We are also seeing AI inspire new types of content across animation, film, music, auto-tune remix categories. It is truly unleashing the creators’ talent, their creativity. We’ve seen a surge in content submission, and the number of high quality content videos are emerging on our platform. Here’s a very vivid example for your reference. In May, we launched our creator animation campaign on our platform.

Just in three months, these videos in this campaign have generated 270 minutes of watch time and over 180 million views, and six series, each surpassing 10 million views. Those are the perfect example of how AI tools is helping Bilibili to unleashing creators output and unleashing the supply of high-quality content.

Sam Fan, Chief Financial Officer, Bilibili: Yeah. This is Sam. As Mr. Chen mentioned, our AI investment were highly focused. Regarding our previous target of RMB 1 billion, which is well on track. We have already achieved 70%-80% of it in the first half of the year. Primarily on the procurement of server computing power resources. This was expected to incur R&D expenses for the whole year, and it has hit by RMB 500 million, which remain unchanged.

Juliet Yang, Executive Director of Investor Relations, Bilibili: Operator, next question please.

Operator: Yes, of course. Now we are going to take our last question for today. The question comes line of Thomas Chong from Jefferies. Your line is open, please ask your question.

Thomas Chong, Analyst, Jefferies: Good evening. Thanks management for taking my questions and congratulations on a very solid set of results. My question is, how does management view the margin upside across different business line? On AI, how should we think about AI empowerment to fix cost leverage and rooms for the lowering in OpEx ratio? Any color about the AI spending over the next couple of years? On the other hand, how do management view the potential upside or downside to margin in second half in 2027? Lastly, what are management thoughts on capital allocation? Thank you.

Sam Fan, Chief Financial Officer, Bilibili: Thank you. This is Sam. I will take your question. in Q2, our financial performance continued a strong momentum. Both revenue and gross profit grow nicely with our gross profit margin expanding to 37.2%, marking the 60 consecutive quarter of sequential improvement. Meanwhile, our operating leverage continued to expand. Net profit grew by 55% year-over-year, and our adjusted net profit margin increased to 8.9%. Looking at the mid to long term, we believe there is still significant role for Bilibili’s commercialization, driven by the sustained and healthy development of our business lines, more efficient operation against empowered by AI. We are highly confident in our future profitability improvement. First, our high margin advertising business continued to grow and has become our largest revenue contributor, accounting for 39% of total revenue.

Despite some micro economic pressure, we expect our advertising revenue to maintain a sustainable and healthy growth trajectory going forward. On games, we have a robust pipeline of five new titles set to launch in Q4 of this year and into next year. We are confident that our gaming revenue will resume a year-over-year growth trend starting in the fourth quarter. We remain confident in our future profit expansion and our mid to long-term target remains unchanged. A gross profit margin of 40%-45% and an operating margin around 15%-20%. We are confident in maintaining healthy revenue growth while continuously improving our operating efficiency. Also to drive the profit realization. We will carefully balance our AI investment with commercial monetization, and we firmly believe that today’s investment will play a virtual role in Bilibili sustainable development in the future.

Regarding the shareholder return, delivering shareholder return is also a priority for us. From the beginning of this year to date, we have executed an accumulated $118 million in share repurchases. in June of this year, our board of directors approved a new $300 million share repurchase program. As of the end of June, we have already repurchased 1.9 million shares for over $31 million under this new program. Going forward, we will continue to execute repurchases during opportunistically market windows to create long-term sustainable value for our shareholder.

Juliet Yang, Executive Director of Investor Relations, Bilibili: Thank you, operator. That concludes our question and answer session for today.

Operator: That concludes the question and answer session. Thank you once again for joining Bilibili’s second quarter 2026 financial results and business update conference call today. If you have any further questions, please contact Juliet Yang, Bilibili’s Executive IR Director or Piacente Financial Communications. Contact information for IR in both China and the U.S. can be found on today’s press release. Thank you and have a great day.