BILIBILI(09626)2023-08-29 10:00Financial Performance - Net revenue for the six months ended June 30, 2023, was RMB 10,373.81 million, representing a 4.1% increase compared to RMB 9,963.03 million in the same period of 2022[5]. - Gross profit for the same period increased by 50.9% to RMB 2,331.47 million, up from RMB 1,545.53 million in 2022[5]. - The net loss attributable to shareholders decreased by 49.3% to RMB 2,174.39 million, compared to RMB 4,288.91 million in the prior year[5]. - Adjusted net loss for the six months ended June 30, 2023, was RMB 1,994.85 million, a reduction of 44.9% from RMB 3,622.85 million in 2022[5]. - Operating loss narrowed to RMB 2.7 billion, down 37% from RMB 4.2 billion in the previous year[44]. - Net loss for the period was RMB 2.2 billion, a 49% reduction from RMB 4.3 billion in the same period of 2022[47]. - The company reported a significant reduction in pre-tax loss, which decreased by 49.9% to RMB 2,122.19 million from RMB 4,237.98 million in the previous year[5]. Revenue Breakdown - In the first half of 2023, Bilibili's advertising revenue increased by 29% year-over-year, reaching RMB 2.8 billion, while live streaming revenue grew by 23%[23]. - Revenue from value-added services reached RMB 4.5 billion, a 7% increase year-over-year, driven by live streaming[21]. - Advertising revenue increased by 29% to RMB 2.8 billion, compared to RMB 2.2 billion in the previous year, attributed to optimization of advertising products and improved efficiency[34]. - Mobile game service revenue decreased by 16% year-over-year to RMB 2 billion, primarily due to a lack of new game launches[24]. User Engagement - Daily active users (DAUs) grew by 17% year-over-year, exceeding 95 million, with a monthly active user (MAU) count of 319 million[14]. - The average daily video views increased by 34% year-over-year to 4.1 billion, with Story Mode views rising by 78%[16]. - The number of active content creators on the platform increased by 30% year-over-year, with monthly video submissions up by 61%[17]. - The core user base, defined as official members, grew by 26% year-over-year to 214 million, maintaining a retention rate of approximately 80%[19]. Asset and Liability Management - Total current assets decreased by 23.5% to RMB 18,710.69 million as of June 30, 2023, down from RMB 24,452.89 million at the end of 2022[5]. - Total liabilities decreased by 30.9% to RMB 18,362.68 million, compared to RMB 26,590.98 million at the end of 2022[5]. - Total assets as of June 30, 2023, were RMB 34,895.36 million, reflecting a 16.6% decrease from RMB 41,830.57 million at the end of 2022[5]. - Cash and cash equivalents decreased by 27% to RMB 14.3 billion as of June 30, 2023, primarily due to the repurchase of 2027 notes for a total cash consideration of USD 745.9 million (RMB 5.3 billion)[48]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the reporting period, except for the recommendation regarding the separation of the roles of Chairman and CEO[65]. - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2023, and met with independent auditor PwC[72]. - The company has adopted a code to regulate securities trading by directors and relevant employees, ensuring compliance with the standards set forth in the Listing Rules[68]. - The nomination and corporate governance committee consists of independent non-executive directors and has discussed the adequacy and effectiveness of accounting and internal control policies[74]. Shareholder Information - As of June 30, 2023, Chen Rui holds 49,299,006 shares of Class Y common stock, representing 58.89% ownership[80]. - Li Ni owns 7,200,000 shares of Class Y common stock, accounting for 8.60% of the total[80]. - Tencent holds 43,749,518 shares of Class Z common stock, representing 13.20% ownership[85]. - The total issued shares as of June 30, 2023, include 83,715,114 shares of Class Y and 327,376,931 shares of Class Z[85]. Future Plans and Investments - The company plans to focus on increasing advertising and live streaming revenue while controlling costs to further narrow losses and achieve healthy growth in daily active users[29]. - The company has no detailed future plans for significant investments or capital assets as of June 30, 2023[54]. - The company plans to fully utilize the net proceeds within three years as per the intended use disclosed in the prospectus[103]. Cash Flow and Financing - Cash used in operating activities for the first half of 2023 was RMB 651,158 thousand, significantly reduced from RMB 2,104,516 thousand in the same period of 2022, indicating improved cash flow management[135]. - The company believes that its cash and cash equivalents, along with operating cash flow, are sufficient to meet cash requirements for at least the next twelve months[150]. - The company continues to rely on external financing to support its operations and business development[150]. Compliance and Reporting - The financial statements are prepared in accordance with US GAAP and the Hong Kong Listing Rules, ensuring compliance with applicable accounting standards[152]. - The company has confirmed compliance with the code by all directors and relevant employees during the reporting period[69].