Bilibili Inc.

Good day and welcome to the Bilibili's 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.

Thank you, Operator. During this call, we'll 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 SEC and Hong Kong Stock Exchange. The non-gap financial measures we provide are for comparison purposes 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. Ray Chen, Chairman of the Board and Chief Executive Officer, Ms. Kali Lee, 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.

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 of 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. 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 interaction. 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'll 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're 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 creation. 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 event, 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. Now, 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 CTC VR 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 that last year. Sanmo's latest second anniversary season, 15, went well with players, ranking number two on China's iOS top grossing chart. We'll keep focusing on the game's long-term lifecycle by delivering fresh content and carefully balancing user experience with monetization. Meanwhile, our legacy titles including FGO and Azure Lane continue to deliver stable performance during the quarter. In July, we officially launched our casual card game, N-Card, San Guo Bai Jiang Pai. 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, Xiaoba Lumi, was well-received by global players in recent tests. Building on this encouraging reception, we plan to launch the game on September 17 globally. 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, and MMORPG, based on a globally recognized IP that has already secured its publication license, and Mistbound, Guild Wars card game, 机战大牌英雄, 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,火封燎原. 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?