Good day, and welcome to the Bilibili 2021 Second Quarter Second Financial Quarter Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference 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 early 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 measures we provided are for comparison purpose only.
Definition of these measures and a reconciliation table are available in today's news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and webcast replay of this conference call will be available on Bilibili IR website at ir. Bilibili.com. Joining us today from Bilibili's senior management are Mr.
Ray 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. And I will now turn the call over to Mr. Fan, who will read the prepared remarks on behalf of Mr.
Chen.
Thank you, Julia. Thank you, everyone, for participating in our 21 Q2 results conference call. I'm pleased to deliver today's opening remarks on behalf of Mr. Chen. In August 2019, we announced our ambition to further grow our user base.
Today, 2 years later, we found ourselves on the fast track to executing that strategy, achieving many great milestones along the way. In the second quarter, we added 14,000,000 MAUs sequentially, bringing our total MAUs to 237 million, up 38% year over year. Mobile MAUs also rose by 44% year over year, reaching 220,000,000 and the DAUs reached $16,000,000 marking a 24% increase year over year. Importantly, our users become even more engaged spending an average of 81,000,000 per day on our platform, marking the highest Q2 level in our operating history. As we move into the peak summer season, we are pleased with the increasing momentum we have seen so far, which places us firmly on track to achieve our growth target.
Our robust user growth also translated to strong pipeline expansion in the Q2. Our total revenues reached RMB4.5 billion, up 72% year on year, was again beating the high end of our guidance. Driven by improved products and services, MPUs were up 52% year over year to 21,000,000 and our paying ratio improved to 8.8% versus 7.5% in the same period last year. As the go to destination for young Chinese, our platform has also gained a wider recognition among advertisers across different EBITDA verticals. In the Q2.
Ad revenue grew by an impressive 2 0 1% year over year. Celebrating our 12th year anniversary on June 26, we honor the many years we have grown with our users. Over the past 12 years, we have remained true to our original aspirations to create an outstanding community for all of our users and content creators and to bring Chinese original content to users worldwide. With this mission in our hearts. We continue to uphold our public responsibility to our community.
We insist on data authenticity, content positivity and invest in Made in China original content. In July of this year, we published our 1st ESG report. Here, we outlined our ESG policies and actions, deepening our commitment to being a responsible public company with a goal of bringing positive social and cultural impact to the world. Looking ahead, the transformative effort of visualization is creating an era of massive opportunity for us. Graphics and the text are being reinterpreted into video format to deliver information in more lively, vivid and powerful ways.
As we see it, video platforms will be the new gateway for people to connect to the Internet and access the work, and Bilibili is on track to be one of them. The momentum from video trends along with our solid strategic execution to expand our content, community and commercialization, give us great confidence in our future sustainable growth. With that overview, I would now like to provide more granularity on our second course of operations. Beginning with content, Our PUGV ecosystem continued to thrive, representing 93% of our total video views in the 2nd quarter. Over the past 12 years, we have cumulated our platform as a destination for young people to showcase their talent and realize their career goals as professional content creator.
We continue to improve our services to attract content creators, launch more tools and modify our app to make content creation easier. In the second quarter, Bilibili was home to 2,400,000 content creators, up 25% year over year, and monthly video submissions grew to $8,400,000 in the 2nd quarter, up 41% year over year. The increase our metrics are no small feat given last year's high base. We continue to improve our traffic distribution mechanism to let high quality content creators quickly match with their fans in the Q2. The number of content creators with more than 10,000 followers increased by 47% year over year.
Our live broadcasting platform and the Sparkle advertising platform provide means of our content creators to unlock their commercial value, while showcasing their talent. By the end of the second quarter, 409,000 content creators had also joined our ongoing cash incentive program. For the Q2, our top 5 most populated verticals were the lifestyle, entertainment, GAN, Hack and Knowledge and Enemy. We see many new verticals on the line, such as relationship, home decoration, Fitness, Beauty and Cosmetics. The emerging popularity of this category reflects the evolving content needs as we expand to wider demographics.
Being a hub for Yanmar to discover and explore various interests, We firmly believe the content we provide should have positive impact on people's lives. We actively promote content that is informative, engaging, fulfilling and help our users to become their better shape. There could be a small pressure such as how to bake cookies or engage users in deeper thinking through our guidance into the cosmos. In the past 12 months, over 130,000,000 users accessed Penn Knowledge content across a variety of subjects on our platform, such as solidifying the market share among users of learning abilities. Turning to our OGV content.
Augmenting our POGVs and unlocking commercialization potential, our high quality OGV content continues to attract new users and convert paying new users to our platform. In addition, many of our self produced titles have become valuable IP assets that we can build up as we leverage our network to further our IP inference. Representing Chinese culture and a part of China's soft power, Chinese animation has become increasingly popular domestically and internationally, and our investment in this category are paying off. A primary example of our evolving IP creation and self production capability in LinkClick, Shigong Daliren, produced by our own anime studio, this Bilibili original IP assets become an immediate hit following its release in April, accumulating over 150,000,000 video views. Partnering with Sony Funimation, Linked Click was released in multiple countries and regions where it continues to be highly rated.
Other popular Chinese anime titles have also helped us to attract many new young users and have been well received by overseas anime lovers. These titles further solidifying our leading position in the ACG space, including the final chapter of linkage in Legend of Hei Guozheng Hei Shanji, Tieran 2 of Cup Rebound, Weilong and Heaven Official Fleeting, Our self produced matchmaking variety show, Shou Hengwen Jie Hsu was launched last week and the music fair to show the next banner, Wazim and Itima, will be released in August. With these new OGB offerings, we hope to attract more young minds with relevant interest and assimilate even more discussion within our community. Turning to our community. Our community continues to be a vibrant one.
Users are incredibly engaged and tightly bonded both to our content and with our platform. Over time, we have become a part of many people's regular daily routines. For the Q2, average daily video views were up by 48% year over year, reaching 1,700,000,000. Monthly interactions were also up by 39% year over year with users generating 7,300,000,000 bullet charts, comments, live Bilibili Moments Pose and the virtual gifting. The number of official members on Bilibili are also increasing with high retention By the end of Q2, 121,000,000 people were official Bilib members, an increase of 30 In fact, more than 50% of our registered users in 2011 still remain active to this day, 10 years later.
Over the years, we continue to involve our community management system to ensure a friendly and welcoming community environment and inspiring positive social interactions. We strongly believe that the community is a place for people to reach consensus, not to create disputes. In addition to our official member mechanism, we continue to reinforce community member patrol and enhance our designated response team to protect the integrity of the community. With this effort, we hope to create an enjoyable and lovely place for all users and creators to share, learn and thrive. Now let's look at our commercialization progress.
We continue to provide more products and services. As we execute our commercialization strategy, we are further realizing the deep value of our high quality users. Starting with our games. In the Q2. Revenue from our mobile games remained relatively flat year over year at RMB1.2 billion.
Going into the second half of the year, our priorities are to expand our mobile game modes domestically and internationally. For our next stage of growth, we're committed to building on our internal development capabilities. We currently have 6 game studios with over 1,000 members working on a dozen projects, leveraging our game operating experience, with PUGV and live broadcasting consistent, strong distribution power and our deep understanding of users' preferences. We are confident we can bring exceptional internal development game to our users. We welcome the 3 new titles to our roster in the 2nd quarter as exclusively distributed in China.
Employing user friendly gaming promotion techniques such as cleverming and the PUGV content. Players immediately embraced Guardian Tail of Kangxi Guanjie with the BAM ranking highlight on China's Ios top growth in and top download charts for weak variance release. Our exclusively licensed indie games that sells, TOSHI Xhibao, was another prominent example of Bilibili distribution power. By the end of July, over 2,000,000 copies have been sold. Overseas markets represent with another growth opportunity.
In May, we successfully launched Refinal Gear, Chongqing in South Korea, Pleased for its dedicated art design and innovative gameplay, Refinal Gear quickly won the hearts of like minded APG lover. For 3 weeks of its release, Refinan gear continued to hover on Google Play's top 10 growth in charts in South Korea. This success story demonstrates our established capabilities in game selection and execution over these markets. We believe we can build on this success with other titles in other regions. And for our game pipeline, we currently have 11 titles approved for domestic release and a number of ACG titles slated for the international release in the coming quarters.
During our recent Bilibili Game press conference, The Fantasy World, we introduced 16 brand new titles, including 10 exclusive licensed games and 6 self driven projects, cutting to a new generation of gamers. These titles cover a wide array of genres, including Sandbox, multiplayer puzzle solving, real person executive RPG, simulation and mobile. Each type of features unique graphic design and the storage setting, reflecting Bilibili's understanding of Genv plus gamers' pace and preferences. Looking at our VaaS business. Our VaaS business remains strong with revenue reached RMB1.6 billion the Q2, up 98% year over year.
Being a natural extension to our video ecosystem, Live broadcasting is a better way to bring high quality video content to our users. And for our content creators, which is also an important channel to engage with their followers and realize commercial value for their creation. For game lovers, We are a one stop platform for game related videos, e sports tournaments and a place to engage with game KOLs. For ACG and entertainment enthusiasts, our content continued to expand with our huge anime library and unique live broadcasting entertainment, particularly virtual streamer or VR content. Over 60% of top global vARPs have now joined our B2B live broadcasting network, making us the largest vARP community in China.
Turning to our company member business. Our dominant JD Plus users continue to show growing profitability to pay for premium content. By the end of the Q2. The number of premium memberships reached another record high of 17,400,000, an increase of 56% year over year. As for our advertising business, We are pleased with another quarter of explosive growth for our ad business.
Revenues grew by 2 0 1 percent year over year to RMB1.05 billion. More and more advertisers have recognized us as a must invest platform to gain visibility from Gen Z plus demographics for the Q2. The top 5 of the tightening verticals for mobile games, digital and 3C products, skincare and cosmetics, e commerce and food and beverage. Along with increasing our brand awareness, we continue to improve the efficiency of our ad matching algorithm and strengthened our ad quarters, giving us confidence in our ability to secure continuous ad revenue growth. In summary, we are pleased with our business progress so far.
We have set the bar high and aim to reach higher. Building our content ecosystem driving model, we will continue to grow our elaborate community and enhance our commercialization capabilities. At the same time, we place great importance our social responsibility with a goal of granting productivity to the world around us. Whether it's been through our Bilibili Spouse Schools, disaster relief efforts or pandemic support, which is essential for us to always lead with integrity and give back to society. This concludes Nick Chen's remarks.
I will now provide a brief overview for our financial results for the Q2 of 2021 and outlook for the Q3. Total net revenue for the Q2 were RMB4.5 billion, of 72% from the same period of 2020. We continue to see a more balanced revenue mix driven by our diversified commercialization channel. Our total net revenues for example, net revenue streams were approximately 27% mobile games, 36% SaaS, 23% Advertising and 40% E Commerce and Other Business. Cost of revenues increased by 74% over year to RMB3.5 billion.
Revenue sharing costs, a key component of total revenues were RMB1.7 billion, representing a 70% increase from the same period in 2020. Gross profit increased by 64% year over year to were RMB989 1,000,000 and our gross margin was 22% in the 2nd quarter. Total operating expenses were RMB2.5 billion, up 170% from the same period in 2020. Selling and marketing expenses were RMB1.4 billion, representing 107% increase year over year. The increase will primarily attribute to increased channel and marketing expenses to promote our app and brand as well as promotional expenses for mobile games and an increase in headcount in sales and marketing personnel.
G and A expenses was RMB436 1,000,000, representing a 109% increase year over year. The increase was primarily due to increased headcount in general and administrative personnel, increased share based compensation expenses and higher rental expenses. R and D expenses were RMB674 1,000,000, representing 104% increase year over year. The increase was primarily due to increased health company research and development personnel and increased share based compensation expenses. Net loss was RMB1.1 billion for the Q2 of 2021, compared with RMB571 1,000,000 in the same period of 2020.
Adjusted net loss, which is a non GAAP measure that excludes Share based compensation expenses, amortization expenses, income tax related to intangible assets acquired through business acquisitions was RMB8 and RMB58 1,000,000 compared with RMB476
1,000,000 in
the same period of 2020. Basic and diluted net loss per share were RMB2.91. Adjusted basic and diluted net loss per share were RMB2.23. As of June 30, 2021, we had cash and cash equivalents, time deposits as well as short term investments of RMB27.6 billion, compared with RMB12.8 billion as of December 30 2020. Our consistent cash reserve gives us more confidence in our ability to execute our growth strategy, which we believe will yield considerable returns in the long run.
With that in mind, we are currently projecting net revenue for Q1 of 2021 to be between RMB5.1 billion and RMB5.2 billion. Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead.
If you wish to ask a question. Please note there might be a slight pause as we collate the Q and A roster. 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. Please limit your questions to 1 at a time. If you wish to have follow-up questions, please rejoin the queue.
We have the first question. This is coming from the line of Lee Sang from Bank of America. Please go ahead.
Thanks management for taking my question and congrats on strong set of results. My question is mainly on the user growth. Can you give us more color as on the second quarter's user growth, which is typically a low season, but our growth number was pretty good. Then secondly, how should we look at the second half user trend and our long term user target? Thank you.
So the first half performance, we did a pretty good job. I think that's all thanks to our content ecosystem driven business model. And this model's The longer term it develops, we think the more competitive it is because this is a truly healthy So I believe many of the participants for today's call is Bilibili user results. And I believe you might have the same Feeling as I do while using Dilibili that the content on Dilibili is more and more diversified and More high quality. Sometimes for my personal use on visibility, I will be surprised to find out the diversity, The vast city and depth of our content offerings.
So I believe the business model that We're running very, very healthy, and we believe this oil can bring our long term sustainable growth. So as for our long term user guidance, currently, We have already experienced half of the Q3. So far, what we have observed in Q3 that we see very good progress in For user forecast for this year that our MAU will reach 260,000,000. So far, we think we should be quite on track to deliver, achieve that goal or even surpass that goal. As for our long term goal So, 400,000,000 MAU by end of 2023, we so far, we feel very confident to achieve And one thing I wanted to emphasize that Bilibili's user growth, The best of it is quality, that we have maintained very high quality of user growth.
From our perspective, We're not only just attracting users to join Bilibili, but they actually really recognize the value of the And they're willing to stay with us for long term. Even though that we have experienced a very fast Healthy user growth in the past, we've noticed that engagement level and the activeness of our users is still growing. In the Q2, our daily user time spent reached 81 minutes. That is the best result we've being compared with our previous second quarter time spent. And additionally, we see the long term engagement level for our user is also improving.
Actually, we've seen that the registered user in 2018, 2019 2020, their DAU to MAU engagement level in 2021 is actually improving on a year on year basis. 3 quarter, we released our daily BB and our monthly user engagement number. And that year on year growth rate is actually faster than our MAU So all of those metrics shows that we are not only be able to attract users to join our platform, they actually stay with us and become more engaged. Thank you.
Pardon me. We have the next question. This is coming from Alex Hung from Morgan Stanley. Please go ahead.
I'll translate my question. My question is regarding the advertising business. Congrats on very strong growth of over 200% for 2 quarters. Given that there are recently regulations around data privacy, flash screen apps, education, etcetera, how should we forecast and look at the second half growth? And where will the growth drivers come from?
Thank
you very much. So for Q2, our quarter ad revenue has surpassed CNY1 1,000,000,000 for the first time and Achieving 200 over 200% year on year growth. And this is the 9th consecutive quarter that we deliver beat advertisement results. As we look into the second half and for the next few years, we've done several things to continue to improve our ad efficiencies and lay solid foundation for our future ad growth. So first of all, we have continued to multiple times across various scenarios across Bilibili's product ecosystem and quickly view their ran image through just one campaign investment, and we have already achieved that within this quarter.
Secondly, we are also accretively exploring new ad formats, including at in a video format as well as connect advertising with content creators' creativity. The regulatory You mentioned we believe that the foundation or the logic behind it is that the regulatory hope Our consumer will be notified it is advertisement. And what Bilibili has been practicing is, All of our advertisements will not be a blockage type of advertisement. We hope really to embed and connect and combine content with advertisement, make it more interchangeable, good content to be a good commercial and good commercial could be a good content. And from that perspective, our integrated marketing solution as well as our content creators' own creation, And secondly, our ad efficiency was also We improved in this quarter, thanks to our adtech and Argo team, and we're also investing in frontier at TAC related R and D.
And thirdly is that we will be focusing on our leading verticals and provide And as we expand to expand our user base, we hope to further expand our New ad industry verticals and verticals with sufficient ad budget, for example, such as on automotive and new domestic consumer goods. And all of that has been reflected in our second quarter's ad performances. And most importantly, we have upgraded our organizational structure of our commercialization team. In the Q2, we have integrated Bilibili commercialization netwear platform consists of commercial traffic management system, app system and our Sparkle advertising system. The purpose of So as to further optimize and allocate the Weibo's commercial resources and improve our commercialization efficiency.
And additionally, we have also regrouped ourselves from integrated marketing team and our content creator related sales team forming 1 centralized sales center. The goal is to provide Bilibili in circulation on Dilibili. So there's a saying that the platform Value equals the users' value on this platform. And as we Mr. Chen has repeatedly mentioned the value of the user.
Our current average age of our user is around 22.8 years old And 60 86% of our users are under 835 and majority of them are in 1st and second tier cities. And for this group of cohort, they are the main consumption groups for in China, and they represent the highest value of demographics. And building on that, Advantage will continue to reinforce our infrastructure and continue to improve our app product. And for the second half of this year and 1 to 2 1 to 3 years ahead, We're still quite confident to maintain a healthy and fast growth for our ad business. Thank you.
The next question comes from the line of Alex Yao from JPMorgan. Please go ahead.
So my question is about the regulatory impact on gaming and the live streaming operation Given the changing regulatory environment in this space and potentially more policy coming out in the next a couple of quarters. How should we think about the impact on our gaming and the live streaming operation? Thank you.
So actually, for 2021, what we have observed, There's no significant change of the regulatory environment towards games or towards live broadcasting. The speculation and Discussion that's all over the Internet is just based on the media. It came from the media level. And the company ourselves, we have kept a regular dialogue with different government authorities. And from the company's perspective, we actually haven't heard anything new.
And the discussion is generally from the media or the Internet users and it's just based on their own speculations or imagination, and there's no ground to those discussions. And from our perspective, we think that from a global perspective, the regulation towards Internet content game or live broadcasting, it will be more and more standardized and rule based, and that hasn't changed. From our perspective, in the past, Bilibili has always responded very actively towards all kinds of regulations from the government. We believe our industry that's experiencing fast growth, certain regulation is actually beneficiary for this industry's long term and healthy growth. So we think as the industry's development, as it has more influence and impact towards the society, It's a very natural process for the regulation to become more rule based and standardized.
And I believe the video industry, it will be a multibillion, trillion,000,000,000
for R and
B worth of industry. And games probably will become very likely to become the mainstream format of entertainment. In the past, it's probably as emerging new verticals and the details of those regulation were Mature and as you grow bigger, it's just very natural for the regulatory to form up a more standardized and rule based regulatory environment. Relation towards video content and game content has been very clear. And In general, they do hope this industry will develop and encourage the development of this industry, and they have Very specific on the things that they hope to regulate.
1 is on the minor protection 2 is the compliance of the content itself. And in the past and up to now, Bilibili has been Very clear on those requirements and have follow and implement all the regulatory requirements. So generally, I think that the game industry will definitely move forward and Experience better development and as an Internet company, we'll be fully compliant with The key areas that the government has specifically required, 1 is on the minor protection and 2 is on the compliance of the content itself. My personal view is we're still very optimistic. I believe This industry will only become better and better under the supervision of the government.
I think that this industry is quite different from 10 years ago. Probably in 10 years ago, it's still early stage. There's not a very precisely regulated, But 10 years later, this industry has become much more matured. The participants in this Industry also gained more experience, over 10 years of experience. I think we have already reached The consensus with the industry players and the regulatory is that the industry need to be regulated towards a healthy development path.
And from Bilibili's perspective, we have strictly followed that For example, on the minor protections that the revenue generated from user that's below 18 years old. The game revenue only takes about 1 and takes around 1% Total game revenue. So we have been implementing restrictions and rules to better protect our miners and follow the regulatory requirements. So I think overall, the industry is growing towards a more healthy and positive track. And I personally feel quite comfortable with the existing environment.
So to summarize, in the past few months, I personally don't believe there And we believe our peers in this industry also agree with that and already reached That this industry needs to be moved towards a more healthy and regulated path.
Okay.
The next question comes from the line of Phoenix Yu from UBS. Please go ahead.
Let me translate myself. So first, congratulations on the strong set of results. My question is on the GP margin. I noticed the GP margin of this quarter was showed some weakness Q on Q and year on year. So may I know the reason or any color behind that?
And what is the management's thought on GP margin trend for the rest of this year and for the longer term potential? Thank you.
Okay. This is Sam. Let me take your question. You're right, the slightly decrease of the margin in Q2, actually it's mainly due to the change of the sales mix. In Q2, we saw a contribution of our game revenue actually was decreased as a percentage of our revenues.
And there were also lower It also declined a little bit due to because we launched a continuing Q2 to offer higher revenue channel ratio. It's a performance based incentive and if for those new hosts only. So actually, if you look at the short term to see margin trend. We are still in the early stage on the monetization side. So it will be factored over the quarters.
But Before we get into the details of our long term margin trend, I would like to emphasize on the way we The strategic thinking of us for HONDA's profitability. While we have the opportunity to quickly expand our Our priorities are always for some user growth and top line expansion rather than to limit our growth potential for the sake of breakeven. When we are thinking about the path to the profitability, actually, we are thinking what's the sensible revenue level to achieve a healthy breakeven status and whether it's sustainable to keep improving the profitability after the breakeven. So for example, a company with like RMB20 1,000,000,000 revenue and the same company with RMB15 1,000,000,000, The bigger revenue size is surely more sustainable for long term development. Over the past 12 months, actually we successfully Achievable quality revenue growth with expansion of our user base.
Our MAUs was up 38% year over year actually increased by 72% year on year to around RMB13.8 per quarter in Q2. Yes. We believe there are plenty of upside because we grow our user base and improve our monetization efficiency. And also On the cost side, our key relatively fixed operating costs, including the content, server and staff costs decreased from like 34% of the total revenue in 2019 to 28% in Q3 this year. As we grow our top line and improve the efficiency, our revenue mix will also be more diversified And our segment margin, which are live broadcasting in the online games, as I mentioned, still have going to improve.
That's what you want to look at for the long term gross profit margin trend.
Thank you. That makes sense. Very clear.
Thank you. We have the next question from Ewan Zhang from China Renaissance. Please go ahead.
So my question is regarding gaming. So in the first half, our gaming revenue is pretty stable. How should we work at the second half and also the longer term gaming revenue growth? Additionally,
Indeed, when We look at our GAIN revenue. It has experienced some of the slowdown in the first half of this year. The main reason that we see is because lack of supply for both of our exclusively licensed games and jointly operated games for the revenue to We need to connect to we need to get more new games. And because of the over All China issues caused us in the past 6 months that there has been some of the delay And the supply has been slower than expected. And for the same reason, our some of our projects have been delayed.
And that was the main reason for the slowdown for our game We also see some positive signs as we operate our business. Besides the supply issue, we've seen on the demand side, there's many, many positive signs. We kept growing with our overall MAUs even with the undersupply for game titles For all the for many new titles that we released in the first half of this year, including GuardianTel and Sword Art Online, its new addition, new The new user has constantly break a single game record. And on the other hand, for the old games, We have seen its long operation cycle. Many of our games continue to grow in terms of revenue and users.
For example, our Azure Lane, our exclusively licensed game Azure Lane, our During the operating game, Jinseng Impact, we're seeing more user joining and it's closing continuously to grow year over year. So generally, we think on Bilibili, the gamers are growing and their desire and need for high quality games is also growing. As we see it, we think as long as we solve the supply problem, we should be able to solve the bottlenecks that we've been seeing in the past quarters. And the solution towards the supply problem is, while we Continue to enhance our licensing business. We will continue we will start to invest And actually from in last year, we have already seen the trend of lack of supply in the market, and we started to invest In the self developing business, currently, we have over 1,000 team members in our And there's multiple titles and projects under development.
We'll be expecting to launch our own self development our own self developed games in next year and the year after Next year. So from based on our existing business scale, we think our self developing C. Wei:] And I believe in few years later, our self developed game should be contributing over half of our gain revenue. And to summarize, we believe as our user continue to And we should have more gamers and more demand for games. And to solve the supply problem, we'll continue to reinforce our licensing game business while investing in self developed games.
In the past, we might have one engine for game revenue growth, which is the licensing. And in the Next few years will be dual engine self development, licensing and jewelry operations. And we think that should our prep and staying revenue growth.
Thank you. And that concludes our question and answer session for today. I would like to turn the conference back to the management for any additional or closing comments.
Well, thank you again for joining us today. If you Any further questions, please contact me, Zhui Yang, Bilibili's IR Director or TPG Investor Relations. Our contact information for IR in both China and the U. S. Can be found on today's press release.
Have a great day. Bye bye.