Exhibit 99.1

INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2024 and March 31, 2025		F-2
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2025		F-4
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2024 and 2025		F-5
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2025		F-7
Notes to the Unaudited Interim Condensed Consolidated Financial Statements		F-9

 

F-1

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share data)

 

		December 31, 2024				March 31, 2025				March 31, 2025
		RMB				RMB				US$
										Note 2(d)
Assets
Current assets:
Cash and cash equivalents			10,249,382				9,601,900				1,323,177
Time deposits			3,588,475				3,937,921				542,660
Restricted cash			50,000				50,950				7,021
Accounts receivable, net			1,226,875				1,007,515				138,839
Amount due from related parties			786,677				1,071,470				147,652
Prepayments and other current assets			1,148,111				1,052,801				145,080
Short-term investments			2,706,535				3,856,835				531,486
Total current assets			19,756,055				20,579,392				2,835,915
Non-current assets:
Property and equipment, net			589,227				522,109				71,949
Production cost, net			1,851,207				1,753,344				241,617
Intangible assets, net			3,201,012				3,199,545				440,909
Deferred tax assets			135,131				142,237				19,601
Goodwill			2,725,130				2,725,130				375,533
Long-term investments, net			3,911,592				3,919,494				540,121
Other long-term assets			529,146				439,239				60,529
Total non-current assets			12,942,445				12,701,098				1,750,259
Total assets			32,698,500				33,280,490				4,586,174
Liabilities
Current liabilities:
Accounts payable			4,801,416				4,983,062				686,684
Salary and welfare payable			1,599,482				1,200,571				165,443
Taxes payable			428,932				376,961				51,947
Short-term loan and current portion of long-term debt			1,571,836				1,818,124				250,544
Deferred revenue			3,802,307				3,848,682				530,363
Accrued liabilities and other payables			2,554,281				2,845,213				392,081
Amount due to related parties			4,549				32,164				4,432
Total current liabilities			14,762,803				15,104,777				2,081,494
Non-current liabilities:
Long-term debt			3,264,153				3,264,089				449,803
Other long-term liabilities			567,631				531,276				73,212
Total non-current liabilities			3,831,784				3,795,365				523,015
Total liabilities			18,594,587				18,900,142				2,604,509

 

F-2

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share data)

 

		December 31, 2024				March 31, 2025				March 31, 2025
		RMB				RMB				US$
										Note 2(d)
Shareholders’ equity
Ordinary shares:
Class Y Ordinary Shares (US$0.0001 par value; 100,000,000 shares authorized, 83,715,114 shares issued and outstanding as of December 31, 2024; US$0.0001 par value; 100,000,000 shares authorized, 82,366,214 shares issued and outstanding as of March 31, 2025)			52				51				7
Class Z Ordinary Shares (US$0.0001 par value; 9,800,000,000 shares authorized, 337,546,303 shares issued, 332,838,671 shares outstanding as of December 31, 2024; US$0.0001 par value; 9,800,000,000 shares authorized, 338,895,203 shares issued, 335,620,287 shares outstanding as of March 31, 2025)			216				218				30
Additional paid-in capital			41,454,130				41,747,152				5,752,912
Statutory reserves			48,642				48,642				6,703
Accumulated other comprehensive income			266,816				260,905				35,954
Accumulated deficit			(27,661,459	)			(27,670,561	)			(3,813,105	)
Total Bilibili Inc.’s shareholders’ equity			14,108,397				14,386,407				1,982,501
Noncontrolling interests			(4,484	)			(6,059	)			(836	)
Total shareholders’ equity			14,103,913				14,380,348				1,981,665
Total liabilities and shareholders’ equity			32,698,500				33,280,490				4,586,174

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-3

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data)

 

		For the Three Months Ended March 31,
		2024				2025				2025
		RMB				RMB				US$ Note 2(d)
Net revenues
Value-added services			2,528,909				2,807,340				386,862
Advertising			1,668,584				1,997,635				275,281
Mobile games			982,810				1,731,155				238,560
IP derivatives and others			484,297				467,118				64,370
Total net revenues			5,664,600				7,003,248				965,073
Cost of revenues			(4,059,240	)			(4,464,150	)			(615,176	)
Gross profit			1,605,360				2,539,098				349,897
Operating expenses:
Sales and marketing expenses			(927,059	)			(1,166,975	)			(160,813	)
General and administrative expenses			(531,777	)			(515,638	)			(71,057	)
Research and development expenses			(965,120	)			(841,477	)			(115,959	)
Total operating expenses			(2,423,956	)			(2,524,090	)			(347,829	)
(Loss)/profit from operations			(818,596	)			15,008				2,068
Other income/(expense):
Investment loss, net (including impairments)			(21,249	)			(62,203	)			(8,572	)
Interest income			133,207				94,173				12,977
Interest expense			(31,574	)			(32,571	)			(4,488	)
Exchange losses			(58,060	)			(11,659	)			(1,607	)
Debt extinguishment loss			(20,980	)			—				—
Others, net			54,183				(1,837	)			(253	)
Total other income/(expense), net			55,527				(14,097	)			(1,943	)
(Loss)/profit before income tax expenses			(763,069	)			911				125
Income tax			(1,562	)			(11,588	)			(1,597	)
Net loss			(764,631	)			(10,677	)			(1,472	)
Net loss attributable to noncontrolling interests			16,086				1,575				217
Net loss attributable to the Bilibili Inc.’s shareholders			(748,545	)			(9,102	)			(1,255	)
Net loss			(764,631	)			(10,677	)			(1,472	)
Other comprehensive income/(loss):
Foreign currency translation adjustments			2,496				(5,911	)			(815	)
Total other comprehensive income/(loss)			2,496				(5,911	)			(815	)
Total comprehensive loss			(762,135	)			(16,588	)			(2,287	)
Comprehensive loss attributable to noncontrolling interests			16,086				1,575				217
Comprehensive loss attributable to the Bilibili Inc.’s shareholders			(746,049	)			(15,013	)			(2,070	)
Net loss per share, basic			(1.80	)			(0.02	)			(0.00	)
Net loss per share, diluted			(1.80	)			(0.02	)			(0.00	)
Net loss per ADS, basic			(1.80	)			(0.02	)			(0.00	)
Net loss per ADS, diluted			(1.80	)			(0.02	)			(0.00	)
Weighted average number of ordinary shares, basic			415,274,340				420,086,397				420,086,397
Weighted average number of ordinary shares, diluted			415,274,340				420,086,397				420,086,397
Weighted average number of ADS, basic			415,274,340				420,086,397				420,086,397
Weighted average number of ADS, diluted			415,274,340				420,086,397				420,086,397
Share-based compensation expenses included in:
Cost of revenues			13,677				23,996				3,307
Sales and marketing expenses			12,560				16,417				2,262
General and administrative expenses			157,824				144,497				19,912
Research and development expenses			80,525				105,855				14,587

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-4

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(All amounts in thousands, except for share data)

 

		Ordinary shares
		Class Y Ordinary Shares								Class Z Ordinary Shares								Additional paid-in capital				Statutory reserves				Accumulated other comprehensive income				Accumulated deficit				Noncontrolling interests				Total shareholders’ equity
		Shares				Amount				Shares				Amount
						RMB								RMB				RMB				RMB				RMB				RMB				RMB				RMB
Balance at December 31, 2023			83,715,114				52				325,800,880				213				40,445,175				44,749				212,477				(26,310,766	)			12,367				14,404,267
Net loss			—				—				—				—				—				—				—				(748,545	)			(16,086	)			(764,631	)
Share-based compensation			—				—				—				—				264,586				—				—				—				—				264,586
Share issuance from exercise of share options			—				—				809,874				1				—				—				—				—				—				1
Share issuance from vest of restricted share units			—				—				12,500				*				—				—				—				—				—				*
Foreign currency translation adjustments			—				—				—				—				—				—				2,496				—				—				2,496
Balance at March 31, 2024			83,715,114				52				326,623,254				214				40,709,761				44,749				214,973				(27,059,311	)			3,719				13,906,719

*	Less than 1.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-5

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)

(All amounts in thousands, except for share data)

 

		Ordinary shares
		Class Y Ordinary Shares								Class Z Ordinary Shares								Additional paid-in capital				Statutory reserves				Accumulated other comprehensive income				Accumulated deficit				Noncontrolling interests				Total shareholders’ equity
		Shares				Amount				Shares				Amount
						RMB								RMB				RMB				RMB				RMB				RMB				RMB				RMB
Balance at December 31, 2024			83,715,114				52				329,358,672				216				41,454,130				48,642				266,816				(27,661,459	)			(4,484	)			14,103,913
Net loss			—				—				—				—				—				—				—				(9,102	)			(1,575	)			(10,677	)
Share-based compensation			—				—				—				—				290,765				—				—				—				—				290,765
Share issuance from exercise of share options			—				—				500,653				*				2,257				—				—				—				—				2,257
Share issuance from vest of restricted share units			—				—				932,063				1				—				—				—				—				—				1
Redesignation of shares			(1,348,900	)			(1	)			1,348,900				1				—				—				—				—				—				—
Foreign currency translation adjustments			—				—				—				—				—				—				(5,911	)			—				—				(5,911	)
Balance at March 31, 2025			82,366,214				51				332,140,288				218				41,747,152				48,642				260,905				(27,670,561	)			(6,059	)			14,380,348

*	Less than 1.

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-6

BILIBILI INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands)

 

		For the Three Months Ended March 31,
		2024				2025				2025
		RMB				RMB				US$ Note 2(d)
Cash flows from operating activities:
Net loss			(764,631	)			(10,677	)			(1,472	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property and equipment			164,439				106,318				14,651
Amortization of intangible assets			456,356				388,172				53,492
Amortization of right-of-use assets			40,476				39,907				5,499
Amortization of debt issuance costs			4,885				71				10
Share-based compensation expenses			264,586				290,765				40,068
Allowance for expected credit losses			55,249				10,000				1,378
Inventory provision			(351	)			(5,452	)			(751	)
Deferred income taxes			(14,350	)			(11,242	)			(1,549	)
Unrealized exchange (gains)/losses			(1,468	)			1,777				245
Unrealized fair value changes of investments			(26,260	)			39,520				5,446
Loss on disposal of property and equipment			2,213				3,125				431
(Gain)/loss from equity method investments			(8,152	)			8,021				1,105
Impairments of long-term investments			68,027				30,750				4,237
Loss of convertible senior notes repurchase			20,941				—				—
Changes in operating assets and liabilities:
Accounts receivable			254,737				215,351				29,676
Amount due from related parties			(26,574	)			(16,071	)			(2,214	)
Prepayments and other assets			190,569				182,570				25,159
Other long-term assets			8,823				(7,403	)			(1,020	)
Accounts payable			26,741				181,410				24,999
Salary and welfare payable			(286,535	)			(398,911	)			(54,971	)
Taxes payable			(65,613	)			(51,970	)			(7,162	)
Deferred revenue			33,518				46,375				6,391
Accrued liabilities and other payables			273,641				288,292				39,728
Amount due to related parties			125				3,616				498
Other long-term liabilities			(33,695	)			(32,219	)			(4,441	)
Net cash provided by operating activities			637,697				1,302,095				179,433
Cash flows from investing activities:
Purchase of property and equipment			(93,048	)			(35,699	)			(4,919	)
Purchase of intangible assets			(120,560	)			(351,785	)			(48,477	)
Purchase of short-term investments			(4,605,100	)			(15,219,419	)			(2,097,292	)
Maturities of short-term investments			5,437,674				14,026,436				1,932,895
Cash paid for long-term investments including loans			(70,950	)			(292,000	)			(40,239	)
Repayment of loans from investees			60,100				13,000				1,791
Cash received from disposal/return of long–term assets			549				6,536				901
Placements of time deposits			(2,708,871	)			(2,013,934	)			(277,528	)
Maturities of time deposits			2,862,176				1,660,348				228,802
Net cash provided by/(used in) investing activities			761,970				(2,206,517	)			(304,066	)
Cash flows from financing activities:
Proceeds of short-term loan			749,000				900,000				124,023
Repayment of short-term loan			(244,226	)			(651,000	)			(89,710	)
Proceeds from exercise of employees’ share options			1				2,258				311
Repurchase of convertible senior notes			(3,046,017	)			—				—
Net cash (used in)/provided by financing activities			(2,541,242	)			251,258				34,624
Effect of exchange rate changes on cash and cash equivalents and restricted cash held in foreign currencies			(12,837	)			6,632				914
Net decrease in cash and cash equivalents and restricted cash			(1,154,412	)			(646,532	)			(89,095	)
Cash and cash equivalents and restricted cash at beginning of the period			7,241,821				10,299,382				1,419,293
Cash and cash equivalents and restricted cash at end of the period			6,087,409				9,652,850				1,330,198
Including:

 

F-7

BILIBILI INC.   UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)   (All amounts in thousands)
Cash and cash equivalents at end of the period			6,037,409				9,601,900				1,323,177
Restricted cash at end of the period			50,000				50,950				7,021
Supplemental disclosures of cash flows information:
Cash paid for income taxes, net of tax refund			33,862				24,405				3,363
Cash paid for interest expense			14,700				24,614				3,392
Supplemental schedule of non-cash investing and financing activities:
Property and equipment purchases financed by accounts payable			173,105				48,680				6,708
Acquisitions and investments financed by payables			—				24,000				3,307
Intangible assets purchases financed by payables			896,546				571,573				78,765

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-8

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Operations

Bilibili Inc. (the “Company” or “Bilibili”) is an iconic brand and a leading video community for young generations in China. Incorporated as a limited liability company in the Cayman Islands in December 2013, the Company, through its consolidated subsidiaries, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”), is primarily engaged in the operation of providing online entertainment services to users in the People’s Republic of China (the “PRC” or “China”).

In April 2018, the Company completed its IPO on the NASDAQ Global Select Market. In March 2021, the Company successfully listed its Class Z ordinary shares on the main board of the Hong Kong Stock Exchange.

On October 3, 2022 (the “Primary Conversion Effective Date”), the Company’s voluntary conversion of its secondary listing status to primary listing on the main board of the Hong Kong Stock Exchange became effective. The Company became a dual-primary listed company on the main board of Hong Kong Stock Exchange in Hong Kong and the NASDAQ Global Select Market in the United States.

In January 2023, the Company completed the offering of 15,344,000 ADSs at US$26.65 per ADS. The amount of net proceeds from such offering (after deducting all applicable costs and expenses including but not limited to selling commission) is approximately US$396.9 million (RMB2,689.4 million). Shortly thereafter, the Company completed repurchased of an aggregate principal amount of US$384.8 million (RMB2.6 billion) of its outstanding 0.50% convertible senior notes due December 2026 with an aggregate purchase price of US$331.2 million (RMB2.2 billion), which was funded by the net proceeds from the ADS Offering.

As of March 31, 2025, the Company’s major subsidiaries, VIEs and subsidiaries of the VIEs are as follows:

 

Major Subsidiaries		Place and Year of Incorporation		Percentage of Direct or Indirect Economic Ownership		Principal Activities
Bilibili HK Limited		Hong Kong, 2014		100		Investment holding
Hode HK Limited		Hong Kong, 2014		100		Investment holding
Chaodian HK Limited		Hong Kong, 2019		100		Investment holding
Bilibili Co., Ltd.		Japan, 2014		100		Business development
Hode Shanghai Limited (“Hode Shanghai”)		PRC, 2014		100		Technology development1
Shanghai Bilibili Technology Co., Ltd.		PRC, 2016		100		Technology development1
Chaodian (Shanghai) Technology Co., Ltd.		PRC, 2019		100		E-commerce and advertising1

 

F-9

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1. Operations (Continued)

 

Major VIEs and VIEs’ subsidiaries		Place and Year of Incorporation		Percentage of Direct or Indirect Economic Interest		Principal Activities
Shanghai Hode Information Technology Co., Ltd. (“Hode Information Technology”)		PRC, 2013		100*		Mobile game operation2
Shanghai Kuanyu Digital Technology Co., Ltd. (“Shanghai Kuanyu”)		PRC, 2014		100*		Video distribution and game distribution2
Sharejoy Network Technology Co., Ltd. (“Sharejoy Network”)		PRC, 2014		100*		Game distribution2
Shanghai Hehehe Culture Communication Co., Ltd. (“Shanghai Hehehe”)		PRC, 2014		100*		Comics distribution2
Shanghai Anime Tamashi Cultural Media Co., Ltd. (“Shanghai Anime Tamashi”)		PRC, 2015		100*		E-commerce platform2

 

*	Hode Shanghai is the primary beneficiary of the major VIEs and VIEs’ subsidiaries.

1	These companies were established in the PRC in the form of wholly foreign-owned enterprises.

2	These companies were established in the PRC in the form of investment solely by legal corporations or controlled by natural person(s).

 

F-10

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1. Operations (Continued)

The following combined financial information of the Group’s VIEs and VIEs’ subsidiaries as of December 31, 2024 and March 31, 2025 and for the three months ended March 31, 2024 and 2025 included in the accompanying consolidated financial statements of the Group was as follows:

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Cash and cash equivalents			2,108,946				3,403,391
Time deposits			21,560				21,762
Restricted cash			50,000				50,950
Accounts receivable, net			623,464				674,762
Amounts due from Group companies			532,700				608,799
Amount due from related parties			17,233				30,050
Prepayments and other current assets			382,386				373,771
Short-term investments			537,432				96,217
Long-term investments, net			1,714,647				1,726,428
Other non-current assets			4,647,176				4,540,557
Total assets			10,635,544				11,526,687
Accounts payable			3,650,374				3,859,930
Salary and welfare payables			426,568				289,491
Taxes payable			135,235				141,624
Short-term loan			600,000				699,000
Deferred revenue			2,727,174				2,751,749
Accrued liabilities and other payables			895,670				1,053,477
Amounts due to the Group companies			10,362,724				10,399,714
Amounts due to related parties			4,463				32,038
Other long-term payable			400,630				403,174
Total liabilities			19,202,838				19,630,197
Total Bilibili Inc’s shareholders’ deficit			(8,575,962	)			(8,111,883	)
Noncontrolling interests			8,668				8,373
Total shareholders’ deficit			(8,567,294	)			(8,103,510	)
Total liabilities and shareholders’ deficit			10,635,544				11,526,687

 

F-11

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1. Operations (Continued)

 

		For the Three Months Ended March 31,
		2024				2025
		RMB in thousands
Third-party revenues			3,634,786				4,669,901
Inter-company revenues			224,619				166,943
Total revenues			3,859,405				4,836,844
Net income			96,196				464,112

 

		For the Three Months Ended March 31,
		2024				2025
		RMB in thousands
Net cash provided by operating activities			920,948				1,456,590
Net cash provided by investing activities			19,885				71,822
Net cash used in financing activities			(1,105,863	)			(225,051	)

 

F-12

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

1. Operations (Continued)

Liquidity

The Group incurred net losses of RMB764.6 million and RMB10.7 million for the three months ended March 31, 2024 and 2025, respectively. Net cash provided by operating activities was RMB637.7 million and RMB1,302.1 million for the three months ended March 31, 2024 and 2025, respectively. Accumulated deficit was RMB27,661.5 million and RMB27,670.6 million as of December 31, 2024 and March 31, 2025, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and non-operational sources of financing from investors to fund its operations and business development. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenues while controlling costs and operating expenses, as well as, generating operational cash flows and continuing to gain support from outside sources of financing. In the past, the Group has been continuously receiving financing support from outside investors. Moreover, the Group can adjust the pace of its operation expansion and control the operating expenses. Based on the above considerations, the Group believes the cash and cash equivalents and the operating cash flows are sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the date of the issuance of the unaudited interim condensed consolidated financial statements. The Group’s unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

 

F-13

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

2. Significant Accounting Policies

a) Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for a complete set of financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments as necessary for the fair statement of the Group’s financial position as of March 31, 2025, and the results of operations and cash flows for the three months ended March 31, 2024 and 2025. The consolidated balance sheet at December 31, 2024 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. GAAP. The unaudited interim condensed consolidated financial statements and related disclosures have been prepared with the presumption that users of the unaudited interim condensed consolidated financial statements have read or have access to the audited consolidated financial statements for the preceding fiscal years. Accordingly, these financial statements should be read in conjunction with the audited consolidated financial statements and related footnotes as of and for the year ended December 31, 2024. Results for the three months ended March 31, 2025 are not necessarily indicative of the results expected for the full fiscal year or for any future period.

b) Principles of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company, its subsidiaries and VIEs (inclusive of the VIEs’ subsidiaries) for which the Company is the primary beneficiary.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of the board of directors, or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A consolidated VIE is an entity in which the Company’s subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company’s subsidiary is the primary beneficiary of the entity.

All transactions and balances among the Company, its subsidiaries and VIEs (inclusive of the VIEs’ subsidiaries) have been eliminated upon consolidation. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary.

 

F-14

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

2. Significant Accounting Policies (Continued)

c) Use of estimates

The preparation of the Group’s consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the balance sheet date and reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but are not limited to, determination of the average playing period for paying players, and assessment for the impairment of long-term investments accounted for using the measurement alternative.

d) Convenience Translation

Translations of balances on the unaudited interim condensed consolidated balance sheets, unaudited interim condensed consolidated statements of operations and comprehensive loss and unaudited interim condensed consolidated statements of cash flows from RMB into US$ as of and for the three months ended March 31, 2025 are solely for the convenience of the reader and were calculated at the rate of US$1.00 = RMB7.2567, representing the noon buying rate in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York on March 31, 2025. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at such rate.

e) Contract balance

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent amounts invoiced, and revenue recognized prior to invoicing when the Group has satisfied its performance obligations and has the unconditional right to consideration.

Deferred revenue relates to unsatisfied performance obligations at the end of each reporting period and consists of cash payment received in advance from game players in mobile games, from customers in advertising services, live broadcasting services and other VAS, and e-commerce platforms. Due to the generally short-term duration of the relevant contracts, the majority of the performance obligations are satisfied within one year. The amount of revenue recognized that was included in the receipts in advance balance at the beginning of the period was RMB2,074.4 million and RMB2,811.6 million for the three months ended March 31, 2024 and 2025, respectively.

f) Receivables, net

The following table sets out movements of the allowance for expected credit losses for the three months ended March 31, 2024 and 2025, respectively:

 

		For the Three Months Ended March 31,
		2024				2025
		RMB in thousands
Beginning balance			219,201				283,993
Provisions			55,249				10,000
Write-offs			(916	)			(33,131	)
Ending balance			273,534				260,862

 

F-15

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

3. Concentrations and Risks

a) Telecommunications service provider

The Group relied on telecommunications service providers and their affiliates for servers and bandwidth services to support its operations for the three months ended March 31, 2024 and 2025 was as follows:

 

		For the Three Months Ended March 31,
		2024				2025
Total number of telecommunications service providers			96				103
Number of service providers providing 10% or more of the Group’s servers and bandwidth expenditure			4				2
Total percentage of the Group’s servers and bandwidth expenditure provided by 10% or greater service providers			53	%			32	%

b) Foreign currency exchange rate risk

The functional currency and the reporting currency of the Company are U.S. dollars and RMB, respectively. The Group’s exposure to foreign currency exchange rate risk primarily relates to cash and cash equivalents, time deposits, short-term and long-term investments, convertible senior notes and accounts payable denominated in the U.S. dollars. Most of the Group’s revenues, costs and expenses are denominated in RMB, while the convertible senior notes and a portion of cash and cash equivalents, time deposits, short-term and long-term investments, and accounts payable are denominated in U.S. dollars. Any significant fluctuation of RMB against U.S. dollars may materially and adversely affect the Group’s cash flows, revenues, earnings and financial positions.

c) Credit risk

The Group’s financial instruments potentially subject to significant concentrations of credit risk primarily consist of cash and cash equivalents, time deposits, restricted cash, accounts receivable and financial products (recorded in the short-term and long-term investments) with variable interest rates referenced to performance of underlying assets issued by commercial banks and other financial institutions. As of December 31, 2024 and March 31, 2025, substantially all of the Group’s cash and cash equivalents, restricted cash and time deposits were held in major financial institutions located in the United States of America and China, which management consider being of high credit quality. Accounts receivable is typically unsecured and is primarily derived from revenue earned from advertising, VAS and mobile game services (mainly relates to remittances due from payment channels and distribution channels). The following table presents distribution channel and customer that had receivable balance exceeding 10% of the Group’s gross accounts receivable balance as of December 31, 2024 and March 31, 2025.

 

RMB in thousands		December 31, 2024				March 31, 2025
Distribution channel A			192,405				296,002
Customer A			168,503				146,088

 

F-16

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

3. Concentrations and Risks (Continued)

d) Major customers and supplying channels

No single customer represented 10% or more of the Group’s net revenues for the three months ended March 31, 2024 and 2025, respectively.

The Group relied on a distribution channel to publish and generate the iOS version of its mobile games. There is no single distribution channel of mobile games generated 10% or more of the Group’s net revenues for the three months ended March 31, 2024 and 2025, respectively.

e) Mobile games

Mobile game revenues accounted for 17% and 25% of the Group’s total net revenues for the three months ended March 31, 2024 and 2025, respectively.

One mobile game individually contributing more than 10% of the Group’s total net revenues for the three months ended March 31, 2025, as follows:

 

		For the Three Months Ended March 31,
		2024				2025
Mobile game 1			below 10	%			11	%

4. Prepayments and Other Current Assets

The following is a summary of prepayments and other current assets:

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Prepayments for revenue sharing cost*			305,818				285,198
Inventories, net			255,185				233,741
Prepayments for sales tax			172,756				148,077
Deposits			138,561				135,485
Prepayments of marketing and other operational expenses			64,065				67,046
Prepayments to inventory suppliers			39,584				60,035
Interest income receivable			78,343				39,342
Prepayments for content cost			20,064				20,878
Prepayments /receivables relating to jointly invested content			2,250				6,814
Loans to investees or ongoing investments			21,465				5,898
Others			50,020				50,287
Total			1,148,111				1,052,801

*

App stores retain commissions on each purchase made by the users through the App stores. The Group is also obligated to pay ongoing licensing fees in form of royalties to the third-party game developers. Licensing fees consist of fees that the Group pays to content owners for the use of licensed content, including trademarks and copyrights, in the development of games. Licensing fees are either paid in advance and recorded on the balance sheets as prepayments or accrued as incurred and subsequently paid. Additionally, the Group defers the revenue from licensed mobile games over the estimated average playing period of paying players given that there is an implied obligation to provide on-going services to end-users.

 

F-17

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

5. Short-term Investments

The following is a summary of short-term investments:

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Investments in publicly traded companies			424,755				373,081
Financial products			2,281,780				3,483,754
Total			2,706,535				3,856,835

For the three months ended March 31, 2024 and 2025, the Group recorded investment income of RMB26.3 million and investment loss of RMB27.1 million related to short-term investments on the unaudited interim condensed consolidated statements of operations and comprehensive loss, respectively.

6. Property and Equipment, Net

The following is a summary of property and equipment, net:

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Leasehold improvements			222,925				219,958
Servers and computers			3,406,915				3,359,646
Others			64,799				64,718
Total			3,694,639				3,644,322
Less: accumulated depreciation			(3,105,412	)			(3,122,213	)
Net book value			589,227				522,109

Depreciation expenses were RMB164.4 million and RMB106.3 million for the three months ended March 31, 2024 and 2025, respectively. No impairment was recognized for any of periods presented.

 

F-18

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

7. Intangible Assets, Net

The following is a summary of intangible assets, net:

 

		As of December 31, 2024
		Gross carrying value				Accumulated amortization				Net carrying value
		RMB in thousands
Licensed copyrights of content			8,804,134				(6,686,903	)			2,117,231
License rights of mobile games			310,676				(240,913	)			69,763
Intellectual property and others			2,374,595				(1,360,577	)			1,014,018
Total			11,489,405				(8,288,393	)			3,201,012
		As of March 31, 2025
		Gross carrying value				Accumulated amortization				Net carrying value
		RMB in thousands
Licensed copyrights of content			9,154,012				(6,977,999	)			2,176,013
License rights of mobile games			273,435				(210,066	)			63,369
Intellectual property and others			2,386,422				(1,426,259	)			960,163
Total			11,813,869				(8,614,324	)			3,199,545

Amortization expenses were RMB456.4 million and RMB388.2 million for the three months ended March 31, 2024 and 2025, respectively. No impairment charge was recognized for any of the periods presented.

8. Long-term Investments, Net

The Group’s long-term investments primarily consist of equity investments accounted for using the measurement alternative, equity investments accounted for using the equity method and other investments accounted for at fair value.

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Equity investments accounted for using the measurement alternative			1,917,527				1,891,676
Equity investments accounted for using the equity method			1,834,070				1,866,050
Investments accounted for at fair value			159,995				161,768
Total			3,911,592				3,919,494

Equity investments using the measurement alternative

The Group elects to use measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes, in accordance with ASU 2016-01. Under this measurement alternative, changes in the carrying value of the equity investments will be recognized in current earning, whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in “Investment loss, net (including impairments)” equal to the difference between the carrying value and fair value.

No re-measurement loss of equity investments accounted for using the measurement alternative was recognized for the three months ended March 31, 2024 and 2025, respectively.

 

F-19

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

8. Long-term Investments, Net (Continued)

Equity investments using the measurement alternative (Continued)

For equity investments accounted for using the measurement alternative as of December 31, 2024, the Company recorded cumulative upward adjustments of nil and cumulative impairments and downward adjustments of RMB1,187.6 million.

For equity investments accounted for using the measurement alternative as of March 31, 2025, the Company recorded cumulative upward adjustments of nil and cumulative impairments and downward adjustments of RMB1,214.4 million.

The Group recorded impairment charges for long-term investments of RMB68.0 million and RMB30.8 million as “Investment loss, net (including impairments)” for the three months ended March 31, 2024 and 2025, respectively, as the investees’ unsatisfied financial performance with no obvious upturn or potential financing solutions in the foreseeable future, and the Group determined the fair value of these investments was less than their carrying value.

No disposal gain or loss was recognized for the three months ended March 31, 2024 and 2025, respectively.

Equity investments accounted for using the equity method

RMB8.2 million of the Group’s proportionate share of equity investee’s net income and RMB8.0 million of the Group’s proportionate share of equity investee’s net loss was recognized in “Investment loss, net (including impairments)” for the three months ended March 31, 2024 and 2025, respectively.

Investments accounted for at fair value

Investments accounted for at fair value primarily include financial products with variable interest rates referenced to performance of underlying assets and with original maturities more than one year and investments in publicly traded companies with an intention of holding more than one year. A gain of RMB1.9 million and RMB2.0 million resulted from the change in fair value was recognized in “Investment loss, net (including impairments)” for the three months ended March 31, 2024 and 2025, respectively.

 

F-20

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

9. Taxation

Composition of income tax

The following table presents the composition of income tax expenses for the three months ended March 31, 2024 and 2025:

 

		For the Three Months Ended March 31,
		2024				2025
		RMB in thousands
Current income tax expenses			10,014				21,749
Withholding income tax expenses			5,898				1,081
Deferred tax benefits			(14,350	)			(11,242	)
Total			1,562				11,588

The effective tax rate is based on expected income and statutory tax rates. For interim financial reporting, the Group estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the guidance on accounting for income taxes in an interim period. The Group did not incur any interest and penalties related to potential underpaid income tax expenses.

 

F-21

BILIBILI INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

10. Taxes Payable

The following is a summary of taxes payable as of December 31, 2024 and March 31, 2025:

 

		December 31, 2024				March 31, 2025
		RMB in thousands
Enterprise income tax (“EIT”) payable			134,304				149,704
Value-added tax (“VAT”) payable			92,043				55,904
Withholding income tax payable			41,626				29,991
Withholding individual income taxes for employees			42,051				24,573
Others			118,908				116,789
Total			428,932				376,961

11. Short-term loan and current portion of long-term debt

 

Balance at December 31, 2024

Balance at March 31, 2025

Interest Rate Range

Maturity Date

Amount

Interest Rate Range

Maturity Date

Amount

RMB in thousands

Unsecured bank loans

2.30%~2.70%

Within 12 months

1,571,179

1.70%~2.50%

Within 12 months

1,817,467

2027 Notes (Note 13)

1.25%

Within 12 months

657

1.25%

Within 12 months

657

Total

1,571,836

1,818,124

 

F-22