First Read: Bilibili

Research evidence excerpt

First Read: Bilibili

everal bottom- UBS Cons.

up drivers underpinning the next stage of ad growth: 1) sustained healthy traffic 12/26E 6.54 6.67

expansion and robust user engagement as the basis for broader monetisation; 2) 12/27E 8.58 8.75

significant monetisation upside across under-penetrated scenarios. Search, watch page 12/28E 10.55 11.82

and PC/OTT ad revenue increased >100%, >80% and >50% YoY, respectively, in 1Q26.

Bilibili will continue to test new ad formats to more effectively monetise user time spent; Kenneth Fong

Analyst

3) more advanced vertical ad solutions to capture incremental industry budgets; and 4)

kenneth-kc.fong@ubs.com

AI-driven improvements in ad efficiency: AI applications across user understanding and +852-3712 3890

attribution, creative generation/selection and generative recall & ranking are enhancing

ad ROI and eCPM. Management also noted the potential for AI agents in ad placements, Jenny Yuan

enabling fully managed ad solutions. Initial adoption among e-commerce merchants has

S1460525030004

been positive, with mid/long-tier customers doubling ad spending after adoption. jenny-za.yuan@ubs.com

+86-21-3866 8912

Gaming opportunity in the AI era; H226/2027 pipeline update

Wei Xiong

Management remains positive on the long-term outlook for the gaming industry, Analyst

underpinned by robust momentum in mini games and PC gaming, along with ongoing S1460518100005

innovation from both new releases and operating evergreen titles supporting healthy wei.xiong@ubs.com

mobile growth. Although competition remains elevated, Bilibili emphasized its structural +86-21-3866 8883

strengths: 1) AI reduces development barriers and creates opportunities for innovative

small- and mid-sized teams, an area where Bilibili’s capabilities in identifying and