Our reporter Xie Ruolin
On March 29, Bilibili (hereinafter referred to as Station B) was listed on the Hong Kong Stock Exchange for the second time, with an issue price of HK$808. However, Bilibili suffered a break on the first day of listing, and the intraday drop once expanded to 6%. At the close of the day, the decline narrowed to 3.09%, with a total market value of approximately HK$298.019 billion.
According to the prospectus, the funds raised at station B will be used for high-quality content investment, independent technology development and innovation, sales and marketing, as well as general corporate purposes and operating capital needs, so as to support healthy and high-quality growth in the community.
At the listing ceremony, Chen Rui, Chairman and CEO of Station B, said: "Standing today and looking to the future, I always believe that'videoization' is a huge wave and an inevitable trend. With the upgrading of equipment and technology, Video will inevitably become the mainstream of Internet content. Video creation will change everyone's life and penetrate all aspects of society."
Regarding the return to Hong Kong listing at station B, Chen Gang, a licensed representative of Aide Securities Futures, said in an interview with a reporter from the Securities Daily that for most Chinese concept stocks, the return is the inevitable way.
Judging from the current situation, there are variables in the future financing environment and listing environment of China Concept Stocks. The return to Hong Kong stocks will indeed attract a group of new investors.
For investors in Hong Kong stocks, technology stocks have become a new sector of Hong Kong stock investment, and the high growth of some technology stocks and the scarcity of sub-sectors make it easier to obtain high valuations and sustained attention.
Chen Rui: Future development will prove everything
The stock prices of Chinese concept stocks listed in the US recently fluctuated continuously.
In this regard, Chen Rui said in an interview with the media: “Last week, some of the Chinese concept stocks experienced the biggest decline in the past five years. Under this situation, the successful listing of Station B has been considered a success. I have full confidence in the company. , The future development and long-term stock price will prove everything."
On the evening of March 28, 2018, Station B was listed on Nasdaq at an issue price of US$11.5. It suffered a break on the day of listing, with a drop of 2.26% on the first day.
Facing the sluggish stock price, Chen Rui said: “After 10 years, no one will remember whether the stocks at Station B rose or fell on the first day of listing, but everyone will remember that Station B is a well-developed company.”
In the past three years, the share price of Station B on Nasdaq has risen by 890%. Now it is listed on the Hong Kong Stock Exchange for the second time. When Station B is facing a break again, Chen Rui said: “Recalling the Nasdaq three years ago When we went public, we also encountered stock price fluctuations. We also broke on the first day of listing. Today, there is a feeling of'Yesterday once more'."
In an interview with a reporter from the Securities Daily, Chen Gang said that the recent Hong Kong stocks IPO environment is indeed sluggish, but in fact, the IPO speculation in Hong Kong stocks is not normal. The cycle of IPOs depends on the overall market environment, funding, and the quality of listed companies. Such as multiple factors, the current time point for the listing of station B is catching up with the downturn cycle of Hong Kong stocks affected by multiple factors, and China concept stocks are also facing downward pressure recently, so this performance is reasonable.
He believes that for the future of Station B, the valuation space is more complicated. Breaking the circle is the only way for the future development of Station B to seek growth, but whether the revenue and MAU (monthly active users) continue to grow at a high rate, and how to get rid of the burn as soon as possible In the money war, how to establish the core driving force (moat) for the continuous growth of the business side is the key.
Build a "city" that young people like
In the past three years, station B has grown from a "small broken station" to a video giant with more than 200 million MAU.
At the analyst meeting after the 2020 earnings report, Chen Rui proposed a user growth goal for the next three years: that is, within 2023, the MAU of station B will reach 400 million.
What is supporting the growth of station B?
"From the perspective of user composition, 86% of monthly active users of station B are under the age of 35, especially the post-95 group accounted for a very high proportion. These users belong to the "indigenous people" of the Internet. Information is highly dependent. This can be seen from the usage time of station B users. In 2020, station B’s average daily video playback volume will reach 1.2 billion times, the average monthly interaction volume will reach 4.7 billion times, and the average daily usage time of users will remain at 80 minutes. The above is much higher than the industry average of 29.8 minutes." A media industry analyst said in an interview with a reporter from the Securities Daily that OGV (professional organization creation video) and PUGV (professional user creation video) are the two major contents of station B. Plate, these two plates form the platform "moat", and users of station B are the cornerstones of the platform ecology.
According to statistics, in the fourth quarter of 2020, there will be an average of 1.9 million UP hosts active in station B every month, and the average monthly video submission volume will reach 5.9 million.
With "videoization" becoming an important trend, station B has gradually become the preferred platform for the younger generation to consume and create video content.
In an interview with reporters, Li Ni, vice chairman and chief operating officer of station B, likened station B to a "city" that young people like: "We will provide users with a full consumption scene of eating, drinking and playing. They can live and work here in peace and contentment. It is the core business ecology and business model ecology of Station B."
Facing the fierce competition of future video platforms, Li Ni further stated: “The cultural and community barriers of station B are high enough. No matter in any competitive environment, the ecological tolerance of station B is also very strong. As long as the ecology is sufficiently developed, station B It can attract more creators and users in."
It is worth mentioning that Station B has also experienced rapid development in terms of commercialization.
For the whole year of 2020, the total revenue of station B will reach 12 billion yuan, a year-on-year increase of 77%.
Games, value-added services, advertising, e-commerce and other businesses have achieved rapid growth, driving the revenue structure of Station B to become increasingly balanced.