3 Things You Need to Know About Bilibili Inc. Hong Kong IPO March 19, 2021 1579

Bilibili has filed for IPO to raise over HK$24.7 billion in Hong Kong listing and is set to list on 29 March 2021.

  1. Over 202 million average monthly active users in Fourth Quarter 2020

Bilibili Inc. is an iconic brand and leading online entertainment platform for young generations in China. As video contents become more integrated in various facets of our life nowadays, Bilibili focuses on providing high quality contents through building its community around aspiring users, high-quality content, talented content creators and the strong emotional bond among them.

Bilibili is in the right place at the right time to capture the opportunity and increase their leadership in China’s large video-based market among the young generations and mass audiences. The company continued to expand its scope of services, ranging from Mobile games, value-added services like broadcasting services and other value-added services, advertising, e-commerce and more.

Source: Bilibili Investor presentation Feb 2021

2.  Growth in paying users

Bilibili’s efforts to achieve its scale are reflected in their average monthly active users (MAU), on top of the MAUs are their monthly paying users which has doubled to a record 17.9million in the fourth quarter, representing a paying ratio of 8.9%.

Rather than Netflix-style shows, Bilibili relies on user-generated content which is similar to YouTube. 

Bilibili has been focusing on growing its user base this year by boosting its content offerings. In August last year 2020, the company signed a deal with the owner of League of Legends to broadcast their global events in China. 

Bilibili further pioneered the ‘‘bullet chatting’’ feature, a live commenting function that has transformed the viewing experience. It has now become the welcoming home of diverse culture, interests and destination for discovering cultural trends and phenomena for young generations in China.

Source: Bilibili Investor presentation Feb 2021

3.Financial Position

In the twelve months ended 31 Dec 2021, total net revenue increased to RMB12Billion (US$1.8Billion), representing an increase of 77% from 2019.

Bilibili Inc. revenue came from various streams. Its’ mobile games revenue increased 34% in 2020 to RMB4.8Billion (US$736.2Million) while revenue from value-added services (VAS) increased to RMB3.8Billion (US$589.4 million), representing 134% increase as compared to 2019. Its advertising revenue also improved significantly, standing at an increment of 126% from 2019 at RMB1.8billion (US$282.4million). Lastly, E-commerce and others also increased to RMB1.5billion (US$231.0 million), projecting a 109% increase as compared to 2019.

Source: Bilibili Investor presentation Feb 2021

In all, Bilibili Inc. financials has shown positive results in all their business streams, with its VAS business hitting the highest increment in terms of percentage gain.

 

 

Summary

To sum it up, Bilibili’s gross margin reached 24.6%, marking it the 7th consecutive quarter of margin improvement. Bilibili remains committed with their growth strategy to further expand their user base and top line, which will lay a solid foundation for profitability in the long run.

Bilibili Inc popularity continues and it is attracting new users worldwide with its diversified streams of services. With plans to further innovate and expand its reach with the proceeds from the listing offerings, Bilibili Inc is one of the most watch IPO in 2021.

 

 

Trade Bilibili Inc on POEMS one day before the official listing date with our Hong Kong Pre-IPO market!

Pre-IPO date for Bilibili trading is on 26 March 2021.

What is Hong Kong Pre-IPO?

The Hong Kong Pre-IPO trading market is a channel provided by Phillip Securities for customers to trade Hong Kong shares one day before their official listing in the HKEX. Phillip Securities is the first broking house in Singapore and Hong Kong to offer customers the Pre-IPO trading channel.

Customers can login to POEMS 2.0 and trade under the Hong Kong Pre-IPO tab. Shares bought in the Hong Kong Pre-IPO market can be sold in the Hong Kong market on the next trading day.

 What are the trading hours?

Singapore (Mon – Fri)

Full Day Session

04.15pm – 06.30pm

Half Day Trading

02.15pm – 04.30pm

 

For more information, please visit https://globalmarkets.poems.com.sg/markets-we-offer/hong-kong-pre-ipo/

You may refer to some article/prospectus links:

 

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About the author

Chen Jin Hui
Equities Dealer
Global Markets

Chen Jin hui deals in global market equities, which encompasses markets from Malaysia, Thailand, Indonesia, Hong Kong and more. He has 4 years of dealing experience and currently support traders, dealers and fund managers on dealing activities. He graduated with a Bachelor of Science in Finance from the Singapore Institute of Management.

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