On November 29, the total number of blibli barrages exceeded 10 billion. Station B, the Chinese Academy of Social Sciences and the people's Culture Press jointly released the "broken defense" of the barrage in 2021. According to the official explanation, "broken defense" is originally a game term, which means to break through defense with special physical damage. In the context of the Internet, "broken defense" has an extended meaning: it usually means that there is an uncontrollable vibration after the psychological defense line is broken. Station B behind the "broken defense" has rapidly enlarged the scale of revenue since the "houlang" video broke the circle. However, the company's net loss also continued to increase. By the first three quarters of this year, the amount of loss had increased for three consecutive quarters, and the gross profit margin had decreased continuously. In the current revenue composition, the value-added service with the highest proportion has been complained repeatedly and recently named by Shanghai Consumer Protection Commission. The proportion of mobile game business decreased significantly compared with that in the early stage. In addition, the investment loss of station B in the third quarter exceeded 700 million. However, this did not prevent station B from "buying". The company recently acquired "evil" comics for 600 million yuan and obtained a payment finance license for 118 million yuan. Net loss increased for three consecutive quarters In the third quarter of 2021, the revenue of station B was 5.207 billion yuan, an increase of 61% over the same period of last year. Finally, the net loss of station B in the third quarter was 2.686 billion yuan, a year-on-year increase of - 144.01%. This is the third consecutive quarter in which the amount of loss of station B has increased. In the fourth quarter of last year, the net loss of station B was 844 million yuan, increased to 905 million yuan in the first quarter of this year, and expanded to 1.122 billion yuan in the second quarter. The gross profit margin of the company in the third quarter of 2021 decreased to 19.55% from 23.62% in the third quarter of 2020. The gross profit margin of station B has continued to decline since 2021, and the gross profit margin in the third quarter is the lowest since the fourth quarter of 2019 Behind the decline in gross profit margin, the operating cost of the company also rose sharply by 70% to 4.188 billion yuan in the third quarter. Specifically, the total operating expenditure of station B was RMB 2.897 billion, an increase of 57% over the same period last year. Sales and marketing expenses were 1.666 billion yuan, a year-on-year increase of 37%; This was mainly due to the increase in channel and marketing expenses for promoting BiliBili's application and brand, as well as the company's mobile game publicity expenses, plus the increase in sales and marketing personnel. The increase of marketing expenses has brought about an increase in users. In the third quarter of 2021, the monthly active users of station B reached 267 million and the monthly active users of mobile terminal reached 250 million, an increase of 35% and 36% respectively over the same period of 2020. Among them, the average monthly paying users reached 24 million, an increase of 59% over the same period last year. Meanwhile, the average daily use time of users is up to 88 minutes, which is the highest record since the operation of station B. Chen Rui, chairman of the board of directors and CEO of station B, said that in the summer peak season, the number of users told increased, the level of user interaction reached a record high, and the company's revenue also increased. The description reflects that the user growth in the third quarter was affected by a certain seasonality. The increase in the number of users has led to a significant increase in the company's value-added services, nearly doubling over the same period last year. In the revenue composition, the mobile game revenue of station B in the third quarter was 1.392 billion yuan, a year-on-year increase of 9%. The revenue of value-added services was 1.909 billion yuan, a year-on-year increase of 95%. This is mainly because the company has promoted the commercialization process, and the number of paying users of the company's value-added services, including large members, live broadcasting services and other value-added services, has increased. Advertising revenue was RMB 1.172 billion, a year-on-year increase of 110%. The turnover of e-commerce and others was 734 million yuan, an increase of 78% over the same period in 2020. It is mainly due to the increase in product sales of the company's e-commerce platform. In addition, the proportion of mobile game revenue is decreasing, and the proportion of advertising, e-commerce and others is increasing. In the first quarter of 2020, mobile games accounted for 49.69%, value-added services 34.27%, advertising 9.25%, e-commerce and others 6.78%; The corresponding values in the third quarter of 2021 are 26.73%, 36.66%, 22.51% and 14.10%. In the first quarter of 2018 and the first quarter of 2019, the proportion of mobile games at station B was 79.38% and 63.54% respectively. Investment losses are still "buying" It is worth noting that station B said in the financial report that the net investment income mainly includes the returns earned from financial products issued by banks and other financial institutions and the changes in the fair value of investments in listed companies. The net investment loss of station B in the third quarter was 724 million yuan, and the investment income in the same period in 2020 was 14 million yuan. The change was mainly due to the change in the fair value of the investment in listed companies. While the investment of station B is damaged, its own share price is also depressed. As of November 29, the share price of Hong Kong stocks at station B had fallen by 31.80% in the past six months. Despite the investment loss, the expansion of station B continues. On November 19, aofei entertainment issued an announcement on the sale of its wholly-owned subsidiary. It is expected to transfer 100% equity of its wholly-owned subsidiary Beijing April Star Network Technology Co., Ltd. (with evil animation) to Shanghai magic power information technology Co., Ltd. (hereinafter referred to as "Shanghai magic power") for RMB 600 million. Shanghai magic power is a wholly-owned joint-stock company of station B. On the same day, Ningbo public resources trading network disclosed that 65.5% equity of Zhejiang Yongyi electronic payment Co., Ltd. (hereinafter referred to as "Yongyi payment") was finally photographed by Shanghai Kuanyu Digital Technology Co., Ltd. for 118 million yuan. The latter is also a wholly-owned subsidiary of station B. Among them, Yongyi payment holds an Internet payment license, covering the whole country and valid for June 26, 2022. Major members automatically deduct fees three days in advance, and relevant problems have been complained repeatedly The value-added service with the largest proportion of station B's current revenue has been complained repeatedly. Among them, the cumulative number of complaints from station B on the black cat complaint platform reached 8256, 615 in recent 30 days. Complaints related to repeated charges by monthly members, two-year renewal of major members, failure of members to arrive for many days after recharge, etc. In addition to the related complaints of major members, the problems of difficult refund of B currency, delayed purchase or missing distribution of members are also among the complaints of consumers. In addition, on November 23, Shanghai Consumer Protection Commission issued a document saying that some apps have automatic deduction in advance. Among them, B station big member automatic renewal service, WeChat and Alipay purchase the charging cycle expires 3 days before deducting the cost of the next billing cycle, and the apple IOS channel automatic deduction rules are based on the Apple Corp regulations and the actual deduction time. Shanghai Consumer Protection Commission believes that the practice of withholding fees three days in advance violates the principle of voluntary fairness to a certain extent and shortens the consumer selection cycle, making it difficult for many consumers to realize the idea of "it's time to cancel when members expire". The next day, station B responded that the company attached great importance to self inspection and self correction at the first time, and would immediately start to optimize and adjust the automatic renewal period to "deduction 24 hours in advance and after expiration". (Xinhua News Agency)