In the past three years, the share price of Station B has risen 10 times.
Editor’s note: This article is from the micro-channel public number “SAN” (ID: techsina), Author: Yang Xuemei, Editor: Han Dapeng.
Entering the stock market of China’s Internet traffic, the fight will become more intense. Can Station B and Chen Rui, with a little sentiment and a sea of stars, be able to overcome obstacles and accomplish small goals in the next few years?
Bilibili (hereinafter referred to as Station B) is officially listed in Hong Kong for the second time. However, on the first day of trading, it broke the market, with a drop of nearly 7% at one point. This seems to have broken a pot of cold water for Station B, which is currently on the market.
However, Chen Rui, the CEO of Station B, was quite calm in his words-when we listed on the Nasdaq three years ago, we broke on the first day. Today there is a feeling of “Yesterday once more”.
In the past three years, the share price of Station B has risen 10 times.
Now that we return to Station B of the Chinese capital market, will it continue the prosperity of the past few years?
The 400 million small goal for the “new three years”
It’s not surprising that the B station broke on the first day. Affected by the overall environment, last week, China Concept Stocks experienced the biggest decline in the past five years.
The outside world believes that the valuation of Station B is too expensive, and choosing a secondary listing at this time does not seem to be a good time.
Previously, Station B determined that the issue price of Hong Kong stocks was HK$808 per share, which was 18.2% lower than the upper limit of the offer price of HK$988 per share. On March 26, Station B issued an announcement on the Hong Kong Stock Exchange saying that Hong Kong’s secondary listed stocks were oversubscribed by approximately 174.19 times for retail investors. After that, the subscription of station B also showed a clear trend of opening higher and lowering lower.
Chen Rui said in a media interview: “I think in this case, a successful listing is considered a success, because the overall situation is relatively poor. I have full confidence that the company’s future development and long-term stock price should be It will prove everything.”
He believes that, just like when it was listed on the Nasdaq, no one remembers whether the stocks of Station B rose or fell on the first day, but they remember that Station B is a well-developed company.
Where does Chen Rui’s confidence come from? The first is the user market. Most of the current users of station B are the post-85s, and future growth is also aimed at the more than 500 million post-85s in China; the second is the content trend, “I always think that video will be a hugeThis wave is not only for the Internet industry, but even for the entire society. In the future, every Internet user will become a video user, and most of the content on the Internet in the future will be video content. We and other peers are facing a huge incremental market. “
As of the fourth quarter of 2020, the number of monthly active users of station B is 202 million. Chen Rui once stated in an earnings conference call that the user growth target for the next three years is “to reach 400 million MAU within 2023.”
Equivalent to three years, the number of monthly active users of station B will almost double. Three years ago, when B stood on the NASDAQ listing, the average monthly live count was 71.8 million. In the past three years, this figure has increased by 181%.
For station B to maintain a high growth rate of nearly 100% for three years, breaking the circle is the key path.
Boundary of the broken circle
Break the circle is also the key word of station B in the past year.
But Chen Rui said that station B has been going through the process of breaking the circle for the past 12 years. That is to say, every derivation of a category, from the second dimension of animation, to the rise of the game category, to the following diversified categories such as technology, life, fashion, and Vlog. Today, there are more than 1,000 categories of content in station B.
So, is there a boundary for exiting the circle at station B? From the minority to the masses, to what extent will Station B eventually become popular?
In terms of the proportion of two-dimensional users, Chen Rui revealed in an interview that two-dimensional users initially accounted for more than half of the users of station B, but now they only account for about 20%. “But the second dimension is still our very important category.”
What the breaking circle brings to station B is the increase in business income from user growth to content growth, and both.
Station B hopes that more creators will enter the ecology of Station B, and there will be enough content to satisfy more users.
In this regard, Li Ni, Chief Operating Officer of Station B, believes that everyone has their own Bilibili in their minds. Those who like skiing will think Station B is a place where they like sports; those who like to watch cartoons think B The station is a place where the second dimension gathers; those who like to watch documentaries will think that there are many excellent documentaries here. “There are 10,000 Bilibili in the minds of 10,000 people. The videos that users are interested in are all at station B. We still hope to reach out to those who don’t know Bilibili through the stage, phenomenon, content category, and certain aspects. People:’It turns out that station B is like this’.”
This is the best way for managers to speed up breaking the circle through diversified content in the minds of managers and move towards popularization.
However, going out of the circle also means that Station B has changed from operating a small circle and two-dimensional users in the past to a post-85 group of all kinds and fields.
Station B is faced with various fierce “wars” caused by users due to various cultural conflicts and cognitive conflicts. The challenge has grown.
For example, “Rebirth without a Job”Behind the removal is the controversy and conflict caused by the collision with the mainstream culture after the otaku culture and subculture where the second element is located. Station B needs to make some trade-offs, choosing to stand on the level of popular values or on the side of niche culture.
The picture comes from the Internet
On the other hand, PUGV’s content playback volume occupies 91% of the B station. As users increase, many users turn into producers, the number of UPs increases, and the content becomes more diversified, which also gives station B The community and content operation of the company have brought great challenges.
The entry of new groups will inevitably challenge the old community order. For station B, how to keep the tone of the community atmosphere unchanged, but also to expand outward to meet the needs of more users in the circle, in line with the tastes of the public, maybe I haven’t thought about it yet.
Chen Rui needs to practice “Balance”
If defined in terms of important nodes, station B has two broken circles. The second time was 2020, and the first time was Chen Rui as an investor, invited by Xu Yi, the founder of Station B, to join Station B.
In 2014, the joining of Chen Rui brought a certain amount of capital and resources to station B, and also promoted the subsequent commercialization. This should be one of the most important nodes in the development history of Station B. As a sentimental businessman, the B station under the helm of Chen Rui has changed from a small broken station to a more comprehensive cultural community and video website today, and it has also landed on the capital market for the second time as a listed company. Chen Rui is the “Mr. Key” in the growth of Station B.
But at the same time, as an Internet veteran, Chen Rui is very clear about the competitive environment of China’s Internet and the challenges faced by Station B.
Station B has gone through a niche road for 12 years. Today, it is facing multi-faceted competition from the long video website You Aiteng to the short video platform Douyin, Kuaishou, and Huya Douyu.
In comparison, its advantage is the cultural foundation of the second dimension. In order to maintain this feature, station B spends a lot of money to purchase the copyright of the fan drama, incentivize creators to create, self-produce content, and win the game live broadcast rights. This is also related to its continuous loss-in 2020, the net loss of station B will increase from The 1.3 billion yuan in 2019 expanded to 3.1 billion yuan.
“The Internet in China is an extremely competitive place, even a place where there is no bottom line. How can we survive the fierce Internet competition in the next few years? To verify that a company that insists on doing the right things can finally do It’s huge and well done. This is also a challenge I shoulder.” Regarding the challenge, Chen Rui said frankly.
Although for Internet innovation companies in a period of rapid growth, losses are not new, the market looks at their development potential. In addition to the loss, last year B station had a significant increase in users and revenue.
However, in addition to the second dimension, it is still difficult for Station B to be big and well done. After all, business development must continue to reach and challenge the hinterland of competing products. For example, digging and competing with the watermelon video around the main UP. The 1.9 million monthly active UP is the core asset of station B.
In addition, for the commercialization of station B to expand to an ideal scale without harming users, Chen Rui still needs to practice a certain “trade-off technique.”
Entering the stock market of China’s Internet traffic, the fight will become more intense. Can Station B and Chen Rui, with a little sentiment and a sea of stars, be able to overcome obstacles and accomplish small goals in the next few years?