Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on January 11, bilibili recently announced the issuance of 15344000 American depositary shares (ADS) at a price of US $26.65 / ADS, raising a total of about US $410 million. Part of the proceeds from this ADS issue will be used to repurchase the convertible bonds maturing in December 2026, with a total face value of $385 million, and the rest will be used to refinance the convertible bonds repurchased by the company in the fourth quarter of 2022 and to replenish the company's working capital. In the fourth quarter of 2022, bilibili bought back convertible bonds with a total face value of $550 million (including convertible bonds maturing in December 2026 and convertible bonds maturing in 2027).

According to the report, the deal is the first IPO financing for US-listed Chinese stocks in 2023. After the completion of the transaction, the company's debt ratio will be significantly reduced and the balance sheet will be significantly improved. In the future, bilibili will continue to focus on the long-term and healthy development of the business, focus on reducing costs and increasing efficiency, and continue to enhance the ability of commercialization.

Bilibili recently announced on the Hong Kong Stock Exchange that the company's net turnover in the first nine months of 2022 was about 15.757 billion yuan, an increase of 15.8 percent over the same period last year, with a gross profit of about 2.6 billion yuan and a net loss of about 6.011 billion yuan.

CTOnews.com learned that bilibili's average daily active users (DAU) and monthly active users (MAU) in the third quarter of 2022 were 90.3 million and 333 million respectively, up 25 per cent from the same period last year. The average number of households paying monthly fees (MPU) was 28.5 million, an increase of 19% over the same period last year.

What is a convertible bond?

Convertible bonds are bonds in which bondholders can convert bonds into common shares of the company at the price agreed upon at the time of issue. If bondholders do not want to convert, they can continue to hold the bonds until they are repaid with principal and interest, or sell them in the circulation market. If the holder is optimistic about the stock appreciation potential of the bond-issuing company, he may exercise the conversion right after the grace period and convert the bonds into stocks according to the predetermined conversion price, and the bond-issuing company shall not refuse. The interest rate of this bond is generally lower than that of ordinary companies, and the issuance of convertible bonds can reduce the cost of financing. Convertible bond holders also have the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bonds under certain conditions.

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