Bilibili Inc.’s 2021 Annual Report, filed as a Form 20-F with the U.S. Securities and Exchange Commission, provides a comprehensive overview of the company’s financial performance, corporate structure, and the complex regulatory environment governing its operations in China. As a large accelerated filer, Bilibili reports under U.S. GAAP, detailing its evolution into a diversified video-based platform. The report highlights a period of aggressive growth, with monthly active users reaching 271.7 million by the end of 2021, supported by a content ecosystem anchored in Professional User Generated Videos, live broadcasting, and mobile gaming.
Financially, the company experienced significant revenue expansion, with net revenues rising to RMB 19.38 billion in 2021. However, this growth was accompanied by widening operational losses, which reached RMB 6.81 billion, driven by substantial investments in marketing, research and development, and content acquisition. To sustain its operations, Bilibili has leveraged capital from public offerings, including a secondary listing on the Hong Kong Stock Exchange, and the issuance of convertible senior notes. The company maintains a liquidity position of RMB 30.2 billion and currently prioritizes the retention of earnings for business expansion over the payment of cash dividends.
A central theme of the report is the operational reliance on a Variable Interest Entity (VIE) structure, which is necessary to navigate Chinese foreign investment restrictions. This structure creates inherent legal and regulatory uncertainty, as the company does not hold direct equity ownership in its primary operating entities. Furthermore, Bilibili faces a stringent and evolving regulatory landscape in China, including strict oversight of content moderation, data security, anti-addiction protocols for minors, and potential delisting risks under the Holding Foreign Companies Accountable Act. These factors, combined with intense market competition and the complexities of managing a dual-class share structure, present ongoing challenges to the company’s long-term financial stability and operational flexibility.
