We intend to explore more categories, such as food, beauty, 3C and digital products, home appliances and et cetera. And here is the example. In mid-April, Xiaomi launched a live broadcasting e-commerce show promoting its new cellphone. Based on the data that I have in hand, Bilibili ranked number one in terms of GMV among all content platforms. It not only reflected that the strong word-of-mouth influence that we had among our young user group, but also the strong consumption power our users had. I think the Bilibili ad model has evolved from establishing brand perception and mindshare to a true integrated ad solution, a full advertising chain of brand building, seating and sales conversion. In the first half of this year, we have upgraded our industry ad solution for game and e-commerce and transactional strategy and is already starting to show positive results.
In the second half, I personally plan to conduct additional upgrade for our leading ad inventory — ad industries such as FMCG, 3C and digital products. We believe as we deliver healthy and sustainable user growth, we are confident that we can achieve 25% to 30% ad revenue growth on a full year basis year-on-year.
Juliet Yang: Thank you. That concludes this question’s answer. Operator, next question, please.
Operator: We are now taking the next question. Please standby. Next question is from Kenneth Fong from Credit Suisse. Please go ahead. Your line is open.
Kenneth Fong: [Foreign Language] Thank you, management, for taking my question. We noticed that we lowered the full year revenue guidance. Can you share with us the key considerations behind? Are we still on track for narrowing losses for this year? Thank you.
Rui Chen: [Foreign Language] [Interpreted] The reason why the guidance update is largely due to two reasons: number one, as number of our games launch plan was delayed; and secondly is, certain non-core business, such as our comic and the IP derivative and others business, is in the period of adjustment of strategy and its revenue is lower than expected. We believe the reason for guidance update, the core is just — it’s for a temporary phase change, and it’s not a change of foundations. The core business actually remains intact. For example, the delay of games is just that we are recognizing the revenue a little bit later. For example, Pretty Derby has already scheduled to be launched in August 30. And this — we will be releasing this game on that day.
This is confirmed and certain. And our outlook for — and our confidence in the quality of the game and the revenue is unchanged. And as you may have seen that in the second quarter, the core business, Bilibili live broadcasting and advertising, has achieved very solid growth. We do expect that in the second half of this year and look forward to 2024, the advertising and live broadcasting business will sustain a very healthy and solid growth. In the beginning of this year, we have set our financial target to increase gross profit and narrow our net losses. So, as a requirement — financial requirement or KPIs to each department business lines is to ensure the absolute dollar growth for its gross profit. Strategically, we have lowered the revenue contribution of low-margin business or loss-making business, even though some of the revenue growth rate has been impacted.
However, the absolute dollar of our gross profit has sustained a very healthy and robust growth. In the second quarter, our gross profit grew by 66% year-on-year, and our gross margin has experienced four consecutive quarterly growth, and our adjusted net loss has narrowed by 51% year-on-year. I’m confident to achieve our loss cutting target for 2023 and achieve our breakeven target by 2024.
Sam Fan: Yes, this is Sam. I just want to add that on the loss reduction side, even though the revenue growth rate, and called — Mr. Chen has already mentioned that, will be lower than expected, but we are feel confident to achieve the loss cutting target. We said in the beginning of this year, which is to cut out adjusted operation loss by RMB3 billion, so through the gross profit increase and expense control. And notably, in the second quarter, our operating cash flow was close to breakeven. We think there’s a good chance that we can achieve operating cash flow positive in the fourth quarter this year. Additionally, we are confident to continue to improve our gross profit margin in the second half of this year and achieve our breakeven target by 2024.
