Online media company Bilibili Inc. (BILI) reported better-than-estimated sales in the first six months, but the Chinese firm's consistent losses overshadowed its rosy second-half figures that sent its shares plunging 4 percent late Tuesday.

The digital content provider, headquartered in Shanghai, posted a loss of 11 cents a share on $224 million sales. Market observers projected an adjusted loss of 12 cents on $210 million revenue.

The company's shares were up over 2 percent during opening bell, before retreating, then fell 4 percent to settle at 13.92 on the during Tuesday's extended session. BILI went public in March 2018, with an initial price offer per stock of 11.50.

Bilibili, which has a strong fan base in the young demographic of China, disclosed that its revenue has exceeded the high-end of the company's guidance, at $225 million in the first quarter through June, indicating a 50 percent hike year-on-year.

The company's net loss was up to almost $46 million, or 15 cents per US Depositary Share, compared to a decline of around $10 million in the same quarter last year.

Bilibili is engaged in online entertainment and digital content that cater to the young population of China. The service covers a broad array of media formats, which includes live broadcasting and mobile games.

During a press briefing late Monday, Bilibili chief finance officer Sam Fan said that they are happy to achieve "another impressive period of growth" for the current quarter, despite the reported losses.

Bilibili's average daily site visitors soared 40 percent to 33.1 million in the current quarter. On top of this, the company had 110 million active users per month, an increase of 30 percent compared to the previous period. Its sales from mobile games were up 17 percent to $135 million.

The online entertainment provider reported that it gained 480 percent in revenues from its stream service business with e-commerce giant Alibaba Group Holding Ltd. in the first half, sparked by improving demand from its mascot lineup, including its anime, games, and comics lineup.

Bilibili also supports video blogging (vlog) as its new digital offering. It also announced that it has been given rights to work on the animated version of the three-part fiction "The Three-Body Problems", which according to the New York Times has been described by former United States President Barack Obama as very "imaginative".

In a statement, Bilibili said it estimates to earn revenues of between 1.75 billion yuan to 1.78 billion yuan, or $251 million, in the next three months.