Daniel Zhang: Thank you. As regards to those three situations or three factors that you summarized in your question, they all have an impact, but I think the relative impact of those factors is process of flux dynamic change. But if I absolutely had to rank them, I would say — and this would be true for any enterprise or certainly any platform, but it would be the macro environment that we find ourselves in, which, in turn, has an impact on consumer confidence, consumer demand, consumer willingness to spend. And I think the macro environment would be the primary determinant not just for Alibaba, but for all the players in the consumption space, both online and offline. And then on the second piece to this is with the introduction of the 20 measures from the state authorities that can be expected to have a positive impact.
We certainly do not still some ongoing disruption to logistics in certain regions of the country. But overall, we do expect things to continue to improve in a positive direction. Further is, with live streaming becoming a more important engagement format as you mentioned, that has resulted in an impact on returns. However, I think Alibaba compared to its peers, especially those who primarily rely on live streaming or basically just rely on live streaming, I think the impact on Alibaba is relatively smaller. During the 11.11 period, live streaming played a more important goal on Alibaba and it does during the regular periods of the year, especially with regards to presales for 11.11. But in general, for Alibaba live streaming is one format — one engagement format and doesn’t represent everything that we have to offer.
Alibaba is working hard to balance these different formats to ensure that merchants are able to engage with their consumers in the ways that they want to be able to do that. Alibaba is open to embracing new technologies and new approaches. But at the end of the day, we do need that kind of to ensure a good consumer experience and also to ensure that our costs remain acceptable to merchants. So it is about finding the right balance.
Toby Xu: This is Toby. I’d like to add to that with regards to your second question, which had to do with the impact of the reduction in CMR revenue, potentially on China commerce profit going forward. Look, a reduction in any revenue stream would, of course, have an impact on profit at the end of the day. However, if you look at China commerce EBITA in this quarter, it was up. There was a positive increase year-on-year compared to the same quarter last year. And we’ve achieved that by being very disciplined in our spending and investment and also in driving higher levels of efficiency. So this increase in Core Commerce EBITDA has been driven by an increase in profit in the profitable parts of the business, as well as by achieving narrowing of losses in the parts that we’re making losses. So that’s why you see that increase of around 6%.
Rob Lin: Next question?
Operator: Thank you. The next question is from Eddie Leung from Bank of America Merrill Lynch. Please go ahead.
Eddie Leung: Thank you. Good evening. I’d like to ask you a hypothetical question. I’m wondering if, going forward, there is a relatively large adjustment in pandemic control measures in China, how would that kind of adjustment impact on different businesses or different product types? And would the impact be positive or negative? And then related to that, I’m wondering if there are any preparations that Alibaba might be making or could be making as a company to better position itself for future prospect of a major change in pandemic control restrictions? Thank you.
