Eddie Leung: Thank you.
Operator: The next question comes from Alex Yao with JPMorgan. Please go ahead.
Alex Yao: Thank you management for taking my question. I have a couple of questions on Baidu Core margins. In the past several quarters, you guys did very good job in terms of cost control and the margin improvement. As large-scale BU and headcount streamlining has been already down, how much more room should we think about for further cost cutting in Baidu Core in the coming quarters and 2023? And the related question is how should we think about the Baidu Core operating margin going forward? Lastly, would Baidu slow down the cloud and autonomous driving investments if the macro situation further deteriorates? Thank you.
Rong Luo: Thank you, Alex, for your questions. Let me try to figure your questions. This is Julius. I think as Robin has said in the every beginning of the prepared remarks, I think for Baidu Core, we continue to optimize the cost expenses and we continue to improve our operational efficiency, which is one of our key short-term tasks. At the same time, we kept investing in the new AI businesses for future growth. This strategy actually has not changed in the past few quarters. And this strategy allow us to weather through the challenging market environment, and we believe that it will prepare us for accelerated growth again once the macro downturn is over. In Q3, let me recast some of the numbers. Baidu costs non-GAAP operating profit margin expanding to 26% from 24% in the same period last year.
I think it has represented the first year-over-year growth in non-GAAP operating profit and margin perspective since Q2 2021. And we made a lot of efforts to achieve such results. You’ll probably see from our early release, our SG&A has decreased once again in Q3, this quarter from the same quarter last year. We have been very disciplined with the channel spending and promotional activities. And just to add that, it was already less consecutive quarter that SG&A achieved a year-over-year decline. And going forward, we will continue to control the variable costs and expenses as same as what we did in the past. If you look into our each part of our business, for mobile ecosystem, our operating profit actually is going up on a year-over-year basis, even though we know the revenue was negatively impacted by COVID-19.
And we have also already mentioned earlier and which is just repeated by Dou, we made a lot of efforts for the healthy growth of AI Cloud. This quarter, the operating loss margins for AI Cloud improved significantly, both on a year-over-year basis and quarter-over-quarter basis. If we’re separate, two part. For enterprise and public status, we’re allocating our resources to high-margin business and reduce the low-margin business. Also, we continue to standardize our end-to-end solutions, including the IaaS, PaaS, SaaS for key user cases and as much expectations started one of the examples, we continue to grow fast and at the same time, improve the margins quite notably. And the personal cloud, same as well in the past, we continue to generate a decent profit this quarter.
