This is mainly due to two factors: First, the increase in our cash balance is primarily a result of reporting currency translation as appreciation of the U.S. dollar increased value of the large amount of U.S. dollar-denominated cash assets we hold, totaling RMB480 million. Second, in terms of cash outflow, we used a total of RMB110 million in cash for the share repurchase. Other total cash outflow was RMB210 million, of which the operating cash outflow was RMB77.8 million. Thank you.
Operator: Our next question today will come from Raphael Chen of BOCI.
Raphael Chen: Thanks for taking my question. My question is regarding the paying user trend. Could management elaborate on how the current operations strategy will impact the paying users going forward? It would be great if management could share more insight on the paying user trend, especially in the year of 2022?
Hao Cao : Thank you for your question. As mentioned previously, improving user quality is our key focus this year. In the second half of last year, we canceled some marketing activities for new paying users with low rates of return. That reflects the high quality of our current paying users with consistent paying behaviors for our services. In 2023, we plan to further reduce our marketing expenses and acquisition expenses for paying user acquisition, which will have an impact on paying user base. In 2023, we will continue to improve revenue quality and maintain our core paying users business and also their willingness to pay, shifting the focus of revenue generation to the following two areas: First of all, we will put more emphasis on maintaining core paying users to ensure core business stability.
We launched various tiers of paying products based on our users’ different abilities to pay in order to sustain and improve their willingness to do so. Meanwhile, we rolled out more companionship-oriented functions and activities for our fans, but only maintaining the day-to-day interactions between streamers and the fans, but also enhancing the fans’ willingness to pay. Last year, we upgraded our user benefits and strengthened our interactive functions, substantially improving fan stickiness and steadily increasing members’ renewal rates. Second, we will explore more new non-virtual gifting business model based on game characteristics to improve our revenue mix. The game-specific membership service that we launched in the second half of 2022 is progressing smoothly.
Despite its relatively small revenue currently, we believe this business can satisfy some gamers’ demands for the games themselves. It not only attracts large number of game fans, thereby adding new users to our platform, but also appeals to existing users. So promoting a virtuous cycle in our game content ecosystem. In short, developing our membership business will be a priority for 2023. Specifically, we will continue strengthening our platform-wide membership service, while reinforcing our close cooperation with game developers to delve deep into users’ gaming needs and extend our game-specific membership service to multiple segments. Thank you.
Operator: Thank you. That’s all the time we have for questions. I will now turn the call back over to management for closing remarks.
Lingling Kong : On behalf of the management, thank you for joining our call. We look forward to speaking with everyone next quarter.
Operator: The conference has now concluded. We thank you for attending today’s presentation. You may now disconnect your lines.
