When our preparations for the new game-related services business are completed, we expect that the new business income will increase faster next year and its proportion to the total income will increase. Our goal is still to strive to achieve a more balanced income structure by 2025, with the proportion of game-related services income accounting for about 30% of the total revenue.
Operator: Thank you. We will now take next question. The next question comes from Fiona Fan [ph] from Jefferies. Fiona, please go ahead.
Unidentified Analyst: So I will translate myself. Thanks management for taking my questions. I asked a question on behalf of Thomas Chong from Jefferies. My question is what did Huya or Huya had done for the major event such as Asian Games and S13 and how it impacts on the Huya platform traffic? Thanks.
Junhong Huang: From the end of September to the beginning of October, Huya platform broadcasted the events of e-sports in Hangzhou Asian games including the – when the e-sports became the first time as an official event in the Asian games. We cherish this chance of broadcasting the Asian games e-sports events. In order to better serve the audiences of the Asian Games, we have provided 4K HDR support across multiple devices for the Asian Games e-sports events and through real-time super resolution image quality technology on the full devices side in order to ensure the clarity and smoothness of users viewing in a weak network environment. In terms of the content, we also made commentaries and comments on the e-sports events at Asian Games to help the users understand the corresponding events.
[Foreign Language] The e-sports events of the Asian Games has received extensive attention from users on our platform amongst, which the peak concurrent users or PCU of League of Legends and Honor of Kings related to Asian Games events ranked among the top five in the third quarter. In addition, because of the influence of Asian games and its rich content of e-sports and events, it has also helped us to attract some new users. We hope to maintain these users through the high-quality and diversified content provided on our platform. On the whole due to the short duration of the Asian Games, the positive impact on quarterly MAU was diluted. [Foreign Language] The League of Legends World Championship is an important event in Q4. HUYA has broadcasted this event for six consecutive years, gradually cultivating the audience’s awareness of the event brand and also cultivated the habit of watching it on HUYA platform from the professional event users.
We continue to focus on users viewing and interactive experiences in order to provide industry — in addition to providing industry-leading broadcast quality this time we also provide users with professional event services such as customized reservation services, game watching assistance and MVP voting functions and other interactive functions. In addition, we’ll better enhance the attention and user loyalty of the events by combining online and offline operations on HUYA’s own PGC programs. [Foreign Language] This year’s S13 competition has not yet completed ended. We’re very glad that one team from LPL made it into the final and we look forward to their great performance in the final. So far the overall viewing data of this event is quite good, including the number of users and other key metrics, which have increased compared with S12 in the year of 2022, it has also — we will continue to maintain the leading market share.
We will also further evaluate the impact of this event after the event closes up.
Operator: Thank you. We will take the next question. The next question comes from Lei Zhang from Bank of America. Please go ahead.
Lei Zhang : [Foreign Language] Thanks management for taking my question. My question mainly regarding margin trend specifically we have some seasonality impact for Q4 historically. So can you give us more color on the margin trend for Q4? And if any preliminary target for the profit in 2024 will be appreciated. Thank you.
Ashley Wu : [Foreign Language] In the third quarter, we continued to work hard to control the cost and improve the efficiency. The cost related to streamers and bandwidth were optimized. And therefore despite the decline in income, the gross profit rate showed some resilience reaching 13.9%. We also continue to control various operating expenses especially the sales and administrative expenses. In the third quarter the total operating expenses declined by 20% year-over-year or 8.7% quarter-over-quarter and achieved a net profit under GAAP and non-GAAP. [Foreign Language] In the fourth quarter due to the concentrated schedule of large events especially the League of Legends S13, our event costs will increase significantly compared to the third quarter.
Therefore, these seasonal factors will continue to play a role and may lead to a quarterly loss. However, due to the overall optimization of content costs and continuous streamlining of operating expenses over the entire year, it is expected that the loss in the fourth quarter of this year will be less than the same period last year.
Ashley Wu: [Foreign Language] From what we can see currently, because the company’s profit level in the first three quarters is better than previously expected, we expect that non-GAAP net profit level in 2023 will turn a positive with a small profit level, which is also ahead of our previous expectation of a breakeven time for the year. For the year of 2024, we hope that with the increase of the proportion of game-related services businesses, which by the way has a higher gross margin level than the existing live streaming business and with cautious and continuous optimization of content cost and operating expenses, we can further enhance the profitability level of our company.
