Unidentified Analyst: Let me translate myself. This is Daniel from UBS on behalf of Felix Liu. I have two questions today. First, could you please briefly tell us about the current competitive landscape in game live streaming sector? How would the competition impact the revenue sharing ratio and content cost? And my second question is, how is the margin outlook for 2023? Can we expect a sequential improvement on margins from last year?
Rongjie Dong: Thank you for this question. Our HUYA’s market share is still relatively stable and we have maintained a dominant position in the field of games and live streaming of e-sports, especially in the core games. Overall, the market competition still exists, but the behavior of each platform is more rational than that of . We believe that we have competitiveness lies in our more game user group and a more professional e-sports content ecosystem, which benefited from our mature content production system with stable supply of high-quality live content through as well as self-made content and also, we had close cooperation with the game companies. Covered the cost and profit trends. In terms of the commission sharing and contracting costs, while since the proportion of commission sharing increased in 2021, our proportion — our sharing ratios have been relatively stable in 2022.
And under the current market competition, we expect that this year’s sharing ratio and signing cost trend will remain relatively stable and the future will depend on the market situation and updates, but there will probably be some room for adjustment. At the same time, based on the optimization of the cost of the tournament and championship as well as the optimization of the content cost, we expect that the gross profit rate of the whole year will increase compared with the year 2022 and the fluctuation on our gross margin between quarters will be smaller than that of 2022.
Ashley Wu: In terms of operating expenses, we’ll continue to strengthen our measures to improve the operational efficiency. Since the second quarter of 2022, we have started to strengthen the cost reduction and efficiency improvement measures and operating expenses have declined by double digits year-on-year for 3 consecutive quarters already. And in the year ’23, we’ll continue to maintain a strict budget control and consolidate the results of cost cutting. Reducing losses and improved profitability will be the focus of this year’s finance work, and we hope that this will lay a good foundation for the subsequent return to growth and long-term profitability of our company.
Operator: As there are no further questions, now I’d like to turn the call back to the company for closing remarks.
Hanyu Liu: Thank you once again for joining us today. If you have further questions, please feel free to contact HUYA Investor Relations through the contact information provided on our website or the Piacente Group Investor Relations. Thank you.
Operator: This concludes today’s conference call. You may now disconnect your lines. Thank you.
