Jian Tang: Okay. Let me answer your second question about competition landscape. I think in China, the digitalization process is still at its early stage. And there are a lot of players in this track, including SaaS providers, some giant companies and also service providers. And these companies have different business models and customer bases. I think the next three to five years will be key for these companies to build up their competitive advantages. And for us, our advantages lies with the fact that we have accumulated great expertise in serving medium to large sized customers through our MS business and our SaaS plus X product plus service model is very helpful for us to serve this kind of customers. And this is a competitive edge that we have been built up over the past two to three years.
And for me, 2B business is very different from 2C business. 2B business is not a market for winner takes all and the digitalization market in China is leading us to accommodate more big players. That’s why we think that our SaaS plus X model will have a big room to develop in the future.
Operator: The next question comes from Brian Kinstlinger of Alliance Global Partners. Please go ahead.
Brian Kinstlinger: Great. Thank you for taking my questions. My questions are financial . The first one is, DSO has dramatically improved, what has led to this much better collections? And can you continue to improve DSO which is still quite high? And then second, can you discuss why the gross margin in the third quarter is lower than the second quarter? Your revenue in both segments is increasing, you have a much better mix of the higher margin enterprise revenue. So I’m trying to understand when we’ll start to see the margin recover.
Jian Tang: Let me take two of your questions. The first question, in Q3 our accounts receivable turnover is around 120 days compared with Q2. It’s already like 30 to 40 days improvement. And due to the COVID related control measures, a lot of cities were locked down and that’s why the current receivable days has increased. But Q3, we’ve seen some improvement and we have putting a lot of efforts to improve the collection of these receivables. And we also have been maintaining good relationship with valuable customers, trying to increase their contribution to our revenue. And the second question about gross profit margin. The gross profit margin has decreased in Q3 because we have provided more Enterprise Solutions services to existing customers in order to retain these valuable customers.
When the economic condition is poor, these customers usually have a higher bargaining power. Therefore, we offer some discounts to them. As to new clients, they may not contribute a lot to our Q3 revenue. Yes, our strategy is to retain those high value €“ valuable customers so that in the future we’ll have the chance to increase their contribution to our revenue. Thank you.
Operator: There are no further questions at this time. I’ll now hand the call back to Lisa Li for closing remarks.
Lisa Li: Thank you once again for joining us today. If you have any further questions, please feel free to contact iClick’s Investor Relations department through the contact information provided on our website. Thank you.
Operator: This concludes the conference call. You may now disconnect your lines. Thank you.
