Zou Tao: I think this is a very good question. And we have been conducting internal discussions around exactly the question you raised. So a few opportunities I would like to share with you. The first one is you might have noted that recently a large number of digital asset companies across China has been established and that basically led to a wave of state owned asset companies migrating onto cloud and using more cloud. And the second, which I think is probably a large opportunity that is happening this year is the measure of digital assets are showing on the balance sheet. And we should call this year of 2024 to be the first year of this opportunity because of the government policy recently promulgated. We have also been making communications with the Shanghai Digital Asset Exchange and also with professional parties, for example, like auditing firms.
We do think that it represents a significant opportunity for cloud service companies and for us, because all of these digital assets will be running on the cloud infrastructure and digital asset and those data assets cannot run by itself. So in our words, it’s the integration of cloud service and digital assets. So, all this whole chain of data production, of data transaction, et cetera, are going to be supported by the cloud and therefore all of this represents opportunities for us. So it’s not opportunity with respect to any particular industry but a general — but probably a large opportunity that we can expect to see in recent years. So, the second question relates to the price competition in the market. So, I would like to share with you two of my core views.
The first one is we have actually been experiencing price pressure since the day of our founding. On every year, we have been seeing different kinds of price pressure coming from various of our peers in different kind of products. However, at the end of the day, we do not really see any of those price cuts by our peers have any material or significant impact to the market. And from our own performance results, we have also achieved for sixth consecutive quarters of profitability improvement. Now, I would like to say that we think the reason for that is pricing obviously is one important factor for customers to consider. However, it is far from the most important factor. And from our own experience and also as evidenced by our achievements in the past six quarters, focusing on the satisfaction of customers is actually the most important thing.
And I would like to — also like to say that my view about this kind of large amount of price cuts by tiers is more towards the end of marketing and PR measures. In fact, some of these price cuts are based on catalog price. However, a lot of the transaction price that cloud service providers have agreed with potential customers are already deeply discounted and already way below the price cut level that we are seeing today. And also our SVP, Liu Tao, also added that this round of price cuts from our peers mainly focuses on the customers, which are relatively small in scale and are paying their cloud usage fees on annual basis. And this group of customers actually do not overlap with the customers that Kingsoft Cloud enjoined. And therefore, it does not have any material impact to our pricing strategy or our business performance.
Operator: We have no further questions at this time. I would like to hand back to Nicole Shan for closing remarks.
Nicole Shan: Thank you once again for joining us today. If you have any further questions, please feel free to contact us. Look forward to speaking with you again next quarter. Have a nice day. Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect your lines. Thank you and have a good day.
