Operator: Thank you. One moment for our next question. And our next question comes from the line of Jiong Shao from Barclays. Your line is open.
Jiong Shao : Thank you very much for taking my question. And firstly, Happy New Year to you all.
Jane Sun: Thank you.
Jiong Shao: Yeah. So there are a lot of cross currency in the Chinese economy today, as you know, I mean, the property market, the stock market are doing terribly. People’s confidence is very low. Economy is kind of soft. You have put up very, very strong results and congrats on that. I was just wondering, in Q4, and so far in Q1, what have you seen in terms your travelers spending behavior, leisure travel, or business travel, are they spending less, spending the same? Or in terms of changes in destination? Anything you can share will be great.
Jane Sun: Thank you for your question. China is a very big country, there are a lot of different segments. We have seen that certain segments, such as entertainment, music festivals, wellness, and travel, these segments are doing very well. We have seen customers have increased their travel demand based on our search volume on our platform. Many customers are going to different places, both domestically and to the rest of the world. The interests for our customers to explore different regions in the world has been enhanced compared to pre-COVID level. With the easiness of travel restrictions, and also gradual recovery for the visa applications and flight capacity, we’re hoping 2024 will be the year that we can take more customers to travel within China and to the rest of the world. So the travel demand is very strong and we are very committed to provide the best service and products to our customers. Thank you.
Operator: Thank you. One moment for our next question. And our next question comes from Simon Cheung from Goldman Sachs. Your line is open.
Simon Cheung : Hi, happy new year everyone. Thanks for taking my questions. I just have one quick question in relation to the margins. I think if you look in the prior several years, on a sequential basis, obviously fourth quarter seasonally weaker, we see some solid margin contraction and we have seen that as well in your fourth quarter result. However, I think the magnitude of correction like when I look at quarter-on-quarter the EBIT margins fallen by roughly about 6% to 7% compared to historically, maybe almost like mid-teens. It’s seemingly attracting a bit better than anticipated. So I guess the question I have is, we have seen quite a few quarters of sales and marketing expenses, tracking well below the 2019 level. And I just wanted to question how you’re thinking about the trend, especially given incrementally there might be more spending to be incurred, maybe in the oversea market, now that you have a more aggressive globalization strategy. Thank you.
Jane Sun: Thank you, Simon. With regard to the sales and marketing expenses in the fourth quarter, last year, we have seen a significant improvement in our marketing efficiencies, primarily due to our enhanced conversion, as well as the internal cross selling initiatives. And on top of that, we also make a lot of investment in for example, the content generation, which also significantly help us to improve the marketing efficiency. And our long term goal is to further enhance the marketing efficiencies in both the China as well as our international market by focusing on increasing our direct traffic — increasing our direct traffic, as well as to improving our cross selling within our platform. But of course, that in the — for the International Trip.com business, we are also looking at the opportunity to further enhance our brand awareness outside of China market. Thank you.
Operator: Thank you. One moment for our next question. And our next question will come from the line of Brian Gong from Citi. Your line is open.
Brian Gong : Good morning, James, Jane, Cindy and Michelle, Happy New Year. And thanks for taking my question. My question is also regarding our international platform trip.com, which has recorded strong growth. Could you provide a bit more details of Trip.com’s, like global footprint, GMV and the revenue contribution as well as profitability? Also, what our primary markets that Trip.com focus on and what our Trip.com’s key competitive advantages in those markets versus its competitors? Thank you.
Jane Sun: Thank you. We anticipate at the Trip.com will contribute 15% to 20% of the group’s total revenue over the next two or three to five years, with the mid to high double digit CAGR growth. And we believe that the Trip.com growth is built upon our robust product logistics, supply chain service standard, as well as the technologies that we applied across various to our specific core regions. Our Trip.com, primarily focusing on the Asian market, which is the top outbound destinations for travelers from both China and other parts within the region. It’s worth noting that the combined size of the top Asia market, excluding China surpasses that of the mainland China in terms of the growth bookings. Our growth strategy with Trip.com starts with leveraging the strong air traffic from Skyscanner, and then progresses from many search to the mobile app, broadening our offering from air travel to the hotel bookings extends our reach from Asia, hopefully to the rest of the global travel.
Meanwhile, and we anticipate that the Trip.com were to be profitable within the same time frame. This will be driven by the scalability, increase the marketing efficiencies through a strong mobile presence and brand name as well as the shift in the revenue mix favorably hotel bookings. With regard to the competitive advantage off our Trip.com platform, I think firstly, Trip.com’s mobile app offers a smooth and user friendly search and booking experience. We also utilize our AI tools to provide personalized recommendations and special offers, which enhancing our user engagement Secondly, our comprehensive one stop mobile remote model covers nearly all travel needs, making it especially attractive to mobile app users. Our extensive experience in China has further solidify our expertise in this area.
