As the leading player in this region, we see this unfolding development as an opportunity. We are taking proactive steps to cement our leadership position and remain confident in our capabilities after all these years. Thank you.
Operator: The next question comes from Lincoln Kong at Goldman Sachs.
Lincoln Kong: So I have two questions. First one is, how does the Company sort of foresee the balance between maintaining high profitability and continued business investment, especially in the new business? And second one, can management also provide some insights in terms of the development of short plays in the overseas market? So does Yalla have strategy or plans in this area either through distribution or asset — platform for traffic acquisition?
Karen Hu: Thank you, Lincoln. This is Karen, and I will take the first question about the margin and leave the second question to Saifi. As we just mentioned for the next year, we can still keep our net margin at 35% or above, a very decent level. However, the Company is still actively looking for some growth opportunities. We maintain a prudent approach to investing to focus on pursuing high-quality investments. And of course, if there are good opportunities that will benefit the Company’s long-term development, we are also ready to increase our investment to seize these opportunities. Our strong cash position supports us to exploring more opportunities and unleashing our growth potential. I hope I can help you. Thank you.
Saifi Ismail: Lincoln, for your second question, thank you very much for your question. Regarding short plays, we observed that the business model is becoming very mature in China, and we see potential there. If we look at the global market, for example, the United States and Southeast Asia are the most popular destination for short plays. We saw some products already exploring global opportunities. But compared with China, these markets are still at very early stage. Concerning the MENA region, short plays are also new for users, and it takes time to educate the market. Furthermore, to better serve users’ needs, I believe content tailored to Arabic culture is very essential. We are conducting research to evaluate the market and also talking to some production companies. If Yalla decides to move into this sector, I believe localization might be a better way to capitalize on our extensive understanding of MENA’s local culture and market insights. Thank you.
Operator: The next question comes from [Rachel Go] from Nomura.
Unidentified Analyst: Congratulate on a solid quarter. And my question is like given the Company has a very strong cash position that the Company has made plans for [indiscernible].
Karen Hu: Rachel, thank you very much for your question. Cash strongly supports us exploration of new opportunities to drive further growth. As I stated, among the global markets, MENA is popular, and we are seeing emerging acquisitions and investment opportunities. So having cash reserves is strategically important for our company. In addition, we are actively carrying out our share repurchase program. In the third quarter, we repurchased approximately 1.7 million shares, totaling around $8.5 million. This reflects our confidence in our share price, and we will continue to conduct our repurchase program and return value to shareholders. Thank you.
Operator: The next question comes from Natalie Wu with Haitong International.
Natalie Wu: Just wondering, could management provide some color on the competition faced by Yalla and Yalla Ludo in TikTok and Jaco?
Saifi Ismail: Natalie, thank you very much for the question. So as we mentioned earlier, more and more global companies are now looking for opportunities in the MENA region. For example, TikTok, who moved fast and is performing very well in the market so far. In terms of competition, TikTok has a greater impact on live streaming or short video products. If you look at third-party data, some of them are losing their market share because of TikTok. Of course, all products are competing for users’ time and attention. However, taking a closer look at our performance over the past two years, I would say our flagship applications have done a good job. We are still generating record-high revenues from time to time probably because our product strategy focus on localization.
There are always genuine needs for Arabic users who have shown stronger loyalty to our product platform. We are very confident in the vitality of our two flagship applications. And as Mr. Tao Yang just mentioned, I expect they will enjoy a long life cycle. In terms of Jaco, it’s also a live streaming platform. I don’t think we compete directly. There are many live streaming platforms that have entered the MENA market in recent years, and as we just discussed, TikTok is the biggest one. Live streaming platforms face more direct competition with each other. Thank you.
Operator: As there are no further questions now, I would like to turn the call back over to management for closing remarks.
Kerry Gao: Thank you once again for joining us today. We look forward to speaking with you in the next quarter. If you have further questions, please feel free to contact Yalla’s Investor Relations or Piacente Financial Communications. Both parties’ contact information is available in today’s press release as well as on our company website.
Operator: This concludes this conference call. You may now disconnect your lines.
