Zhou Yuan: [Foreign Language] Thank you for your question. So I’m going to — this is CEO of Zhihu. I’m going to discuss about this question through both our short-term and long-term objectives or strategies for our paid membership business. We are providing premium short stories in our platform and we believe that we are forming a clear competitive advantage or differentiate from other traditional online reading platforms on this front. For example, our stories are very short and cater to the evolving needs of users, especially to users’ recommended time in terms of their reading. Another thing is that, as mentioned in our previous earnings call, we have released our Yan Yan story application, and this forms as another channel for our user acquisition for our paid membership business.
And inside this Yan Yan story application, our users can get more immersive and differentiated reading experience. And also for our Yan Yan stores, we are extending to form more partnerships with other platforms. And recently, we have formed partnership with Huawei Reading to enlarge our user base and extend our different content providing channels. I think that with all these efforts, in the second half of this year, our membership business is — will keep the momentum and increase at very high trend in the future. In the future, I think the paid membership business will enhance its LTV through three fronts. First is through our AI applications in paid membership business as mentioned by our CTO, Li Dahai, just now and secondly is through the upgrade of different distribution channels for different formats as we are making progress.
And thirdly, it’s through unlocking IP value in the future.
Henry Sha: Steve, this is Henry. I will further explain the trend you have seen, there is some fluctuation of the subscriber numbers between Q1 and Q2. Actually, in Q1, I think it’s a high base during the spring festival. We have a promotion activity, which allowing the users to subscribe for the first month with RMB 9. I think it was a successful promotion activity in Q1 which created a high base of the subscribing members. And in Q2, we do not continue too much for that RMB 9 for the first month’s activity. So there is some fluctuation. And also, we have already established a professional team for the antipiracy measures to take actions internally. So we are very confident to see the rebound or I say, sequential growth as well as year-over-year growth for the Q3 and Q4 for the paid membership business revenue growth. This is my answer for you. Thank you.
Steven Qu: Thank you.
Operator: The next question comes from Vicki Wei with Citi. Please proceed.
Vicki Wei: [Foreign Language] Good evening, management. Thanks for taking my question. I have one question regarding the marketing services. What is management’s view on the recovery pace of the marketing services and how should we think of Zhihu’s strategy to improve the marketing services competitiveness. Thank you.
Henry Sha: Thank you, Vicki. This is Henry. Thanks for the question. So as we introduced earlier in the last quarter, we have been facing some like uncertainties from the macro economy for the second quarter. And also, we have seen that the entity will still be sustained for the second half of this year. But internally, we are doing several taking actions to phasing and to solve the problems for us. The first one that we are combining two teams together, as we introduced earlier that we combined our CCS team together with our advertising team and we have been seeing the demand, the increasing demand from our clients on the, how to say, the effective basis or the ROI basis, the advertising products like CCS, which I believe that will be still welcomed in the second half of this year.
And secondly, we are improving our efficiency. As I said earlier on this call that we’re taking actions to phase out some low-margin business from our advertising business to enhance our competitiveness to achieve the healthy growth continuously. So that’s what our thoughts about our marketing services business. So for now, we cannot guarantee that we will achieve like the year-over-year growth in Q4. But we are confident that this business should be seeing the rebound trend in the second half of this year. Thank you.
Vicki Wei: Thank you.
Operator: The next question comes from Daisy Chen with Haitong International. Please proceed.
Daisy Chen: [Foreign Language] Thanks for taking my question. My question is about the vocational training business. First of all, congratulations to the strong growth in this segment. Can I ask you about the current situation of our vocational training business from operation or deployment CapEx such as SPU of corrosion and promotion strategy. And can management share your outlook for the momentum of the second half and then next year as well as the revenue contributions from our long-term expertise and also any strategy what work do you think you need to do to actually those goals, if that goes right, can you share more color on the profitability of this segment? Thank you.
Henry Sha: Thank you Daisy. This is Henry. I will help you answer your question. For the second half of this year, we believe that our vocational training business will still achieve the year-over-year and sequential growth for the second half of this year with more than like 100% year-over-year growth rate. I think for the full year, that will be 2x the growth in comparison with that in last year. And on the cost offerings of the education vocational training business, the product offerings, I think we have already almost complete the structure of our vocation training business, the allocation on that. by including, for example, national graduate students entrance examination as well as the IELTS, the English or foreign language teaching the courses as well as, for example, like the MBA courses as well as like the teachers’ certification service offerings, et cetera, et cetera.
So I believe that if we say that, that will form our organic growth going forward. And maybe in next one or two years, there is a one or two more acquisition will be formed like to provide some like the M&A growth looking forward. And about your question, the capability of our — looking to like a whole vocational training business, I think we’re still in the investment stage. So for example, I think for this whole year, the vocational training business will still bear a loss like the loss-making for the whole group. So that will be between RMB 100 million to RMB 200 million hit to our bottom line, like the P&L. That’s our answer for your question.
