Zhou Yuan:
Zhou Yuan: I believe that you have seen the data for this business line in our recently released earnings release. We believe that is driven by our further upgrades of technology and also our corporate third parties together with our sales development programs. The quarterly revenue for this business line is expected to break through RMB 100 million in coming quarters.
Zhou Yuan:
Zhou Yuan: In the coming years, we will continue our investments in the technology part because we believe as a technology-driven company, this operated technology will not only improve our operational efficiency, but also will bring more growth opportunities to us.
Henry Sha: This is Henry. I will have — let me supplement our key advantage with you. We had mentioned about our education or vocational training business, our revenue forecast for the next quarter that will be in RMB 100 million.
Operator: The next question comes from Ashley Xu with Credit Suisse.
Ashley Xu: My question is related to the recent trend in the recovery of our advertising and CCS business. Could management share more color about the performance in key verticals?
Henry Sha: Thank you, Ashley. This is Henry. I will help answer the question. I think for the next quarters, recovery of the ad business still highly depends on the recovery of our macroeconomic — economy in China. So we believe that will take some time. Also apply to the verticals within both CCS and branding advertisement.
Operator: The next question comes from Thomas Chong with Jefferies.
Thomas Chong: If you look into Q4 GP margin, it comes in better than expectations and the losses is also less than consensus estimate. So I’m just wondering how we should think about the GP margin and the breakeven timing, if there’s any color on that front.
Henry Sha: This is Henry. I will help answer this question. So in Q4, I think the GP margin is about 56%, so — which has improved sequentially and also year-over-year in comparison with last year. The major reason is that the first, the operational cost was stayed during this quarter because I think during our efficiency improvement, the advertisement execution cost is also optimized as well as the server and funding costs, the utilization has improved, the funding cost was also stayed during this quarter. We believe that we still have some room for cost saving in and fund utilization in this year. But we believe that in Q1, our business is also a very heavy seasonality. Q4 is a high season over the year. So we believe that the deep margin in Q1, Q2 cannot be comparable with like that in Q4.
And also, I will need to remind the investors that our revenue strategies also get changed in the past 1 year. And now the business, including membership subscribing as well as the education business, they’re also growing very fast with a faster pace than our advertising and the CCS business. So this will also have some impact on our GP margin, that we believe that our GP margin will be around like 50% on average on average. This concludes my answers for you.
Operator: Next question comes from Xueqing Zhang with CICC.
Xueqing Zhang: My question is related to membership business. The membership business demonstrated strong growth this quarter, and we noticed the launch of independent at recently. So just wondering what strategy for this business, and how do you see the growth in 2023?
Zhou Yuan:
Zhou Yuan: In the past quarters, in the past years, we actually have some accumulation experience across various areas, including content creators and content consumers as well as rich marketing know-how.
