While these ventures currently operate on a multi-scale, we will keep you informed of their progress and expand. Overall, we anticipate advertising and other revenues will grow year-over-year in 2024 with their overall revenue share exceeding 20%. Given the impact of macroeconomic factors and internal operational adjustments on traditional live-streaming business, we expect live-streaming revenue to experience downward pressure in 2024 as the overall revenue share from live-streaming remains significant. The rapid growth of our innovative businesses may have a comparatively limited effect on the company’s overall revenue scale. Despite potential short-term growth pressure, as we fine-tune our core business, the company’s financial remains solid and we continue to pursue breakthroughs in our innovative businesses.
For example, in October 2023, we joined hands with Taobao and game developers to launch the game Shopping Bonanza on DouYu’s official live-streaming channels on the Taobao platform, as well as live-streaming sessions on DouYu’s platform, selling game prompts and gaming merchandise from popular mobile games like Genshin Impact, League of Legends, Dota 2, and CrossFire. Gamers showed considerable demand for those offerings. The result of this campaign proved that streamers have a substantial influence on gaming commercialization, unveiling vast potential opportunities. Moving forward, we will delve deeper into additional revenue-generating avenues within the gaming content value chain. Thank you. Next question, please?
Operator: The next question comes from the line of Thomas Chong with Jefferies.
Thomas Chong: Foreign Language I have two questions. My first question is, so we saw the year-over-year and quarter-over-quarter increase of regional expenses. So could we share the reason behind and how the management see the trend of operating expenses and the profitability in 2024? And my second question is about share buyback program. So we announced the share repurchase program and could we share our strategy on share buyback? And do we consider increasing the amount of buyback?
Hao Cao: Thank you. I will answer the first question. There are two reasons for the year-over-year and sequential increase in operating expenses in the fourth quarter. First, at the onset of 2024, we announced organizational restructuring that will allow us to better respond to market dynamics and continually optimize the company’s operating efficiency. As part of our staff were aligned to managerial functions, a portion of their salaries was allocated to administrative expenses in the fourth quarter, resulting in an increase in employee salaries and administrative expenses. We also incurred some one-time personnel costs as part of our ongoing workforce optimization efforts. These were part of our preliminary organizational structure adjustments and we anticipate further workforce adjustments in the first quarter of 2024.
Second, we made provisions for bad debts of doubtful account receivables. The combination of these one-time expenses caused part of the increase in operating expenses for the fourth quarter and our goal of long-term sustainable growth throughout 2023. We adjusted our revenue and marketing strategies while continuing to make ROI-driven decisions and consistently optimizing our cost structure. These coordinated efforts resulted in a 28.7% year-over-year decrease in operating expenses for the full year of 2023. Importantly, we successfully transformed losses into gains at the adjusted net profit level heading into 2024. Our focus remains on enhancing our diversified commercialization capabilities across the platform while maintaining stringent control of our operating expenses.
We are dedicated to upholding the company’s financial stability in order to navigate complex and evolving macroeconomic dynamics. Let me answer your second question about buyback. We have been overcoming challenges arising from a blend of macroeconomic conditions and operational aspects. The company’s Board of Directors and Interim Management Committee are fully committed to addressing these challenges head-on. As part of our strategic initiatives, we announced a share repurchase program on December 28, 2023, on which we plan to repurchase up to USD 20 million of the company’s ordinary shares through ADS purchases. This initiative highlights our confidence in the value of the company as well as our commitment to enhancing shareholder returns.
We are currently in the initial phase of implementing our share repurchase program. Future adjustments to the program may be made based on the company’s strategic priorities and ongoing reviews of market conditions. Beyond returns, the foundation of enhancing shareholder value lies in the company’s fundamental business operations. We have proven our business model is a resilient one and strongly believe in the company’s long-term growth potential. Management’s primary focus remains on executing our business strategies, identifying opportunities amidst challenges and propelling the company toward long-term sustainable growth. Throughout this journey, we will continue to show up our fundamentals, providing regular updates on our business operations and share repurchase program.
Thank you. Operator, please.
Operator: That’s all the time we have for questions. I will now turn the call back over to management for closing remarks.
Lingling Kong: On behalf of our Interim Management Committee, we thank you for joining our call. We look forward to speaking with everyone next quarter.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
