Tony Hou: For the first question of the Q3 investment, there are two main areas that we are investing on. Number one, to grow our market share, especially in the core categories like fashion and health and beauty. The second area we are investing on is to capture the market opportunity to grow the content type of system, especially with the live stream first. As Forest shared earlier, we always balance between the growth, profitability and market share. We believe that this is the right time to invest in terms of looking at market share growth. We do see a great traction in our investment, reflected from the market share gain, even with the better economic compared to our original competitors. On the content side, we believe this can be a profitable and also a very vital business for us over time.
If you look at the timing as shared in the previous answers, we do see this is a good opportunity in terms of window of opportunity for us to capture the market. We have been a lot more educated by having investments from various parties in the past year. For example, the viewers who understand the concept, the sellers who have the capability to offer the content and also the ecosystem players like the MCN, etcetera. In the past few months, since we started investing more into the area, we have seen very good growth in terms of the adoption of our live stream services, both on the demand side and the supply side, not only from the creators but also from the sellers. We also see on top of that, which is also important to highlight, we see a significant improvement on the new economics of our live stream.
Of course, when we first started building the ecosystem, it takes a bit of cost to build up, but we quickly see the economics improve month-to-month, actually much better than we thought it would before we started the program. Overall, I guess to answer your question, we are very happy with what we have achieved. Essentially, we achieved the market share gain that we wanted with much better economics than we thought. We also have seen good traction in live stream. The tick rate has been faster than we thought for the live stream services. To your question on the Q4 outlook, we will continue to invest into the shopping season. It’s a holiday season, shopping season as we all know. Q4 in our market, generally is the best time of the year to acquire new users, gain market share, and strengthen our content ecosystem.
If you look at the past one and a half months, we have seen very good traction. For example, I think we shared today that – yesterday actually for our W11, we have achieved more than 1 billion GMVs, which is a very good result, better than our anticipated, especially over the weekend as well. I think that’s the question on the e-commerce side.
Yanjun Wang: Regarding the — question regarding right-of-first refusal with Tencent, the agreement has been also renewed under existing terms. As shared before, we’ll continue to work on strengthening our game pipeline, both with our self-developed games and published games. And at the same time, we saw the strong trends in Free Fire, and we will continue to focus on making it a strong evergreen franchise.
Forrest Li: I think for the credit quality, we do see the credit quality actually getting a bit better over the year. However, I think we stay — we still stay quite vigilant in terms of how the market will evolve. And I think, in general, we are more on the conservative side in terms of managing our credit businesses to make sure that we always protect the — manage the NPL well while we’re growing the portfolio. We — if you look forward, we don’t anticipate that a big fluctuation in terms of the credit quality in the short term. But of course, if you look longer term, there are many macro conditions that will impact how the credit quality and the NPL look like. But generally, we do believe that our current level is sustainable and our credit businesses will continue to grow well without sacrificing the qualities.
Yanjun Wang: In terms of long-term margins for credit business, of course, this is still early stage for us, as we mentioned before. We continue to expand our credit portfolio across products and across markets, and we also continue to expand our funding sources to reduce the risk exposure to our own book cash. So overall, I think it’s — we will strive to continue to maintain a very healthy profit level. But while also making sure that we have a healthy and consistent growth in the portfolio, as well as the diversification of our products and funding sources.
Pang Vittayaamnuaykoon: Thank you.
Operator: Our next question comes from Alicia Yap from Citi Group. Your line is now open.
Alicia Yap: Hi, thank you, good evening, management. Thanks for taking my questions. I have two questions. First, on e-commerce. I was hoping management could provide your view as we look beyond 4Q and further out. What is the long-term GMV growth we could achieve? And I think management had previously shared a potential steady state of the long-term EBITDA to the GMV margin guidance. Would that change given the live streaming now being an increasing part of Shopee’s GMV? Second question is on your sales and marketing spend. Just wondering the time line or the inflection point that we are looking for. Or is there any sensitivity scenario that we will be assessed, the stickiness of the user engagement and purchasing behavior as related to the subsidy spend? So any color you could provide on the sales and marketing spend outlook would be helpful. Thank you.
