Sea Ltd (SE) 2022 Q2 法說會逐字稿

Good morning and good evening. Welcome to the Sea Limited Second Quarter 2022 Results Conference Call. (Operator Instructions) Please note this event is being recorded. I'd now like to turn the conference over to Ms. Min Ju Song. Please go ahead.

早安，晚上好。歡迎參加 Sea Limited 2022 年第二季業績電話會議。 （操作員指示）請注意，此事件正在被記錄。現在我想將會議交給宋敏珠女士。請繼續。

Thank you, Jason, and hello, everyone, and welcome to Sea's 2022 second quarter earnings conference call. I'm Min Ju Song from Sea's Group Chief Corporate Officer's office.

謝謝傑森，大家好，歡迎參加 Sea 2022 年第二季財報電話會議。我是 Sea 集團首席公司長辦公室的宋敏珠 (Min Ju Song)。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release. Also, this call includes a discussion of certain non-GAAP financial measures, such as adjusted EBITDA and net loss, excluding share-based compensation and impairment of goodwill. We believe these measures can enact our investors' understanding of the actual cash flows of our major businesses when used as a complement to our GAAP disclosures. For a discussion of the use of non-GAAP financial measures and reconciliation with the closest GAAP measures, please refer to the section on non-GAAP financial measures in our press release.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性的陳述，這些陳述本質上受風險和不確定性的影響，並且由於我們在新聞稿中所述的各種原因，可能不會在未來實現。此外，本次電話會議也討論了某些非公認會計準則財務指標，如調整後的 EBITDA 和淨虧損（不包括股權激勵和商譽減損）。我們相信，當這些指標作為我們 GAAP 揭露的補充時，可以幫助投資者了解我們主要業務的實際現金流量。有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調整的討論，請參閱我們新聞稿中有關非 GAAP 財務指標的部分。

I have with me Sea's Chairman and your Chief Executive Officer, Forrest Li; Group Chief Financial Officer, Tony Hou; and Group Chief Corporate Officer, Yanjun Wang. Our management will share strategy and business updates, operating highlights and financial performance for the second quarter of 2022. This will be followed by a Q&A session, in which we welcome any questions you have.

和我一起的還有 Sea 的董事長兼執行長 Forrest Li；集團財務長侯建軍；以及集團首席企業官王延軍。我們的管理層將分享 2022 年第二季的策略和業務更新、營運亮點和財務業績。

With that, let me turn the call over to Forrest.

說完這些，讓我把電話轉給福雷斯特。

Hello, everyone, and thank you all for joining us today. I'm going to start with an update on our plans to further focus on efficiency and strengthening our ecosystem for long-term profitability and competitiveness. I will also share a few highlights across our businesses as we make steady progress towards these objectives.

大家好，感謝大家今天的參加。我將首先介紹我們的計劃的最新進展，以進一步關注效率並加強我們的生態系統，從而實現長期盈利能力和競爭力。在我們穩步朝著這些目標前進的過程中，我還將分享我們業務中的一些亮點。

During the pandemic lockdown, we rapidly scaled our businesses to answer to the fast-rising market demand for online consumption and services. As a result, we significantly expanded our businesses and the total addressable market and strengthening our market leadership while improving growth efficiency. We were able to achieve these results by focusing on doing the right thing at the right time in setting our direction and being agile and adaptable in our execution.

在疫情封鎖期間，我們迅速擴大業務規模，以滿足市場對線上消費和服務快速成長的需求。因此，我們在提高成長效率的同時，大幅擴展了業務和整體目標市場，並加強了市場領導地位。我們之所以能夠取得這些成果，是因為我們專注於在正確的時間做正確的事情，確定方向，並在執行上保持敏捷和適應性。

Now we are in an environment of increased macro uncertainty with rising inflation, rising interest rates, local currency depreciation against the U.S. dollar and ongoing reopening trends. In this environment, being agile and adaptable is even more crucial to the long-term success of our business.

現在，我們處於宏觀不確定性增加的環境，通膨上升，利率上升，本國貨幣兌美元貶值以及重新開放的趨勢持續。在這種環境下，敏捷和適應性對於我們業務的長期成功來說更加重要。

We believe the right thing to do at this unprecedented time is to focus even more on self-sufficiency, long-term profitability and the defensibility in our business operations.

我們相信，在這前所未有的時期，正確的做法是更加重視自給自足、長期獲利能力和業務營運的可防禦性。

Our results for the second quarter demonstrate the early success of this effort.

我們第二季的業績證明了這項努力的早期成功。

Because of our strong execution in the quarter, Shopee's unique economics improved significantly, driven by efficiency gains across our markets. In particular, adjusted EBITDA loss per order before allocation of HQ costs in our Asian market combined was less than $0.01. And we are on track to achieving positive adjusted EBITDA before HQ cost allocation in this region.

由於我們本季的強勁執行力，Shopee 獨特的經濟效益顯著改善，這得益於我們整個市場的效率提升。具體來說，在分配亞洲市場總部成本之前，每筆訂單的調整後 EBITDA 損失總計不到 0.01 美元。我們預計在該地區實現總部成本分配前的正調整後 EBITDA。

At the same time, Shopee continued to grow at healthy rates despite the tough year-over-year comparison, with GAAP revenue up 51% year-on-year, or 56% year-on-year, adjusting for currency fluctuations.

同時，儘管與去年同期相比業績不佳，Shopee 仍保持健康成長速度，GAAP 營收年增 51%，經匯率波動調整後較去年同期成長 56%。

For Garena, quarterly active users were stable quarter-on-quarter. This positive outcome was the result of our efforts around user retention to serve our large game community through more engaging experiences. We will continue to focus on user engagement around our existing franchises, especially Free Fire.

對 Garena 來說，季度活躍用戶數季比穩定。這一積極的成果是我們圍繞用戶保留所做的努力的結果，旨在透過更具吸引力的體驗為我們的龐大遊戲社群提供服務。我們將繼續關注現有系列遊戲（尤其是《Free Fire》）的用戶參與度。

Indeed, we are encouraged by Free Fire retaining its top ranking position as the highest-grossing mobile game in Southeast Asia and Latin America during the quarter based on data, data.ai.

事實上，根據 data.ai 的數據，Free Fire 本季仍保持東南亞和拉丁美洲最賣座的手機遊戲地位，這讓我們感到鼓舞。

Synergies between Shopee and SeaMoney also expanded as we continue to cross-sell more financial products and services to our underserved user base across more markets. Close to 40% of Shopee's quarterly active buyers in Southeast Asia used the SeaMoney products or services during the quarter. SeaMoney's revenue has enjoyed strong growth, and its adjusted EBITDA loss has also continued to narrow during the quarter.

隨著我們繼續向更多市場上服務不足的用戶群交叉銷售更多金融產品和服務，Shopee 和 SeaMoney 之間的協同作用也不斷擴大。本季度，Shopee 東南亞季度活躍買家中近 40% 使用了 SeaMoney 產品或服務。 SeaMoney 的營收強勁成長，其調整後 EBITDA 虧損在本季也持續收窄。

With the solid performance across our businesses, group GAAP revenue was $2.9 billion, up 29% year-on-year in the second quarter. Gross profit grew 17% from last year to reach $1.1 billion for the quarter.

由於我們各業務表現強勁，第二季集團 GAAP 營收達 29 億美元，較去年同期成長 29%。本季毛利較去年同期成長 17%，達到 11 億美元。

Let's now discuss each business segment, beginning with e-commerce. Shopee continues to appeal to more buyers and sellers across our markets as evidenced by continued leadership in active user and engagement metrics as well as record operational and financial metrics. In the second quarter, Shopee's GAAP revenue grew 51% year-on-year to reach $1.7 billion driven by GAAP marketplace revenue growing close to 52% over the same period. Gross orders were $2 billion, up 42% from last year. And the GMV grew 27% year-on-year to reach $19 billion. The currency fluctuations negatively impacted both GAAP revenue and GMV year-on-year growth rate by more than 4 percentage points.

現在讓我們討論每個業務部門，從電子商務開始。 Shopee 繼續吸引我們市場上的更多買家和賣家，這從活躍用戶和參與度指標以及創紀錄的營運和財務指標的持續領先地位中可見一斑。第二季度，Shopee 的 GAAP 營收年增 51%，達到 17 億美元，受同期 GAAP 市場營收成長近 52% 的推動。總訂單金額為20億美元，比去年增加42%。 GMV 年增 27%，達到 190 億美元。貨幣波動對 GAAP 收入和 GMV 年成長率產生了超過 4 個百分點的負面影響。

We also drove further improvements in monetization during the quarter as we delivered more value to our sellers across the board. Sellers are investing more with us to pursue growth on our platform. These efforts continue to translate into positive financial results. For the period, GAAP marketplace revenue as a percentage of total GMV increased both year-on-year and quarter-on-quarter to reach 7.7%. The increase was mainly driven by increases from high-margin revenue streams like transaction-based fees and advertising, which underscores the success of our platform in driving greater economics for our sellers. As a result, there was strong flow through to the bottom line with the better monetization contributing directly towards better profitability.

由於我們向各大賣家提供了更多價值，本季我們也進一步提高了貨幣化水準。賣家正在向我們投入更多資金以追求我們平台的成長。這些努力繼續轉化為積極的財務表現。本季度，GAAP 市場營收佔 GMV 總額的百分比年增、季增至 7.7%。這一成長主要得益於交易費用和廣告等高利潤收入流的成長，這凸顯了我們的平台在為賣家帶來更大經濟效益方面取得的成功。因此，更好的貨幣化直接有助於提高獲利能力，從而產生了強勁的獲利流。

In the second quarter, gross profit for Shopee grew by close to 85% year-on-year and gross margins continued to improve sequentially from the last quarter. Shopee's overall adjusted EBITDA loss also improved sequentially by 13% quarter-on-quarter. Moreover, in Southeast Asia and Taiwan, adjusted EBITDA loss per order before allocation of HQ costs for the quarter was less than $0.01, which shows that we are well on track towards achieving positive adjusted EBITDA before HQ cost allocation in our Asian market combined.

第二季度，Shopee毛利年增近85%，毛利率較上一季持續季增。 Shopee 整體調整後 EBITDA 虧損也比上一季改善了 13%。此外，在東南亞和台灣，本季分配總部成本前的每筆訂單調整後 EBITDA 損失不到 0.01 美元，這表明我們在實現亞洲市場總部成本分配前調整後 EBITDA 為正數的方向上進展順利。

In Brazil, Shopee is also driving greater efficiencies while growing revenue rapidly. The adjusted EBITDA loss per order before allocation of HQ cost there was $1.42, improving quarter-on-quarter. At the same time, GAAP revenue in the market grew more than 270% year-on-year.

在巴西，Shopee在快速成長營收的同時，也不斷提高效率。分配總部成本前每筆訂單的調整後 EBITDA 損失為 1.42 美元，較上季有所改善。同時，該市場GAAP營收年增超過270%。

We are also optimizing spend around our HQ costs. During the quarter, total HQ costs for Shopee increased by $28 million quarter-on-quarter, driven by an increase in research and development, staff and server hosting costs as we expanded our technological capabilities and service offerings. This represents a deceleration in cost increases compared to the last quarter. While we will continue to invest to enhance our products, we have been able to strengthen our team significantly in the past period and plan to be prudent in further expanding the team.

我們也正在優化總部成本方面的支出。本季度，Shopee 總部總成本較上季增加了 2,800 萬美元，主要原因是隨著我們擴大技術能力和服務產品，研發、員工和伺服器託管成本增加。這顯示與上一季相比，成本成長有所放緩。雖然我們將繼續投資以增強我們的產品，但我們在過去一段時間內已經大大加強了我們的團隊，並計劃謹慎地進一步擴大團隊。

Meanwhile, Shopee continued to achieve top ranking globally and in our region. In the second quarter, Shopee ranked first in the shopping category globally by total time spending apps and second, by average monthly active users on Google Play according to data.ai. We also remained at the top-ranked app in the shopping category by average monthly active users and total time spending app in each of Southeast Asia, Indonesia and Taiwan. In Brazil, we further strengthened our leading position with Shopee ranking first by average monthly active users in the second quarter while continuing to rank first by total time spent in apps for the shopping category during the quarter.

同時，Shopee在全球和我們地區繼續取得領先排名。根據 data.ai 的數據顯示，第二季度，Shopee 在全球購物類別中按應用程式總使用時間排名第一，並按 Google Play 平均每月活躍用戶排名第二。在東南亞、印尼和台灣，我們仍以平均每月活躍用戶數和總使用時間排名在購物類應用程式中名列前茅。在巴西，我們進一步鞏固了領先地位，Shopee 在第二季度按平均每月活躍用戶數排名第一，同時在本季度按購物類別應用程式總使用時間繼續排名第一。

Besides engaging consumers, we are also working closely to support our sellers. We continue to empower our merchants through education and training in addition to providing them better tools and services. This remains a key area of focus for us. Across the Shopee seller platform, resources, including our Shopee University and master classes have been especially helpful to the local entrepreneurs and MSMEs.

除了吸引消費者之外，我們還密切合作以支持我們的賣家。除了為商家提供更好的工具和服務外，我們還將繼續透過教育和培訓為其提供支援。這仍然是我們關注的重點領域。在整個 Shopee 賣家平台上，包括我們的 Shopee 大學和大師班在內的資源對當地企業家和中小微型企業特別有幫助。

We are also growing our brand partners on Shopee mall in closer collaboration to enable greater engagement with their customers. Staying close to and collaborating with our sellers has enabled Shopee to grow and thrive together with them.

我們也在 Shopee 商城上與品牌合作夥伴建立更緊密的合作關係，以便與他們的客戶進行更深入的互動。與賣家保持密切合作使得Shopee能夠與他們共同成長和發展。

For example, in Brazil, we estimate that Shopee has become the main source of income for over 300,000 local entrepreneurs and has brought 430,000 new digital entrepreneurs to e-commerce. This has been partly driven by our investments behind training our Brazilian sellers with more than 60,000 sellers attending classes at the Shopee Education Center.

例如在巴西，我們估計Shopee已成為超過30萬當地企業家的主要收入來源，並為電子商務帶來了43萬名新的數位企業家。這在一定程度上得益於我們對巴西賣家培訓的投資，目前已有超過 60,000 名賣家參加了 Shopee 教育中心的課程。

Now I would like to discuss our decision to suspend the full year revenue guidance for Shopee driven by the highly volatile and unpredictable macro environment. As shared earlier, while we think the right thing to do during the pandemic lockdown was to prioritize growth with improving efficiency, we think the right thing to do in this time of continuing heightened macro volatility is to prioritize efficiency and self-sufficiency.

現在，我想討論一下我們決定暫停對 Shopee 的全年收入預測，這一決定是由於宏觀環境高度不穩定且難以預測所致。如同先前所分享的，雖然我們認為在疫情封鎖期間正確的做法是優先考慮成長和提高效率，但我們認為在宏觀波動持續加劇的時期正確的做法是優先考慮效率和自給自足。

As we have always maintained, we think about managing our businesses as more like marathons rather than sprints, adjusting our case to match the moment is therefore highly important. Our ability to navigate changing times will help us win this long race ultimately. Given our strategic shift, coupled with the various macro factors that are hard to predict, as mentioned before, we believe this is prudent to maximize our focus on efficiency across our business rather than overcommitting, which we believe would be ill-advised at this time of uncertainty. As such, we are suspending the full year guidance for Shopee, which we last provided in May.

我們始終認為，管理業務更像是一場馬拉松，而不是短跑，因此，根據情況調整我們的情況非常重要。我們駕馭時代變化的能力最終將幫助我們贏得這場長跑。考慮到我們的策略轉變，再加上前面提到的各種難以預測的宏觀因素，我們認為明智的做法是最大限度地關注整個業務的效率，而不是過度承諾，我們認為在不確定的時期這樣做是不明智的。因此，我們暫停了 Shopee 的全年業績指引（上次提供該指引是在 5 月）。

Even though we have stopped providing guidance, our focus for the rest of the year remains very clear, which is to continue to improve efficiency by both deepening monetization and optimizing our cost structure. We will be more tightly managing our operating expenses, such as marketing costs and the logistics costs while also gradually increasing monetization across various income streams with a focus on the high margin ones.

儘管我們已經停止提供指引，但我們今年剩餘時間的重點仍然非常明確，那就是透過深化貨幣化和優化成本結構來繼續提高效率。我們將更嚴格地管理我們的營運費用，例如行銷成本和物流成本，同時逐步提高各個收入來源的貨幣化，並專注於高利潤的收入來源。

More importantly, I want to emphasize that the current macro volatility does not affect our highly positive long-term outlook for our region. Current macro uncertainties do not change the fact that our markets remain some of the areas with the highest long-term growth potential in the world with positive demographic features and deepening digitalization.

更重要的是，我想強調的是，當前的宏觀波動不會影響我們對本地區高度正面的長期前景。目前的宏觀不確定性並不能改變這樣一個事實：我們的市場仍然是世界上具有長期成長潛力最高的地區之一，具有積極的人口特徵和不斷深化的數位化。

The current macro uncertainties also do not change our demonstrated track record in capturing some of the largest opportunities across the consumer Internet industry in our market. We believe our strong market leadership position will continue to allow us to disproportionately benefit from the long-term industry growth. And our strategic decisions and operational focuses today are all directed at best positioning us to capture these long-term opportunities.

目前的宏觀不確定性也不會改變我們在市場上抓住消費互聯網行業一些最大機會的良好記錄。我們相信，我們強大的市場領導地位將繼續使我們從長期的行業成長中獲得不成比例的利益。我們今天的策略決策和營運重點都是為了讓我們更能抓住這些長期機會。

Turning to digital entertainment. In the second quarter, Garena's GAAP revenue was $900 million and bookings were $717 million. Free Fire remained the most downloaded mobile game globally during the second quarter based on data.ai. It was also the highest-grossing mobile game in Southeast Asia and Latin America during the quarter, maintaining this leading position for 12 consecutive quarters. It is encouraging to see that Free Fire continued to perform well within the mobile game industry.

轉向數位娛樂。第二季度，Garena 的 GAAP 營收為 9 億美元，預訂金額為 7.17 億美元。根據 data.ai 的數據，《Free Fire》仍是第二季全球下載次數最多的手機遊戲。該遊戲也是本季東南亞和拉丁美洲收入最高的手機遊戲，並連續12個季度保持領先地位。令人鼓舞的是，《Free Fire》在手機遊戲產業持續表現良好。

Moreover, Free Fire shows some early signs of active user stabilization with quarterly active users reaching 619 million compared to 615 million in the fourth quarter.

此外，Free Fire 顯示出活躍用戶穩定的一些早期跡象，季度活躍用戶達到 6.19 億，而第四季為 6.15 億。

We continue to focus on investing in user engagement around Free Fire franchise and platform, ensuring a consistent cycle of fresh and new content for our communities. As an example, we celebrated Ramadan with our local communities in the second quarter. During Ramadan, we worked with local celebrities, introduced more items and hosted a number of community gatherings. This highly localized efforts allowed us to better engage our local users and enjoy strong monetization during the Ramadan season.

我們將繼續專注於投資圍繞 Free Fire 系列和平台的用戶參與度，確保為我們的社群持續提供新鮮內容。例如，我們在第二季與當地社區一起慶祝齋戒月。齋戒月期間，我們與當地名人合作，推出更多商品，並舉辦了許多社區聚會。這種高度在地化的努力使我們能夠更好地吸引本地用戶，並在齋月期間獲得強勁的獲利能力。

New content we introduced in the form of game modes have also helped to diversify the experiences that our gamers can enjoy on Free Fire platform. Alongside the battle royale mode, we are increasingly seeing solid long-lasting retention and engagement around other game modes like clash squad, which is a 4v4 game mode and Lone Wolf which is 1v1 or 2v2 game mode. Besides being highly engaging and social experiences, these game modes are also shorter and more fast-paced, which are preferred by some gamers, especially as time available for entertainment is more fragmented with reopening.

我們以遊戲模式形式引入的新內容也有助於豐富我們的遊戲玩家在 Free Fire 平台上享受的體驗。除了大逃殺模式外，我們還看到其他遊戲模式也擁有穩定且持久的留存率和參與度，例如 4v4 遊戲模式 Clash Squad 和 1v1 或 2v2 遊戲模式 Lone Wolf。除了高度參與和社交體驗之外，這些遊戲模式也更短、節奏更快，受到一些遊戲玩家的青睞，尤其是在重新開放後可用於娛樂的時間更加分散的情況下。

While short-term gaming industry trends remain relatively uncertain due to reopening trends as well as the potential impact from macro volatility, we are highly confident in the long-term structural tailwinds of the segment. We expect this to be even more apparent across our market, where we are well positioned and the growth runway for digital entertainment is substantial. We also expect this to support the long-term sustained life span of our existing franchises and the platforms.

儘管由於重新開放趨勢以及宏觀波動的潛在影響，短期遊戲產業趨勢仍然相對不確定，但我們對該領域的長期結構性順風充滿信心。我們預計這在我們的市場中會更加明顯，我們市場定位明確，數位娛樂的成長空間巨大。我們也希望這能支持我們現有特許經營權和平台的長期持續壽命。

Lastly, our digital financial services business. In the second quarter, the synergies between both Shopee and SeaMoney continues to expand, driving revenue and value across the ecosystem. SeaMoney's GAAP revenue for the quarter was $279 million, an increase of 214% year-on-year. Quarterly active users across our SeaMoney products and services reached close to 53 million, growing 53% from last year. Our mobile wallet total payment volume also grew healthily at 36% year-on-year to reach $5.7 billion during the quarter.

最後，我們的數位金融服務業務。第二季度，Shopee 和 SeaMoney 之間的協同作用持續擴大，推動整個生態系統的收入和價值。 SeaMoney 本季的 GAAP 營收為 2.79 億美元，較去年同期成長 214%。我們 SeaMoney 產品和服務的季度活躍用戶達到近 5,300 萬，比去年增長 53%。我們的行動錢包總支付額也較去年同期穩健成長 36%，本季達到 57 億美元。

With the stronger adoption of our growing portfolio of financial products and services across our Shopee and SeaMoney ecosystem, we are driving greater efficiency across platforms. As such, SeaMoney's adjusted EBITDA loss continued to improve quarter-on-quarter.

隨著我們不斷增長的金融產品和服務組合在 Shopee 和 SeaMoney 生態系統中的應用越來越廣泛，我們正在提高跨平台的效率。因此，SeaMoney 的調整後 EBITDA 虧損季比持續改善。

A significant population in our market is still underserved around digital financial products and services, and we are well positioned with our strong ecosystem to serve the largest segment of our market through the direct relationships and the insights we have accrued. At the same time, we are working closely with our partners and other local stakeholders to build a healthy and sustainable environment for the long term.

我們市場上有很大一部分的人群仍然沒有得到數位金融產品和服務的充分服務，我們憑藉著強大的生態系統，透過直接的關係和我們累積的洞察力，可以服務於我們市場上最大的群體。同時，我們也與合作夥伴及其他當地利害關係人密切合作，以建構長期健康、可持續的環境。

In closing, as we navigate an increasingly uncertain market environment, the need for us to be more thoughtful, prudent and disciplined has only grown. While we have ample resources to achieve self-sufficiency as a business, we are nevertheless rapidly prioritizing profitability and cash flow management. In this current volatile environment, we believe our focus on these areas will be key in setting the businesses up for long-term sustained success. We are also confident that our ability to execute to achieve our objectives during this period will be further supported by our scale, leadership positions and the proven business models. We have articulated clear commitments and are well on track to achieving them. We also continue to be highly optimistic about the long-term potential of the opportunities and the markets we are addressing.

最後，隨著我們面臨越來越不確定的市場環境，我們需要更加深思熟慮、更加謹慎和更加自律。雖然我們擁有充足的資源來實現企業自給自足，但我們仍然迅速將獲利能力和現金流管理放在首位。在當前動盪的環境中，我們相信對這些領域的關注對於企業實現長期持續成功至關重要。我們也相信，我們的規模、領導地位和成熟的商業模式將進一步支持我們在此期間實現目標的執行能力。我們已經做出了明確的承諾，並且正在順利實現這些承諾。我們對所針對的機會和市場的長期潛力也持續保持高度樂觀。

With that, I will invite Tony to discuss our financials.

因此，我將邀請托尼來討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call. We have included detailed financial schedules together with the corresponding management analysis in today's press release, and Forrest has discussed some of our financial highlights. So I will focus my comments on the other relevant metrics. .

謝謝你，福雷斯特，也謝謝大家參加電話會議。我們在今天的新聞稿中提供了詳細的財務時間表以及相應的管理分析，Forrest 也討論了我們的一些財務亮點。因此，我將重點討論其他相關指標。 。

For Sea, overall, total GAAP revenue increased 29% year-on-year to $2.9 billion. This was mainly driven by the growth in our e-commerce and digital financial services businesses as we continue to leverage the synergies across our platforms. On e-commerce, our second quarter GAAP revenue of $1.7 billion included GAAP marketplace revenue of $1.5 billion, up 62% year-on-year and GAAP product revenue of $0.3 billion, up 14% year-on-year. E-commerce adjusted EBITDA loss was $648 million. Adjusted EBITDA loss per order was $0.33 compared to $0.41 for the second quarter of 2021 as we further improved our growth efficiency and unit economics.

總體而言，Sea 的 GAAP 總營收年增 29%，達到 29 億美元。這主要得益於我們電子商務和數位金融服務業務的成長，因為我們繼續利用跨平台的協同效應。在電子商務方面，我們第二季的 GAAP 營收為 17 億美元，其中包括 GAAP 市場營收 15 億美元，年增 62% 以及 GAAP 產品營收 3 億美元，年增 14%。電子商務調整後的 EBITDA 虧損為 6.48 億美元。由於我們進一步提高了成長效率和單位經濟效益，調整後每筆訂單的 EBITDA 虧損為 0.33 美元，而 2021 年第二季為 0.41 美元。

Digital entertainment bookings were $0.7 billion and GAAP revenue was $0.9 billion for the second quarter of 2022. Adjusted EBITDA was $334 million. The slowdown compared to the second quarter of 2021 was mainly due to moderation of user base and user trends post COVID. Digital financial services GAAP revenue was $279 million, an increase of 214% year-on-year from $89 million in the second quarter of 2021. The growth was primarily due to the growing adoption of our financial products and services. Adjusted EBITDA loss was $112 million compared to $155 million for the second quarter of 2021 as we further improved on our growth efficiency.

2022 年第二季數位娛樂預訂金額為 7 億美元，GAAP 營收為 9 億美元。與 2021 年第二季相比，成長放緩主要是由於新冠疫情後用戶群和用戶趨勢的放緩。數位金融服務 GAAP 營收為 2.79 億美元，較 2021 年第二季的 8,900 萬美元年增 214%。由於我們進一步提高了成長效率，調整後的 EBITDA 虧損為 1.12 億美元，而 2021 年第二季為 1.55 億美元。

In the second quarter of 2022, we recorded an impairment of goodwill of $177 million. The goodwill impairment was primarily due to the change in carrying amount of goodwill associated with our prior acquisitions, mainly driven by the lower valuations amidst the market uncertainties. We recognized a net nonoperating loss of $33 million in the second quarter of 2022 compared to a net nonoperating loss of $25 million in the second quarter of 2021. The nonoperating loss in the second quarter of 2022 was primarily due to investment losses recognized amidst lower valuations in the broader market.

2022 年第二季度，我們記錄了 1.77 億美元的商譽減損。商譽減損主要由於與我們先前的收購相關的商譽帳面價值的變化，主要由於市場不確定性導致估值較低。我們確認 2022 年第二季的淨非營業虧損為 3,300 萬美元，而 2021 年第二季的淨非營業虧損為 2,500 萬美元。

We had a net income tax expense of $65 million in the second quarter of 2022, which was primarily due to corporate income tax and withholding tax recognized in our digital entertainment business. As a result, net loss, excluding share-based compensation and impairment of goodwill was $570 million in the second quarter of 2022 as compared to $321 million for the same period in 2021.

2022 年第二季度，我們的淨所得稅支出為 6,500 萬美元，這主要是由於我們的數位娛樂業務確認的企業所得稅和預扣稅。因此，2022 年第二季不包括股權激勵和商譽減損的淨虧損為 5.7 億美元，而 2021 年同期為 3.21 億美元。

Net cash used in investing activities in the second quarter of 2022 was primarily attributable to an increase in loans receivables and purchase of property and equipment to support the growth of our businesses. At the end of second quarter of 2022, we had $7.8 billion of cash, cash equivalents and short-term investments on our balance sheet.

2022 年第二季投資活動所使用的淨現金主要歸因於應收貸款增加以及為支持業務成長而購買物業和設備。截至 2022 年第二季末，我們的資產負債表上有 78 億美元的現金、現金等價物和短期投資。

With that, let me turn the call to Min Ju.

說完這些，我把電話轉給 Min Ju。

Thank you for that, Tony. We are now ready to open the call for questions. Operator?

謝謝你，托尼。我們現在準備開始接受提問。操作員？

(Operator Instructions) Our first question comes from Pang Vitt from Goldman Sachs.

(操作員指示) 我們的第一個問題來自高盛的 Pang Vitt。

Two questions from me. Firstly, on e-commerce. Can I please clarify on the suspension of guidance, what are management currently seeing that leads to the decision? Is the outlook that we are facing right now, really that cloudy? And at this point in time, we understand that macro has become very challenging, but at least up until middle of August, is there any color you can provide in terms of how Shopee has been doing so far for the quarter -- the quarter of 2022?

我有兩個問題。第一，關於電子商務。我能否澄清一下暫停指導的原因，管理層目前看到了什麼原因導致做出這個決定？我們現在面臨的前景真的如此黯淡嗎？而此時，我們知道宏觀經濟已經變得非常具有挑戰性，但至少到 8 月中旬，您能否提供有關 Shopee 本季（2022 年季度）迄今為止的表現的資訊？

Second question is related to Shopees and their breakeven. Is there any update on your breakeven post headquarter target for Shopee ASEAN and Taiwan? Right now, ASEAN and Taiwan breakeven is in sight. But headquarter costs still increased on a quarter-on-quarter basis. Can we understand what drives this increase in headquarter costs? And when can we actually expect to see this improve going forward?

第二個問題與 Shopees 及其損益平衡有關。您對 Shopee 東協和台灣總部的損益平衡目標有什麼更新嗎？目前，東協與台灣已有望實現損益平衡。但總部成本仍比上一季增加。我們能否了解導致總部成本增加的原因是什麼？那麼我們什麼時候才能真正期望看到這種狀況得到改善呢？

Thank you, Pang. Regarding the guidance, we just want to clarify, this is a proactive decision from the management to continue to shift our strategies and we want to be very upfront and open to the market about it. If you look at our Q2 results, you already start to see that our actual losses for Shopee has been narrowing, not just on a unit economic basis, but also on a total -- at a Shopee group level basis and including all the costs considered. At the same time, we still achieved significant growth at 40% -- more than 40% for order.

謝謝你，彭。關於該指引，我們只是想澄清，這是管理層為繼續轉變策略而做出的主動決定，我們希望對市場非常坦率和開放。如果你看一下我們的第二季度業績，你會開始發現 Shopee 的實際損失一直在縮小，不僅是按單位經濟計算，而且按總體計算——按 Shopee 集團層面計算，並包括所有考慮的成本。同時，我們仍然實現了40%的大幅成長——訂單成長超過40%。

And so I think it's important that as we shared earlier that given the macro uncertainties, and our goal is to be the optimal -- to achieve optimal success in the long run for the consumer Internet segment in our market. We think that pace ourselves well and manage the business prudently in accordance with the macro environment is very important. And a nimble execution adaptability has really helped us in achieving great success through the COVID period as well. And now it's a time for us to manage in a different direction, and we want to communicate proactively to the market about this different direction.

因此我認為重要的是，正如我們之前所說的，考慮到宏觀的不確定性，我們的目標是做到最好——從長遠來看，在我們市場的消費者互聯網領域取得最佳成功。我們認為，根據宏觀環境，掌握好自己的步調、審慎管理業務非常重要。靈活的執行適應能力也確實幫助我們在疫情期間取得了巨大的成功。現在是我們向不同方向管理的時候了，我們希望主動向市場傳達這個不同的方向。

Now of course, it doesn't mean that we think the market immediately are deteriorating or we see anything that significantly negative. It is more of a proactive communication to the market about management strategies to focus on efficiency, focus on the overall strength and health of the ecosystem and focus on continuing to tighten our operations. And that has been in our operations since earlier this year, and we want to continue in that trend.

當然，這並不意味著我們認為市場正在立即惡化或我們看到任何顯著的負面情況。這更像是一種主動向市場傳達管理策略的方式，即註重效率、注重生態系統的整體實力和健康、注重持續加強我們的營運。我們從今年初就開始採取這種行動，我們希望繼續保持這種趨勢。

But of course, to put things in context, as we also shared, our long-term view about the market have not changed. And we remain very positive about the long-term growth opportunities across all these consumer Internet segments that we currently have leadership in our markets. And we are doing this to best position us to really capture these opportunities even better along the way.

但當然，放眼當前情況，正如我們所分享的，我們對市場的長期觀點並沒有改變。我們對於所有這些消費者網路領域的長期成長機會仍然非常樂觀，我們目前在市場上處於領先地位。我們這樣做是為了讓我們更能抓住這些機會。

And to also put this into context. Currently, we have strong market leadership across various segments. And also based on the historical results so far, our market leadership has continued to widen the gap with our peers. So in that case, we have ample resources as well as a very strong position to manage the shift in our strategy and position us really well for the long run.

並將其置於上下文中。目前，我們在各個領域都擁有強大的市場領導地位。而且從迄今為止的歷史表現來看，我們的市場領導地位與同業的差距仍在擴大。因此在這種情況下，我們擁有充足的資源和非常強大的地位來管理我們的策略轉變，並為我們的長期發展做好充分的準備。

In terms of the breakeven target for the Asia market, post HQ costs, we previously shared that we expect that to happen by next year. There's no change to our expectation on that. And of course, we continue to manage the cost. And we do expect that we'll try to move closer to the target over time. As you can see, pre-HQ costs, we almost achieved the targets given the order loss is less than $0.01 in Asia. And HQ cost-wise, although they are still increased quarter-on-quarter, the increase has -- the pace of increase has slowed. And as we shared in the earnings, this is mostly related to R&D as well as server costs.

關於亞洲市場的收支平衡目標，在總部成本之後，我們之前曾表示，預計該目標將在明年實現。我們對此的預期並沒有改變。當然，我們會繼續控製成本。我們確實期望，隨著時間的推移，我們會越來越接近目標。正如您所看到的，在總部成本之前，鑑於亞洲的訂單損失不到 0.01 美元，我們幾乎實現了目標。就總部成本而言，儘管其成本仍比上一季增加，但成長速度已放緩。正如我們在收益中所分享的，這主要與研發以及伺服器成本有關。

Now of course, the growth of R&D and service will also be commensurate with the overall growth of the business. As we continue to manage the growth, we're also very much focused on efficiency and in terms of the operation and also overall growth. So we do expect that to continue to see progress in a positive direction for us.

當然，研發和服務的成長也將與業務的整體成長相稱。在我們繼續管理成長的同時，我們也非常注重效率、營運和整體成長。因此，我們確實期望這能繼續朝著正面的方向發展。

Our next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

I wanted to follow up on the e-commerce guidance suspension. So can -- I think because in the past few years, management have proven very diligent on providing good insight into your forecast. So I wonder if these challenges, mainly on consumer, is that the frequency of the spending or the ASP where the consumer become more cautious on spending on the big ticket items that affect some of this uncertainty in the forecast? Or is it because of the spending willingness from the smaller merchants that you are seeing that create the difficulty on forecasting your revenue? So on -- this is the first question on e-commerce.

我想跟進電子商務指導暫停的情況。所以可以——我想是因為在過去幾年中，管理層已經證明非常勤勉地為您的預測提供良好的見解。所以我想知道這些挑戰（主要針對消費者）是否是消費頻率或平均售價，消費者在大件商品支出上變得更加謹慎，從而影響了預測中的不確定性？還是因為您看到小商家的消費意願使得您難以預測收入？所以——這是關於電子商務的第一個問題。

Very quickly on gaming. Just wondering, without new games launched, what should we expect in terms of the Free Fire franchise to trend going forward? Would that be more stable? Or would that be also potentially growing the paying ratio with the existing user base that can actually support the growth booking going forward?

遊戲速度非常快。只是想知道，在沒有新遊戲推出的情況下，我們應該期待《Free Fire》系列未來的發展趨勢如何？是不是會比較穩定呢？或者這也可能透過現有用戶群增加付費比例，從而實際上可以支援未來的成長預訂？

Yes. Thanks, Alicia. I think what we're trying to say here is that for us, the reason we are suspending the guidance now is mainly because from a management of the business perspective, we will see the growth -- top line growth more as an output at this stage, not as a target. And what is the target now is going to be increasingly efficiency improvements and long-term health and strength and profitability of the platform. And that's why I want to put things into perspective. Even though we don't put as a target, naturally, we will continue to see growth.

是的。謝謝，艾莉西亞。我想我們在這裡想說的是，對於我們來說，我們現在暫停指導的原因主要是因為從業務管理的角度來看，我們將把成長 - 營收成長更多地視為現階段的產出，而不是目標。現在的目標是不斷提高效率以及平台的長期健康、實力和獲利能力。這就是為什麼我想正確看待事物。即使我們沒有設定目標，但自然我們將繼續看到成長。

And overall, the market conditions, there are headwinds with, as we mentioned, inflation and reopening, tough comps against last year, especially given that we have supercharged growth. In fact, Shopee has achieved 10 quarters of triple-digit growth in the past 20 quarters since we are public. I think that is probably a historical record for any business. Also given the emerging market that we are in with underdeveloped infrastructure and all the work we have to play in to grow a highly complex e-commerce business across so many markets.

總體而言，正如我們所提到的，市場狀況面臨通貨膨脹和重新開放等阻力，與去年相比，情況嚴峻，特別是考慮到我們實現了超強的成長。事實上，Shopee上市以來的過去20個季度裡，有10個季度實現了三位數的成長。我認為這對任何企業來說都可能是歷史記錄。此外，考慮到我們處於基礎設施不發達的新興市場，我們必須付出大量努力才能在如此多的市場中發展高度複雜的電子商務業務。

So we have no problem. We don't have to prove that we can execute growth. That has been very well established as a very strong track record and also got us here as a strong leader and continue to expand our leadership even despite all the headwinds that everybody has experienced in the market. However, we are saying that as a prudent business management perspective, we think now the direction needs to shift. And we want to proactively communicate the shift of that direction to the market to our stakeholders. And that's what we are saying here.

所以我們沒有問題。我們不必證明我們能夠實現成長。這已經充分證明了我們擁有非常出色的業績記錄，也使我們成為了強大的領導者，並且儘管市場上每個人都經歷了各種阻力，但我們仍將繼續擴大我們的領導地位。然而，我們說，從審慎的業務管理角度來看，我們認為現在方向需要轉變。我們希望主動向我們的利害關係人傳達市場方向的轉變。這就是我們在這裡要說的。

Now in terms of Free Fire trends. So as you can tell, given the size of Free Fire, our Q2 results on the digital entertainment segment is also largely driven by Free Fire. On the active user side, we saw some stabilization quarter-on-quarter compared to last quarter. Of course, we're not making any forward projection here regarding user trends and also pay user trends or bookings because as you can tell, this is hard to predict for gaming industry as a whole.

現在談論 Free Fire 的趨勢。因此，您可以看到，考慮到 Free Fire 的規模，我們數位娛樂領域第二季的表現也很大程度上受到了 Free Fire 的推動。在活躍用戶方面，與上一季相比，我們看到環比有所穩定。當然，我們在這裡不會對用戶趨勢、付費用戶趨勢或預訂量做出任何前瞻性預測，因為正如你所知，這對整個遊戲產業來說很難預測。

But also to put things into perspective, of course, the inflation and also the opening up since COVID and again, the tough comp against last year, in particular, the outstanding performance of Free Fire throughout the year, that made the comparison look tough for us and thus affect the gamer consumption and engagement naturally. It's not particularly on Free Fire on Garena. It's on the industry as Free Fire maintained its top ranking in terms of global downloads, in terms of growth in our key markets in Southeast Asia and LatAm. So that seems to be more of an industry-driven and macro-driven kind of impact on game.

但當然，也要從整體來看，通貨膨脹、新冠疫情以來的開放，以及與去年相比的艱難競爭，尤其是《Free Fire》全年的出色表現，這讓我們的比較看起來很艱難，從而自然影響了遊戲玩家的消費和參與度。這並不是特別針對 Garena 上的 Free Fire。這是因為《Free Fire》在全球下載量方面保持領先，並且在東南亞和拉丁美洲等主要市場的成長方面也保持領先。所以這似乎更多的是一種行業驅動和宏觀驅動對遊戲的影響。

On the other hand, we also see some other franchises in our current game portfolio. For example, Arena of Valor performed very -- quite stable -- showed a stable performance. And even in some quarters, we saw improvements, there is also another game that we have been running for many years. So it's not necessarily true that given the headwinds, given the lifespan of the game, that we definitely will see continuing downward trend. I think part of it is also dependent on our own efforts and ability to continue to manage that. And that's what the team is focused on.

另一方面，我們在當前的遊戲組合中也看到了一些其他的特許經營權。例如，《勇者競技場》表現非常穩定，展現了穩定的表現。甚至在某些方面，我們看到了改進，還有另一款我們已經運行多年的遊戲。因此，考慮到逆風因素和遊戲的壽命，我們不一定會看到持續的下降趨勢。我認為這在某種程度上也取決於我們自身的努力和繼續管理的能力。這正是團隊關注的重點。

In the past quarter, I think the team has done different things in terms of esports activities, engagement, new content, new game modes, more user-friendly packages and game sizing in various aspects, try to continue to improve and retain our users and engage with our users better. I think the trends you're seeing is really, given the tough comp and the macro environment against us. On the other hand, we're also making a lot of efforts in this regard. And we see our game as a very important long-term franchise for us. And as I said, we think that online virtual consumption is going to be increasingly important for the younger generations. And that's where we're betting in terms of the long-term future of this company as well.

在過去的一個季度裡，我認為團隊在電競活動、參與度、新內容、新遊戲模式、更用戶友好的包裝和遊戲規模等各個方面做了不同的事情，試圖繼續改善和留住我們的用戶，並更好地與我們的用戶互動。我認為，考慮到嚴峻的競爭情況和不利於我們的宏觀環境，您所看到的趨勢確實是這樣的。另一方面，我們也在這方面做了很多努力。我們認為我們的遊戲對我們來說是一個非常重要的長期特許經營權。正如我所說，我們認為網路虛擬消費對年輕一代來說將變得越來越重要。這也是我們對這家公司的長期未來所下的賭注。

Our next question comes from Piyush Choudhary from HSBC Singapore.

下一個問題來自新加坡匯豐銀行的 Piyush Choudhary。

Two questions. Firstly, can you talk a little bit about the outlook for the e-commerce industry GMV growth in your core markets in 2022 and 2023? Which markets are proving more resilient and which are showing signs of early weakness?

兩個問題。首先，您能否談談2022年和2023年您核心市場的電商產業GMV成長前景？哪些市場表現出更強的彈性，哪些市場則顯露出早期疲軟的跡象？

Secondly, could you give us a breakup of gross orders and grab revenue in Brazil? And what is the likely cost savings with your recent initiatives taken? Is it already reflected in 2Q or yet to come?

其次，您能否提供我們一下巴西的總訂單量和收入狀況？您最近採取的措施可能節省多少成本？這是否已經反映在第二季度了，還是尚未到來？

I think in terms of the industry GMV growth, there are a lot of research outstanding. And I think, obviously, it's going to be slower, but also it really depends on the various industry players and us and our peers, how we manage this growth. And among the various markets, we see that there are some markets, for example, like Malaysia, Singapore, that enjoyed spectacular growth. During the previous years, there is a slowdown, given a tough comp and also the opening up versus a period of strict lockdown. I think continuing to this year, of course, the tough comp is going to remain a fact.

我認為在產業GMV成長方面，有許多出色的研究。我認為，顯然這個速度將會變慢，但這也確實取決於各個行業參與者、我們以及我們的同行如何實現這種成長。在各個市場中，我們發現一些市場，例如馬來西亞、新加坡，實現了驚人的成長。過去幾年，由於競爭激烈以及開放時期與嚴格封鎖時期相比，經濟成長放緩。當然，我認為，今年的競爭依然激烈。

And at the same time, we also see markets like Indonesia, Philippines and Vietnam continue to enjoy relatively faster growth. That also in a way, sometimes is affected by the comp relative to -- in terms of open up versus lockdown, the relative macro situations people are placing, the fiscal tools, the central banks and the governments in terms of interest rates and fiscal tools governments have been employing to manage the inflation and how they deploy those tools whether it's on price cap or on coupons and if it's on subsidies, how they channel the subsidies. So all of this can affect the overall consumption growth and where the consumption growth to whether it's a discretionary or necessities or is a physical consumption versus services and also the e-commerce relatively share online versus off-line.

同時，我們也看到印尼、菲律賓和越南等市場持續保持相對較快的成長。在某種程度上，這有時也受到相對於開放與封鎖的比較的影響，人們所處的相對宏觀形勢、財政工具、中央銀行和政府在利率和財政工具方面一直在使用以管理通膨，以及他們如何部署這些工具，無論是價格上限還是優惠券，如果是補貼，他們如何引導補貼。因此，所有這些都會影響整體消費成長，以及消費成長是否取決於自由支配的物品還是必需品，是實體消費還是服務消費，以及電子商務在線上和線下所佔的相對份額。

But I think there are many factors that could affect -- well, in general, the big picture is going to be slower and -- compared to last year, and how much slower, I think remains to be seen. And overall, we hope that we can continue to see resilience. But again, as we shared from a management perspective, we think it's much better to be disciplined and prudent and manage for macro uncertainty and to be prepared for any negative events and situations as opposed to hoping for resilience and the markets staying positive.

但我認為有許多因素可能會產生影響——總的來說，與去年相比，總體而言，成長將會放緩，至於放緩多少，我認為還有待觀察。總的來說，我們希望能夠繼續看到復甦跡象。但是，正如我們從管理角度所分享的那樣，我們認為，嚴守紀律、審慎行事，應對宏觀不確定性，為任何負面事件和情況做好準備，要比希望市場保持彈性和積極態勢好得多。

In terms of the gross orders and GAAP revenues for Brazil, I think we disclosed the strong growth that Brazil is continuing to enjoy for us. And we also, more importantly, continue to narrow -- improve our unit economics in Brazil. So everything's really on track for us in Brazil.

就巴西的總訂單量和 GAAP 收入而言，我認為我們揭示了巴西繼續為我們帶來強勁的成長勢頭。更重要的是，我們也將繼續縮小並改善我們在巴西的單位經濟效益。因此，我們在巴西的一切都很順利。

And in terms of the group level, I think the cost initiatives, when we talk about the projections in the future -- for the future in terms of EBITDA positive after HQ cost allocation for the Asian market, we do take into any initiatives that are visible to us at this point. Of course, we don't have a perfect prediction for the future.

就集團層面而言，我認為成本舉措，當我們談論未來的預測時 - 對於未來的EBITDA而言，在為亞洲市場分配總部成本後，我們確實會考慮到目前我們可以看到的任何舉措。當然，我們對未來並沒有完美的預測。

The next question comes from Thomas Chong from Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

I would like to ask about the digital entertainment side, in particular, how we should think about the new games in the pipeline. We understand that we have a different -- development. I just want to see how the progress is going? And should we expect any meaningful titles to be released in second half or 2023? And on that front, how we should think about the EBITDA margin for the digital entertainment business in coming quarters? Do we expect to invest in driving the retention and engagement of Free Fire users, would continue in transitioning to 2023?

我想問一下數位娛樂的問題，特別是我們應該如何看待正在籌備中的新遊戲。我們了解我們有一個不同的發展。我只是想看看進展如何？我們是否應該期待在下半年或 2023 年發布任何有意義的作品？從這方面來看，我們應該如何看待未來幾季數位娛樂業務的 EBITDA 利潤率？我們是否希望投資於推動 Free Fire 用戶的保留和參與度，並將繼續過渡到 2023 年？

Yes. In terms of the game pipeline, we do have things in the pipeline, whether it's on our own self-development or published titles or our invest details, we might publish later this year. And as you know, we will announce it when they're public -- when they're officially launched. And I think in the long run, we do -- our goal is to continue to diversify our portfolio and in terms of genres and mix of the esports and more casual type of games and across the more diverse market, so the direction is the same.

是的。在遊戲管道方面，我們確實有一些計劃，無論是我們自主開發的遊戲還是已發布的遊戲，還是我們的投資細節，我們都可能會在今年稍後發布。正如你所知，當它們公開時——正式推出時，我們會宣布它。我認為從長遠來看，我們的目標是繼續實現產品組合多樣化，包括電子競技和休閒遊戲類型的類型和組合，以及更多樣化的市場，所以方向是一樣的。

From a financial perspective, we don't think there will be anything that will have an immediate meaningful significant impact like that on Free Fire in the immediate future because as a, Free Fire is a very long -- the largest mobile titles in the world and b, for any game that we launched initially, our focus is more going to be user engagement and building up the momentum and also the user base and solidify that before we focus more monetization. Even for Free Fire, it actually took the game quite a number of quarters or I would say, even on a year, to graduate -- ramp up monetization and to develop into more full potential. So that's our view.

從財務角度來看，我們認為不會有任何東西能在近期對 Free Fire 產生如此直接、重大的影響，因為：a，Free Fire 是一款非常悠久、也是世界上最大的手機遊戲；b，對於任何我們最初推出的遊戲，我們的重點將更多地放在用戶參與度、建立勢頭和用戶群上，並在我們更加關注貨幣化之前鞏固這一點。即使對於《Free Fire》來說，這款遊戲實際上也花了相當多的季度，或者說一年的時間，才能夠完成任務——提升盈利能力，並發揮出更大的潛力。這是我們的觀點。

And in terms of the EBITDA margins for digital entertainment in coming quarters, I think our EBITDA margin is still very much on the high end of the industry at more than 45%. Now from quarter-to-quarter, as we shared before, there could be fluctuations depending on, for example, esports events and other campaigns. For example, the second quarter, we had our -- the world series competition for Free Fire. And then that also depends on launch timing for the new games. If we have new games, then there will be some sales and marketing investment to build up momentum for the -- based on publishing timing. But generally, I think even though there will be fluctuations, we do continue to expect our EBIT margins will continue to remain on the high end compared to the industry range.

就未來幾季數位娛樂的 EBITDA 利潤率而言，我認為我們的 EBITDA 利潤率仍然處於行業高端，超過 45%。現在，從季度來看，正如我們之前分享的那樣，可能會出現波動，這取決於例如電子競技活動和其他活動。例如，第二季度，我們舉辦了《Free Fire》世界大賽。這也取決於新遊戲的發佈時間。如果我們有新遊戲，那麼我們會根據發佈時間進行一些銷售和行銷投資，以累積動力。但總的來說，我認為儘管會有波動，但我們仍然預計我們的息稅前利潤率將繼續保持在行業水平的高端。

The next question comes from Jiong Shao from Barclays.

下一個問題來自巴克萊銀行的邵炯。

I have 2 questions. I'd like to ask one at a time, if that's okay? As a company focuses on sort of monetization, efficiency cost control, any comments on your take rate expectation? I think in the past, you talked about increasing take rate about roughly 200 basis points this year. Should that still be our expectation or your expectation? Any comments would be super, super helpful. That's my first question.

我有兩個問題。我想一個一個問，可以嗎？作為一家專注於貨幣化、效率成本控制的公司，您對接受率預期有何評論？我想，過去您曾談到今年將利率提高約 200 個基點。這仍然應該是我們的期望還是您的期望？任何評論都會非常非常有幫助。這是我的第一個問題。

Thank you, Jiong. I don't recall we give any take rate guidance, right? But on the whole, I think -- in terms of take rate, we do expect the take rate to graduate right and as we continue to deepen monetization through better services to our sellers and consumers and through growing the ecosystem as a whole.

謝謝你，炯。我不記得我們給過任何接受率指導，對吧？但總的來說，我認為 - 就收取率而言，我們確實預計收取率會逐漸提高，並且隨著我們繼續通過為賣家和消費者提供更好的服務以及通過發展整個生態系統來深化貨幣化。

Okay. So my apologies. I think maybe what I remember was I think -- you might have talked about the increase in take rate this year is going to be similar to the increase in take rate last year, which was roughly 170, 200 basis points, if I'm not mistaken. But maybe another way to just follow up on this, is there any change in your expectation for your take rate since now you sort of suspended the revenue guide? Is there any change in your expectation on the monetization specifically regarding to the take rate?

好的。所以我很抱歉。我想也許我記得的是——你可能談到今年的接受率增幅將與去年的接受率增幅相似，如果我沒記錯的話，大約是 170,200 個基點。但也許可以用另一種方​​式來跟進這個問題，自從你暫停收入指南以來，你對你的收費率的預期有什麼變化嗎？您對貨幣化的預期，特別是對於收費率，有什麼變化嗎？

I think Jiong, there can be many factors affecting the take rate. We won't be providing any specific guidance on the take rate. But suffice to say that there will be gradual increase over time. We don't set a specific target take rate for any particular year. And when take rate rises, it can be also based on different income streams in terms of transaction-based fees and these are more like the take rate that we set. But on the other hand, there are also take rates that the sellers adopt because, for example, we offer opt-in programs for sellers who joined these programs, paid as a higher take rate in getting more services and offerings in return. And this will also increase our take rate. But it is not something that is directly set by us, but it's more based on the seller adoption.

我認為，Jiong，影響接受率的因素有很多。我們不會對接受率提供任何具體指引。但可以說，隨著時間的推移，這個數字將會逐漸增加。我們沒有為任何特定年份設定具體的目標利率。並且，當收費率上升時，它也可以基於交易費用方面的不同收入流，這些比我們設定的收費率更像。但另一方面，賣家也會採用一定的收費率，例如，我們為加入這些計劃的賣家提供選擇加入計劃，以更高的收費率支付，以獲得更多服務和產品。這也會提高我們的接受率。但這不是我們直接設定的，而更多取決於賣家的採用。

There's also advertisement. Again, that is something based on adoption. Then there's also VAS. And VAS take rates in a way also depends on the rollout of our logistics and in terms of how we manage logistics and there's also accounting-related changes that might affect the take rate. So there are many different factors that affected. But I think overall, we continue to focus on the unit economic improvement and overall platform ecosystem growth of our platform.

還有廣告。再次強調，這是基於採用的事情。另外還有 VAS。而增值服務收取率在某種程度上也取決於我們的物流部署以及我們如何管理物流，此外還有一些與會計相關的變更可能會影響收取率。因此，有很多不同的因素會產生影響。但我認為總體而言，我們將繼續關注我們平台的單位經濟改進和整體平台生態系統的成長。

Our next question comes from Ranjan Sharma from JPMorgan Singapore.

下一個問題來自摩根大通新加坡的 Ranjan Sharma。

Two questions from my side. Firstly, on the gaming guidance, I guess, there's no change if you can confirm that?

我有兩個問題。首先，關於遊戲指導，我想沒有變化，如果您能確認的話？

Secondly, on your ad revenues, if you can please give more color on how fast they're growing? And if I look at it from a percentage of GMV perspective, where are we?

其次，關於您的廣告收入，您能否詳細說明一下其成長速度有多快？如果我從 GMV 百分比的角度來看，我們處於什麼位置？

Thanks, Ranjan. In terms of game guidance, no change to it.

謝謝，Ranjan。在遊戲指導方面，沒有改變。

And in terms of ad revenue, we don't break that down, but there is also a gradual upward trend on that front. And that also part of the reason that combined with increasing transaction-based fees that we see continual increase in our high-margin revenue and the improvement on our margins overall for Shopee.

就廣告收入而言，我們沒有對其進行細分，但該方面也呈現出逐步上升的趨勢。這也是由於交易費用不斷增加導致我們的高利潤收入持續增加以及 Shopee 整體利潤率提高的部分原因。

The next question comes from John Choi from Daiwa.

下一個問題來自 Daiwa 的 John Choi。

My question is on your strategy to shift more on efficiency improvement. Management kind of elaborate what are the few intangible examples that you could give us, how you're going to really try to improve the efficiency on the margins. Is it going to be more by aggressive cutting or less spending in some of the strategic areas?

我的問題是關於你們將更多精力轉向提高效率的策略。管理階層可以詳細說明您能為我們提供哪些無形的例子，說明您將如何真正努力提高邊際效率。是否會透過大幅削減或減少某些策略領域的開支來實現更多目標？

And a quick follow-up is on the Brazil strategy. I know that we are growing very nicely here. How are you going to balance the growth opportunities and investments versus your new efficiency strategy going forward?

接下來是巴西戰略。我知道我們在這裡發展得很好。您將如何平衡成長機會和投資與未來的新效率策略？

Yes. Thanks, John. In terms of the efficiency rate, I think there's -- it's not as simple as we just cut, right? It is important to wanted to focus on the overall efficiency of the ecosystem. For example, as we all know, logistics is a big part of the ecosystem cost. And whether it's borne by the sellers, by the buyers or by the platform like us, it is one of the biggest cost component. And there are many ways to continue to improve it. For example, we work even more closely with our 3PL partners and other agents and service providers to better route the delivery and better plan and delivery and also increase the density of delivery. There are many ways to improve the overall ecosystem efficiency.

是的。謝謝，約翰。就效率率而言，我認為——它並不像我們剛才削減那麼簡單，對吧？關註生態系統的整體效率非常重要。例如，眾所周知，物流是生態系統成本的很大一部分。無論是由賣家、買家或我們這樣的平台承擔，它都是最大的成本組成部分之一。並且有很多方法可以繼續改進它。例如，我們與我們的3PL合作夥伴以及其他代理商和服務提供者更加緊密地合作，以更好地安排運輸路線、更好地規劃和運輸，並提高運輸密度。有很多方法可以提高整體生態系統的效率。

And on the payment front, for example, we continue to improve adoption of our e-wallet and also increase other online payment adoption over time, and that can also lower the payment cost and reduce the transaction friction. So there are many things that we focus on the ecosystem side that we want to make sure they can be more efficient.

例如在支付方面，我們不斷提高電子錢包的採用率，並隨著時間的推移增加其他線上支付的採用率，這也可以降低支付成本並減少交易摩擦。因此，我們在生態系統方面關注很多事情，我們希望確保它們能夠更有效率。

And also, in terms of the other cost managements that we continue to review various cost components and to see if there can be savings made during this process. And I think it's actually a very good exercise. Now as we shared, we see this business as running a marathon. And during this time, I think it's good to tighten our shoelace, get water and develop and also then that prepare us to run faster down the road.

此外，就其他成本管理而言，我們將繼續審查各種成本組成部分，看看在過程中是否可以節省開支。我認為這實際上是一個非常好的練習。正如我們所分享的，我們將這項業務視為一場馬拉松。在這段時間裡，我認為我們應該繫緊鞋帶，補充水分，保持體力，為日後跑得更快做好準備。

And in terms of our growth in Brazil on -- in terms of balancing growth and efficiency, I think the big picture is still doing the right thing at the right time at the right place. And for Brazil, we look at what is potentially natural or reasonable growth rates for us and what is efficient for us. So that's -- we've always emphasized on efficiency in any growth region. And increasingly, given the micro trends, we will probably further focus on that and emphasize on that.

就我們在巴西的成長而言——在平衡成長和效率方面，我認為總體而言仍然是在正確的時間、正確的地點做正確的事情。對於巴西來說，我們考慮什麼是對我們來說可能是自然或合理的成長率，以及什麼是對我們來說是高效的成長率。所以，我們一直強調任何成長區域的效率。而且，考慮到微觀趨勢，我們可能會進一步關注並強調這一點。

And again, as I said, we're going to see growth rates as more output during this period of time and more focus on efficiency and that can allow us to eventually build a stronger and more profitable platform there long term.

正如我剛才所說，我們將看到成長率代表著這段時間內產出的增加和對效率的更多關注，這可以讓我們最終在長期內建立一個更強大、更有利可圖的平台。

Our next question comes from Varun Ahuja from Credit Suisse.

下一個問題來自瑞士信貸的 Varun Ahuja。

So I've got 3 questions. First, on the e-commerce, sorry to harp on it, guidance again. So it's the change in strategy that you're talking about. So the suspension in guidance is for this year or for next year? Do you think you'll get back to giving guidance for the segment? And more importantly, have you going to change the metrics that you track internally with -- still revenue growth, or EBITDA or any of the metrics that you're going to focus on when you provide guidance? So any color on that front will be helpful.

所以我有 3 個問題。首先，關於電子商務，很抱歉再次提及這一點，再次提供指導。所以，您說的是戰略的改變。那麼，暫停指導是針對今年還是明年？您認為您會回來為該部門提供指導嗎？更重要的是，您是否會改變內部追蹤的指標——仍然是收入成長、EBITDA 或您在提供指導時關注的任何指標？因此，任何顏色在這方面都是有幫助的。

Secondly, on the fintech side. If you can tell us how the digital bank initiatives are going across the various countries? And if you look at the loan receivables on the balance sheet is around $2 billion. How much more loans that you're giving outside of this in collaboration with the digital banks? Any color that you can share, that will be good.

其次，在金融科技方面。您能告訴我們各國數位銀行計畫的進展嗎？如果你看一下資產負債表上的應收貸款，大約有 20 億美元。除此之外，您還與數位銀行合作提供多少貸款？只要能分享任何顏色就可以了。

And lastly, if you can give more color on the goodwill impairment. Which segment of this investment relates to -- in e-commerce or logistics, gaming? How much is still left on the balance sheet of that investment?

最後，如果您能對商譽減損進行更詳細的說明。這項投資與哪些部分有關—電子商務、物流、遊戲？該投資的資產負債表上還剩餘多少錢？

Yes. Thank you, Varun. In terms of the guidance suspension, we are suspending the guidance for this year. No decision has been made with anything regarding future guidance.

是的。謝謝你，瓦倫。在暫停指引方面，我們將暫停今年的指引。對於未來指導的任何決定尚未做出。

And in terms of the digital bank initiatives, we continue to -- as I shared before, we continue to focus on quality as opposed to growth for our bank initiatives. And it's going to be a very long-term effort and also the bank is we're very much aware, trust and reliability and integrity driven business, and it's very important to build a robust system for it. So we're not focused on driving growth on that front. And the same with our credit business, where we continue to build our models and provide needed services to our consumers in various markets and collaborating with third-party financial institutions in doing so. Again, we're not driving growth in that area. We're looking more for how to build a robust model that can withstand cycles and can be a long-term sustainable business model for us.

就數位銀行計劃而言，正如我之前所說，我們將繼續專注於銀行計劃的品質而不是成長。這將是一個非常長期的努力，我們銀行非常清楚，信任、可靠性和誠信驅動著業務，為其建立一個強大的系統非常重要。因此，我們並不專注於推動這方面的成長。我們的信貸業務也是如此，我們將繼續建立我們的模型，為各個市場的消費者提供所需的服務，並與第三方金融機構合作。再說一遍，我們並沒有推動該領域的成長。我們更多是在尋找如何建構一個能夠經受週期考驗、並能成為我們長期可持續的商業模式的強大模型。

In terms of the overall impairments, these are related to various past investments, not any specific segment focused. But as you know, given the macro environment and the movements in the market of -- in company's valuations and stock prices, we also think it's prudent for us to proactively manage and review our portfolio that we hold on the book to assess the overall impairments needed. So far, I think we -- if you look at our balance sheet, there's still around like $400 million. And of course, we -- at this stage, we don't currently expect all of this needs to be written off. But on the other hand, we will continue to assess over the period.

就整體減損而言，這些與過去的各項投資有關，而不是與任何特定的部分有關。但如您所知，考慮到宏觀環境和市場趨勢——公司估值和股價，我們也認為主動管理和審查我們持有的投資組合以評估所需的整體減值是明智之舉。到目前為止，我想如果你看看我們的資產負債表，仍然有大約 4 億美元。當然，現階段我們並不認為所有這些都需要被註銷。但另一方面，我們將在此期間繼續評估。

This concludes our question-and-answer session. I'd like to turn the conference back over to Min Ju Song for any closing remarks.

我們的問答環節到此結束。我想將會議交還給宋敏珠 (Min Ju Song) 做結束語。

Thank you. Thank you all for joining today's call. We look forward to speaking to all of you again next quarter. Thank you.

謝謝。感謝大家參加今天的電話會議。我們期待下個季度再次與大家交談。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。