(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.

早上好，晚上好。歡迎來到 Sea Limited 2022 年第二季度業績電話會議。 （操作員說明）請注意正在記錄此事件。我現在想把會議交給 Min Ju Song 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.

謝謝杰森，大家好，歡迎參加 Sea 的 2022 年第二季度收益電話會議。我是Sea's Group首席企業官辦公室的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陳述，這些陳述固有地受到風險和不確定性的影響，並且由於我們新聞稿中所述的各種原因，未來可能無法實現。此外，本次電話會議還討論了某些非公認會計準則財務指標，例如調整後的 EBITDA 和淨虧損，不包括基於股份的薪酬和商譽減值。我們相信，當這些措施用作我們 GAAP 披露的補充時，可以使我們的投資者了解我們主要業務的實際現金流量。有關使用非 GAAP 財務指標以及與最接近的 GAAP 指標對賬的討論，請參閱我們新聞稿中關於非 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.

Sea 的董事長和你們的首席執行官 Forrest Li 和我在一起；集團首席財務官Tony Ho；和集團首席企業官王彥軍。我們的管理層將分享 2022 年第二季度的戰略和業務更新、運營亮點和財務業績。隨後將舉行問答環節，歡迎您提出任何問題。

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

有了這個，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，感謝大家今天加入我們。我將首先更新我們的計劃，以進一步關注效率和加強我們的生態系統以實現長期盈利能力和競爭力。隨著我們朝著這些目標穩步推進，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.

在大流行封鎖期間，我們迅速擴大業務規模，以應對市場對在線消費和服務快速增長的需求。因此，我們顯著擴展了我們的業務和整個潛在市場，並在提高增長效率的同時加強了我們的市場領導地位。我們能夠通過專注於在正確的時間做正確的事情來確定我們的方向並在我們的執行中保持敏捷和適應性，從而實現這些結果。

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，隨著通貨膨脹率上升、利率上升、本幣兌美元貶值以及持續的重新開放趨勢，我們處於宏觀不確定性增加的環境中。在這種環境下，敏捷和適應能力對我們業務的長期成功更為重要。

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，在這個前所未有的時刻，正確的做法是更加關注自給自足、長期盈利能力和業務運營的防禦性。

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

我們第二季度的業績證明了這項工作的早期成功。

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.

由於我們在本季度的強勁執行，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。特別是，在我們的亞洲市場分配總部成本之前，每個訂單的調整後 EBITDA 損失合計不到 0.01 美元。我們有望在該地區的總部成本分配之前實現積極的調整後 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.

與此同時，儘管與去年同期相比，Shopee 繼續以健康的速度增長，GAAP 收入同比增長 51%，或同比增長 56%，調整貨幣波動。

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.

對於 Garena 而言，季度活躍用戶環比保持穩定。這一積極成果是我們努力留住用戶以通過更具吸引力的體驗為我們的大型遊戲社區服務的結果。我們將繼續關注圍繞我們現有特許經營權的用戶參與，尤其是 Free Fire。

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 數據，《Free Fire》在本季度保持其作為東南亞和拉丁美洲收入最高的手機遊戲的最高排名，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 之間的協同效應也得到了擴展。 Shopee 在東南亞的季度活躍買家中有近 40% 在本季度使用了 SeaMoney 產品或服務。 SeaMoney 的收入增長強勁，調整後的 EBITDA 虧損在本季度也繼續收窄。

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.

憑藉我們各項業務的穩健表現，集團 GAAP 收入為 29 億美元，第二季度同比增長 29%。本季度毛利潤較去年增長 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 繼續在我們的市場中吸引更多的買家和賣家，活躍用戶和參與度指標以及創紀錄的運營和財務指標的持續領先證明了這一點。在第二季度，Shopee 的 GAAP 收入同比增長 51%，達到 17 億美元，這得益於同期 GAAP 市場收入增長接近 52%。總訂單為 20 億美元，比去年增長 42%。 GMV 同比增長 27%，達到 190 億美元。貨幣波動對 GAAP 收入和 GMV 同比增長率的負面影響均超過 4 個百分點。

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.

我們還推動了本季度貨幣化的進一步改善，因為我們為我們的賣家提供了更多的價值。賣家正在與我們進行更多投資，以在我們的平台上追求增長。這些努力繼續轉化為積極的財務成果。在此期間，GAAP 市場收入佔總 GMV 的百分比同比和環比均增長至 7.7%。這一增長主要是由於基於交易的費用和廣告等高利潤率收入流的增長，這突顯了我們的平台在為我們的賣家推動更大經濟效益方面的成功。因此，盈利能力強勁，更好的貨幣化直接有助於提高盈利能力。

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 的毛利潤同比增長近 85%，毛利率比上一季度持續改善。 Shopee 的整體調整後 EBITDA 虧損也環比增長 13%。此外，在東南亞和台灣，本季度在分配總部成本之前的每個訂單的調整後 EBITDA 損失低於 0.01 美元，這表明我們正在朝著在亞洲市場的總部成本分配之前實現正調整 EBITDA 的方向邁進。

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 也在提高效率的同時快速增加收入。在分配總部成本之前，每個訂單的調整後 EBITDA 損失為 1.42 美元，環比改善。同時，市場上的GAAP收入同比增長超過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.

我們還在圍繞總部成本優化支出。在本季度，Shopee 的總總部成本環比增加了 2800 萬美元，這是由於我們擴大了技術能力和服務產品，導致研發、員工和服務器託管成本增加。與上一季度相比，這表明成本增長放緩。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能夠顯著加強我們的團隊，併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 繼續在全球和我們地區取得最高排名。根據 data.ai 的數據，在第二季度，Shopee 在全球購物類別中排名第一（按總時間花費應用程序計算），按 Google Play 上的平均每月活躍用戶計算排名第二。我們在東南亞、印度尼西亞和台灣的平均每月活躍用戶和總使用時長應用程序中也保持在購物類別中排名第一的應用程序。在巴西，我們進一步鞏固了我們的領先地位，Shopee 在第二季度按月平均活躍用戶數排名第一，而在本季度購物類別的應用程序花費總時間方面繼續排名第一。

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，我們還密切合作以支持我們的賣家。除了為他們提供更好的工具和服務外，我們還將繼續通過教育和培訓來增強我們的商家的能力。這仍然是我們關注的一個關鍵領域。在 Shopee 賣家平台上，包括 Shopee 大學和大師班在內的資源對當地企業家和中小微企業尤其有幫助。

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.

我們還在 Shopee 商城上發展我們的品牌合作夥伴，加強合作，以加強與客戶的互動。與我們的賣家保持密切合作並與之合作使 Shopee 能夠與他們一起成長和繁榮。

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 300,000 名當地企業家的主要收入來源，並為電子商務帶來了 430,000 名新的數字企業家。這部分是由於我們在培訓巴西賣家方面的投資，超過 60,000 名賣家在 Shopee 教育中心上課。

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.

現在我想討論一下在高度波動和不可預測的宏觀環境的推動下，我們決定暫停對 Shopee 的全年收入指導。如前所述，雖然我們認為在大流行封鎖期間正確的做法是優先考慮增長和提高效率，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.

正如我們一直堅持的那樣，我們認為管理我們的業務更像是馬拉鬆而不是短跑，因此調整我們的案例以適應當下非常重要。我們駕馭不斷變化的時代的能力將幫助我們最終贏得這場漫長的比賽。鑑於我們的戰略轉變，再加上如前所述的各種難以預測的宏觀因素，我們認為這是謹慎的做法，以最大限度地關注我們的業務效率，而不是過度投入，我們認為這在此時是不明智的的不確定性。因此，我們將暫停我們上次在 5 月提供的 Shopee 全年指導。

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導，但我們今年剩餘時間的重點仍然非常明確，即通過深化貨幣化和優化成本結構來繼續提高效率。我們將更加嚴格地管理我們的運營費用，例如營銷成本和物流成本，同時逐步增加各種收入來源的貨幣化，重點關注高利潤率的收入來源。

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該地區高度積極的長期前景。當前的宏觀不確定性並沒有改變這樣一個事實，即我們的市場仍然是世界上具有最高長期增長潛力的一些地區，具有積極的人口特徵和不斷深化的數字化。

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.

當前的宏觀不確定性也不會改變我們在抓住我們市場中消費互聯網行業的一些最大機會方面的表現記錄。我們相信，我們強大的市場領導地位將繼續讓我們從行業的長期增長中獲得不成比例的收益。我們今天的戰略決策和運營重點都旨在最佳定位我們以抓住這些長期機會。

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.

轉向數字娛樂。第二季度，Garena 的 GAAP 收入為 9 億美元，預訂量為 7.17 億美元。根據 data.ai，Free Fire 仍然是第二季度全球下載量最大的手機遊戲。它也是本季度東南亞和拉丁美洲收入最高的手游，連續 12 個季度保持這一領先地位。令人鼓舞的是，Free Fire 在手機遊戲行業繼續表現良好。

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，而第四季度為 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.

我們將繼續專注於圍繞 Free Fire 特許經營權和平台投資於用戶參與，確保為我們的社區提供一致的新鮮和新內容循環。例如，我們在第二季度與當地社區一起慶祝齋月。齋月期間，我們與當地名人合作，推出更多物品，並舉辦了多次社區聚會。這種高度本地化的努力使我們能夠更好地吸引本地用戶，並在齋月期間享受強大的貨幣化。

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我們的遊戲玩家在 Free Fire 平台上享受的體驗多樣化。除了大逃殺模式外，我們越來越多地看到其他遊戲模式的持久留存和參與度，例如衝突小隊（4v4 遊戲模式）和孤狼（1v1 或 2v2 遊戲模式）。除了具有高度參與性和社交體驗外，這些遊戲模式還更短、節奏更快，這是一些遊戲玩家的首選，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.

雖然由於重新開放趨勢以及宏觀波動的潛在影響，短期博彩行業趨勢仍然相對不確定，但我們對該細分市場的長期結構性順風充滿信心。我們預計這一點在我們的市場中會更加明顯，我們在市場上處於有利地位，數字娛樂的增長空間很大。我們還希望這能夠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，我們的數字金融服務業務。在第二季度，蝦皮和 SeaMoney 之間的協同作用繼續擴大，推動整個生態系統的收入和價值。 SeaMoney 本季度的 GAAP 收入為 2.79 億美元，同比增長 214%。我們 SeaMoney 產品和服務的季度活躍用戶接近 5300 萬，比去年增長 53%。我們的移動錢包總支付量在本季度也以 36% 的同比健康增長達到 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我們的 Shopee 和 SeaMoney 生態系統中得到更廣泛的採用，我們正在提高跨平台的效率。因此，SeaMoney 的調整後 EBITDA 虧損環比繼續改善。

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.

我們市場上的大量人口在數字金融產品和服務方面仍然缺乏服務，我們憑藉強大的生態系統處於有利地位，可以通過直接關係和積累的洞察力為我們市場的最大部分提供服務。與此同時，我們正與我們的合作夥伴和其他當地利益相關者密切合作，以建立一個長期健康和可持續的環境。

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，隨著我們在一個越來越不確定的市場環境中航行，我們變得更加周到、謹慎和自律的需求只會越來越大。儘管我們擁有充足的資源來實現企業自給自足，但我們仍在迅速優先考慮盈利能力和現金流管理。在當前動蕩的環境中，我們相信我們對這些領域的關注將是建立業務以實現長期持續成功的關鍵。我們也相信，我們在此期間實現目標的執行能力將得到我們的規模、領導地位和成熟的商業模式的進一步支持。我們已經闡明了明確的承諾，並且正在朝著實現這些目標邁進。我們還繼續對機會的長期潛力和我們正在解決的市場高度樂觀。

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

有了這個，我將邀請託尼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，Forrest，也感謝大家加入電話會議。我們在今天的新聞稿中包含了詳細的財務時間表以及相應的管理分析，Forrest 討論了我們的一些財務亮點。因此，我將把我的評論集中在其他相關指標上。 .

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.

對於 Sea，總體而言，GAAP 總收入同比增長 29% 至 29 億美元。這主要是由我們的電子商務和數字金融服務業務的增長推動的，因為我們繼續利用我們平台的協同效應。在電子商務方面，我們第二季度 17 億美元的 GAAP 收入包括 15 億美元的 GAAP 市場收入，同比增長 62% 和 3 億美元的 GAAP 產品收入，同比增長 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增長效率和單位經濟性，每筆訂單的調整後 EBITDA 損失為 0.33 美元，而 2021 年第二季度為 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 年第二季度的數字娛樂預訂為 7 億美元，GAAP 收入為 9 億美元。調整後的 EBITDA 為 3.34 億美元。與 2021 年第二季度相比的放緩主要是由於 COVID 後用戶群和用戶趨勢的緩和。數字金融服務 GAAP 收入為 2.79 億美元，較 2021 年第二季度的 8900 萬美元同比增長 214%。增長主要是由於我們的金融產品和服務的採用率不斷提高。調整後的 EBITDA 虧損為 1.12 億美元，而 2021 年第二季度為 1.55 億美元，因為我們進一步提高了增長效率。

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.

在 2022 年第二季度，我們記錄了 1.77 億美元的商譽減值。商譽減值主要是由於與我們之前的收購相關的商譽賬面金額的變化，主要是由於市場不確定性導致估值降低。我們在 2022 年第二季度確認了 3300 萬美元的淨營業外虧損，而 2021 年第二季度的淨營業外虧損為 2500 萬美元。2022 年第二季度的營業外虧損主要是由於估值較低時確認的投資損失在更廣闊的市場。

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.

我們在 2022 年第二季度的淨所得稅費用為 6500 萬美元，這主要是由於我們的數字娛樂業務中確認的企業所得稅和預扣稅。因此，2022 年第二季度的淨虧損（不包括股權補償和商譽減值）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年第二季度用於投資活動的現金淨額主要是由於應收貸款增加以及購買物業和設備以支持我們的業務增長。截至 2022 年第二季度末，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.

有了這個，讓我把電話轉給敏菊。

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

謝謝你，托尼。我們現在準備開始提問。操作員？

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

（操作員說明）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?

我的兩個問題。首先，關於電子商務。我能否澄清一下暫停指導，管理層目前看到什麼導致了這個決定？我們現在面臨的前景真的那麼陰暗嗎？在這個時間點，我們知道宏觀已經變得非常具有挑戰性，但至少直到 8 月中旬，您是否可以提供任何關於 Shopee 本季度迄今為止的表現的顏色 - 2022 年？

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 Shopee 及其盈虧平衡有關。您對 Shopee 東盟和台灣的盈虧平衡後總部目標有任何更新嗎？眼下，東盟和台灣的盈虧平衡就在眼前。但總部成本仍環比增加。我們能理解是什麼推動了總部成本的增加嗎？我們什麼時候才能真正期望看到這種改進？

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，龐。關於指導，我們只想澄清一下，這是管理層主動決定繼續改變我們的戰略，我們希望非常坦率地向市場開放。如果您查看我們的第二季度業績，您已經開始看到我們對蝦皮的實際損失一直在縮小，不僅在單位經濟基礎上，而且在總體上——在蝦皮集團層面，包括所有考慮的成本.與此同時，我們仍然實現了 40% 的顯著增長——訂單增長超過 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，正如我們之前分享的那樣，鑑於宏觀不確定性，我們的目標是做到最佳——從長遠來看，為我們市場的消費者互聯網細分市場取得最佳成功。我們認為把握好自己的節奏，根據宏觀環境審慎經營業務非常重要。靈活的執行適應性也確實幫助我們在 COVID 時期取得了巨大的成功。現在是我們朝著不同方向管理的時候了，我們希望就這個不同的方向主動與市場溝通。

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會立即惡化，或者我們看到任何明顯負面的東西。它更多地是與市場就管理策略進行積極溝通，以關注效率，關註生態系統的整體實力和健康狀況，並專注於繼續收緊我們的運營。自今年早些時候以來，這一直在我們的運營中，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.

但是，當然，正如我們也分享的那樣，把事情放在上下文中，我們對市場的長期看法並沒有改變。我們仍然非常看好我們目前在市場上處於領先地位的所有這些消費互聯網領域的長期增長機會。我們這樣做是為了最好地定位我們，以便在此過程中更好地抓住這些機會。

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。並且基於迄今為止的歷史結果，我們的市場領先地位不斷擴大與同行的差距。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戰略轉變，並為我們的長期定位做好準備。

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.

就亞洲市場的盈虧平衡目標而言，總部成本後，我們之前分享過我們預計明年會實現。我們對此的期望沒有改變。當然，我們會繼續管理成本。我們確實希望隨著時間的推移我們會嘗試更接近目標。如您所見，考慮到亞洲的訂單損失低於 0.01 美元，我們幾乎實現了總部前的成本目標。總部成本方面，儘管它們仍按季度增長，但增長速度已經放緩。正如我們在收益中分享的那樣，這主要與研發和服務器成本有關。

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，現在研發和服務的增長也將與業務的整體增長相稱。隨著我們繼續管理增長，我們也非常關注效率以及運營和整體增長。因此，我們確實希望繼續看到我們在積極的方向上取得進展。

Our next question comes from Alicia Yap from Citigroup.

我們的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。所以可以 - 我認為因為在過去幾年中，管理層已經證明非常努力地提供對您的預測的良好洞察力。因此，我想知道這些主要針對消費者的挑戰是消費頻率還是消費者對大件商品的消費變得更加謹慎的 ASP 會影響預測中的一些不確定性？還是因為您看到的小商家的消費意願導致您難以預測您的收入？等等——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?

玩遊戲非常快。只是想知道，如果沒有推出新遊戲，我們應該對 Free Fire 特許經營權的未來趨勢有何期待？這樣會更穩定嗎？或者這是否也可能會增加與現有用戶群的付費比率，這實際上可以支持未來的增長預訂？

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，艾麗西亞。我認為我們在這裡想說的是，對我們來說，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，我們將看到增長——頂線增長更多地作為一種產出階段，不作為目標。現在的目標將是越來越多地提高效率和平台的長期健康、實力和盈利能力。這就是為什麼我想把事情放在眼裡。即使我們不作為目標，我們自然會繼續看到增長。

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，市場狀況，正如我們提到的那樣，通貨膨脹和重新開放，與去年相比是艱難的競爭，特別是考慮到我們已經加速增長。事實上，自上市以來，Shopee 在過去的 20 個季度中已經實現了 10 個季度的三位數增長。我認為這可能是任何企業的歷史記錄。還考慮到我們所處的新興市場基礎設施不發達，以及我們必須在眾多市場中發展高度複雜的電子商務業務所要做的所有工作。

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。我們不必證明我們可以實現增長。這已經被很好地確立為一個非常強大的記錄，也讓我們成為了一個強大的領導者，並繼續擴大我們的領導地位，儘管每個人在市場上都經歷了所有的逆風。但是，我們說，作為審慎的業務管理角度，我們認為現在需要改變方向。我們希望主動向我們的利益相關者傳達該方向向市場的轉變。這就是我們在這裡所說的。

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.

現在就 Free Fire 趨勢而言。所以你可以看出，鑑於 Free Fire 的規模，我們在數字娛樂領域的第二季度業績也很大程度上受到 Free Fire 的推動。在活躍用戶方面，與上一季度相比，我們看到季度環比有所穩定。當然，我們不會在這裡對用戶趨勢進行任何前瞻性預測，也不會為用戶趨勢或預訂付費，因為正如您所知，這對於整個遊戲行業來說很難預測。

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.

但也要正確看待，當然，通貨膨脹和自 COVID 以來的開放，以及與去年的艱難對比，特別是 Free Fire 全年的出色表現，這使得比較看起來很難我們，從而自然地影響遊戲玩家的消費和參與。這並不是特別在 Garena 上的 Free Fire。就我們在東南亞和拉美的主要市場的增長而言，Free Fire 在全球下載量方面保持著最高的排名，因此它在行業中處於領先地位。所以這似乎更像是一種行業驅動和宏觀驅動的對遊戲的影響。

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，我們還在我們當前的遊戲組合中看到了其他一些特許經營權。例如，Arena of Valor 表現非常 - 相當穩定 - 表現出穩定的表現。甚至在某些方面，我們也看到了改進，還有另一款我們已經運行多年的遊戲。因此，考慮到逆風，考慮到遊戲的生命週期，我們肯定會看到持續的下降趨勢，這並不一定是真的。我認為其中一部分還取決於我們自己的努力和繼續管理它的能力。這就是團隊所關注的。

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、更人性化的套餐和遊戲規模等各個方面都做了不同的事情，努力繼續改進和留住我們的用戶和更好地與我們的用戶互動。我認為你看到的趨勢是真的，考慮到艱難的比賽和對我們不利的宏觀環境。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，我們認為在線虛擬消費對年輕一代來說將變得越來越重要。這也是我們押注這家公司長期未來的地方。

Our next question comes from Piyush Choudhary from HSBC Singapore.

我們的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，您能否談談您對 2022 年和 2023 年核心市場電子商務行業 GMV 增長的展望？哪些市場被證明更具彈性，哪些市場顯示出早期疲軟的跡象？

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，你能給我們分解一下巴西的總訂單並獲取收入嗎？您最近採取的舉措可能會節省多少成本？是已經在 2Q 中反映出來還是還未到來？

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.

我認為在行業 GMV 增長方面，有很多優秀的研究。而且我認為，顯然，它會變慢，但它也確實取決於各個行業參與者以及我們和我們的同行，以及我們如何管理這種增長。在各個市場中，我們看到有一些市場，例如馬來西亞、新加坡，取得了驚人的增長。在前幾年，由於艱難的競爭以及開放與嚴格的封鎖時期，經濟放緩。我認為繼續到今年，當然，艱難的比賽將仍然是一個事實。

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，我們也看到印度尼西亞、菲律賓和越南等市場繼續享有相對較快的增長。在某種程度上，這有時也會受到相對於開放與封鎖、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的比較的影響政府一直在使用來管理通貨膨脹，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增長，以及消費增長在哪裡是可自由支配或必需品，還是實體消費與服務，以及電子商務相對於線上與線下的份額。

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.

但我認為有很多因素可能會影響 - 好吧，總的來說，總體情況會變慢 - 與去年相比，以及慢多少，我認為還有待觀察。總的來說，我們希望我們能夠繼續看到韌性。但是，正如我們從管理層的角度所分享的那樣，我們認為，與希望恢復彈性和市場保持樂觀相比，對宏觀不確定性進行管理並為任何負面事件和情況做好準備要好得多。

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.

就巴西的總訂單和 GAAP 收入而言，我認為我們披露了巴西繼續為我們帶來的強勁增長。而且，更重要的是，我們還在繼續縮小範圍——改善我們在巴西的單位經濟。因此，我們在巴西的一切都在正常進行。

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——在為亞洲市場分配總部成本後，未來在 EBITDA 方面是積極的，我們確實採取了任何舉措在這一點上對我們可見。當然，我們對未來沒有完美的預測。

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?

我想問一下數字娛樂方面，特別是我們應該如何看待正在籌備中的新遊戲。我們知道我們有不同的發展。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遊戲？在這方面，我們應該如何看待未來幾個季度數字娛樂業務的 EBITDA 利潤率？我們是否期望投資於推動 Free Fire 用戶的保留和參與，並會繼續過渡到 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。就遊戲管道而言，我們確實有一些東西正在籌備中，無論是我們自己開發的遊戲還是發布的遊戲或我們的投資細節，我們可能會在今年晚些時候發布。如你所知，我們將在它們公開時公佈——當它們正式發佈時。而且我認為從長遠來看，我們確實這樣做了——我們的目標是繼續多樣化我們的產品組合，並在電子競技和更休閒類型的遊戲的類型和組合方面以及在更多樣化的市場中，所以方向是相同的.

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，我們認為在不久的將來不會有任何像 Free Fire 那樣立即對 Free Fire 產生重大影響的事情，因為 Free Fire 是一款非常長的遊戲——世界上最大的手機遊戲b，對於我們最初推出的任何遊戲，我們的重點更多是用戶參與度和建立動力以及用戶基礎，並在我們關注更多貨幣化之前鞏固它。即使是《Free Fire》，它實際上也花了好幾個季度的時間，或者我會說，甚至一年，才能畢業——加速貨幣化並發揮更大的潛力。這就是我們的觀點。

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.

就未來幾個季度數字娛樂的 EBITDA 利潤率而言，我認為我們的 EBITDA 利潤率仍處於行業高端，超過 45%。正如我們之前分享的那樣，現在每季度都會出現波動，這取決於例如電子競技賽事和其他活動。例如，第二季度，我們舉辦了 Free Fire 的世界系列大賽。然後這也取決於新遊戲的發佈時間。如果我們有新遊戲，那麼將有一些銷售和營銷投資來為遊戲建立動力——基於發佈時間。但總的來說，我認為即使會有波動，我們仍然預計我們的息稅前利潤率將繼續保持在與行業範圍相比的高端。

The next question comes from Jiong Shao from Barclays.

下一個問題來自巴克萊的邵炯。

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 2 個問題。我想一次問一個，可以嗎？作為一家專注於貨幣化、效率成本控制的公司，您對您的預期收益率有何評論？我認為過去，您曾談到今年將利率提高約 200 個基點。這仍然是我們的期望還是您的期望？任何評論都會超級，超級有幫助。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，瓊。我不記得我們給出了任何接受率指導，對吧？但總的來說，我認為 - 就接受率而言，我們確實希望接受率能夠正確畢業，並且隨著我們通過為我們的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繼續深化貨幣化。

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。我想也許我記得我認為 - 你可能已經談到今年的利率上升將類似於去年的利率上升，大約是 170 到 200 個基點，如果我是沒有弄錯。但也許是另一種跟進此事的方法，因為現在你暫停了收入指南，你對你的收取率的期望有什麼變化嗎？您對貨幣化的期望是否有任何變化，特別是關於收取率？

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Jong，影響錄取率的因素有很多。我們不會就錄取率提供任何具體指導。但可以說隨著時間的推移會逐漸增加。我們沒有為任何特定年份設定具體的目標採取率。而當收取率上升時，它也可以基於不同的收入流在基於交易的費用方面，這些更像是我們設定的收取率。但另一方面，賣家也採用了收取率，因為例如，我們為加入這些計劃的賣家提供選擇加入計劃，以更高的收取率獲得更多服務和產品作為回報。這也將提高我們的錄取率。但這不是我們直接設定的東西，而是更多地基於賣方的採用。

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。同樣，這是基於採用的東西。然後還有VAS。 VAS 收取率在某種程度上也取決於我們物流的推出以及我們如何管理物流，還有可能影響收取率的會計相關變化。因此，有許多不同的因素受到影響。但我認為總的來說，我們繼續關注我們平台的單位經濟改善和整體平台生態系統的增長。

Our next question comes from Ranjan Sharma from JPMorgan Singapore.

我們的下一個問題來自摩根大通新加坡公司的 Ranjan Sharma。

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

我這邊有兩個問題。首先，關於遊戲指南，我想，如果你能確認的話，有沒有變化？

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，如果可以的話，請提供更多關於它們增長速度的顏色？如果我從 GMV 的百分比來看，我們在哪裡？

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

謝謝，蘭詹。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，但在這方面也有逐漸上升的趨勢。這也是我們看到高利潤收入持續增加以及 Shopee 整體利潤率提高的部分原因，加上基於交易的費用增加。

The next question comes from John Choi from Daiwa.

下一個問題來自大和的 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?

我的問題是關於你更多地轉向提高效率的策略。管理層詳細說明了您可以給我們的少數無形示例是什麼，您將如何真正嘗試提高邊際效率。通過在某些戰略領域大幅削減或減少支出會更多嗎？

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?

對巴西戰略的快速跟進。我知道我們在這裡發展得很好。您將如何平衡增長機會和投資與您未來的新效率戰略？

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。就效率而言，我認為有 - 它不像我們剛剛削減的那麼簡單，對吧？重要的是要關註生態系統的整體效率。例如，眾所周知，物流是生態系統成本的很大一部分。而無論是賣家、買家還是我們這樣的平台承擔，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和服務提供商更緊密地合作，以更好地安排交付、更好地計劃和交付，並提高交付密度。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，我們繼續提高電子錢包的採用率，並隨著時間的推移增加其他在線支付的採用率，這也可以降低支付成本並減少交易摩擦。因此，我們關註生態系統方面的許多事情，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，並查看在此過程中是否可以節省成本。我認為這實際上是一個很好的練習。現在，正如我們所分享的，我們將這項業務視為一場馬拉鬆比賽。在這段時間裡，我認為係緊我們的鞋帶、取水和發育是很好的，這也讓我們做好了在路上跑得更快的準備。

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.

就我們在巴西的增長而言 - 在平衡增長和效率方面，我認為大局仍然是在正確的時間在正確的地點做正確的事情。對於巴西，我們關注對我們來說潛在的自然或合理增長率以及對我們有效的增長率。這就是 - 我們一直強調任何增長區域的效率。而且，鑑於微觀趨勢，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.

同樣，正如我所說，我們將在這段時間內看到更多的產出和更關注效率的增長率，這可以讓我們最終在那裡建立一個更強大、更有利可圖的平台。

Our next question comes from Varun Ahuja from Credit Suisse.

我們的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。第一，關於電子商務，不好意思囉嗦一下，再次指導。所以這是你所說的戰略變化。所以暫停指導是今年還是明年？您認為您會重新為該細分市場提供指導嗎？更重要的是，您是否要更改您在內部跟踪的指標——仍然是收入增長、EBITDA 或您在提供指導時將關注的任何指標？所以這方面的任何顏色都會有幫助。

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。如果您能告訴我們數字銀行計劃在各個國家/地區的進展情況如何？如果您查看資產負債表上的應收貸款，大約為 20 億美元。除了與數字銀行合作，您還提供了多少貸款？任何你可以分享的顏色，都會很好。

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，如果您可以為商譽減值提供更多顏色。這項投資的哪一部分與電子商務或物流、遊戲有關？該投資的資產負債表上還剩下多少？

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。在指導暫停方面，我們將暫停今年的指導。尚未就未來指導做出任何決定。

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.

在數字銀行計劃方面，我們繼續——正如我之前分享的那樣，我們繼續關注質量，而不是銀行計劃的增長。這將是一項非常長期的努力，而且銀行是我們非常清楚，信任、可靠性和誠信驅動的業務，為此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增長。我們的信貸業務也是如此，我們將繼續建立我們的模型並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。同樣，我們並沒有推動該領域的增長。我們正在更多地尋找如何建立一個能夠承受週期並且可以成為我們長期可持續商業模式的穩健模型。

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.

就整體減值而言，這些與過去的各種投資有關，而不是任何特定的細分市場。但如您所知，鑑於宏觀環境以及公司估值和股價的市場走勢，我們也認為積極管理和審查我們持有的投資組合以評估整體減值是謹慎的需要。到目前為止，我認為我們 - 如果您查看我們的資產負債表，仍然有大約 4 億美元。當然，我們 - 在這個階段，我們目前不希望所有這些都需要註銷。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。我想把會議轉回給 Min Ju Song 做任何閉幕詞。

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

謝謝你。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。謝謝你。

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。您現在可以斷開連接。