Sea Ltd (SE) 2022 Q3 法說會逐字稿

Good morning and good evening. Welcome to the Sea Limited Third 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 年第三季度業績電話會議。 （操作員說明）。請注意正在記錄此事件。我現在想把會議轉交給 Min Ju Song 女士。請繼續。

Thank you. Hello, everyone, and welcome to Sea's 2022 third quarter earnings conference call. I'm Min Ju Song from Sea's group Chief Corporate Officer's office.

謝謝你。大家好，歡迎來到Sea 2022年第三季度財報電話會議。我是 Sea's 集團首席公司官辦公室的 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 opportunities 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. We believe these measures can enhance our investors' understanding of the actual cash flow 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，這些陳述本質上會受到風險和機遇的影響，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 GAAP 財務指標，例如調整後的 EBITDA 和不包括基於股份的薪酬的淨虧損。我們相信，這些措施在用作我們的 GAAP 披露的補充時，可以增強我們的投資者對我們主要業務的實際現金流量的了解。有關非 GAAP 財務措施的使用以及與最接近的 GAAP 措施的調節的討論，請參閱我們新聞稿中關於非 GAAP 財務措施的部分。

I have with me Sea's Chairman and group 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 third quarter of 2022. This will be followed by a Q&A session in which we welcome any questions you have.

與我同行的還有 Sea 的董事長兼集團首席執行官 Forrest Li；集團首席財務官 Tony Hou；和集團首席企業官王延軍。我們的管理層將分享 2022 年第三季度的戰略和業務更新、經營亮點和財務業績。隨後將舉行問答環節，我們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 for joining us today. We recently passed our 5-year IPO anniversary. The rest of the management team and I have learned a lot from running Sea as a public company, a journey that has seen deep high and lows. I'm grateful for the support and advice all of you have given us over the years, and thank you for your patience and faith in us.

大家好，感謝您今天加入我們。我們最近度過了首次公開募股 5 週年紀念日。管理團隊的其他成員和我從作為一家上市公司運營 Sea 中學到了很多東西，這是一段經歷了高潮和低谷的旅程。感謝大家多年來給予我們的支持和建議，也感謝你們對我們的耐心和信任。

Given the significant uncertainties in the macro environment, we have entirely shifted our mindset and focus from growth to achieving self-sufficiency and profitability as soon as possible without relying on any external funding. We are adapting quickly to the changing climate because we believe that companies that fail to do so may not survive. All our efforts are directed to ensure that Sea not only survives the macro storms but emerge stronger, more efficient and more resilient and as a long-term winner in our markets. This positions us to continue capturing the long-term potential for our businesses and markets and to deliver strong and sustained shareholder returns over time.

鑑於宏觀環境存在較大的不確定性，我們已將思路和重點從增長完全轉變為在不依賴任何外部資金的情況下盡快實現自給自足和盈利。我們正在迅速適應不斷變化的氣候，因為我們相信，不這樣做的公司可能無法生存。我們所有的努力都是為了確保 Sea 不僅能在宏觀風暴中倖存下來，而且變得更強大、更高效、更有彈性，並成為我們市場的長期贏家。這使我們能夠繼續抓住我們的業務和市場的長期潛力，並隨著時間的推移提供強勁和持續的股東回報。

Over the last quarter, we took decisive actions to improve margins and set clear goals and priorities for the quarters to come. In addition, to emphasize our commitment to the stated goal, I announced in mid-September that the management team will stop receiving cash compensation until we achieve self-sufficiency.

在上個季度，我們採取了果斷行動來提高利潤率，並為未來幾個季度設定了明確的目標和優先事項。此外，為了強調我們對既定目標的承諾，我在 9 月中旬宣布，在我們實現自給自足之前，管理團隊將停止領取現金補償。

To share more color on our plan to achieve self-sufficiency, I would like to discuss our current view of a few financial metrics at the group level that we believe may have relatively important effects on our bottom line and cash position. First, adjusted EBITDA. Our group total adjusted EBITDA improved by 29% quarter-on-quarter. This meaningful improvement was a result of better profitability from both our e-commerce and digital financial services businesses. I will discuss this in greater detail later.

為了在我們實現自給自足的計劃中分享更多色彩，我想討論我們目前對集團層面的一些財務指標的看法，我們認為這些指標可能對我們的底線和現金狀況產生相對重要的影響。首先，調整後的 EBITDA。我們集團調整後的 EBITDA 總額環比增長 29%。這一有意義的改進是我們電子商務和數字金融服務業務盈利能力提高的結果。稍後我將對此進行更詳細的討論。

Second, capital expenditure. Historically, our CapEx has mainly related to servers, office base related spending, as well as logistics-related real estate and equipment. In the third quarter, our group CapEx was $232 million, consisting mainly of servers and logistics-related spending. This may fluctuate from period to period due to the nature of the expense. For example, during some earlier periods, we committed to a heightened level of investment in our server capacity. This was done in anticipation of future business needs while considering potential delays in several procurement due to the supply chain disruptions earlier. These earlier commitments were partly reflected in our CapEx for the third quarter and may continue to impact our financials for the coming quarters. However, in line with our current focus, we have taken strong measures to tighten our CapEx budget, and we'll manage it with a strong focus on efficiency and investment returns over the long run.

第二，資本支出。從歷史上看，我們的資本支出主要與服務器、辦公基地相關支出以及物流相關的房地產和設備有關。第三季度，我們集團的資本支出為 2.32 億美元，主要包括服務器和物流相關支出。由於費用的性質，這可能會隨著時間的推移而波動。例如，在早期的一些時期，我們承諾加大對服務器容量的投資。這樣做是為了預測未來的業務需求，同時考慮到由於早些時候供應鏈中斷而導致的幾項採購可能出現的延誤。這些早期的承諾部分反映在我們第三季度的資本支出中，並可能繼續影響我們未來幾個季度的財務狀況。然而，根據我們目前的重點，我們已採取強有力的措施來收緊我們的資本支出預算，並且我們將在管理它時重點關注長期的效率和投資回報。

Another metric that may cause fluctuations in our cash flow from period to period is changes in working capital. This may continue to fluctuate due to many factors such as timing of billing and payment collection cycles. However, in the long run, the direction is also clear for us to focus on improving working capital management.

另一個可能導致我們的現金流量在不同時期波動的指標是營運資金的變化。由於計費時間和收款週期等許多因素，這可能會繼續波動。但是，從長遠來看，我們的方向也很明確，重點是改善營運資金管理。

Last but not least, it goes without saying that we are very focused on our cash position. As at the end of the third quarter, cash, cash equivalents and short-term investments was $7.3 billion, representing a net reduction of $485 million from the end of the second quarter. We aim to continue to maintain a net cash position after budgeting for the full retirement in cash of the outstanding convertible bonds and assuming no external funding.

最後但同樣重要的是，不用說，我們非常關注我們的現金狀況。三季度末現金、現金等價物及短期投資為73億美元，較二季度末淨減少4.85億美元。我們的目標是在為未償還的可轉換債券全部以現金退還預算並假設沒有外部資金的情況下繼續保持淨現金頭寸。

I'm confident in our ability to execute well against our stated goals as we have demonstrated so many times in the past. Let me now take a moment to talk about some of the specific steps we have taken to improve our bottom line. We have completely overhauled our budgeting practice to consistently and comprehensively review our spending. Across all businesses and markets, we reviewed and reduced high count, decreased existing spending and future investment commitments on office space and logistics facilities, and tightened travel and entertainment policies. On top of that, we improved procurement policies and procedures, reduced the spending on computer hardware and stopped all new financial equity investments.

正如我們過去多次展示的那樣，我對我們能夠很好地實現既定目標的能力充滿信心。現在讓我花點時間談談我們為改善底線所採取的一些具體步驟。我們已經徹底改革了我們的預算實踐，以一致和全面地審查我們的支出。在所有業務和市場中，我們審查並減少了高額支出，減少了辦公空間和物流設施的現有支出和未來投資承諾，並收緊了差旅和娛樂政策。最重要的是，我們改進了採購政策和程序，減少了計算機硬件支出，並停止了所有新的金融股權投資。

We have also accelerated cost-saving initiatives in our business operations. For example, at Shopee, we have meaningfully scaled back marketing expenses, especially around shipping subsidies. At Garena, we are now focused on running our existing key franchises as efficiently as possible and are taking a more selective approach to developing and launching new games to prioritize the highest potential titles in our pipeline. Finally, at SeaMoney, we have de-prioritized off-line adoption of ShopeePay and a further diversifying funding for our credit business across multiple sources.

我們還在業務運營中加快了成本節約計劃。例如，在 Shopee，我們大幅縮減了營銷費用，尤其是在運費補貼方面。在 Garena，我們現在專注於盡可能高效地運營我們現有的主要特許經營權，並採取更具選擇性的方法來開發和發布新遊戲，以優先考慮我們管道中最具潛力的遊戲。最後，在 SeaMoney，我們取消了對 ShopeePay 的線下採用的優先級，並進一步分散了我們跨多個來源的信貸業務的資金來源。

Our current initiatives are designed to further quantify our leading positions and enable us to continue to win in our key markets over the long run. In the coming quarters, we will continue to focus on improving key financial metrics for the long-term health of our business. While our results may fluctuate and affected by the macro environment and many other factors, we are currently working towards adjusted EBITDA breakeven for Shopee overall by the end of 2023.

我們目前的舉措旨在進一步量化我們的領先地位，並使我們能夠在長期內繼續在我們的主要市場取勝。在未來幾個季度，我們將繼續專注於改善關鍵財務指標，以確保我們業務的長期健康發展。雖然我們的業績可能會波動並受到宏觀環境和許多其他因素的影響，但我們目前正在努力在 2023 年底之前為 Shopee 整體調整後的 EBITDA 盈虧平衡。

We believe our strong focus on cash flow and achieving self sufficiency as much as possible is the right strategy to pursue at this stage, even though we may see no growth or even negative growth in certain operating metrics in the near term. To be very clear, we remain highly confident about the compounding long-term growth prospects of our businesses and the market. Once we achieve self-sufficiency, we will be in a position to decide to reaccelerate growth again in a much more efficient and a long-term sustainable manner.

我們相信，我們對現金流的強烈關注和盡可能實現自給自足是現階段追求的正確戰略，儘管我們可能在短期內看到某些運營指標沒有增長甚至出現負增長。需要明確的是，我們對我們的業務和市場的長期復合增長前景充滿信心。一旦我們實現自給自足，我們將能夠決定以更有效和長期可持續的方式再次加速增長。

Let's now discuss each business segment in detail. Beginning with e-commerce. We made significant progress in narrowing Shopee's losses across all regions despite headwinds from ongoing macro uncertainties and the reopening trends. Adjusted EBITDA loss in the third quarter was $496 million, improving quarter-on-quarter by 24%. This was driven by strong top line growth, particularly in core marketplace revenue and meaningful efficiency improvements in operating costs across our markets. These improvements were partially offset by severance and early lease termination related costs and increases in HQ costs, such as a shared R&D staffing and shared server hosting expenses.

現在讓我們詳細討論每個業務部門。從電子商務開始。儘管受到持續的宏觀不確定性和重新開放趨勢的不利影響，我們在縮小 Shopee 在所有地區的損失方面取得了重大進展。第三季度調整後的 EBITDA 虧損為 4.96 億美元，環比增長 24%。這是由強勁的收入增長推動的，特別是在核心市場收入和我們市場運營成本顯著提高效率方面。這些改進部分被遣散費和提前終止租賃相關的成本以及總部成本的增加所抵消，例如共享研發人員和共享服務器託管費用。

As we began more focused efforts on optimizing HQ costs, including R&D costs from the later part of the third quarter, we expect savings on shared costs to start to show in the following quarters.

隨著我們開始更加專注於優化總部成本，包括第三季度後期的研發成本，我們預計共享成本的節省將在接下來的幾個季度開始顯現。

GAAP revenue in the third quarter was $1.9 billion. This includes around $1 billion of core marketplace revenue, mainly consisting of transaction-based fees and advertising revenue and therefore, offering higher margins. The core marketplace revenue increased by 54% year-on-year, contributing meaningfully to the improvement in monetization and overall profitability. We aim to continue to create more value for our sellers and buyers and expect monetization to positively correlate to their satisfaction over time.

第三季度 GAAP 收入為 19 億美元。這包括約 10 億美元的核心市場收入，主要包括基於交易的費用和廣告收入，因此提供更高的利潤率。核心市場收入同比增長 54%，對貨幣化和整體盈利能力的改善做出了有意義的貢獻。我們的目標是繼續為我們的賣家和買家創造更多價值，並期望貨幣化隨著時間的推移與他們的滿意度呈正相關。

As mentioned, we also further optimized the cost during the quarter with a positive effect on our bottom line. For example, Shopee's GAAP sales and marketing expenses in the third quarter decreased by 15% quarter-on-quarter as we adjusted our free shipping offerings across several markets. These initiatives have accelerated Shopee's path towards profitability. During the quarter, our Asian markets recorded an adjusted EBITDA loss of $217 million, improving by 31% quarter-on-quarter as a result of profitability improvement across all markets in the region. Additionally, the region combined recorded a positive contribution margin, in line with our previously shared expectations. At the individual market level, we recorded positive contribution margins for most of our Asian markets, including our largest market, Indonesia.

如前所述，我們還在本季度進一步優化了成本，對我們的利潤產生了積極影響。例如，由於我們調整了多個市場的免費送貨服務，Shopee 第三季度的 GAAP 銷售和營銷費用環比下降了 15%。這些舉措加速了 Shopee 的盈利之路。本季度，我們的亞洲市場錄得調整後 EBITDA 虧損 2.17 億美元，環比增長 31%，這是由於該地區所有市場的盈利能力均有所改善。此外，該地區合併後的邊際貢獻為正，符合我們之前的共同預期。在單個市場層面，我們在大多數亞洲市場（包括我們最大的市場印度尼西亞）錄得正邊際貢獻。

Furthermore, Malaysia and Taiwan recorded positive adjusted EBITDA. While our other markets combined, adjusted EBITDA loss was $279 million, improving by 16% quarter-on-quarter as a result of increased monetization and cost savings.

此外，馬來西亞和台灣錄得正的調整後 EBITDA。雖然我們的其他市場合併，但調整後的 EBITDA 虧損為 2.79 億美元，由於貨幣化和成本節約的增加，環比增長 16%。

In Brazil, we saw continued improvement in unit economics with adjusted EBITDA loss per order before allocation of HQ costs at $1.03, an improvement of roughly $0.40 from the previous quarter. Meanwhile, GAAP revenue grew by over 225% year-on-year. We will continue to invest in the exciting opportunities we see in our Brazil market.

在巴西，我們看到單位經濟持續改善，調整後的每筆訂單 EBITDA 損失在分配總部成本之前為 1.03 美元，比上一季度改善了約 0.40 美元。同時，GAAP 收入同比增長超過 225%。我們將繼續投資我們在巴西市場看到的激動人心的機會。

I recently spent time in the country, meeting with local sellers and buyers. And I was reminded once again of Shopee Brazil's strong and clear value proposition in empowering its local community. This drives a strong and clear business case to continue to invest prudently in that market. Of course, every investment will be made with the discipline and a strong focus on continued efficiency improvements to reach profitability. Overall, as we pivoted towards focus on monetization and profitability, we have continued to see healthy buyer and seller engagement across our platform. We believe this reflects the value we deliver to our communities. In the third quarter, we observed solid retention rates for our active buyers and maintained our average order frequency and time spent for active user at a stable level compared to the previous quarter.

我最近在該國度過了一段時間，會見了當地的賣家和買家。我再次想起了 Shopee Brazil 在賦予當地社區權力方面強大而明確的價值主張。這推動了一個強大而清晰的商業案例，以繼續謹慎地投資該市場。當然，每項投資都將遵守紀律，並高度關注持續提高效率以實現盈利。總的來說，隨著我們轉向專注於貨幣化和盈利能力，我們繼續在我們的平台上看到買家和賣家的健康參與。我們相信這反映了我們為社區提供的價值。在第三季度，我們觀察到活躍買家的穩定保留率，並將我們的平均訂單頻率和活躍用戶花費的時間與上一季度相比保持在穩定水平。

The number of brands on Shopee Mall also continued to grow strongly by 36% year-on-year to over 42,000 reflecting more brands recognizing the value Shopee brings to them. Importantly, we are always looking to further improve the services we offer our sellers and provide a superior shopping experience for our buyers. We want to make sure that incremental monetization is well justified, but additional value we continue to create and deliver in our ecosystem. Over the past few quarters, we have enhanced the efficiency and the predictability of our delivery, improve the complaint resolution rate of automated customer services and reduce the respond resolution time. Our sellers now enjoying more features to help them navigate our ecosystem more easily and increase their sales.

Shopee Mall 上的品牌數量也繼續按年強勁增長 36% 至超過 42,000 個，反映出更多品牌認識到 Shopee 為他們帶來的價值。重要的是，我們一直在尋求進一步改善我們為賣家提供的服務，並為買家提供卓越的購物體驗。我們希望確保增量貨幣化是合理的，但我們會繼續在我們的生態系統中創造和交付額外價值。在過去的幾個季度中，我們提高了交付效率和可預測性，提高了自動化客戶服務的投訴解決率並縮短了響應解決時間。我們的賣家現在可以享受更多功能，以幫助他們更輕鬆地駕馭我們的生態系統並增加銷售額。

For example, they have access to pricing recommendations if their item prices are detected as noncompetitive and have self-service access to our many performance enhancement programs and business management tools.

例如，如果他們的商品價格被檢測為不具有競爭力，他們可以訪問定價建議，並且可以自助訪問我們的許多性能增強程序和業務管理工具。

Moving on to digital entertainment, Garena continues to be impacted by reopening trends especially as our gamers return to fully reopened school and work post-pandemic. At the same time, we are faced with rising global macro uncertainties. We believe this continues to impact consumer discretionary spending, including in games. These headwinds has resulted in weaker engagement and user trends in the third quarter.

轉向數字娛樂，Garena 繼續受到重新開放趨勢的影響，尤其是當我們的遊戲玩家在大流行後返回完全重新開放的學校和工作時。與此同時，我們面臨著全球宏觀不確定性上升的局面。我們認為這會繼續影響消費者的可自由支配支出，包括遊戲方面的支出。這些不利因素導致第三季度的參與度和用戶趨勢減弱。

During the quarter, GAAP revenue was $893 million and bookings was $665 million. Garena's quarterly active users reached 568 million with 52 million quarterly paying users. Our paying user ratio and ARPU remained stable quarter-on-quarter. Free Fire experienced ongoing moderation in engagement and monetization. Still, relatively to the industry overall, Free Fire's performance remains robust.

本季度，GAAP 收入為 8.93 億美元，預訂量為 6.65 億美元。 Garena 的季度活躍用戶達到 5.68 億，季度付費用戶達到 5200 萬。我們的付費用戶率和 ARPU 環比保持穩定。 Free Fire 在參與度和貨幣化方面經歷了持續的緩和。儘管如此，相對於整個行業，Free Fire 的表現仍然強勁。

We are also pleased that Arena of Valor delivered solid growth in active users and bookings for the third quarter. It has been encouraging to see the game's resurgence once again and the strong support from a resilient core user base. Its performance in the past 6 years since launch is in line with our view that strong operations can have meaningful positive effect on the game and that a strong mobile game can be built into a long-term franchise with multiple peaks.

我們也很高興《Arena of Valor》第三季度的活躍用戶和預訂量實現了穩健增長。看到這款遊戲的再次復蘇以及來自堅韌的核心用戶群的大力支持，令人鼓舞。它自推出以來過去 6 年的表現符合我們的觀點，即強大的運營可以對遊戲產生有意義的積極影響，並且可以將強大的手游打造為具有多個高峰的長期特許經營權。

For Garena overall, with the worsening macro environment and reopenings having a continuing impact on our markets, we now expect bookings for the full year of 2022 to be between $2.6 billion and $2.8 billion. Looking ahead, we will focus on stabilizing our large existing franchises while selectively launching new games and investing in our pipeline with greater discipline and a stronger focus on efficiency and returns. At the same time, we will be strengthening our organization and carefully optimizing our spending through more efficient marketing and content investments.

對於 Garena 整體而言，隨著宏觀環境的惡化和重新開放對我們市場的持續影響，我們現在預計 2022 年全年的預訂量將在 26 億美元至 28 億美元之間。展望未來，我們將專注於穩定我們現有的大型特許經營權，同時有選擇地推出新遊戲，並以更嚴格的紀律和更加註重效率和回報的方式投資於我們的管道。與此同時，我們將加強我們的組織，並通過更有效的營銷和內容投資來謹慎優化我們的支出。

Finally, moving on to our digital financial services business. In the third quarter, SeaMoney's GAAP revenue reached $327 million, up 147% year-on-year. At the same time, adjusted EBITDA loss decreased by 57% year-on-year to $68 million. The improvement was predominantly driven by more targeted sales and marketing spending for the mobile wallet business, and our credit business maintaining its healthy profitability, while generating cash for the group.

最後，轉向我們的數字金融服務業務。第三季度，SeaMoney 的 GAAP 收入達到 3.27 億美元，同比增長 147%。同時，調整後的 EBITDA 虧損同比減少 57% 至 6800 萬美元。改善的主要原因是移動錢包業務更有針對性的銷售和營銷支出，以及我們的信貸業務保持健康的盈利能力，同時為集團創造現金。

With the growing volatility across our markets, we are closely monitoring the health of our credit business and our loan book. As of the end of the third quarter, our loan book stood at $2.2 billion, net of allowance for credit losses of $253 million. Nonperforming loans past due by more than 90 days represented less than 4% of our total gross loans receivable, and the weighted average tenure of loans outstanding was about 4 months. We will continue to focus on improving the quality of our underwriting, optimizing risk controls and user experience, diversifying our sources of funding for the credit business and improving the quality of our other digital financial offerings to users.

隨著我們市場的波動性越來越大，我們正在密切關注我們的信貸業務和貸款賬簿的健康狀況。截至第三季度末，我們的貸款賬簿為 22 億美元，扣除信貸損失準備金 2.53 億美元。逾期超過 90 天的不良貸款占應收貸款總額的比例不到 4%，未償還貸款的加權平均期限約為 4 個月。我們將繼續專注於提高承銷質量、優化風險控制和用戶體驗、多元化信貸業務的資金來源以及提高我們為用戶提供的其他數字金融產品的質量。

In closing, while we have demonstrated our strong execution and ability to scale rapidly in the right market and macro environment, we believe we are also able to adapt to the current conditions swiftly and demonstrate our ability to manage towards profitability. The cadence of bottom line and cash flow improvements may vary quarter-to-quarter, but we are confident that we are becoming a more resilient and efficient business in a better position to capture the long-term opportunities for that in our markets.

最後，雖然我們展示了我們強大的執行力和在合適的市場和宏觀環境中快速擴張的能力，但我們相信我們也能夠迅速適應當前情況並展示我們管理盈利的能力。底線和現金流改善的節奏可能因季度而異，但我們相信，我們正在成為一家更具彈性和效率的企業，能夠更好地抓住我們市場中的長期機會。

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 today 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，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，因此我將重點關注其他相關指標。

For Sea overall, total GAAP revenue increased 17% year-on-year to $3.2 billion. This was mainly driven by the increased monetization of our e-commerce business and the growth of our credit business. On e-commerce, our third quarter GAAP revenue of $1.9 million included GAAP marketplace revenue of $1.6 billion, up 39% year-on-year and GAAP product revenue of $0.3 billion, up 3% year-on-year.

就 Sea 整體而言，GAAP 總收入同比增長 17% 至 32 億美元。這主要是由於我們電子商務業務的貨幣化程度提高和信貸業務的增長。在電子商務方面，我們第三季度的 GAAP 收入為 190 萬美元，其中 GAAP 市場收入為 16 億美元，同比增長 39%，GAAP 產品收入為 3 億美元，同比增長 3%。

Within GAAP marketplace revenue, core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues was $1 billion, whereas value-added service revenue, mainly consisting of revenues related to logistic services, was $0.6 billion. E-commerce adjusted EBITDA loss was $496 million as we continue to improve on monetization by creating more value for our users and further optimize on cost efficiency.

在 GAAP 市場收入中，核心市場收入（主要包括基於交易的費用和廣告收入）為 10 億美元，而增值服務收入（主要包括與物流服務相關的收入）為 6 億美元。電子商務調整後的 EBITDA 虧損為 4.96 億美元，因為我們通過為用戶創造更多價值並進一步優化成本效率來繼續改善貨幣化。

Digital entertainment bookings were $665 million, and GAAP revenue was $893 million for the third quarter of 2022.

2022 年第三季度數字娛樂預訂量為 6.65 億美元，GAAP 收入為 8.93 億美元。

Adjusted EBITDA was $290 million. We continued to experience ongoing moderation in engagement and monetization with the reopening trends and uncertain macro environment. Digital Financial Services GAAP revenue was $327 million, an increase of 147% year-on-year from $132 million in the third quarter of 2021. Adjusted EBITDA loss was $68 million, compared to $159 million for the third quarter of 2021.

調整後的 EBITDA 為 2.9 億美元。隨著重新開放的趨勢和不確定的宏觀環境，我們繼續經歷參與和貨幣化的持續緩和。數字金融服務 GAAP 收入為 3.27 億美元，較 2021 年第三季度的 1.32 億美元同比增長 147%。調整後的 EBITDA 虧損為 6800 萬美元，而 2021 年第三季度為 1.59 億美元。

We recognized a net nonoperating loss of $9 million in the third quarter of 2022 compared to a net nonoperating loss of $13 million in the third quarter of 2021. We had a net income tax expense of $65 million in the third quarter of 2022 which was primarily due to corporate income tax and withholding tax expenses. As a result, net loss, excluding share-based compensation, was $374 million in the third quarter of 2022 as compared to $448 million for the same period in 2021.

我們確認 2022 年第三季度的非經營淨虧損為 900 萬美元，而 2021 年第三季度的非經營淨虧損為 1300 萬美元。我們在 2022 年第三季度的淨所得稅支出為 6500 萬美元，主要是由於企業所得稅和預扣稅費用。因此，2022 年第三季度扣除股權激勵後的淨虧損為 3.74 億美元，而 2021 年同期為 4.48 億美元。

At the end of the third quarter of 2022, we had $7.3 billion of cash, cash equivalents and short-term investments on our balance sheet.

到 2022 年第三季度末，我們的資產負債表上有 73 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 Min Ju。

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

謝謝福雷斯特和托尼。我們現在準備好開始提問了。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 my side. Firstly, on Shopee. As you're now expecting Shopee breakeven by end of next year, can you provide a bridge from the current EBITDA loss to your breakeven target? How do you plan to get there? What is the biggest driver here, revenue increase or cost cut? And what kind of top line growth do you expect? Are you building to sacrifice market share if your competitor doesn't follow suit?

我這邊的兩個問題。首先，在 Shopee 上。由於您現在預計 Shopee 將在明年年底實現盈虧平衡，您能否提供一個從當前 EBITDA 虧損到您的盈虧平衡目標的橋樑？你打算如何到達那裡？這裡最大的驅動因素是什麼，收入增加還是成本削減？您期望什麼樣的收入增長？如果您的競爭對手不效仿，您是否會犧牲市場份額？

And second one on gaming. Have you seen any sign of stabilization for Free Fire. And at the same time, we have seen news of the termination of partnership with Riot Games as well. How does it mean for your publishing business going forward? And is there any implication for the [Rover] agreement with Tencent?

第二個是關於遊戲的。您是否看到 Free Fire 有任何穩定的跡象。而與此同時，我們也看到了與拳頭遊戲終止合作的消息。這對您未來的出版業務意味著什麼？與騰訊的【羅孚】協議有什麼啟示？

Thank you, Pang. Regarding the e-commerce breakeven timing, as we shared, of course, these are the goals that we are working towards while taking into account the macro environment and fluctuations in results and other factors may or may not be within our control. But overall, I think the trends, as indicated in our third quarter results, has been that we are both improving on the top line and also on the cost efficiency side. So on the top line side, as we disclosed, we've increased our take rate in particular, the core marketplace revenue and also on the cost side, we have tightened our expenses related to sales and marketing especially around logistics.

謝謝你，龐。關於電子商務盈虧平衡的時機，正如我們分享的那樣，當然，這些是我們正在努力實現的目標，同時考慮到宏觀環境和結果的波動以及其他因素可能在我們的控制範圍內，也可能不在我們的控制範圍內。但總的來說，我認為趨勢，正如我們第三季度的結果所表明的那樣，我們在收入和成本效率方面都在改善。因此，正如我們所披露的那樣，在收入方面，我們提高了我們的採納率，特別是核心市場收入，在成本方面，我們收緊了與銷售和營銷相關的費用，尤其是在物流方面。

This is not just for reducing logistic subsidies but overall improving logistics costs for the entire ecosystem, such as on an order basis, adjusted cost continue to decrease, and that's a very clear direction we continue to work towards. At the same time, we also at the company level, focused more on overhead and other costs and purchases and procurements, et cetera. So this is coming from all directions. And in terms of the drivers, we continue to believe that when we continue positive trends on both the monetization front but also the efficiency and cost improvement front, some of these savings probably came at later this quarter and will continue to show in the following quarters. And in terms of the impact on market share, et cetera, I think from what we have so far observed in the market, well, we continued to maintain our strong market leadership, and our peers also have behaved in a relatively rational manner.

這不僅僅是為了減少物流補貼，而是整體改善整個生態系統的物流成本，比如在訂單基礎上，調整後的成本繼續下降，這是我們繼續努力的一個非常明確的方向。同時，我們也在公司層面，更多地關注管理費用和其他成本以及採購和採購等。所以這是來自四面八方。就驅動因素而言，我們仍然相信，當我們在貨幣化方面以及效率和成本改進方面繼續保持積極趨勢時，其中一些節省可能會在本季度晚些時候出現，並將在接下來的幾個季度繼續顯示.在對市場份額等方面的影響方面，我認為從我們目前在市場上觀察到的情況來看，我們繼續保持我們強大的市場領導地位，我們的同行也表現得相對理性。

Now a lot of these is not individual to us, but generally, we are responding to the macro trends and environment that we believe is the right thing to do for us. And so we will try to, at this point, continue to focus on improving our cost efficiency and improving our financial metrics health for the long-term success of the company. As we also shared, in our view, there's -- while there are near-term headwinds from the macro developments, our view and confidence in our market's long-term growth potential remains as strong as before, given the positive demographic trends and low penetration in all markets. And therefore, whatever we are doing now is still to best position us to be a long-term winner in these markets and in all businesses.

現在很多這些對我們來說都不是個人的，但總的來說，我們正在應對我們認為對我們來說正確的事情的宏觀趨勢和環境。因此，在這一點上，我們將努力繼續專注於提高我們的成本效率和改善我們的財務指標健康狀況，以實現公司的長期成功。正如我們還分享的那樣，在我們看來，儘管宏觀發展存在近期不利因素，但鑑於積極的人口趨勢和低滲透率，我們對市場長期增長潛力的看法和信心仍然像以前一樣強勁在所有市場。因此，無論我們現在做什麼，都是為了讓我們成為這些市場和所有行業的長期贏家。

In terms of Free Fire, we continue to see headwinds impacting our user number and engagement as well as monetization which is reflected normally in our third quarter results, but also reflected in our revised guidance for the full year. Of course, our efforts continue to focus on engaging with our user base and provide the best content and community engagement to Free Fire, which remains to be the biggest franchise in our portfolio. In terms of publishing, as we always shared before, we focus both on game development and publishing as 2 key contributors of our game business.

在 Free Fire 方面，我們繼續看到影響我們的用戶數量和參與度以及貨幣化的不利因素，這通常反映在我們第三季度的業績中，但也反映在我們修訂後的全年指引中。當然，我們的努力繼續專注於與我們的用戶群互動，並為 Free Fire 提供最好的內容和社區參與，它仍然是我們產品組合中最大的特許經營權。在發行方面，正如我們之前一直分享的那樣，我們將游戲開發和發行作為我們遊戲業務的兩個主要貢獻者。

And the recent termination of the -- as we announced legal merchant partnership with Riot as a result of the expiry of agreement would have no impact on our overall publishing business as the contribution is immaterial from the particular game. We really celebrated the 10-year partnership we have with Riot, and we think it's a very fruitful partnership and success for both our -- both partners. And we also look to continue to work with top game developers around the world to strengthen our publishing pipeline. Also, this decision is a right decision and has no relationship to anything regarding the Riot's such refusal agreement what we have with Tencent.

最近終止——因為我們宣布由於協議到期而與 Riot 建立合法商業夥伴關係，這不會對我們的整體發行業務產生影響，因為特定遊戲的貢獻並不重要。我們真的很高興與 Riot 建立 10 年的合作夥伴關係，我們認為這是一個非常富有成果的合作夥伴關係，對我們雙方來說都是成功的。我們還希望繼續與世界各地的頂級遊戲開發商合作，以加強我們的發行渠道。另外，這個決定是一個正確的決定，與我們與騰訊之間的Riot拒絕協議沒有任何關係。

The next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

I have 2 questions. First is, do you expect any headwinds on the core marketplace revenue given the challenging macro environment? So will brands and merchants actually cut back the spending on advertising on Shopee?

我有兩個問題。首先是，鑑於充滿挑戰的宏觀環境，您是否預計核心市場收入會遇到任何不利因素？那麼品牌商和商家真的會削減在Shopee上的廣告支出嗎？

And then secondly, on the sustainable long-term level once Shopee reach EBITDA profit, what could be the margin profile, the rough margin range that we should expect, the Shopee business can be?

然後其次，在可持續的長期水平上，一旦 Shopee 達到 EBITDA 利潤，我們應該預期的利潤率概況，粗略的利潤率範圍，Shopee 業務可以是什麼？

And then just lastly, on the Brazil and LatAm, will you further scale back on other countries? And then near term, only focus on Brazil going -- I mean, for the near term?

最後，關於巴西和拉美，你會進一步縮減其他國家嗎？然後在短期內，只關注巴西的發展——我的意思是，在短期內？

Alicia, in terms of the -- any headwinds on -- for marketplace revenues, so far, as we increased the take rates across various service offerings and the sellers adopt more of our programs and pay higher advertisement and also some of the [opting] programs to Shopee, we continue to see sellers' response to remain positive and they continuing to invest in the platform as we shared before. But our focus is on delivering more value to the sellers and our buyers so that continue to grow their business in a healthy and profitable manner on platform and they charge the partnership with Shopee. Now of course, we are mindful of the potential macro headwinds that might over time more deeply affect our region and the market as a whole.

艾麗西亞，就市場收入的任何不利因素而言，到目前為止，因為我們提高了各種服務產品的採用率，賣家採用了更多我們的程序並支付了更高的廣告費，還有一些[選擇] Shopee 的計劃，我們繼續看到賣家的反應保持積極，他們繼續投資於我們之前分享的平台。但我們的重點是為賣家和買家提供更多價值，以便繼續在平台上以健康和盈利的方式發展他們的業務，並且他們負責與 Shopee 的合作夥伴關係。當然，現在我們注意到潛在的宏觀逆風可能會隨著時間的推移對我們的地區和整個市場產生更深遠的影響。

And this might affect, for example, people's purchase power, discretionary spending and to the point might also have a more pronounced effect on our platform and overall e-commerce in the region. When that happens, that could have an impact -- negative impact also on our ability to monetize. So that is something that we are mindful of, and we're doing everything that we can to help our sellers improve their service offerings to the buyers. Eventually, I think our success depends on our -- the success of our sellers and our buyers' enjoyment of the services and the goods we partner with our sellers to offer to our buyers.

這可能會影響，例如，人們的購買力、可自由支配的支出，甚至可能對我們的平台和該地區的整體電子商務產生更明顯的影響。當這種情況發生時，這可能會產生影響 - 對我們的貨幣化能力也會產生負面影響。所以這是我們注意到的事情，我們正在盡我們所能幫助我們的賣家改善他們為買家提供的服務。最終，我認為我們的成功取決於我們——我們的賣家的成功以及我們的買家對我們與賣家合作提供給買家的服務和商品的享受。

In terms of the margins for Shopee, as we shared, there are main 2 components in our marketplace revenue; one is the core marketplace revenue, the other is value-added services. What in co-marketplace revenue is that mainly transaction-based fees and advertisement. We believe the margin for this portion of the revenue in the long-term steady state could potentially be more in line with what you would normally see for a pure-play marketplace type of business model. For value-added services, that mainly consists of logistics services, including -- logistics services, which is mostly last mile logistics that we provide as the first-party and also third-party logistics services that we provided on our platform that are -- we make as a result of our service -- business model to our sellers and buyers to improve the user experience. And as a result of that, from a GAAP accounting perspective, we do recognize that revenue on both basis.

正如我們分享的那樣，就 Shopee 的利潤而言，我們的市場收入主要有兩個組成部分；一個是核心市場收入，另一個是增值服務。聯合市場收入主要是基於交易的費用和廣告。我們認為，在長期穩定狀態下，這部分收入的利潤率可能更符合您通常在純市場類型的商業模式中看到的利潤率。對於增值服務，主要包括物流服務，包括——物流服務，主要是我們作為第一方提供的最後一英里物流，以及我們在平台上提供的第三方物流服務——我們通過我們的服務——商業模式為我們的買賣雙方改善用戶體驗。因此，從 GAAP 會計的角度來看，我們確實在這兩個基礎上確認了收入。

Now because of this revenue is mostly related to logistics services, these will be more reflective of potentially logistics services type of margin in the longer run. And our focus is continuing to improve the cost efficiency of logistics services for our ecosystem as a whole whether through our own first-party provider services or our partnership with all the third-party logistics services providers to overall reduce the cost and provide a better, higher quality service to our users.

現在由於這一收入主要與物流服務有關，從長遠來看，這些收入將更能反映潛在的物流服務類型的利潤率。我們的重點是繼續提高整個生態系統的物流服務成本效率，無論是通過我們自己的第一方供應商服務還是我們與所有第三方物流服務提供商的合作夥伴關係，以全面降低成本並提供更好、為我們的用戶提供更優質的服務。

In terms of our other growth markets, as we shared earlier, that we believe Brazil is -- continues to be a very important growth market for us as we see very clear value proposition Shopee is offering to the local communities. And we will continue to invest in the market with a strong focus on returns and efficiency. We also continue to have presence from a cross border perspective in the remaining LatAm market. At this point, we have no plan to further -- make further changes to the current approach.

正如我們之前分享的那樣，就我們的其他增長市場而言，我們認為巴西 - 仍然是我們非常重要的增長市場，因為我們看到 Shopee 向當地社區提供非常明確的價值主張。我們將繼續投資市場，重點關注回報和效率。從跨境的角度來看，我們還繼續在剩餘的拉美市場開展業務。在這一點上，我們沒有計劃進一步改變當前的方法。

The next question comes from Thomas Chong from Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

My first question is on Shopee as well. Given that on a constant currency basis, the GMV actually is going at 21% on a year-on-year basis. I just wanted to get some color from management, how should we think about the GMV outlook in coming quarters or 2023? And given that the online penetration is still low, so I just want to get some color for management, the long-term perspective on the GMV side.

我的第一個問題也是關於 Shopee 的。鑑於按固定匯率計算，GMV 實際上同比增長 21%。我只是想從管理層那裡得到一些啟發，我們應該如何看待未來幾個季度或 2023 年的 GMV 前景？考慮到在線滲透率仍然很低，所以我只是想為管理、GMV 方面的長期觀點獲得一些色彩。

And my second question is about the online game as well. I think we've talked about Free Fire. I just want to get management some thoughts with regard to our game pipeline. Should we expect there would be more new games to be released in 2023?

我的第二個問題也是關於網絡遊戲的。我想我們已經討論過 Free Fire。我只想讓管理層對我們的遊戲管道有一些想法。我們是否應該期待 2023 年會有更多新遊戲發布？

Thomas, regarding the GMV growth, as we shared before, and at this point, our focus is very clearly on improving monetization and to achieve self-sufficiency. So GMV growth will be output until we get to that point. And then we can -- we assess our situation and see what's the best path forward. Now as I shared also our long-term prospects -- our view of the long-term prospects of the market is unchanged. The short term, there will be a lot of factors, including macro environment, inflation, ForEx and the continued reopening trends as well as tough comparisons during COVID and our own focus on efficiency, cost management and improving monetization of the platform. So there could be impact on the -- some of the top line growth in operating metrics. There could be no growth or negative growth, and we can accept that. But on the other hand, as we shared, our long-term view is we want to emerge as the strongest winner in this market.

托馬斯，關於 GMV 的增長，正如我們之前分享的那樣，在這一點上，我們的重點非常明確地放在提高貨幣化和實現自給自足上。因此，在我們達到這一點之前，GMV 增長將是輸出。然後我們可以——我們評估我們的情況，看看什麼是最好的前進道路。現在我也分享了我們的長期前景——我們對市場長期前景的看法沒有改變。短期內，會有很多因素，包括宏觀環境、通貨膨脹、ForEx 和持續的重新開放趨勢以及 COVID 期間的艱難比較以及我們自己對效率、成本管理和提高平台貨幣化的關注。因此，可能會對運營指標的一些收入增長產生影響。可能沒有增長或負增長，我們可以接受。但另一方面，正如我們所分享的，我們的長期觀點是我們希望成為這個市場上最強大的贏家。

In terms of the game pipeline, we do have games in our pipeline on self-development as well as publishing. And as usual, we don't discuss specific games that we haven't announced for launch yet, but there are always things that we are working to.

在遊戲管線方面，我們確實有自研和發行的遊戲在管線中。和往常一樣，我們不會討論尚未宣布發布的具體遊戲，但總有一些事情是我們正在努力的。

Our next question comes from Piyush Choudhary from HSBC.

我們的下一個問題來自匯豐銀行的 Piyush Choudhary。

Two questions from my side. Firstly, on Garena, could you share a bit of light on what factors are attributing to this change in guidance? Because your bookings stood at around $2.2 billion in 9 months, while your lower end of the guidance is 2.6, implying almost 40% drop in bookings quarter-on-quarter. So can we understand what could drive such higher slowdown in bookings in fourth quarter versus third quarter? That is first.

我這邊的兩個問題。首先，關於 Garena，您能否分享一下導致這種指導變化的因素是什麼？因為您的預訂量在 9 個月內約為 22 億美元，而您的指導下限為 2.6，這意味著預訂量環比下降近 40%。那麼我們能否理解是什麼導致第四季度的預訂比第三季度出現如此嚴重的放緩？那是第一。

Secondly, your net change in cash position was around $485 million in third quarter. Can you give us a breakup of how much was used in cash CapEx? How much was due to change in working capital? And how much was due to lending -- fund used in lending?

其次，第三季度您的現金頭寸淨變化約為 4.85 億美元。您能否詳細說明現金資本支出使用了多少？多少是由於營運資金的變化？有多少是由於貸款——用於貸款的資金？

Piyush, in terms of the gain guidance that we shared, we continue to see headwinds impacting our markets from both the macro environment, in particular, inflation affecting discretionary spending, including spending on games as well as ForEx and overall weakness, I think that's also impacting game industry as a whole. So while we're working on user engagement and the quality of our games, we also want to give a more reasonable picture based on the information that we have now regarding our outlook for the fourth quarter. I think this is something that we continue to observe. And the direction is clear. But on the other hand, there are many factors beyond our control.

Piyush，就我們分享的收益指導而言，我們繼續看到來自宏觀環境的不利因素影響我們的市場，特別是通貨膨脹影響可自由支配的支出，包括遊戲支出以及外彙和整體疲軟，我認為這也是影響整個遊戲行業。因此，在我們致力於提高用戶參與度和遊戲質量的同時，我們還希望根據我們目前掌握的有關第四季度前景的信息，給出更合理的畫面。我認為這是我們繼續觀察的事情。而且方向很明確。但另一方面，還有很多因素是我們無法控制的。

In terms of the cash flow, for the improvement as we shared, it's driven mostly by the EBITDA improvement across our -- in particular our e-commerce and digital financial services businesses as a result of better monetization as well as cost efficiency improvement. In terms of CapEx and working capital, they fluctuate. Both may fluctuate from quarter-to-quarter as we shared earlier, for many reasons, for example, on the CapEx side. For us historically, these are many office buildings, servers and logistics related leases and machineries, et cetera.

在現金流方面，對於我們分享的改善，這主要是由我們的 EBITDA 改善推動的 - 特別是我們的電子商務和數字金融服務業務，這是由於更好的貨幣化和成本效率的提高。就資本支出和營運資本而言，它們會波動。正如我們之前分享的那樣，由於多種原因，例如在資本支出方面，兩者都可能在每個季度之間波動。從歷史上看，對我們來說，這些是許多辦公樓、服務器和與物流相關的租賃和機械等。

On the office side, I think we are continuing to manage our headcount that will also reduce the office lease required for our employees and to reduce also renovations going forward. That also reduces the computer hardware that we might need for employees.

在辦公室方面，我認為我們將繼續管理我們的員工人數，這也將減少我們員工所需的辦公室租賃，並減少未來的裝修。這也減少了我們可能需要員工使用的計算機硬件。

In terms of the servers, as we shared, we are tightening our budget for servers and try to more closely project the numbers based on our business needs. Previously, we did have tightened spending on servers and in line with our projection of future business growth, but also to take into account of the previous supply chain disruption globally that affected sort of procurement timetable. So some of that impact might affect us and in the coming quarters as well. And when exactly that might hit, it's not certain yet because that depends on delivery timing, sale timing, et cetera.

在服務器方面，正如我們分享的那樣，我們正在收緊服務器預算，並嘗試根據我們的業務需求更緊密地預測數字。此前，我們確實收緊了服務器支出，以符合我們對未來業務增長的預測，但也考慮到之前全球供應鏈中斷影響了某種採購時間表。因此，其中一些影響可能會影響我們以及未來幾個季度。確切的時間可能會發生，目前還不確定，因為這取決於交貨時間、銷售時間等。

So similar things for working capital overall. It doesn't have a -- overall a very significant impact on our cash flow as we shared. EBITDA is a major component of that. But the working capital -- changes in working capital can have fluctuations from time to time again based on billing and payment cycles, et cetera. But we will -- in the long run, however, this is something that we continue to focus on to improve our working capital.

總體而言，營運資金的情況類似。正如我們分享的那樣，它沒有 - 總體上對我們的現金流產生非常重大的影響。 EBITDA 是其中的主要組成部分。但營運資金——營運資金的變化可能會根據計費和付款週期等不時地波動。但是我們會 - 從長遠來看，這是我們繼續關注的事情，以改善我們的營運資金。

So something that -- both the CapEx and working capital is something that we control and focus on the long run. But we think quarter-on-quarter analysis might not be too relevant.

因此，從長遠來看，資本支出和營運資金都是我們控制和關注的東西。但我們認為季度環比分析可能不太相關。

In terms of the lending business, as we shared, we have about $2.4 billion of gross loan book and more than $200 million of provisions for losses -- credit losses. So that represents about a little bit more than 10% of our gross loan book outstanding. And 90-day past due is around 4% and with our tenure for outstanding loan book is around 4 months. So overall, that gives you a sense of how much that is included.

在貸款業務方面，正如我們分享的那樣，我們有大約 24 億美元的總貸款賬面和超過 2 億美元的損失準備金——信貸損失。因此，這占我們未償還貸款總額的 10% 多一點。逾期 90 天的比例約為 4%，而我們未償還貸款的期限約為 4 個月。總的來說，這讓您了解其中包含了多少內容。

And also in the G&A expenses discussion, our earnings release, we did also break out and talk specifically about the credit loss in terms of P&L impact, so we can track that as well.

而且在 G&A 費用討論中，我們的收益發布中，我們也確實爆發並具體討論了損益影響方面的信用損失，因此我們也可以對其進行跟踪。

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 follow-up questions around your e-commerce business. For the EBITDA loss for Q3, you talked about the one-off severance costs and the early termination of the leases costs. Would you be able to quantify that impact for Q3? And how we should think about that for the current fourth quarter?

關於您的電子商務業務，我有 2 個後續問題。對於第三季度的 EBITDA 損失，您談到了一次性遣散費和提前終止租賃費用。您能否量化第三季度的影響？我們應該如何考慮當前第四季度的情況？

The second follow-up question is competition. There seems to be a deceleration in recent quarters and the month. And you talked about the macro. You talked about the sort of cost-cutting initiatives. I was wondering if you could potentially talk about competition impact, if any, from a particular competitor. It seems that there is one particular competitor that has been particularly aggressive in the regions.

第二個後續問題是競爭。最近幾個季度和一個月似乎有所放緩。你談到了宏觀。你談到了那種削減成本的舉措。我想知道您是否可以談談來自特定競爭對手的競爭影響（如果有的話）。似乎有一個特定的競爭對手在該地區特別激進。

Jiong, in terms of the severance and early termination, lease termination expenses, we did disclose that at a group level, that's about $77 million. Most of that is attributable to e-commerce related. So you can get a rough sense of the size. In terms of the competition, I think as we continue to track our peers as well in this region, we believe our progressive leading position has been maintained in the third quarter. Of course, we take competition very seriously. And we make sure that our service offerings remain competitive and our monetization take rate is well justified by the value -- additional value offering to our buyers and sellers in line with the overall market movement.

Jiong，就遣散費和提前終止、租賃終止費用而言，我們確實在集團層面披露了大約 7700 萬美元。其中大部分與電子商務相關。這樣您就可以大致了解尺寸。在競爭方面，我認為隨著我們繼續跟踪我們在該地區的同行，我們相信我們在第三季度保持了領先地位。當然，我們非常重視競爭。我們確保我們的服務產品保持競爭力，我們的貨幣化率得到價值的充分證明——根據整體市場走勢為我們的買家和賣家提供額外的價值。

The next question comes from Venugopal Garre from Bernstein.

下一個問題來自伯恩斯坦的 Venugopal Garre。

So 2 questions from me. Firstly, given all the news flow that we have seen on cost actions taken, could you just highlight to us how our employee headcount looks like at the end of quarter 3 versus what it was, let's say, in Q2 end or Q1 end? And more importantly, what kind of overall quantum of cost we've been able to sort of take out from the system, and how much of it is yet to reflect in our overall numbers? That's the first question.

所以我有 2 個問題。首先，考慮到我們所看到的有關成本行動的所有新聞流，您能否向我們強調一下我們的員工人數在第三季度末與第二季度末或第一季度末的情況相比如何？更重要的是，我們已經能夠從系統中扣除什麼樣的總成本，其中有多少尚未反映在我們的總體數字中？這是第一個問題。

My second question is more related to the investments, given the sort of cost focus now, especially the couple of areas. One is Digi bank side of things, I just wanted to understand how a rollout plan is shaping up in Singapore and if it could lead to any cost increases near term? And secondly on Shopee Xpress, how does the focus on costs sort of lead to any shift in strategy towards that because that also requires quite a bit of investments going forward?

考慮到現在對成本的關注，我的第二個問題與投資更相關，尤其是幾個領域。一個是 Digi 銀行方面的事情，我只是想了解新加坡的推出計劃是如何形成的，它是否會導致近期成本增加？其次，在 Shopee Xpress 上，對成本的關注如何導致戰略向這一方向轉變，因為這也需要相當多的投資向前推進？

Regarding the employee headcount, the management of -- we -- the way we approach it is not a top-down or targeting a sort of percentage of employee kind of exercise. The way we approach it is more of an initiative by initiative, function by function, unit by unit, project by project assessment to look at what is the right amount of resources we might need for our intermediate business needs as well as the ongoing business -- projected business needs, and what we want to prioritize on and what we might de-prioritize. So the recent headcount management is mostly related to market assets, de-prioritization of certain business initiatives. For example, as we mentioned, the off-line payment initiative and then also rightsizing in different functions and teams to make sure we have a strong organization that run efficiently.

關於員工人數，管理——我們——我們處理它的方式不是自上而下的，也不是針對一定比例的員工活動。我們處理它的方式更多的是一個倡議一個倡議，一個職能一個職能，一個單位一個單位，一個項目一個項目評估，看看我們可能需要多少資源來滿足我們的中間業務需求以及正在進行的業務—— - 預計的業務需求，以及我們想要優先考慮的事情以及我們可能取消優先考慮的事情。因此，最近的員工人數管理主要與市場資產、某些業務計劃的優先級降低有關。例如，正如我們提到的，離線支付計劃以及不同職能和團隊的合理調整，以確保我們擁有一個高效運行的強大組織。

This is an ongoing exercise, is also continuing to -- will have -- as a result, we may continue to have some of the severance costs associated with -- over the quarters because some of these started in the late part of the third quarter and going to the fourth quarter. And the cost savings also will show in the following quarters, but again, our view is that in the long run, the cost savings is more from having a more efficient organization. Having a better culture to run things efficiently and focus on returns on investments and having a better discipline to running the entire organization in terms of resource allocation and investment into future business initiatives and projects as opposed to the specific numbers that you might hear from quarter-to-quarter.

這是一項持續進行的工作，也將繼續 - 將 - 因此，我們可能會繼續有一些與 - 在幾個季度相關的遣散費，因為其中一些是在第三季度末開始的並進入第四季度。成本節約也將在接下來的幾個季度中體現出來，但我們的觀點是，從長遠來看，成本節約更多來自於擁有更高效的組織。擁有更好的文化來高效地運行事物並專注於投資回報，並且在資源分配和對未來業務計劃和項目的投資方面擁有更好的紀律來運行整個組織，而不是您可能從季度中聽到的具體數字 -到季度。

In terms of our investments in digital banks, I think at this stage, we are still in a very nascent stage. And we have started some pilot programs for the MariBank in Singapore opening up limited features to employees. We work very closely with our regulators to make sure that things are going well, according to plan. On the other hand, it's the long-term initiatives. We do not expect any immediate significant ramp-up in costs related to that.

就我們對數字銀行的投資而言，我認為在現階段，我們還處於非常初級的階段。我們已經為新加坡的 MariBank 啟動了一些試點項目，向員工開放有限的功能。我們與監管機構密切合作，確保一切按計劃順利進行。另一方面，這是長期舉措。我們預計與此相關的成本不會立即顯著增加。

In terms of e-commerce logistics, in terms of -- for Shopee Xpress, this is a last-mile delivery services. So most of the expenses on that front is more related to staff and vehicle rentals and then some pieces of hubs -- the last mile hubs that we want to place those pretty close to our buyers, where our buyers are. So these are more OpEx kind of expenses that we can ramp up and down in line with the business volume relatively swiftly as opposed to long-term significant CapEx. So the way we want to run it and to ensure that Shopee Xpress continue to remain very competitive and overall reduce the cost of delivery for our buyers and work very closely also with other third-party service providers to continue to reduce cost and improve delivery quality and efficiency.

在電子商務物流方面，對於 Shopee Xpress 而言，這是最後一英里的送貨服務。因此，這方面的大部分費用更多地與員工和車輛租賃有關，然後是一些樞紐——我們希望將那些靠近我們的買家的最後一英里樞紐，我們的買家所在的地方。因此，這些是更多的運營支出類型的支出，我們可以根據業務量相對迅速地增加和減少，而不是長期的重大資本支出。因此，我們希望以這種方式運行它，並確保 Shopee Xpress 繼續保持非常有競爭力，並從整體上降低我們買家的交付成本，並與其他第三方服務提供商密切合作，以繼續降低成本並提高交付質量和效率。

Next question comes from Ranjan Sharma from JPMorgan.

下一個問題來自摩根大通的 Ranjan Sharma。

Two questions from my side. Firstly, on your financial services, with close to 60% reduction in losses on a year-on-year basis, should we also be thinking about potential breakeven -- EBITDA breakeven of financial services next year?

我這邊的兩個問題。首先，在你們的金融服務方面，隨著虧損同比減少近 60%，我們是否也應該考慮潛在的盈虧平衡——明年金融服務的 EBITDA 盈虧平衡？

Second question is on your other services, adjusted EBITDA losses are up 140%. Can you please share more details what's behind that and whether we should expect that to reduce in the coming quarters?

第二個問題是關於你的其他服務，調整後的 EBITDA 損失上升了 140%。您能否分享更多詳細信息，以及我們是否應該期望在未來幾個季度減少這種情況？

Ranjan, in terms of the DFS business, as we shared, the reduction in losses mainly came from our tightening on spending in terms of investments in the wallet -- mobile wallet initiative. And we will continue to focus on efficiency. And given currently the losses at a very manageable level, as we continue to improve on cost efficiency and monetization over time, we believe that this business is something that is much of a long-term business that we need to focus on quality as opposed to scale or growth as rapidly as possible and rapid monetization. So we want to make sure that our business model is resilient, including the credit business in terms of the underwriting quality, user experience, operational efficiency et cetera. And also in terms of our banking business, again, it's very much a quality, trust, resilience focused business. So we don't expect a lot of fluctuations in this business. And we don't see it at this point as a business that we focus growth on.

Ranjan，就 DFS 業務而言，正如我們分享的那樣，虧損的減少主要來自我們在錢包投資方面收緊支出 - 移動錢包計劃。我們將繼續關注效率。鑑於目前的損失處於非常可控的水平，隨著我們隨著時間的推移不斷提高成本效率和貨幣化，我們相信這項業務是一項長期業務，我們需要關注質量而不是盡可能快地擴大規模或增長并快速貨幣化。因此，我們希望確保我們的商業模式具有彈性，包括在承保質量、用戶體驗、運營效率等方面的信貸業務。同樣，就我們的銀行業務而言，這是一項非常重視質量、信任和彈性的業務。因此，我們預計該業務不會出現太大波動。我們目前並不認為它是我們關注增長的業務。

In terms of profitability, for the other services, our adjusted EBITDA increase was -- I think if you look at quarter-on-quarter, it's much smaller. And lots of it is actually also related to severance costs that we initiated in the third quarter relating to the food delivery business. So if we take into account, adjusted for that cost, I think the trend probably is in a different direction. But in any case, we continue to manage the cost efficiency and growth efficiency of the other services, and we expect to see more savings to show up in the following quarters there.

就盈利能力而言，對於其他服務，我們調整後的 EBITDA 增長是——我認為如果你看季度環比，它要小得多。其中很多實際上也與我們在第三季度啟動的與送餐業務相關的遣散費有關。因此，如果我們考慮到並針對該成本進行調整，我認為趨勢可能朝不同的方向發展。但無論如何，我們將繼續管理其他服務的成本效率和增長效率，我們預計會在接下來的幾個季度看到更多的節省。

The next question comes from Varun Ahuja from Credit Suisse.

下一個問題來自瑞士信貸的 Varun Ahuja。

My first question is on the gaming side. If you look at the second quarter, there was some stability in the user base. Third quarter, again, we have seen an 8% quarter-on-quarter decline. So if you can help us understand what is happening there, is it the new users last 3, 6 months were coming to the platform? Is it the older user base, in which regions? So if you give some clarity on that front? And related to gaming business, given the reduction in guidance compared to the, say suppose, midyear last quarter, what are the negative surprises that you see on that business for you to bring down the guidance and not give more clarity on the business?

我的第一個問題是關於遊戲方面的。如果你看一下第二季度，用戶群會有一定的穩定性。第三季度，我們再次看到環比下降 8%。所以，如果你能幫助我們了解那裡發生了什麼，最近 3 個月、6 個月的新用戶是否會來到該平台？是老用戶群，在哪些地區？那麼，如果你在這方面給出一些澄清？與博彩業務相關，考慮到與上個季度年中假設相比，指導有所減少，您在該業務上看到的負面意外是什麼，讓您降低指導，而不是更清楚地說明業務？

Secondly, on the overall outlook or guidance -- assumption of guidance, what data points are you looking at in terms of markets? So when can investors expect a resumption of the guidance from the company? So which all, in terms of hard-core data points, that you want to look at before resuming the guidance?

其次，關於總體前景或指導——假設指導，你在市場方面看哪些數據點？那麼投資者什麼時候可以期待公司恢復指導呢？那麼，就硬核數據點而言，在恢復指導之前你想查看哪些？

Varun, in terms of the game guidance, as we shared, right now, we continue to see impact on user engagement and user base from the macro headwinds. And also, we see that in Q3 where school reopens fully, there's also quite a significant impact on some of the user base and user engagement numbers. So that's why we revised the guidance to lower. In the longer run, how this will trend? I think it still remains to be seen. Of course, as we also shared regarding Arena of Valor as an example, it's a 6-year-old game and we started to see some new growth in the game 6 years since its launch. So we believe that after you reach the core user base and for a very long-term game, with the right type of operations and efforts, there could be potential upside to the game and that can prolonging [guidance] performance. Now for Free Fire, it still remains to be seen where the core user base might be reached. And so our focus is on continuing, again, in terms of providing the best experience as we can to our users.

Varun，就遊戲指南而言，正如我們現在分享的那樣，我們繼續看到宏觀逆風對用戶參與度和用戶群的影響。而且，我們看到，在學校全面重新開放的第三季度，對一些用戶群和用戶參與度數字也產生了相當大的影響。所以這就是為什麼我們修改了指導以降低。從長遠來看，這將如何發展？我認為還有待觀察。當然，正如我們也以 Arena of Valor 為例分享的那樣，這是一款 6 歲的遊戲，自推出 6 年以來，我們開始看到遊戲的一些新增長。所以我們相信，在你達到核心用戶群之後，對於一款非常長期的遊戲，通過正確的運營類型和努力，遊戲可能會有潛在的上升空間，並且可以延長 [指導] 性能。現在對於 Free Fire，核心用戶群可能達到的位置仍有待觀察。因此，我們的重點再次放在繼續為用戶提供最佳體驗方面。

In terms of the guidance for the future, as we shared, given the macro uncertainties, at this point, we do not intend to provide guidance for our business. So if our view changes about the macro and operations, we may -- we will update the market then.

關於未來的指導，正如我們分享的那樣，鑑於宏觀不確定性，目前我們不打算為我們的業務提供指導。因此，如果我們對宏觀和運營的看法發生變化，我們可能會更新市場。

The next question comes from Josh Levin from Autonomous Research.

下一個問題來自 Autonomous Research 的 Josh Levin。

The first question is on Garena. How much visibility do you have into Garena's bookings and EBITDA? Or asked another way, how can investors be confident that management can accurately forecast Garena's bookings and EBITDA over the next year or so?

第一個問題是關於 Garena 的。您對 Garena 的預訂量和 EBITDA 了解多少？或者換個方式問，投資者如何確信管理層能夠準確預測 Garena 未來一年左右的預訂量和 EBITDA？

The second question is, can you provide a bit more detail on what is in the DFS loan book? What kind of loans are in there? And what you might have done to change your underwriting policies given the macro uncertainty?

第二個問題是，您能否提供更多有關 DFS 貸款簿中內容的詳細信息？裡面有哪些貸款？鑑於宏觀不確定性，您可能會採取哪些措施來改變您的承保政策？

Josh, as we shared, just now that we are not providing guidance for our business, including bookings for digital entertainment given the macro outlook. And in terms of the digital financial services, we have various products across different markets relating to the credit business including buy now pay later products, loans to our buyers and sellers and factoring to our sellers. So we will continue to improve our underwriting quality by reviewing the data and also by looking at cycles information -- macro information taking into consideration as many factors that we can, but also past track record of user and user behavior to project potential shifts in user and user patterns and adjust our underwriting policies accordingly.

Josh，正如我們分享的那樣，我們剛剛沒有為我們的業務提供指導，包括鑑於宏觀前景的數字娛樂預訂。在數字金融服務方面，我們在不同市場擁有與信貸業務相關的各種產品，包括先買後付產品、向我們的買家和賣家提供的貸款以及向我們的賣家提供保理服務。因此，我們將繼續通過審查數據和查看周期信息來提高我們的承保質量——宏觀信息考慮了盡可能多的因素，但也考慮了用戶和用戶行為的過去記錄，以預測用戶的潛在變化和用戶模式，並相應地調整我們的承保政策。

And also as we shared, our average tenure for the outstanding is 4 months. So it's a relatively short tenure at this point, and we will continue to act swiftly to manage our loan book with quality and focus on user experience. Thank you.

正如我們分享的那樣，我們對優秀人才的平均任期為 4 個月。因此，目前的任期相對較短，我們將繼續迅速採取行動，以優質的方式管理我們的貸款賬簿，並專注於用戶體驗。謝謝你。

Due to time constraints, this concludes our question-and-answer session. I would like to turn the conference back over to Min Ju Song for any closing remarks.

由於時間關係，我們的問答環節到此結束。我想將會議轉回給 Min Ju Song 作任何閉幕詞。

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

感謝大家參加今天的電話會議。我們非常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。