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.

早安，晚上好。歡迎參加 Sea Limited 2022 年第三季業績電話會議。 （操作員指令）。請注意，該事件正在被記錄。現在我想將會議交給宋敏珠女士。請繼續。

Thank you. 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。大家好，歡迎參加Sea 2022年第三季財報電話會議。我是 Sea 集團首席公司長辦公室的宋敏珠 (Min Ju Song)。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and 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的陳述，這些陳述本質上受風險和機會的影響，並且由於我們在新聞稿中所述的各種原因，可能不會在未來實現。此外，本次電話會議也討論了某些非 GAAP 財務指標，如調整後的 EBITDA 和不包括股權激勵的淨虧損。我們相信，這些指標作為我們 GAAP 揭露的補充，可以增強投資者對我們主要業務實際現金流的理解。有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調整的討論，請參閱我們新聞稿中有關非 GAAP 財務指標的部分。

I have with me Sea's Chairman and 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.

和我一起的還有 Sea 董事長兼集團執行長 Forrest Li；集團財務長侯建軍；以及集團首席企業官王延軍。我們的管理層將分享 2022 年第三季的策略和業務更新、營運亮點和財務業績。

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

說完這些，讓我把電話轉給福雷斯特。

Hello, everyone, and thank you 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，感謝大家今天加入我們。我們最近度過了 IPO 五週年紀念日。我和其他管理團隊成員從將 Sea 運作為上市公司的過程中學到了很多東西，這段旅程經歷了許多起起落落。我感謝大家多年來給予我們的支持和建議，也感謝大家對我們的耐心與信任。

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.

鑑於宏觀環境存在很大的不確定性，我們已將思維和重點從成長完全轉向盡快實現自給自足和盈利，而不依賴任何外部資金。我們正在迅速適應不斷變化的環境，因為我們相信，做不到這一點的公司可能無法生存。我們所有的努力都是為了確保 Sea 不僅能經受住宏觀風暴的考驗，而且能夠變得更加強大、更有效率、更具彈性，並成為我們市場的長期贏家。這使我們能夠繼續挖掘業務和市場的長期潛力，並隨著時間的推移為股東帶來強勁而持續的回報。

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.

上個季度，我們採取了果斷行動來提高利潤率，並為未來幾季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，管理團隊將停止獲得現金補償，直到我們實現自給自足。

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.

為了進一步說明我們實現自給自足的計劃，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。我們集團總調整後EBITDA季增29%。這項有意義的改進得益於我們的電子商務和數位金融服務業務的獲利能力的提高。我稍後將更詳細地討論這個問題。

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伺服器、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，我們集團資本支出為2.32億美元，主要包括伺服器和物流相關支出。由於費用的性質，這可能會在不同時期發生波動。例如，在早些時候，我們致力於加大對伺服器容量的投資。這樣做是為了滿足未來的業務需求，同時考慮到先前供應鏈中斷可能導致一些採購延遲。這些先前的承諾部分反映在我們第三季的資本支出中，並可能繼續影響我們未來幾季的財務狀況。然而，根據我們目前的重點，我們已經採取強有力的措施來收緊我們的資本支出預算，並且我們將在長期管理中高度注重效率和投資回報。

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在不同時期波動的指標是營運資本的變化。由於計費時間和付款收集週期等多種因素，這一數字可能會繼續波動。但從長遠來看，我們專注於改善營運資本管理的方向也是明確的。

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.

最後但同樣重要的一點是，不言而喻，我們非常關注我們的現金狀況。截至第三季末，現金、現金等價物及短期投資為73億美元，較第二季末淨減少4.85億美元。我們的目標是在預算全部以現金形式償還未償還可轉換債券並假設沒有外部資金後，繼續保持淨現金狀況。

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.

我相信我們有能力很好地實現我們既定的目標，正如我們過去多次證明的那樣。現在，讓我花點時間談談我們為提高底線而採取的一些具體措施。我們徹底改革了我們的預算實踐，以持續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計數，減少了辦公空間和物流設施的現有支出和未來投資承諾，並收緊了旅遊和娛樂政策。除此之外，我們還改進了採購政策和程序，減少了電腦硬體支出，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.

我們也加快了業務營運中的成本節約措施。例如，在Shopee，我們大幅削減了行銷費用，尤其是運費補貼。在 Garena，我們現在專注於盡可能高效地經營我們現有的關鍵特許經營權，並採取更有選擇性的方式開發和推出新遊戲，優先考慮我們管道中最具潛力的遊戲。最後，在 SeaMoney，我們降低了 ShopeePay 線下採用的優先級，並進一步透過多種來源分散我們的信貸業務資金。

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，並使我們能夠長期繼續在關鍵市場中獲勝。在接下來的幾個季度中，我們將繼續致力於改善關鍵財務指標，以確保業務的長期健康發展。儘管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，但我們目前正致力於在 2023 年底前實現 Shopee 整體的調整後 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，高度重視現金流並盡可能實現自給自足是現階段正確的策略，儘管短期內某些營運指標可能不會成長甚至出現負成長。需要明確的是，我們對我們的業務和市場的長期複合成長前景仍然充滿信心。一旦我們實現自給自足，我們將能夠決定以更有效率和長期可持續的方式再次加速成長。

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。儘管面臨持續的宏觀不確定性和重新開放趨勢的阻力，但我們在縮小 Shopee 在所有地區的損失方面取得了重大進展。第三季調整後EBITDA虧損為4.96億美元，季增24%。這是由強勁的營收成長所推動的，尤其是核心市場收入，以及各市場營運成本的顯著效率提升。這些改進部分被遣散費和提前終止租賃相關成本以及總部成本的增加（例如共享研發人員和共享伺服器託管費用）所抵消。

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.

隨著我們從第三季後半段開始更加集中精力優化總部成本（包括研發成本），我們預計共享成本的節省將在接下來的幾季開始顯現。

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.

第三季的 GAAP 收入為 19 億美元。其中包括約 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。核心市場收入年增54%，對貨幣化和整體獲利能力的提升做出了重大貢獻。我們的目標是繼續為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.

如上所述，我們還在本季進一步優化了成本，對我們的獲利產生了積極影響。例如，由於我們調整了多個市場的免費送貨服務，Shopee 第三季的 GAAP 銷售和行銷費用較上季下降了 15%。這些舉措加速了Shopee實現獲利的進程。本季度，我們的亞洲市場調整後 EBITDA 虧損 2.17 億美元，較上季改善 31%，這得益於該地區所有市場的獲利能力提高。此外，該地區合計錄得正貢獻利潤，符合我們先前的預期。在單一市場層面，我們在大多數亞洲市場（包括我們最大的市場印尼）都取得了正的貢獻利潤率。

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，馬來西亞和台灣的調整後 EBITDA 都錄得正值。而我們其他市場合併後，調整後的 EBITDA 虧損為 2.79 億美元，由於貨幣化程度提高和成本節約，較上季改善 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，我們看到單位經濟效益持續改善，分配總部成本前每筆訂單的調整後 EBITDA 損失為 1.03 美元，比上一季改善了約 0.40 美元。同時，GAAP營收年增超過225%。我們將繼續投資巴西市場中令人興奮的機會。

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，與當地賣家和買家會面。這再次讓我想起了 Shopee 巴西在增強當地社區能力方面強大而明確的價值主張。這為繼續在該市場進行審慎投資提供了強而有力且明確的商業案例。當然，每項投資都要遵循紀律，並高度重視持續提高效率，以實現獲利。總體而言，隨著我們將重點轉向貨幣化和獲利能力，我們繼續看到整個平台上買家和賣家的良好參與度。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留存率保持穩定，與上一季相比，平均下單頻率和活躍用戶花費時間保持穩定。

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強勁增長，同比增加 36%，達到 42,000 多個，反映出越來越多品牌認識到 Shopee 為他們帶來的價值。重要的是，我們始終致力於進一步改善我們為賣家提供的服務，並為我們的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，但我們將繼續在我們的生態系統中創造和提供額外的價值。在過去幾個季度中，我們提高了交付的效率和可預見性，提高了自動化客戶服務的投訴解決率並縮短了回應解決時間。我們的賣家現在可以享受更多功能，幫助他們更輕鬆地駕馭我們的生態系統並增加他們的銷售額。

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，如果發現他們的產品價格不具競爭力，他們可以獲得定價建議，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.

在數位娛樂方面，Garena 繼續受到重新開放趨勢的影響，特別是當我們的遊戲玩家在疫情後重返完全重新開放的學校和工作崗位時。同時，全球宏觀不確定性因素上升。我們相信這將持續影響消費者的可自由支配支出，包括遊戲支出。這些不利因素導致第三季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 營收為 8.93 億美元，預訂額為 6.65 億美元。 Garena 本季活躍用戶數達 5.68 億，其中季付費用戶數為 5,200 萬。我們的付費用戶比例和ARPU值季比保持穩定。 《Free Fire》在參與度和獲利方面持續遭遇放緩。不過，相較於整個產業而言，《Free Fire》的表現依然強勁。

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.

我們也很高興看到《勇者競技場》第三季的活躍用戶和預訂量實現了穩定成長。看到這款遊戲的再次復甦以及來自核心用戶群的大力支持，令人欣慰。這款遊戲自上線六年來的表現符合我們的觀點：強大的營運可以對遊戲產生有意義的積極影響，強大的手機遊戲可以打造為一個具有多個巔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.

就 Garena 整體而言，由於宏觀環境惡化和重新開放對我們的市場產生持續影響，我們現在預計 2022 年全年預訂額將在 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，並以更大的紀律性和更加註重效率和回報的方式投資我們的產品線。同時，我們將透過更有效的行銷和內容投資來加強我們的組織並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，談談我們的數位金融服務業務。第三季度，SeaMoney 的 GAAP 營收達到 3.27 億美元，年增 147%。同時，調整後EBITDA虧損年減57%至6,800萬美元。這項改善主要得益於針對行動錢包業務的更有針對性的銷售和行銷支出，以及我們的信貸業務保持健康的獲利能力，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.

隨著市場波動性不斷增大，我們正在密切關注信貸業務和貸款帳簿的健康狀況。截至第三季末，我們的貸款餘額為 22 億美元，扣除信貸損失準備金後為 2.53 億美元。逾期 90 天以上的不良貸款占我們總應收貸款的不到 4%，未償還貸款的加權平均期限約為 4 個月。我們將繼續致力於提高承保品質、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向用戶提供的其他數位金融產品的品質。

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，雖然我們已經展示了強大的執行力和在正確的市場和宏觀環境下迅速擴張的能力，但我們相信我們也能夠迅速適應當前的條件，並展示我們實現盈利的能力。底線和現金流改善的節奏可能每個季度都有所不同，但我們相信，我們正在成為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.

因此，我將邀請托尼來討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call. We have included detailed financial schedules 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，也謝謝大家參加電話會議。我們在今天的新聞稿中提供了詳細的財務時間表以及相應的管理分析，Forrest 也討論了我們的一些財務亮點，因此我將專注於其他相關指標。

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，其 GAAP 總營收年增 17%，達到 32 億美元。這主要得益於我們電子商務業務貨幣化的提高和信貸業務的成長。在電子商務方面，我們第三季的 GAAP 營收為 190 萬美元，包括 GAAP 市場營收 16 億美元，年增 39%，以及 GAAP 產品營收 3 億美元，較去年同期成長 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（主要包括以交易為基礎的費用和廣告收入）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，因為我們透過為用戶創造更多價值並進一步優化成本效率來繼續提高貨幣化水平。

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

2022 年第三季數位娛樂預訂金額為 6.65 億美元，GAAP 營收為 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，我們的參與和貨幣化繼續經歷持續的放緩。數位金融服務 GAAP 營收為 3.27 億美元，較 2021 年第三季的 1.32 億美元年增 147%。

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 年第三季的淨非營業虧損為 900 萬美元，而 2021 年第三季的淨非營業虧損為 1,300 萬美元。因此，2022 年第三季不包括股權激勵的淨虧損為 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.

截至 2022 年第三季末，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.

說完這些，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。我們現在準備開始接受提問。操作員？

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

(操作員指示) 我們的第一個問題來自高盛的 Pang Vitt。

Two questions from 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?

我有兩個問題。首先，在Shopee上。您現在預計 Shopee 將在明年年底實現收支平衡，您能否提供一個從目前的 EBITDA 損失到收支平衡目標的橋樑？你打算怎樣去那裡？這裡最大的驅動力是什麼，增加收入還是削減成本？您預期營收會成長多少呢？如果你的競爭對手不效仿，你是否願意犧牲市場佔有率？

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？同時，我們也看到了與Riot Games終止合作的消息。這對您未來的出版業務有何意義？這對 Rover 與騰訊的協議有何影響？

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，彭。關於電子商務盈虧平衡時間，正如我們所分享的，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波動以及其他可能在我們的控制範圍內或範圍之外的因素。但總體而言，我認為正如我們第三季的業績所顯示的趨勢是，我們的營收和成本效率都在提高。因此，在營收方面，正如我們所揭露的，我們提高了我們的佣金率，特別是核心市場收入；在成本方面，我們縮減了與銷售和行銷相關的開支，特別是在物流方面。

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.

這不僅是為了減少物流補貼，而且是為了整體改善整個生態系統的物流成本，例如在訂單基礎上，調整後的成本持續下降，這是我們繼續努力的一個非常明確的方向。同時，我們在公司層級也更重視管理費用、其他成本以及採購等。這是來自四面八方的。就驅動因素而言，我們仍然相信，當我們在貨幣化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實現，並將在接下來的幾個季度繼續顯現。至於對市場份額等方面的影響，我認為從我們目前的市場觀察來看，我們繼續保持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.

現在很多這些並不是我們個人的，但總的來說，我們正在對宏觀趨勢和環境做出反應，我們認為這是對我們來說正確的事情。因此，為了公司的長期成功，我們將繼續致力於提高成本效率並改善財務指標健康。正如我們所分享的，在我們看來，儘管宏觀發展在短期內會帶來阻力，但鑑於積極的人口趨勢和所有市場的低滲透率，我們對市場長期增長潛力的看法和信心仍然一如既往地強勁。因此，無論我們現在做什麼，仍然是為了使我們在這些市場和所有業務中佔據最佳地位，從而成為長期贏家。

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.

就 Free Fire 而言，我們繼續看到影響我們用戶數量和參與度以及貨幣化的阻力，這通常反映在我們的第三季業績中，但也反映在我們對全年的修訂指引中。當然，我們的努力將繼續專注於吸引用戶，並為 Free Fire 提供最佳內容和社群參與，它仍然是我們投資組合中最大的特許經營權。在出版方面，正如我們之前一直分享的那樣，我們專注於遊戲開發和出版，因為它們是我們遊戲業務的兩個關鍵貢獻者。

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.

而且，由於協議到期，我們宣布與 Riot 的合法商家合作關係終止，但這不會對我們的整體出版業務產生影響，因為特定遊戲的貢獻並不重要。我們非常高興與 Riot 建立 10 週年合作夥伴關係，我們認為對於我們雙方來說，這都是一次富有成效的合作，並且取得了成功。我們也希望繼續與世界各地的頂級遊戲開發商合作，以加強我們的出版管道。此外，這個決定是正確的，與 Riot 和騰訊達成的拒絕協議無關。

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，鑑於嚴峻的宏觀環境，您是否預期核心市場收入會面臨任何阻力？那麼品牌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?

其次，從可持續的長期水平來看，一旦 Shopee 實現 EBITDA 利潤，Shopee 業務的利潤率狀況如何？

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，關於巴西和拉丁美洲，您會進一步縮減其他國家的業務嗎？然後短期內只關注巴西—我的意思是短期內？

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.

艾莉西亞，就市場收入而言，到目前為止，隨著我們提高了各種服務產品的收費率，賣家採用了更多的計劃並支付了更高的廣告費，以及採用了Shopee的一些[選擇]計劃，我們繼續看到賣家的反應保持積極，他們繼續在平台上投資，正如我們之前分享的那樣。但我們的重點是為賣家和買家提供更多價值，以便他們在平台上繼續以健康和有利可圖的方式發展業務，並與 Shopee 建立合作夥伴關係。當然，我們也意識到潛在的宏觀不利因素可能會隨著時間的推移更深地影響我們的地區和整個市場。

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.

例如，這可能會影響人們的購買力、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，可能會對我們的獲利能力產生負面影響。所以這是我們非常關注的事情，我們正在盡一切努力幫助我們的賣家改善他們向買家提供的服務。最終，我認為我們的成功取決於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.

就 Shopee 的利潤而言，正如我們所分享的，我們的市場收入主要有兩個部分；一個是核心市場收入，一個是增值服務。聯合市場的收入主要是基於交易的費用和廣告。我們相信，長期穩定狀態下這部分收入的利潤率可能與純粹的市場類型的商業模式的利潤率更加一致。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哩物流，以及我們在平台上提供的第三方物流服務，這是我們透過服務商業模式為賣家和買家提供的，以改善用戶體驗。因此，從 GAAP 會計角度來看，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，由於這些收入主要與物流服務相關，因此從長遠來看，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，無論是透過我們自己的第一方供應商服務還是與所有第三方物流服務提供者的合作，以降低整體成本並為我們的用戶提供更好、更高品質的服務。

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.

就我們的其他成長市場而言，正如我們之前所分享的，我們相信巴西對我們來說仍然是一個非常重要的成長市場，因為我們看到 Shopee 為當地社區提供的非常明確的價值主張。我們將繼續投資市場，並專注於回報和效率。我們也將繼續從跨境角度在剩餘的拉丁美洲市場中佔有一席之地。目前，我們還沒有計劃進一步改變目前的方法。

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。以固定匯率計算，GMV 實際上年增了 21%。我只是想從管理層那裡得到一些信息，我們應該如何看待未來幾個季度或 2023 年的 GMV 前景？鑑於線上滲透率仍然較低，所以我只是想為管理層提供一些關於 GMV 方面的長期觀點。

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?

我的第二個問題也與網路遊戲有關。我想我們已經討論過《Free Fire》了。我只是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 年會發布更多新遊戲？

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 成長，正如我們之前分享的那樣，目前，我們的重點顯然是提高貨幣化和實現自給自足。因此，直到我們達到那個點，GMV 成長才會輸出。然後我們可以——評估我們的情況並看看最好的前進道路是什麼。正如我分享的我們的長期前景一樣，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、外匯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。因此這可能會對部分營運指標的營收成長產生影響。可能會沒有成長，或負成長，我們可以接受。但另一方面，正如我們所分享的，我們的長期目標是成為這個市場中最強大的贏家。

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.

在遊戲通路方面，我們確實有一些自主開發和發行的遊戲。像往常一樣，我們不會討論尚未宣布推出的具體遊戲，但總是會有一些我們正在努力的事情。

Our next question comes from Piyush Choudhary from HSBC.

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.

我有兩個問題。首先，關於 Garena，您能否介紹一下導致這項指導方針變化的因素是什麼？因為您的 9 個月預訂金額約為 22 億美元，而您的預期下限是 26 億美元，這意味著預訂額環比下降近 40%。那麼我們能否理解是什麼原因導致第四季的預訂量較第三季出現如此大的放緩呢？這是第一步。

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，第三季您的現金狀況淨變化約為 4.85 億美元。您能否向我們詳細說明現金資本支出的用途？營運資本變動造成的金額是多少？其中貸款應付的金額有多少──用於貸款的資金有多少？

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引而言，我們繼續看到來自宏觀環境的阻力影響著我們的市場，特別是通貨膨脹影響了可自由支配的支出，包括遊戲和外匯支出以及整體疲軟，我認為這也影響了整個遊戲產業。因此，在我們致力於提高用戶參與度和遊戲品質的同時，我們也希望根據目前掌握的資訊對第四季的前景做出更合理的預測。我認為這是我們持續觀察的事情。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.

就現金流而言，正如我們所分享的，改善主要得益於我們的 EBITDA 改善，特別是我們的電子商務和數位金融服務業務，這得益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，它們會發生波動。正如我們之前所分享的，由於多種原因（例如資本支出方面），這兩者都可能在每個季度之間波動。對我們來說，從歷史上看，這些是許多辦公大樓、伺服器和物流相關的租賃和機械等等。

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，我認為我們正在繼續管理我們的員工人數，這也將減少員工所需的辦公室租賃，並減少未來的裝修費用。這也減少了我們可能需要為員工提供的電腦硬體。

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.

在伺服器方面，正如我們所分享的，我們正在收緊伺服器預算，並嘗試根據我們的業務需求更緊密地預測數字。先前，我們確實縮緊了伺服器方面的開支，這符合我們對未來業務成長的預測，但也考慮了先前全球供應鏈中斷對採購時間表的影響。因此，其中一些影響可能會影響我們，也會影響未來幾季。但具體何時實現，目前還不確定，因為這取決於交貨時間、銷售時間等等。

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.

整體而言，營運資本的情況類似。正如我們所分享的，它總體上對我們的現金流沒有非常重大的影響。 EBITDA 是其中一個主要的組成部分。但營運資本－營運資本的變動會根據結算和付款週期等因素不時而波動。但從長遠來看，我們將繼續關注這一點，以改善我們的營運資本。

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，資本支出和營運資本都是我們長期控制和關注的事情。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.

就貸款業務而言，正如我們所分享的，我們擁有約 24 億美元的總貸款帳簿和超過 2 億美元的損失準備金——信貸損失。這約占我們貸款餘額的 10% 多一點。 90 天逾期率約為 4%，我們的未償貸款期限約為 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.

此外，在一般及行政費用討論（我們的收益報告）中，我們也單獨討論了信用損失對損益表的影響，因此我們也可以對其進行追蹤。

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?

我對您的電子商務業務有兩個後續問題。對於第三季的 EBITDA 損失，您談到了一次性遣散費用和提前終止租約的費用。您能量化第三季的影響嗎？我們應該如何看待目前的第四季？

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。最近幾季和本月似乎有所減速。您還談到了宏觀。您談到了削減成本的舉措。我想知道您是否可以談談某個特定競爭對手的競爭影響（如果有的話）。似乎有一位特定的競爭對手在該地區的行動特別激進。

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、提前終止和租約終止費用而言，我們確實披露，在集團層面，該金額約為 7,700 萬美元。其中大部分與電子商務有關。這樣你就可以大致了解一下尺寸。就競爭而言，我認為，隨著我們繼續追蹤該地區的同行，我們相信我們在第三季將保持領先。當然，我們非常重視競爭。我們確保我們的服務始終具有競爭力，並且我們的貨幣化收取率與價值相符——為我們的買家和賣家提供額外的價值，與整體市場走勢保持一致。

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.

我有兩個問題。首先，鑑於我們看到的所有有關採取成本行動的新聞流，您能否向我們強調一下，與第二季末或第一季末相比，我們的員工人數在第三季末的情況如何？更重要的是，我們能夠從系統中提取多少總體成本，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?

我的第二個問題更與投資有關，考慮到目前的成本重點，特別是幾個領域。一方面是數位銀行方面的事情，我只是想了解新加坡的推廣計劃進展如何，以及它是否會導致短期內成本增加？其次，對於 Shopee Xpress 而言，對成本的關注如何導致策略轉變，因為這也需要在未來進行大量投資？

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，我們管理的方式不是自上而下，也不是針對一定比例的員工。我們處理這個問題的方式更多的是逐項舉措、逐項職能、逐個單位和逐個項目地進行評估，以了解我們中期業務需求和正在進行的業務（預計的業務需求）可能需要多少適當的資源，以及我們想要優先考慮什麼以及我們可能降低什麼的優先級。因此，最近的員工管理主要與市場資產、降低某些業務計畫的優先順序有關。例如，正如我們所提到的，線下支付計劃，以及不同職能和團隊的合理規模，以確保我們擁有一個高效運作的強大組織。

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.

這是一項持續的活動，也將繼續——因此，我們可能會繼續產生一些與季度相關的遣散費，因為其中一些費用從第三季末開始，並持續到第四季。成本節省也將在接下來的幾季中體現出來，但我們的觀點是，從長遠來看，成本節省更多的來自於更有效率的組織。擁有更好的文化來高效地運行事情並注重投資回報，並在資源分配和對未來業務計劃和項目的投資方面有更好的紀律來管理整個組織，而不是您可能每個季度聽到的具體數字。

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.

就我們對數位銀行的投資而言，我認為現階段我們仍處於非常早期的階段。我們已經為新加坡的 MariBank 啟動了一些試點項目，向員工開放了有限的功能。我們與監管機構密切合作，以確保一切按照計劃順利進行。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大幅增加。

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.

就電子商務物流而言，對於 Shopee Xpress 而言，這是最後一英里的配送服務。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——最後一英里的樞紐，我們希望將它們放置在離我們的買家很近的地方，我們的買家所在的地方。因此，這些都是更多的營運支出類型的費用，我們可以根據業務量相對迅速地增加或減少這些費用，而不是長期的大量資本支出。因此，我們希望運作它的方式是確保 Shopee Xpress 繼續保持競爭力，並全面降低買家的交付成本，並與其他第三方服務提供者密切合作，以繼續降低成本並提高交付品質和效率。

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?

我有兩個問題。首先，就你們的金融服務而言，虧損年減了近 60%，我們是否也應該考慮明年金融服務的潛在損益平衡－EBITDA 損益平衡？

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們的其他服務，調整後的 EBITDA 損失上漲了 140%。您能否分享更多細節，說明背後的原因，以及我們是否應該預期未來幾季這一數字會下降？

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，正如我們所分享的，損失的減少主要來自於我們收緊對錢包（行動錢包計劃）的投資支出。我們將持續注重效率。鑑於目前的損失處於非常可控的水平，隨著我們不斷提高成本效率和貨幣化水平，我們相信這項業務是一項長期業務，我們需要專注於品質而不是規模或盡快成長和快速貨幣化。因此，我們要確保我們的商業模式具有彈性，包括信貸業務的承保品質、使用者體驗、營運效率等。就我們的銀行業務而言，我們再次強調，這非常注重品質、信任和彈性。因此我們預期這項業務不會出現太大的波動。目前我們並不認為這是我們重點關注的業務成長。

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.

就獲利能力而言，對於其他服務，我們的調整後 EBITDA 增幅——我認為，如果按季度來看，增幅要小得多。其中很大一部分其實也與我們在第三季針對食品配送業務所啟動的遣散費有關。因此，如果我們考慮到並調整了該成本，我認為趨勢可能會朝著不同的方向發展。但無論如何，我們都會繼續管理其他服務的成本效率和成長效率，我們預計在接下來的幾個季度中會出現更多的節省。

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。如果你看第二季度，你會發現用戶群有一定的穩定。第三季度，我們再次看到環比下降 8%。那麼，如果您能幫助我們了解那裡發生的事情的話，是否有新用戶在過去 3 到 6 個月內加入平台？是老用戶群嗎？那麼您可以就這方面給出一些澄清嗎？就遊戲業務而言，考慮到與上個季度年中相比預期有所下調，您認為該業務存在哪些負面意外，導致您下調預期並且不提供更多業務透明度？

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，關於整體前景或指導—指導假設，您正在關注市場方面的哪些數據點？那麼投資人何時可以期待公司恢復業績指引呢？那麼，在復原指導之前，您想查看哪些核心資料點？

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，就遊戲指導而言，正如我們所分享的，目前，我們繼續看到宏觀逆風對用戶參與度和用戶群的影響。此外，我們發現，在第三季度，學校全面重新開學，這也對一些用戶群和用戶參與度數量產生了相當大的影響。這就是我們修改指導方針以降低其要求的原因。從長遠來看，這種趨勢將會如何？我認為這還有待觀察。當然，正如我們以《勇者競技場》為例所分享的那樣，這是一款已有 6 年歷史的遊戲，自其推出 6 年以來，我們開始看到該遊戲的一些新的增長。因此，我們相信，在獲得核心用戶群之後，對於一款長期遊戲而言，透過正確的運作和努力，遊戲可能會有潛在的上升空間，並可以延長[指導]的表現。現在對於 Free Fire 來說，其核心用戶群能達到什麼程度仍有待觀察。因此，我們的重點是繼續盡力為用戶提供最好的體驗。

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.

就未來指引而言，正如我們所分享的，鑑於宏觀不確定性，目前我們不打算為我們的業務提供指引。因此，如果我們對宏觀和營運的看法發生變化，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 有多少了解？或者換句話說，投資者如何能夠相信管理層能夠準確預測未來一年左右 Garena 的訂單量和 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，您能否提供一些有關 DFS 貸款帳簿的更多細節？其中有哪些種類的貸款？考慮到宏觀不確定性，您可能會採取哪些措施來改變承保政策？

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.

喬什，正如我們剛才所說，考慮到宏觀前景，我們不會為我們的業務提供指導，包括數位娛樂的預訂量。在數位金融服務方面，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、為買家和賣家提供的貸款以及為賣家提供的保理。因此，我們將透過審查數據和查看週期資訊來繼續提高我們的承保品質——宏觀資訊不僅考慮盡可能多的因素，還會考慮用戶和用戶行為的過去記錄，以預測用戶和用戶模式的潛在變化，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.

正如我們所分享的，我們未償還債務的平均期限為 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，高品質地管理我們的貸款帳簿並專注於用戶體驗。謝謝。

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.

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

Thank you 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。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。