Sea Ltd (SE) 2021 Q1 法說會逐字稿

Good morning, and good evening. Welcome to the Sea Limited First Quarter 2021 Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would 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 2021 年第一季度業績電話會議。 （操作員說明）請注意，此事件正在記錄中。我現在想把會議交給 Min Ju Song 女士。請繼續。

Hello, everyone, and welcome to Sea's 2021 First Quarter Earnings conference call. I am Min Ju Song from Sea's Group Chief Corporate Officer's office.

大家好，歡迎來到 Sea 的 2021 年第一季度收益電話會議。我是Sea's Group首席企業官辦公室的Min Ju Song。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties. And may not be realized in the future for various reasons as stated in our press release.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述本身就存在風險和不確定性。正如我們新聞稿中所述，由於各種原因，未來可能無法實現。

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 flows of our major businesses when used as a complement to our GAAP disclosures. For a discussion of the usual -- 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.

此外，本次電話會議還討論了某些非公認會計準則財務指標，例如調整後的 EBITDA 和淨虧損，不包括基於股份的薪酬。我們相信，當這些措施用作對我們的 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的了解。有關通常的討論——非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的對賬，請參閱我們新聞稿中關於非 GAAP 財務指標的部分。

I have with me Sea's Chairman and 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 first quarter of 2021. This will be followed by a Q&A session in which we welcome any questions you have.

Sea 的董事長兼集團首席執行官 Forrest Li 和我在一起；集團首席財務官Tony Ho；和集團首席企業官王彥軍。我們的管理層將分享 2021 年第一季度的戰略和業務更新、運營亮點和財務業績。隨後將舉行問答環節，歡迎您提出任何問題。

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

有了這個，讓我把電話轉給福雷斯特。

Thank you, Min Ju. Hello, everyone, and thank you as always for joining today's call. We are pleased to start 2021 on a strong note. With our results for the first quarter showing continued high growth across all our businesses. Even with the gradual recovery in offline activities in our region since the second half of 2020, our strong performance in terms of users growth and engagement shows that digital adoption is still rising healthily as the communities we serve continue to embrace the benefit of online lifestyle.

謝謝你，閔菊。大家好，感謝您一如既往地加入今天的電話會議。我們很高興以強勁的勢頭開始 2021 年。我們第一季度的業績顯示我們所有業務的持續高速增長。儘管自 2020 年下半年以來，我們地區的線下活動逐漸恢復，但我們在用戶增長和參與度方面的強勁表現表明，隨著我們服務的社區繼續接受在線生活方式的好處，數字化採用仍在健康增長。

At the group level for the first quarter of 2021, we are happy to report GAAP revenue of $1.8 billion, which represents 147% year-on-year growth. We recorded particularly strong growth in gross profit, which reached $645.4 million, up 212% year-on-year, while adjusted EBITDA was $88.1 million compared to a loss of $69.9 million a year ago. This strong performance on both the top and bottom lines once again demonstrates Sea's ability to capture the high-growth potential of the industries and the regions we operate in, while deploying capital and the resources effectively and efficiently across our businesses.

在 2021 年第一季度的集團層面，我們很高興地報告 GAAP 收入為 18 億美元，同比增長 147%。我們錄得特別強勁的毛利潤增長，達到 6.454 億美元，同比增長 212%，而調整後的 EBITDA 為 8810 萬美元，而去年同期為虧損 6990 萬美元。營收和利潤的強勁表現再次證明 Sea 有能力抓住我們經營所在行業和地區的高增長潛力，同時在我們的業務中有效和高效地部署資本和資源。

Before we discuss our business performance in detail, it is important to note that many of the communities, consumers and the small businesses we serve continue to face significant challenges as a result of the ongoing impact of the pandemic, including recent increases in cases in some countries. As Sea, we are committed to play our part in helping our communities navigate these ongoing challenges. This includes support to address the most pressing near-term needs of our communities as well as our sustained focus on helping more people to benefit from the growth of the digital economy.

在我們詳細討論我們的業務表現之前，重要的是要注意，由於大流行的持續影響，我們所服務的許多社區、消費者和小企業繼續面臨重大挑戰，包括最近一些病例的增加國家。作為 Sea，我們致力於幫助我們的社區應對這些持續存在的挑戰。這包括支持解決我們社區最緊迫的近期需求，以及我們持續致力於幫助更多人從數字經濟的增長中受益。

Our global teams are working hard to identify ways in which we can offer tangible near-term support to our communities. For example, in Bandung Indonesia, we recently set up a vaccination center in collaboration with the West Java Health Office to deliver 20,000 doses of vaccine. In the Philippines, we launched the second series of our frontline package for health care workers, delivery and logistics providers and other personnel who contribute in the fight against the pandemic.

我們的全球團隊正在努力確定我們可以為我們的社區提供切實的近期支持的方式。例如，在印度尼西亞萬隆，我們最近與西爪哇衛生辦公室合作建立了一個疫苗接種中心，提供 20,000 劑疫苗。在菲律賓，我們為醫護人員、送貨和物流供應商以及其他為抗擊大流行做出貢獻的人員推出了第二系列的前線一攬子計劃。

We have offered them an exclusive package of discount and mobile vouchers and the prepaid WiFi devices from Shopee and its partners. Meanwhile, we are mindful that many small businesses around the region are still recovering from the shock of the last year. And we continue to invest in initiatives to help them successfully adjust to the digital economy, scale their businesses and generate more income to provide for their families. As an example, in March, Shopee announced that it will work with the school of export in Indonesia to help 500,000 small and medium enterprise export their products by 2030. In April, ShopeePay announced that it will be offering training programs for female entrepreneurs in Indonesia to digitalize their businesses and expand their customer reach.

我們為他們提供了獨家優惠套餐，包括 Shopee 及其合作夥伴提供的折扣和移動優惠券以及預付費 WiFi 設備。同時，我們注意到該地區的許多小企業仍在從去年的衝擊中恢復過來。我們將繼續投資於計劃，幫助他們成功適應數字經濟、擴大業務規模並創造更多收入來養家糊口。例如，3月，Shopee宣布將與印尼出口學院合作，到2030年幫助50萬家中小企業出口產品。4月，ShopeePay宣布將在印尼為女性企業家提供培訓項目以數字化他們的業務並擴大他們的客戶範圍。

In Malaysia, Shopee worked with the Federal Agriculture Marketing Authority to teach local farmers on how to effectively move their businesses online and adapt to the effect of the pandemic.

在馬來西亞，Shopee 與聯邦農業營銷局合作，向當地農民傳授如何有效地將他們的業務轉移到網上並適應大流行的影響。

We also continue to groom talent during this difficult period. We are clearly aware that many people in our key markets, both young and old, may need to cultivate new skill sets to benefit from the rapidly growing digital economy. We want to do our part to bring positive impact to our communities by helping to nurture this new skill sets. In February, we announced the second season of our Shopee Code League. The largest online code league in Southeast Asia and in Taiwan, attended by 15,000 participants from 8 countries. In addition, as an ongoing initiative our Garena Academy in Thailand helps guide and educate young people on how to develop a career in the gaming and esports industries.

在這個困難時期，我們還將繼續培養人才。我們清楚地意識到，我們主要市場中的許多人，無論是年輕人還是老年人，都可能需要培養新的技能才能從快速增長的數字經濟中受益。我們希望通過幫助培養這些新技能，儘自己的一份力量為我們的社區帶來積極影響。 2 月，我們宣布了 Shopee Code League 的第二季。東南亞和台灣最大的在線代碼聯盟，有來自 8 個國家的 15,000 名參與者參加。此外，作為一項持續的舉措，我們在泰國的 Garena 學院幫助指導和教育年輕人如何在遊戲和電子競技行業發展職業。

Most importantly, we are proud to serve the underserved with our businesses by connecting communities, enabling consumers and empowering small businesses. Especially those who traditionally like access to tech platforms and the opportunities they bring.

最重要的是，我們很自豪能夠通過連接社區、賦能消費者和賦能小企業來為服務不足的群體提供服務。尤其是那些傳統上喜歡訪問技術平台及其帶來的機會的人。

With that, let me now discuss each business individually. Starting with digital entertainment. Garena delivered another quarter of outstanding performance. Bookings were $1.1 billion, up 117% year-on-year. While adjusted EBITDA reached $717.3 million, up 140% year-on-year. In the quarter, quarterly active users reached 648.8 million, up 61% year-on-year, while quarterly paying users peaked 79.8 million up 124% year-on-year.

有了這個，現在讓我單獨討論每個業務。從數字娛樂開始。 Garena 又取得了四分之一的出色表現。預訂額為 11 億美元，同比增長 117%。調整後的 EBITDA 達到 7.173 億美元，同比增長 140%。本季度，季度活躍用戶達到6.488億，同比增長61%，而季度付費用戶達到7980萬，同比增長124%。

Our paying user ratio rose to reach 12.3% compared to 8.9% a year ago, showing that we can grow our user base while also deepening monetization. Once again, Free Fire had a standout quarter as our focus on building out the platform with more creative and engaging content and user engagement activities continue to resonate with gamers around the world. Indeed, Free Fire remained highest grossing mobile game in Latin America, Southeast Asia and India for the quarter according to App Annie, maintaining its top rank for Latin America and Southeast Asia for 7 consecutive quarters and achieving the same in India for 2 consecutive quarters. A key success factor is our ability to keep our strong global community deeply engaged with our platform by constantly delivering fresh, high-quality and locally relevant content.

我們的付費用戶比例從一年前的 8.9% 上升到 12.3%，這表明我們可以在擴大用戶群的同時深化貨幣化。再一次，Free Fire 有一個出色的季度，因為我們專注於構建具有更多創意和吸引力的內容的平台，並且用戶參與活動繼續與世界各地的遊戲玩家產生共鳴。事實上，根據 App Annie 的數據，本季度《Free Fire》仍然是拉丁美洲、東南亞和印度手游收入最高的遊戲，連續 7 個季度保持在拉丁美洲和東南亞的榜首，並在印度連續 2 個季度保持這一排名。一個關鍵的成功因素是我們能夠通過不斷提供新鮮、高質量和本地相關的內容，讓我們強大的全球社區與我們的平台深入互動。

In the first quarter, we rolled our partnership with popular Japanese Manga titles like One-Punch Man and Attack on Titan to create memorable crossover events and content experiences for our users. We also received very positive feedback when we introduced the in-game character based on popular local celebrities. For example, in Vietnam and in MENA, we collaborated with the popular V-pop Prince, Son Tùng M-TP, who has more than 9 million followers and nearly 2 billion views on YouTube. And the famous Egyptian singer and actor Mohamed Ramadan, who had a top hit song last year that has since generated over 225 million views on YouTube. To creating game characters, our community engagement and esports efforts are key drivers of success.

在第一季度，我們與流行的日本漫畫作品如一拳超人和進擊的巨人展開合作，為我們的用戶創造令人難忘的跨界活動和內容體驗。當我們根據當地流行名人介紹遊戲中的角色時，我們也收到了非常積極的反饋。例如，在越南和中東和北非地區，我們與流行的 V-pop 王子 Son Tùng M-TP 合作，他在 YouTube 上擁有超過 900 萬粉絲和近 20 億瀏覽量。還有著名的埃及歌手兼演員穆罕默德·拉馬丹（Mohamed Ramadan），去年他的一首熱門歌曲在 YouTube 上的點擊量已超過 2.25 億次。為了創造遊戲角色，我們的社區參與和電子競技努力是成功的關鍵驅動力。

In the first quarter, we introduced the highly popular community content around India's Holi festival, a special Free Fire music video for festival drove 15 million views. We also organized esports tournaments like the Free Fire League Latinoamerica 2021. In April, our flagship Garena World event generated an online audience of 1.2 million and more than 40 million online views across Facebook, YouTube and other social media channels. During the fully virtual 2-day event that was hosted in Thailand. We used the combination of augmented reality, visual effects, animation and other technologies to provide our fans with an interactive and immersive experience. For example, we hosted a dedicated live streaming platform where viewers can customize their avatars and express their views through chat.

第一季度，我們圍繞印度胡里節推出了廣受歡迎的社區內容，節日期間特別的 Free Fire 音樂視頻推動了 1500 萬次觀看。我們還組織了 2021 年拉丁美洲自由火聯盟等電子競技比賽。4 月，我們的旗艦 Garena World 賽事在 Facebook、YouTube 和其他社交媒體渠道上產生了 120 萬在線觀眾和超過 4000 萬的在線瀏覽量。在泰國舉辦的為期兩天的完全虛擬活動中。我們將增強現實、視覺效果、動畫和其他技術相結合，為我們的粉絲提供互動和身臨其境的體驗。例如，我們託管了一個專門的直播平台，觀眾可以在其中自定義他們的頭像並通過聊天表達他們的觀點。

We also welcome the 39 teams from 9 regions to compete in our online game tournament. This event demonstrated our ability to adapt to faster changing environment and to successfully deepen engagement with our users through technology. We also received a number of awards at the Pocket Gamer Awards 2021 with Garena winning the Best Mobile Publisher award and Free Fire named as the Best Battle Royale Game.

我們也歡迎來自 9 個地區的 39 支隊伍參加我們的在線遊戲錦標賽。這次活動展示了我們適應更快變化的環境的能力，並通過技術成功地加深了與用戶的互動。我們還在 2021 年 Pocket Gamer Awards 中獲得了多項獎項，Garena 獲得了最佳移動發行商獎，Free Fire 被評為最佳大逃殺遊戲。

These efforts to grow and strengthen the Free Fire platform through continuous content rollout and emphasis on community building activities have delivered clear results, not only in terms of strong user metrics and financial performance, but also in user stickiness.

這些通過不斷推出內容和強調社區建設活動來發展和加強 Free Fire 平台的努力取得了明顯的成果，不僅在強大的用戶指標和財務業績方面，而且在用戶粘性方面。

Indeed, our Free Fire cohort analysis shows that even a strict lockdown in our core markets have been gradually eased since the second quarter of 2020. Time spent per daily active user on Free Fire remains far higher than pre-pandemic levels. We are encouraged to see that for older cohorts. The time spent per active user and especially paying user ratio are still rising, even though these users have been playing Free Fire since its early days. New cohorts also start off stronger than older cohorts, displaying a higher and faster-growing paying user ratio that older cohorts over time.

事實上，我們的 Free Fire 隊列分析表明，自 2020 年第二季度以來，即使是我們核心市場的嚴格封鎖也已逐漸放鬆。每位每日活躍用戶在 Free Fire 上花費的時間仍遠高於大流行前的水平。我們很高興看到年長的同夥也能看到這一點。每個活躍用戶花費的時間，尤其是付費用戶比例仍在上升，儘管這些用戶從早期就開始玩 Free Fire。新的同類群組在開始時也比舊的同類群組更強大，隨著時間的推移，與舊的同類群組相比，付費用戶比例更高且增長更快。

Looking ahead, we continue to plan for a deep pipeline of innovative content fresh partnerships and exciting esports activities to further and better engage with our ever-growing global communities of users. We are also working to ensure that our long-term games portfolio pipeline remains strong. A significant number of our more than 1,000 in-house game developers globally are constantly working on new ideas, while we continue to engage with third-party game studios for collaboration on promising and complementary game development and publishing opportunities.

展望未來，我們將繼續規劃一系列創新內容、全新合作夥伴關係和激動人心的電子競技活動，以進一步和更好地與我們不斷增長的全球用戶社區互動。我們還在努力確保我們的長期遊戲組合管道保持強勁。我們在全球的 1,000 多名內部遊戲開發人員中有相當一部分正在不斷研究新的想法，同時我們繼續與第三方遊戲工作室合作，以尋求有前景的互補遊戲開發和發布機會。

Let's turn to e-commerce. Shopee delivered exceptional results for the first quarter, building on a stellar performance in 2020. As this continues to gain momentum and attract more buyers and sellers. In the first quarter, Shopee recorded 1.1 billion gross orders, up 153% year-on-year and GMV of $12.6 billion, an increase of 103% year-on-year. GAAP revenue grew 250% year-on-year to $922.3 million. Our year-on-year order growth rate continued to accelerate in the quarter, underscoring our strengthening market leadership. We are pleased to note that adjusted EBITDA loss per order fell once again. It declined 38% year-on-year to $0.38 during the quarter, demonstrating the growing efficiencies of our core e-commerce operations, even as we continue to invest in growth.

讓我們轉向電子商務。在 2020 年的出色表現的基礎上，Shopee 在第一季度取得了出色的業績。隨著這一勢頭繼續增長並吸引更多的買家和賣家。第一季度，Shopee 的總訂單量為 11 億，同比增長 153%，GMV 為 126 億美元，同比增長 103%。 GAAP 收入同比增長 250% 至 9.223 億美元。本季度我們的訂單同比增長率繼續加快，凸顯了我們不斷加強的市場領導地位。我們很高興地註意到，每筆訂單的調整後 EBITDA 損失再次下降。本季度同比下降 38% 至 0.38 美元，這表明我們核心電子商務業務的效率不斷提高，儘管我們繼續投資於增長。

According to App Annie, Shopee continued to rank first across Southeast Asia and Taiwan by average monthly active users and the total time spending app on Android in the shopping category for the quarter. In Indonesia, Shopee's largest market, we continued to rank first across those same metrics, while our year-on-year gross order growth further accelerated in the quarter. We also saw growing user reception to our platform in Brazil. We will continue to access the trends and opportunities there carefully and invest with efficiency to continually enhance our platform offerings to the users.

根據 App Annie 的數據，Shopee 在本季度的購物類別中，按月平均活躍用戶數和 Android 應用程序的總花費時間計算，Shopee 繼續在東南亞和台灣地區排名第一。在 Shopee 最大的市場印度尼西亞，我們在這些指標上繼續排名第一，而我們的同比總訂單增長在本季度進一步加速。我們還看到巴西用戶對我們平台的接受度不斷提高。我們將繼續仔細把握那裡的趨勢和機會，並進行有效投資，以不斷增強我們為用戶提供的平台產品。

Our focus on executional excellence remains the key factor driving Shopee's sustained success. In everything we do, we are very likely about optimizing our performance and maximizing the output. In the first quarter, we rolled out more initiatives to support our regional seller base and brands. As an example, for small, medium sellers, we work with SkillsFuture Singapore in March to offer a step back tech program to successfully help them to transition online. For brand, we launched new programs like our Regional Champion Brands Programme and our $100 million class to help them maximize their online growth potential. We also gave out awards like Best Product Launch or Best Tech Innovation to reward brands who have differentiated themselves on our platform, like P&G, Disney, L'Oreal, Samsung and Unilever. We are happy to share that the number of brands working with Shopee Mall has grown to more than 25,000.

我們對卓越執行的關注仍然是推動 Shopee 持續成功的關鍵因素。在我們所做的每一件事中，我們很可能都在優化我們的性能和最大化輸出。在第一季度，我們推出了更多舉措來支持我們的區域賣家基礎和品牌。例如，對於中小型賣家，我們在 3 月份與 SkillsFuture Singapore 合作，提供退一步技術計劃，以成功幫助他們過渡到網上。對於品牌，我們推出了新計劃，例如區域冠軍品牌計劃和價值 1 億美元的課程，以幫助他們最大限度地發揮在線增長潛力。我們還頒發了最佳產品發布或最佳技術創新等獎項，以獎勵在我們的平台上脫穎而出的品牌，如寶潔、迪士尼、歐萊雅、三星和聯合利華。我們很高興與 Shopee Mall 合作的品牌數量已增長到 25,000 多個。

To conclude, we believe that e-commerce penetration remains low across all our markets instead of the step change in digitalization since the onset of the pandemic. Against this backdrop, we remain committed to investing with efficiency to capture the attractive potential over the long run. We believe our hyper-local and highly-targeted approach alongside our commitment to focus and invest with efficiencies for the long term will allow us to build a healthy and sustainable ecosystem that can offer the best long-term value for buyers and sellers, and in turn, our other stakeholders.

總而言之，我們認為電子商務在我們所有市場的滲透率仍然很低，而不是自大流行開始以來數字化的階躍變化。在此背景下，我們將繼續致力於高效投資，以捕捉長期的有吸引力的潛力。我們相信，我們的超本地化和高度針對性的方法，以及我們對長期專注和高效投資的承諾，將使我們能夠建立一個健康和可持續的生態系統，為買賣雙方提供最佳的長期價值，並在反過來，我們的其他利益相關者。

Turning now to digital financial services. SeaMoney continues to see very high growth in the quarter, building upon its excellent performance last year. For the first quarter, SeaMoney's mobile wallet services reported a total payment volume of $3.4 billion, which more than tripled compared to the $1.1 billion a year ago. Quarterly paying users surpassed 26.1 million in the quarter. We are pleased that ShopeePay continues to gain traction as a quick and convenient online and contactless payment options. Indeed, according to Snapcart Indonesia's survey in March, ShopeePay was the most used, the most remembered and most liked mobile wallet by Indonesian consumers during the first quarter.

現在轉向數字金融服務。 SeaMoney 在去年的出色表現的基礎上，本季度繼續保持非常高的增長。第一季度，SeaMoney 的移動錢包服務報告總支付額為 34 億美元，與一年前的 11 億美元相比增長了兩倍多。季度付費用戶在本季度超過 2610 萬。我們很高興 ShopeePay 作為一種快速便捷的在線和非接觸式支付方式繼續受到關注。事實上，根據 Snapcart Indonesia 3 月份的調查，ShopeePay 是印尼消費者在第一季度使用最多、記憶最多和最喜歡的移動錢包。

In addition to leveraging the strong and growing on-platform used cases on Shopee, we continue to expand our range of off-platform used cases. For example, ShopeePay is now available as a payment option at Indomaret, one of Indonesia's leading convenience store chain as well as various popular F&D chains such as Wendy's and Domino's Pizza. The reception so far has been strong. In the first week of our partnership with Indomaret, more than 1 million transactions were paid using ShopeePay.

除了利用 Shopee 上強大且不斷增長的平台上用例外，我們還將繼續擴大平台外用例的範圍。例如，ShopeePay 現在可以在印度尼西亞領先的連鎖便利店之一 Indomaret 以及各種流行的 F&D 連鎖店（如 Wendy's 和 Domino's Pizza ）作為支付選項。到目前為止，反響很好。在我們與 Indomaret 合作的第一周，使用 ShopeePay 支付了超過 100 萬筆交易。

We also added new features to the ShopeePay experience to enhance its utility for both consumers and ShopeePay merchants. In April, we launched a new feature called malls around you, promo or Deals Near Me, which shows the user attractive deals in their immediate vicinity. User can then purchase the relevant vouchers on the app and redeem them immediately at the physical outlet. This has been highly successful in driving significant actual footfall for onboarded offline merchants. We believe that digital financial services sector in our region is still in the early stages and expect it to develop significantly more use cases features and opportunities in due course. As we scale this business, we will apply the same rework and discipline and efficiency as we have achieved across our businesses so far.

我們還為 ShopeePay 體驗添加了新功能，以增強其對消費者和 ShopeePay 商家的實用性。 4 月，我們推出了一項新功能，稱為您身邊的購物中心、促銷或 Deals Near Me，向用戶展示其附近的有吸引力的交易。然後，用戶可以在應用程序上購買相關優惠券，並立即在實體店兌換。這在為上線的線下商家帶來大量實際客流量方面非常成功。我們認為，我們地區的數字金融服務行業仍處於早期階段，並預計它將在適當的時候開發出更多的用例功能和機會。隨著我們擴展這項業務，我們將採用與迄今為止在我們的業務中取得的相同的返工、紀律和效率。

To conclude, our first quarter results is a great start to the year. Each of our businesses has performed impressively and is well positioned to benefit from attractive long-term industry potential. Even when offline activity continues to resume, we expect rising digital adoption to be a tailwind for this sustained growth. We will also keep investing prudently and efficiently to strengthen our competitive mode and to position ourselves for new opportunities. Our commitment to serve consumers and small medium businesses with technology is stronger than ever. And we are determined to enable more people across our communities to benefit from the digital economy.

總而言之，我們的第一季度業績是今年的一個良好開端。我們的每項業務都表現出色，並且處於有利地位，可以從具有吸引力的長期行業潛力中受益。即使線下活動繼續恢復，我們預計數字化採用率的提高將成為這種持續增長的推動力。我們還將繼續審慎有效地投資，以加強我們的競爭模式，為新的機遇做好準備。我們以技術為消費者和中小型企業服務的承諾比以往任何時候都更加堅定。我們決心讓我們社區中的更多人從數字經濟中受益。

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

有了這個，我將邀請託尼討論我們的財務狀況。

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

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

For Sea, overall, total GAAP revenue increased 147% year-on-year to $1.8 billion. This was mainly driven by strong performance in our e-commerce business as we continue to roll out tools to better serve our users' needs as well as growth of our digital entertainment business especially our self-developed game, Free Fire. Digital entertainment bookings grew 117% year-on-year to $1.1 billion. GAAP revenue was up 111% year-on-year to $781.3 million. The growth was primarily driven by the increase of our active user base and deepened paying user penetration, as we continue to engage the community through new content and partnerships rollout and esports events.

對於 Sea，總體而言，GAAP 總收入同比增長 147% 至 18 億美元。這主要是由於我們的電子商務業務表現強勁，因為我們繼續推出工具以更好地滿足用戶的需求，以及我們的數字娛樂業務的增長，尤其是我們自主開發的遊戲 Free Fire。數字娛樂預訂量同比增長 117% 至 11 億美元。 GAAP 收入同比增長 111% 至 7.813 億美元。這一增長主要是由於我們活躍用戶群的增加和付費用戶滲透率的加深，因為我們繼續通過新內容和合作夥伴關係的推出以及電子競技活動與社區互動。

Digital entertainment adjusted EBITDA was $717.3 million. This represents year-on-year growth of 140%. This was mainly due to strong top line growth and an increased share of our self-developed game among our total bookings. On e-commerce, our first quarter GAAP revenue of $922.3 million included GAAP marketplace revenue of $715.9 million, up 285% year-on-year and GAAP product revenue of $206.4 million, up 167% year-on-year. The strong results demonstrated the deepening penetration of e-commerce and our ability to capture this accelerated growth opportunities, as we continuously enhance our offerings to create greater value for our platform users.

數字娛樂調整後的 EBITDA 為 7.173 億美元。這意味著同比增長 140%。這主要是由於強勁的收入增長以及我們自主開發的遊戲在我們的總預訂量中的份額增加。在電子商務方面，我們第一季度的 GAAP 收入為 9.223 億美元，其中 GAAP 市場收入為 7.159 億美元，同比增長 285%，GAAP 產品收入為 2.064 億美元，同比增長 167%。強勁的業績證明了電子商務的深入滲透以及我們抓住這一加速增長機會的能力，因為我們不斷增強我們的產品，為我們的平台用戶創造更大的價值。

E-commerce adjusted EBITDA loss was $412.9 million, as we continued our investments to fully capture the opportunities in our markets. We remain committed to efficiently investing in and growing the ecosystem to serve our user better. Digital financial services GAAP revenue was $51.3 million, an increase of 396% year-on-year from $10.3 million in the first quarter of 2020. The growth was primarily due to increasing traction as we continue to expand our suite of service offerings. Adjusted EBITDA loss was $153.1 million compared to a loss of $93.1 million in the same period of 2020. This was primarily due to our continued efforts to drive mobile wallet adoption.

電子商務調整後的 EBITDA 損失為 4.129 億美元，因為我們繼續投資以充分把握市場機會。我們仍然致力於有效地投資和發展生態系統，以更好地為我們的用戶服務。數字金融服務 GAAP 收入為 5,130 萬美元，較 2020 年第一季度的 1,030 萬美元同比增長 396%。增長主要是由於我們繼續擴大服務產品套件的牽引力增加。調整後的 EBITDA 虧損為 1.531 億美元，而 2020 年同期為虧損 9310 萬美元。這主要是由於我們繼續努力推動移動錢包的採用。

Returning to our consolidated numbers. We recognized a net nonoperating loss of $23.3 million in the first quarter of 2021, compared to a net nonoperating income of $11.2 million in the first quarter of 2020. Our nonoperating loss in the first quarter of 2021 was primarily due to increased interest expense on convertible loans. We had a net income tax expense of $51 million in the first quarter of 2021, which was primarily due to corporate income tax and withholding tax recognized in our digital entertainment business. As a result, net loss, excluding share-based compensation, was $320 million in the first quarter of 2021 as compared to $239.5 million for the same period in 2020.

回到我們的綜合數字。我們在 2021 年第一季度確認了 2330 萬美元的淨營業外虧損，而 2020 年第一季度的淨營業外收入為 1120 萬美元。我們在 2021 年第一季度的營業外虧損主要是由於可轉換債券的利息支出增加貸款。我們在 2021 年第一季度的淨所得稅費用為 5100 萬美元，這主要是由於我們的數字娛樂業務中確認的企業所得稅和預扣稅。因此，2021 年第一季度的淨虧損（不包括股權補償）為 3.2 億美元，而 2020 年同期為 2.395 億美元。

With that, let me turn the call to Yanjun.

說到這裡，讓我把電話轉給燕軍。

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

謝謝你，福雷斯特和托尼。我們現在準備開始提問。操作員？

(Operator Instructions) Our first question comes from Thomas Chong from Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Thomas Chong。

Can you comment about the life cycle of Free Fire as well as the growth drivers in terms of MAU and users in the ARPU? Should we expect the growth to be more coming from the LatAm going forward?

您能否談談 Free Fire 的生命週期以及 MAU 和 ARPU 用戶方面的增長動力？我們是否應該期望未來的增長更多來自拉丁美洲？

Regarding your question, sorry, your line isn't super clear. I understand your question is regarding the life cycle of Free Fire. As well as the growth drivers of the users and ARPPU and whether the growth is coming from LatAm region? Are these, correct?

關於你的問題，對不起，你的台詞不是很清楚。我了解您的問題是關於 Free Fire 的生命週期。以及用戶和 ARPPU 的增長動力，增長是否來自拉丁美洲地區？這些，對嗎？

I'll answer these questions first. Regarding the Free Fire, I think as we can observe from our disclosure of quarterly active user, quarterly paying user and bookings as well as the bottom line adjusted EBITDA, which is largely also attributable to Free Fire being a global game and growing at a very healthy rate globally. We see still at -- it's the early stage of life cycle. And in fact, we see it increasingly as a platform and a major IP franchise.

我先回答這些問題。關於 Free Fire，我認為我們可以從我們披露的季度活躍用戶、季度付費用戶和預訂量以及調整後的 EBITDA 底線中觀察到，這在很大程度上也歸因於 Free Fire 是一款全球性遊戲並且以非常高的速度增長全球健康率。我們仍然看到 - 這是生命週期的早期階段。事實上，我們越來越多地將其視為一個平台和一個主要的 IP 特許經營權。

We are focusing on continuing to grow our user base. The growth -- driver of the growth comes from both Southeast Asia, LatAm as well as India and the rest of the world. And that's the same for both the user base as well as pay user base. So we're still at an early stage of driving growth on the user base as well as pay user base for this game and developing it into a social platform where people not only come to play the core gameplay, but also enjoy other modes hangout, listen to music, social lives.

我們專注於繼續擴大我們的用戶群。增長——增長的驅動力來自東南亞、拉美以及印度和世界其他地區。這對於用戶群和付費用戶群都是一樣的。因此，我們仍處於推動用戶群增長以及為這款遊戲付費用戶群的早期階段，並將其發展為一個社交平台，人們不僅來玩核心遊戲，還可以享受其他模式的聚會，聽音樂，社交生活。

The time spent in the game continue to be very high, 2 to 3 hours per daily active user. And as we discussed in the earlier comments, that we observed very encouraging trends on the cohort analysis as well, where the older cohorts who have been with us since the early days of this game have shown stronger trends in time play as well as pay ratio. And we also see younger cohorts coming in more recently, showing even faster growth of pay user ratio as well as stickiness.

在遊戲中花費的時間仍然非常高，每個每日活躍用戶需要 2 到 3 個小時。正如我們在之前的評論中所討論的，我們在群組分析中也觀察到了非常令人鼓舞的趨勢，自遊戲早期以來一直與我們在一起的年長群組在時間遊戲和薪酬比率方面表現出更強的趨勢.而且我們還看到最近出現的年輕群體，顯示出付費用戶比例和粘性的更快增長。

And there is also, as we mentioned, positive feedback loop between paying user as well as -- and stickiness of the game. As user pay and pay more, they tend to play the game more and be with the game for longer. We have also been focused on building our ecosystem on esports, the communities as well as collaborations with third-party IP. As we mentioned before, we have collaborated with, for example, One-Punch Man, which is a very successful campaign to promote further engagement in our games. So I think this is very much a broad-based user growth as well as pay user growth, and we'll continue to focus on growing this game globally.

正如我們所提到的，付費用戶與遊戲的粘性之間也存在積極的反饋循環。隨著用戶支付和支付的更多，他們傾向於玩更多的遊戲並且玩遊戲的時間更長。我們還一直專注於在電子競技、社區以及與第三方 IP 的合作方面建立我們的生態系統。正如我們之前提到的，我們曾與例如 One-Punch Man 合作，這是一項非常成功的活動，旨在促進我們遊戲的進一步參與。所以我認為這是一個非常廣泛的用戶增長以及付費用戶增長，我們將繼續專注於在全球範圍內發展這款遊戲。

The next question comes from Piyush Mubayi from Goldman Sachs.

下一個問題來自高盛的 Piyush Mubayi。

When I look at the e-commerce business, I was hoping you could shed some light on where you are in Brazil and also help us understand the drivers of the improvement that we saw in the take rate. And related to e-commerce in better understanding the spend that is taking place. Would you be able to tell us or give us a feel for how much the investment is, that's the drag on the EBITDA for the e-commerce side at this stage in the 1Q period?

當我查看電子商務業務時，我希望您能對您在巴西的情況有所了解，並幫助我們了解我們在接受率方面看到的改進的驅動因素。並與電子商務相關，以更好地了解正在發生的支出。您能否告訴我們或讓我們感受一下投資是多少，這是第一季度現階段電子商務方面的 EBITDA 的拖累嗎？

As we mentioned earlier, we've seen -- continue to see positive user reception in Brazil, and we'll continue to invest to enhance our offerings to our sellers and growing user base there. At this stage, it's still very early for us, and we are continuing to observe the trends locally and focus on efficient investment there.

正如我們之前提到的，我們已經看到 - 在巴西繼續看到積極的用戶接受度，我們將繼續投資以增強我們對賣家的產品和不斷增長的用戶群。在這個階段，我們還為時尚早，我們將繼續觀察當地的趨勢，並專注於當地的高效投資。

Could you shed some light on whether there is a drag on the overall EBITDA because of investments in outside this region as far as e-commerce is concerned?

就電子商務而言，您能否說明由於該地區以外的投資是否會拖累整體 EBITDA？

Given this is still very early stage. I think it's still too early to talk about the market separately. Overall, I think the contribution in terms of the margin we are seeing from an e-commerce perspective, it's still very positive. Our EBITDA loss per order continued to fall. And in terms of top line growth, at 250%, which is very, very strong on all fronts. So I think it's still a very early stage, for Brazil, for us to discuss even as a super market.

鑑於這仍處於早期階段。我認為現在單獨談論市場還為時過早。總的來說，我認為從電子商務的角度來看，我們看到的利潤率貢獻仍然非常積極。我們每筆訂單的 EBITDA 損失繼續下降。就收入增長而言，達到 250%，這在所有方面都非常非常強勁。所以我認為對於巴西來說，即使是作為一個超級市場來討論，這仍然是一個非常早期的階段。

The next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

Congratulation on the solid results. I have two quick questions. Number one, just wondering if management can share the conditions in India. Given the Free Fire tractions there, given the lockdown, do you actually see the time spend increasing or you're actually seeing some negative impact because of the illness and the instability? So any colors on the game performance in India.

祝賀取得了堅實的成果。我有兩個快速的問題。第一，只是想知道管理層是否可以分享印度的情況。鑑於那裡的 Free Fire 牽引力，鑑於鎖定，您是否真的看到花費的時間增加，或者您實際上看到由於疾病和不穩定而產生的一些負面影響？所以任何顏色的遊戲表現在印度。

And then second question is on the food delivery business. If you can share your plans and ambitions. Will that be more a complementary? Or is it a need-to-win basis, that you wanted to challenge the market leader?

然後第二個問題是關於食品配送業務。如果你能分享你的計劃和抱負。這會更互補嗎？或者，你想挑戰市場領導者是為了贏得勝利嗎？

Regarding India, we also observed the local situation. Hopefully, India has, as we mentioned, in our earnings, continue to be a top growth market and where our game performed very strongly. Time spent per user continue to be very high. We see rising pay user ratio there. We see it as a highly promising market, and we will continue to contribute meaningfully to our growth in the game with a very long runway. And we'll focus on promoting our game and user engagement in India.

關於印度，我們也觀察了當地的情況。正如我們所提到的，希望印度在我們的收益中繼續成為增長最快的市場，並且我們的遊戲表現非常強勁。每個用戶花費的時間仍然非常高。我們看到那裡的付費用戶比例正在上升。我們認為這是一個非常有前景的市場，我們將繼續為我們在很長的跑道上的遊戲增長做出有意義的貢獻。我們將專注於在印度推廣我們的遊戲和用戶參與度。

And in terms of food delivery, we see it as a category on Shopee. And we see very strong user reception naturally and similar to how we're able to grow all these other categories on Shopee, through strong execution, right business model and user engagement. And as we mentioned before, for food, we see it as more of a complementary to our other e-commerce offerings. And we do become the market leader naturally, like what happened in Vietnam. We're happy to see that. But we see it as a focus on healthy growth and sustainable growth as part of the overall e-commerce ecosystem.

在送餐方面，我們將其視為 Shopee 上的一個類別。我們自然而然地看到了非常強大的用戶接受度，類似於我們通過強大的執行力、正確的商業模式和用戶參與度在 Shopee 上發展所有其他類別的方式。正如我們之前提到的，對於食品，我們認為它更多地是對我們其他電子商務產品的補充。我們確實自然而然地成為了市場領導者，就像在越南發生的那樣。我們很高興看到這一點。但我們將其視為整個電子商務生態系統的一部分，關注健康增長和可持續增長。

The next question comes from Ranjan Sharana (sic) [Ranjan Sharma] from JPMorgan.

下一個問題來自摩根大通的 Ranjan Sharana (sic) [Ranjan Sharma]。

It's Ranjan Sharma from JPMorgan. Two questions from my side. Firstly, on Shopee in LatAm. You have seen success in driving adoption in Brazil or in Mexico. If you could also share how you see the rest of Latin America as an opportunity for e-commerce? And secondly, on food delivery, you're in Vietnam, you in Indonesia, how should we think about ShopeeFood expanding throughout Asia?

我是摩根大通的 Ranjan Sharma。我這邊有兩個問題。首先，在拉丁美洲的 Shopee 上。您已經看到巴西或墨西哥在推動採用方面取得了成功。如果您還可以分享您如何看待拉丁美洲其他地區的電子商務機會？其次，在食品配送方面，你在越南，你在印度尼西亞，我們應該如何看待 ShopeeFood 在亞洲的擴張？

In terms of our LatAm market, again, even Brazil is a very, very early stage for us, not to mention the others. We don't have much to update at this point, if there's any development then we will update the market. A same take for food. We've been doing food in Vietnam and testing the market leader there. And in Indonesia, we very recently rolled out first in Jakarta and gradually other -- expanding to other markets over time. But we have not announced any plans or any other market. If there's any update, we'll also let the market know.

再說一次，就我們的拉丁美洲市場而言，即使是巴西對我們來說也是一個非常非常早期的階段，更不用說其他國家了。目前我們沒有太多要更新的東西，如果有任何進展，我們將更新市場。對食物也是如此。我們一直在越南做食品並測試那裡的市場領導者。在印度尼西亞，我們最近首先在雅加達推出，然後逐漸擴展到其他市場——隨著時間的推移擴展到其他市場。但我們尚未宣布任何計劃或任何其他市場。如果有任何更新，我們也會讓市場知道。

The next question comes from John Blackledge from Cowen.

下一個問題來自 Cowen 的 John Blackledge。

Two questions. First, could you just give us an update on Shopee's competitive positioning in the core markets in Greater Southeast Asia. And then this is kind of been asked but I'm going to ask again. Sales and marketing spend was higher than expected. Could you just provide some further color on the sales and marketing spend? And was Brazil expansion, a key driver of the sales and marketing spend?

兩個問題。首先，您能否向我們介紹一下 Shopee 在大東南亞核心市場的競爭定位。然後有人問過這個問題，但我會再問一次。銷售和營銷支出高於預期。您能否進一步說明銷售和營銷支出？巴西的擴張是銷售和營銷支出的主要推動力嗎？

In terms of competitive landscape, they continue to improve for us as we continue to extend our market leadership in the market across all fronts. And as evidenced by our improving top line GMV order growth at a very high rate, more than 150% in Southeast Asia plus Taiwan and also our increasing take rate over time. And monetization. In terms of sales and marketing spend, I think our top line growth also probably in a way exceeded the consensus. So sales and marketing expense percentage of GMV actually dropped quarter-on-quarter. So I think we'll continue to observe the trends.

在競爭格局方面，隨著我們繼續在各個方面擴大我們在市場上的市場領導地位，它們繼續為我們改善。正如我們以非常高的速度提高頂線 GMV 訂單增長所證明的那樣，在東南亞和台灣地區增長了 150% 以上，而且隨著時間的推移，我們的接單率也在不斷提高。和貨幣化。在銷售和營銷支出方面，我認為我們的收入增長也可能在某種程度上超出了共識。因此，銷售和營銷費用佔 GMV 的百分比實際上環比下降。所以我認為我們將繼續觀察趨勢。

Now it's very important to note that this is really a managed outcome for us as we look at all the opportunities. As a company that we have, this is actually the 11th quarter that we've shown triple-digit growth at the top line. I think as a company of our scale and size and speed of growth, there might not be many other large tech Internet companies that have shown this level of sustained very high growth. And our growth is carefully managed results through prudent and efficient spending and investment in the long-term development of the business model. And we are in high-growth regions, whereby the penetration of digital economy is still very low.

現在非常重要的是要注意，當我們看到所有機會時，這對我們來說確實是一個可控的結果。作為我們擁有的一家公司，這實際上是我們第 11 個季度實現了三位數的收入增長。我認為，像我們這樣的規模、規模和增長速度的公司，可能沒有多少其他大型科技互聯網公司表現出這種持續非常高的增長水平。而我們的增長是通過謹慎高效的支出和投資於商業模式的長期發展而精心管理的結果。而且我們處於高增長地區，數字經濟的滲透率仍然很低。

So the runway is very, very high. The competition landscape is not a kind of red ocean zero-sum game situation. Instead, we actually continue to see our market leadership extending as we -- while we are bigger, we are also growing, we believe, at a faster rate than many other players. So that actually bodes very well for our both opportunities, and we want to continue to invest in the long-term business model, which we believe can maximize profitabilities down the road for us and our shareholders in the long run.

所以跑道非常非常高。競爭格局不是一种红海零和博弈局面。相反，我們實際上繼續看到我們的市場領導地位隨著我們的擴大而擴大——雖然我們更大，但我們相信，我們也在以比許多其他參與者更快的速度增長。因此，這實際上對我們的兩個機會來說都是個好兆頭，我們希望繼續投資於長期商業模式，我們相信這可以最大限度地為我們和我們的股東帶來長遠的利潤。

The next question comes from Josh Levin from Autonomous Research.

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

I have two questions. First of all, in the e-com business, as you think about the future, how are you thinking about the mix of in-house versus 3P logistics? And then second, what are the implications of Gojek and Tokopedia merging for your business? And do you see any disadvantage to not having a ride handling business?

我有兩個問題。首先，在電子商務業務中，當您考慮未來時，您如何看待內部物流與 3P 物流的組合？其次，Gojek 和 Tokopedia 合併對您的業務有何影響？你認為沒有乘車處理業務有什麼缺點嗎？

In terms of logistics, our approach has been quite consistent, where we primarily work with third-party logistics services providers in our region. And they've been also focused on investing in growth with us and we further more deeply integrated with them, helped them to improve their efficiency and quality of services to our users as we continue to see delivery time being shortened, efficiency improved and cost lowered over time.

在物流方面，我們的做法非常一致，我們主要與我們地區的第三方物流服務提供商合作。他們也一直專注於與我們一起投資增長，我們進一步與他們進行更深入的整合，幫助他們提高效率和為用戶提供的服務質量，因為我們繼續看到交付時間縮短、效率提高和成本降低隨著時間的推移。

Our own express delivery services are complementary to the third-party logistics services in this market. And of course, we will have -- continue to have the first-party capabilities to make sure our users are well served, especially during peak season or sometimes during the lockdowns when there could be constraints in capacity.

我們自己的快遞服務與該市場的第三方物流服務相輔相成。當然，我們將繼續擁有第一方的能力，以確保我們的用戶得到良好的服務，特別是在旺季或有時在容量可能受到限制的封鎖期間。

In terms of the implications of the merger. First, we'd like to congratulate our friends on their successful merger. And we think that, as I mentioned, it's a huge opportunity in our region. There's a very long runway, and we should all collectively focus on expanding the pie and growing the digital economy in the region and invest in a long run to serve our users and communities better. In terms of the disadvantage of any -- not having any particular business, we don't really see that. We think that we are very fortunate to have three of the largest consumer Internet opportunities in the high-growth regions that we are in, and we're able to manage it across so many complex and different markets.

就合併的影響而言。首先，我們要祝賀我們的朋友們成功合併。我們認為，正如我所提到的，這在我們地區是一個巨大的機會。跑道很長，我們應該共同專注於擴大該地區的蛋糕和發展該地區的數字經濟，並長期投資以更好地為我們的用戶和社區服務。就任何 - 沒有任何特定業務的劣勢而言，我們並沒有真正看到這一點。我們認為我們很幸運能夠在我們所在的高增長地區擁有三個最大的消費者互聯網機會，並且我們能夠在如此多複雜和不同的市場中管理它。

And with the three growth engines and also especially high profitable game business, the fund helped to largely fund our growth in e-commerce and digital financial services. We think we stand in the best opportunity to -- in the best position to recapitalize the opportunity to build the largest consumer Internet ecosystem in this region. And we'll continue to focus on executing on our core businesses as well as building those ecosystems.

憑藉三大增長引擎以及特別高利潤的遊戲業務，該基金在很大程度上為我們在電子商務和數字金融服務方面的增長提供了資金。我們認為我們處於最佳機會 - 處於最佳位置，可以利用機會建立該地區最大的消費者互聯網生態系統。我們將繼續專注於執行我們的核心業務以及建立這些生態系統。

The next question comes from Piyush Choudhary from HSBC.

下一個問題來自匯豐銀行的 Piyush Choudhary。

Congratulations for solid results. Two questions. Firstly, for Free Fire, could you share your thoughts on where do you see opportunity to expand user base further and where time spent per user can potentially expand? Secondly, on your digital financial services strategy beyond wallets, can you talk about your consumer lending and merchant lending products? How has been the response to buy-now-pay-later and merchant lending and outlook for regional expansion?

祝賀你取得了可靠的結果。兩個問題。首先，對於 Free Fire，您能否分享一下您認為在哪些方面有進一步擴大用戶群的機會以及每個用戶花費的時間可能會擴大的地方？其次，關於你的錢包以外的數字金融服務戰略，你能談談你的消費貸款和商家貸款產品嗎？對“先買後付”和商家貸款以及區域擴張前景的反應如何？

Yes. I think we continue to see opportunity to expand our user base in -- across all markets, in Southeast Asia, LatAm as well as, of course, India and the rest of the world. And in fact, there has been a consistent trend historically. We see the penetration rate is still deepening over time so as the pay user penetration rate. And as we continue to roll out more IT and engagement and different game modes and engage out with our users online and offline through different activities, community engagement, we think there are definitely opportunities to further grow the user base as well as user time spent on the platform.

是的。我認為我們繼續看到擴大我們用戶群的機會——在所有市場，在東南亞、拉丁美洲，當然還有印度和世界其他地區。事實上，歷史上一直存在一致的趨勢。我們看到滲透率隨著時間的推移仍在加深，付費用戶滲透率也是如此。隨著我們繼續推出更多的 IT 和參與度以及不同的遊戲模式，並通過不同的活動、社區參與度在線和線下與我們的用戶互動，我們認為肯定有機會進一步擴大用戶群以及用戶花費的時間該平台。

We have seen user time spend for some of the top users, who can spend multiple hours a day on the platform, and we are focused on, of course, more of a broad-based time spent as opposed to top time spent by a small group of users. Of course, with 100 million daily active user. We're talking about a much larger community over time. So our focus is continue to promote a massive-based online platform and online community and provide them with content and opportunities for socializing engagement, try out different modes of games, try out different characters, avatars or having different ways of playing. For example, we recently launching a more of a mystery solving game mode, something like, Among Us, with pets, that players own in the game. So we'll continue to innovate to bring more content to them. And that's what we focus on in growing the user base as well as time spent per user and engagement in the game.

我們已經看到一些頂級用戶的用戶時間花費，他們每天可以在平台上花費多個小時，當然，我們更關注的是更廣泛的時間花費，而不是一小部分人花費的最高時間用戶組。當然，每天有 1 億活躍用戶。隨著時間的推移，我們正在談論一個更大的社區。所以我們的重點是繼續推廣一個基於海量的在線平台和在線社區，並為他們提供社交參與的內容和機會，嘗試不同的遊戲模式，嘗試不同的角色、頭像或不同的遊戲方式。例如，我們最近推出了一種更神秘的解謎遊戲模式，比如玩家在遊戲中擁有的寵物，比如《我們之中》。因此，我們將繼續創新，為他們帶來更多內容。這就是我們在擴大用戶群以及每個用戶花費的時間和遊戲參與度方面的重點。

In terms of the buy-now-pay-later program, we see it as an integral part of our SeaMoney services to our one-listed Shopee users. And as we continue to improve our model and understand our user behavior better, we might gradually roll out the program across more -- a larger user base as well as across more market, but we'll continue to focus on efficiency, high-quality lending and management of user experience in that respect. I think this is a program that facilitates wallet usage, as well as further facilitate growth of our e-commerce platform at the same time, allow us to provide better services and have better models on top of which we can build other digital financial services, such as Internet tech and wealth management technology services. Again, we'll continue to focus on using technology to power delivery of under -- financial services to underserved communities, and we are focused on collaborating with other financial institutions in growing the pie together collectively.

就“先買後付”計劃而言，我們將其視為 SeaMoney 為我們的單一 Shopee 用戶提供的服務的一個組成部分。隨著我們繼續改進我們的模型並更好地了解我們的用戶行為，我們可能會逐步在更多的用戶群以及更多的市場上推出該計劃，但我們將繼續專注於效率、高質量在這方面的用戶體驗的借貸和管理。我認為這是一個促進錢包使用的計劃，同時進一步促進我們電子商務平台的發展，讓我們能夠提供更好的服務，並擁有更好的模型，在此基礎上我們可以構建其他數字金融服務，如互聯網技術和財富管理技術服務。同樣，我們將繼續專注於使用技術為服務不足的社區提供金融服務，我們將專注於與其他金融機構合作，共同做大蛋糕。

The next question comes from Varun Ahuja from Crédit Suisse.

下一個問題來自瑞士信貸的 Varun Ahuja。

Three questions. First, on the e-commerce side, I think 1Q is supposed to be weaker given it's coming out of a strong 4Q. But this quarter, it's again a 6% quarter-on-quarter growth in GMV, so a strong growth. Can you just give some colors in terms of which segments and which countries it's doing well? And obviously, you've not given the number of orders by Indonesia. If you can give some color on that front, that will be helpful?

三個問題。首先，在電子商務方面，我認為第一季度應該會走弱，因為它是從強勁的第四季度中走出來的。但本季度，GMV 再次環比增長 6%，增長強勁。您能否就哪些細分市場和哪些國家做得好給出一些顏色？顯然，您沒有給出印度尼西亞的訂單數量。如果你能在這方面提供一些顏色，那會有幫助嗎？

On the gaming side, can you provide a little bit more color on have you launched Free Fire MAX? And anything about the -- any game launches, any plan, anything, color, that will be helpful? And if it is on Free Fire MAX, any color how is it trending in the developed market?

在遊戲方面，你能提供更多關於你推出 Free Fire MAX 的顏色嗎？還有任何關於——任何遊戲發布、任何計劃、任何東西、顏色，會有幫助嗎？如果它在 Free Fire MAX 上，任何顏色在發達市場的趨勢如何？

Thirdly, on the digital financial services side, if you can share how much of this $3.4 billion of TPV is related to the e-commerce, your platform versus how much are third party, any breakup? That would be helpful.

第三，在數字金融服務方面，如果您可以分享這 34 億美元的 TPV 中有多少與電子商務有關，您的平台與第三方有多少，有什麼分手嗎？那會很有幫助。

In terms of the e-commerce business, yes, it continues to experience hypercharge growth across all markets and categories. So our category composition really hasn't shifted much. And we continue to see growth across all major categories. And same for the market -- different markets. In Indonesia, we mentioned that our year-on-year growth rate actually further accelerated, in fact, this is the highest year-on-year growth rate we've seen in recent times.

就電子商務業務而言，是的，它在所有市場和類別中繼續經歷高速增長。所以我們的品類構成確實沒有太大變化。我們繼續看到所有主要類別的增長。市場也是如此——不同的市場。在印度尼西亞，我們提到我們的同比增長率實際上進一步加快了，實際上這是我們最近看到的最高的同比增長率。

And in terms of Free Fire MAX, we continue to improve on that the game and in terms of understanding our user preference and behavior, we've been testing it in control environment in select market to work on the dispersion. I think our goal is to have different offerings. For users with different preferences and have integrated and seamless user experience on our game.

在 Free Fire MAX 方面，我們繼續改進這款遊戲，在了解我們的用戶偏好和行為方面，我們一直在選定市場的控制環境中對其進行測試，以解決分散問題。我認為我們的目標是提供不同的產品。對於具有不同偏好並在我們的遊戲中具有集成和無縫用戶體驗的用戶。

In terms of new game launch pipeline, I think we previously announced Undawn, which is a open world survival game, and we believe it will also offer a fresh content to communities in our game world. And then also the Moonlight Blade, which is MMORPG game. And based on a more well-known IP in parts of Asia. I think these are some of the examples that we have mentioned in the -- in our pipeline.

在新遊戲的發布管道方面，我認為我們之前發布了 Undawn，這是一款開放世界的生存遊戲，我們相信它也會為我們遊戲世界中的社區提供新鮮的內容。然後還有MMORPG遊戲Moonlight Blade。並基於亞洲部分地區更為知名的IP。我認為這些是我們在管道中提到的一些示例。

But again, as practice, while we do have a long pipeline of potential IP. We don't preannounce those earnings. We really would like our game of community to hear from directly our game in the first and in terms of the TPV, most of it still related to Shopee as well as our self-owned services. As I mentioned before, we believe the most efficient way of growing our SeaMoney business or, in particular, the e-wallet business, is through growing our own ecosystem of the own use case, which also happened to be the largest -- some of the highest quality online use cases that allow us to grow the wallet efficiently and on top of which to have high quality user analysis and understanding to be able to build comprehensive digital financial services on top of it. So this will continue to be our strategy.

但同樣，作為實踐，雖然我們確實有很長的潛在 IP 管道。我們不會預先宣布這些收益。我們真的希望我們的遊戲社區在第一時間直接聽到我們的遊戲，就 TPV 而言，其中大部分仍然與 Shopee 以及我們的自有服務有關。正如我之前提到的，我們認為發展 SeaMoney 業務，特別是電子錢包業務的最有效方式是通過發展我們自己的用例生態系統，這也恰好是最大的——其中一些最高質量的在線用例使我們能夠有效地發展錢包，並在此基礎上進行高質量的用戶分析和理解，從而能夠在其上構建全面的數字金融服務。所以這將繼續是我們的策略。

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

（操作員說明）我們的下一個問題來自高盛的 Pang Vitt。

Just two questions from me. Firstly, on Garena, can we understand why is the margin decline quarter-on-quarter given that Free Fire continues expand is base?

我只有兩個問題。首先，在 Garena 上，鑑於 Free Fire 的持續擴張是基礎，我們能否理解為什麼利潤率環比下降？

And second question is related to COVID impact. We've seen a worsening in COVID in Asia and rest of the world and maybe in Singapore in Thailand and also in India, how prepared is Sea this time? And if situation continues to worsen, should we expect a lessor route of seller support program that we've seen last year?

第二個問題與 COVID 影響有關。我們已經看到亞洲和世界其他地區以及新加坡、泰國和印度的新冠病毒疫情惡化，這次 Sea 準備得如何？如果情況繼續惡化，我們是否應該期待我們去年看到的賣家支持計劃的出租途徑？

In terms of the EBITDA margin, we mentioned before that we believe our EBITDA margin might fluctuate from time to time but remain at a high rate compared to the industry average. So related to the first quarter, as I mentioned, we have IP collaboration such as One-Punch Man, and this might also contribute to additional payout. We need to make to third-party IP owner. But overall, we think this is very helpful in further engagement with our users, and in promoting our games to a broader based and in promoting the pay user as well.

在 EBITDA 利潤率方面，我們之前提到，我們認為我們的 EBITDA 利潤率可能會不時波動，但與行業平均水平相比仍處於較高水平。正如我所提到的，與第一季度相關的是，我們有 IP 合作，例如 One-Punch Man，這也可能有助於額外的支出。我們需要向第三方 IP 所有者提供。但總的來說，我們認為這對於進一步與用戶互動、將我們的遊戲推廣到更廣泛的基礎以及推廣付費用戶非常有幫助。

So we will continue to focus on growing the user base and pay user base and user engagement. We have proven our ability to commercialize any -- whether it's self-developed or third-party IP incorporated in our being broadly across many markets.

因此，我們將繼續專注於擴大用戶群並支付用戶群和用戶參與度。我們已經證明了我們將任何東西商業化的能力——無論是自行開發的還是第三方 IP 併入我們的廣泛市場中。

In terms of the COVID impact, you're right that we have seen resurgence of cases and restart of some form of lockdown or restriction of social movement in our region such as Taiwan, Singapore, Thailand, Vietnam, of course, India being also -- we also see a very large number of cases. And for other countries like Indonesia, Malaysia, Philippines, we continue to see a large number of cases. So I think we're still very much in the COVID situation, and we are well prepared, we believe, to handle that, since early last year, even when this -- the pandemic first hit, I think, our team have shown resilience and adaptability to be able to manage the stricter form of lockdown to deliver the well-needed services to our communities and with specs in service levels, and we continue to fulfill those services and demand with quality.

就新冠病毒的影響而言，您說得對，我們已經看到病例在我們地區（例如台灣、新加坡、泰國、越南）死灰復燃，並重新啟動某種形式的封鎖或限制社會活動，當然，印度也在—— - 我們也看到了大量的案例。對於印度尼西亞、馬來西亞、菲律賓等其他國家，我們繼續看到大量病例。因此，我認為我們仍處於 COVID 的困境中，我們相信，自去年年初以來，我們已做好充分準備來應對這一問題，即使是在大流行首次襲擊的時候，我認為，我們的團隊已經表現出韌性和適應能力，能夠管理更嚴格的封鎖形式，為我們的社區提供急需的服務，並提供服務水平的規範，我們將繼續以質量滿足這些服務和需求。

I think we're also well prepared for any new surges in cases and will continue to be vigilant. I think regardless of COVID, the step-up in digitalization, we believe is here to stay, and that has been evidenced in our numbers. Of course, if there are further lockdown and restrictions on movements, we think there will be even greater need for our online services to reach broader communities, and we are ready to deliver that.

我認為我們也為任何新的病例激增做好了充分的準備，並將繼續保持警惕。我認為，無論新冠疫情如何，數字化的進步，我們都相信會繼續存在，這已經在我們的數據中得到證明。當然，如果進一步封鎖和限制行動，我們認為我們的在線服務將更需要覆蓋更廣泛的社區，我們已準備好實現這一目標。

Our next question is a follow-up from Ranjan Sharma from JPMorgan.

我們的下一個問題是摩根大通的 Ranjan Sharma 的後續問題。

Can I just have a quick follow-up on Free Fire in the U.S. There seems to be a vast improvement of popularity in the U.S. If you can share any color what's driving this? And then the engagement remains where it is, how do you feel about the given guidance for this year?

我可以快速跟進美國的 Free Fire 嗎？美國的受歡迎程度似乎有了很大的提高。如果您可以分享任何顏色，是什麼推動了這一點？然後參與度保持不變，您對今年給出的指導有何看法？

Yes. We continue to see positive reception and growth of Free Fire in developed markets in North America, and we think it's a highly encouraging sign, and we'll continue to serve the users there. I think there are -- not all battle royale games are the same. Each top hit game has its own appeal to its own audience. And I think our game differentiates itself in terms of the appeal to broad-based, not necessarily action focused audience but with a lot of broad-based appeal with fantasy elements, social elements and various forms of engagement and game modes and user friendliness to broad-based communities across gender, age and level experience with battle royale or action game in general.

是的。我們繼續看到北美髮達市場對 Free Fire 的積極歡迎和增長，我們認為這是一個非常令人鼓舞的跡象，我們將繼續為那裡的用戶服務。我認為有——並非所有的大逃殺遊戲都是一樣的。每個熱門遊戲都有其對自己觀眾的吸引力。而且我認為我們的遊戲在吸引廣泛的、不一定以動作為中心的觀眾的吸引力方面與眾不同，但具有大量廣泛的吸引力，包括幻想元素、社交元素和各種形式的參與和遊戲模式以及對廣泛的用戶友好性- 跨性別、年齡和級別的社區，擁有大逃殺或動作遊戲的總體經驗。

I think this helps in promoting our game to different types of audiences, and we'll -- they will -- one way or the other find us, and we see strong organic growth in-game communities and will continue to focus on reaching the right communities with our game and serving them well in the developed markets as well. In terms of gaming guidance, of course, we see very strong results this quarter. We'll continue to observe. And as we need to update the guidance, we'll let people know. But at this point, we'll continue to observe the trends.

我認為這有助於將我們的遊戲推廣給不同類型的觀眾，我們將——他們會——以一種或另一種方式找到我們，我們看到遊戲社區的強勁有機增長，並將繼續專注於接觸使用我們的遊戲為社區提供正確的服務，並在發達市場為他們提供良好的服務。當然，在遊戲指導方面，我們看到本季度的業績非常強勁。我們將繼續觀察。由於我們需要更新指南，我們會讓人們知道。但在這一點上，我們將繼續觀察趨勢。

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

我們的問答環節到此結束。我想把會議轉回給 Min Ju Song 做任何閉幕詞。

Thank you all for joining today's call. We 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。