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.

各位早安、晚安。歡迎參加 Sea Limited 2021 年第一季業績電話會議。（接線員指示）請注意，本活動將被錄音。我現在想將會議交給 Min Ju Song 女士。請開始。

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.

各位好，歡迎參加 Sea 2021 年第一季財報電話會議。我是 Sea 集團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，我想提醒各位，我們可能會作出前瞻性陳述，而此類陳述本質上存在風險與不確定性。基於我們新聞稿所述的各種原因，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，本次電話會議包含對若干非 GAAP 財務衡量指標的討論，例如經調整 EBITDA 及淨虧損（不含以股份為基礎的薪酬）。我們相信，當這些指標作為 GAAP 披露的補充使用時，能增進投資人對我們主要業務實際現金流的理解。關於非 GAAP 財務衡量指標的使用以及與最接近的 GAAP 指標之間的調節，請參閱我們新聞稿中「非 GAAP 財務衡量指標」一節。

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.

與我一同出席的有 Sea 董事長兼集團首席執行官 Forrest Li；集團首席財務官 Tony Hou；以及集團首席企業官 Yanjun Wang。我們的管理團隊將分享 2021 年第一季的策略與業務更新、營運重點以及財務表現。之後將進行問答環節，歡迎各位提出問題。

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

接下來，讓我把電話交給 Forrest。

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，Min Ju。各位好，也一如既往感謝各位參加今天的電話會議。我們很高興以強勁的態勢開啟 2021 年。第一季的業績顯示我們所有業務持續保持高速成長。即使自 2020 年下半年以來，我們所在區域的線下活動逐步復甦，我們在用戶成長與參與度方面的強勁表現仍顯示，隨著我們服務的社群持續擁抱線上生活方式的益處，數位化採用仍在健康上升。

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.

在集團層面，2021 年第一季我們很高興報告 GAAP 營收為 18 億美元，年增 147%。毛利成長尤為強勁，達 6.454 億美元，年增 212%；同時，經調整 EBITDA 為 8,810 萬美元，而去年同期為虧損 6,990 萬美元。這種在營收端與獲利端的強勁表現，再次展現 Sea 能夠把握我們所處產業與區域的高成長潛力，並在各項業務之間有效且高效率地配置資本與資源。

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.

在我們詳細討論業務表現之前，重要的是要指出，我們所服務的許多社群、消費者與小型企業，仍因疫情持續影響而面臨重大挑戰，包括部分國家近期病例增加。作為 Sea，我們承諾盡一己之力，協助社群應對這些持續的挑戰。這包括支援解決社群最迫切的短期需求，以及持續專注於幫助更多人受益於數位經濟的成長。

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.

我們的全球團隊正努力尋找能為社群提供具體短期支援的方法。例如，在印尼萬隆，我們近期與西爪哇衛生局合作設立疫苗接種中心，提供 20,000 劑疫苗。在菲律賓，我們推出第二波前線關懷包，提供給醫護人員、配送與物流服務提供者，以及其他投入抗疫的人員。

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.

我們為他們提供了來自 Shopee 及其合作夥伴的專屬折扣方案與行動抵用券，以及預付 WiFi 裝置。同時，我們也注意到區域內許多小型企業仍在從去年所受的衝擊中復甦。我們持續投資各項計畫，協助他們成功適應數位經濟、擴大業務規模並創造更多收入以養家。例如，3 月 Shopee 宣布將與印尼出口學校合作，目標在 2030 年前協助 50 萬家中小企業出口其產品。4 月，ShopeePay 宣布將為印尼女性創業者提供培訓計畫，協助其將業務數位化並擴大客戶觸及。

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 與聯邦農業行銷局合作，教導本地農民如何有效地將業務轉移到線上，並適應疫情帶來的影響。

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.

在這段艱難時期，我們也持續培育人才。我們清楚意識到，在我們的主要市場中，無論年輕或年長者，許多人可能需要培養新的技能組合，才能受益於快速成長的數位經濟。我們希望盡一份力，透過協助培育這些新技能，為社群帶來正向影響。2 月，我們宣布推出第二季 Shopee Code League——東南亞與台灣最大的線上程式競賽，吸引來自 8 個國家的 15,000 名參與者。此外，作為持續性計畫，我們在泰國的 Garena Academy 協助引導並教育年輕人如何在遊戲與電競產業發展職涯。

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，我們以連結社群、促進消費者便利、賦能小型企業為使命，為資源不足的族群提供服務。特別是那些傳統上較難取得科技平台及其所帶來機會的人。

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.

接下來，我將分別討論各項業務。首先是數位娛樂。Garena 再次交出亮眼的一季表現。預訂額（Bookings）為 11 億美元，年增 117%；經調整 EBITDA 達 7.173 億美元，年增 140%。本季，季度活躍用戶達 6.488 億，年增 61%；季度付費用戶達到 7,980 萬的高峰，年增 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.

我們的付費用戶比率上升至 12.3%，相較去年同期的 8.9%，顯示我們在擴大用戶基礎的同時，也能深化變現能力。再一次，Free Fire 表現突出；我們持續專注於以更具創意、更吸引人的內容與用戶互動活動來完善平台，並持續獲得全球玩家共鳴。根據 App Annie 的資料，Free Fire 本季仍為拉丁美洲、東南亞與印度的最高營收手機遊戲，並在拉丁美洲與東南亞連續 7 個季度維持第一名，在印度也連續 2 個季度達成同樣成績。關鍵成功因素之一，是我們能透過不斷提供新鮮、高品質且具在地相關性的內容，讓我們強大的全球社群持續深度參與平台。

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.

第一季，我們與《一拳超人》、《進擊的巨人》等熱門日本漫畫作品展開合作，為用戶打造令人難忘的跨界活動與內容體驗。我們在推出以當地知名名人為原型的遊戲角色時，也獲得非常正面的回饋。例如在越南與中東及北非（MENA）地區，我們與知名 V-pop 王子 Sơn Tùng M-TP 合作，他擁有超過 900 萬名追蹤者，並在 YouTube 上累積近 20 億次觀看；以及埃及知名歌手兼演員 Mohamed Ramadan 合作，他去年一首熱門歌曲至今已在 YouTube 上累積超過 2.25 億次觀看。除了打造遊戲角色外，我們的社群經營與電競投入也是成功的關鍵驅動因素。

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，我們推出了圍繞印度侯麗節（Holi）的高人氣社群內容，並為該節日製作了特別的 Free Fire 音樂影片，帶來 1,500 萬次觀看。我們也舉辦了如 Free Fire League Latinoamerica 2021 等電競賽事。4 月，我們的旗艦 Garena World 活動在線上吸引 120 萬名觀眾，並在 Facebook、YouTube 及其他社群媒體渠道累積超過 4,000 萬次線上觀看。本次在泰國舉辦的為期兩天、全虛擬活動中，我們結合擴增實境、視覺特效、動畫及其他技術，為粉絲提供互動且沉浸式的體驗。例如，我們設置了專屬直播平台，讓觀眾可自訂其虛擬化身，並透過聊天室表達觀點。

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支隊伍參加我們的線上遊戲錦標賽。此活動展現了我們適應快速變化環境的能力，並能透過科技成功深化與用戶的互動。我們亦在2021年Pocket Gamer Awards獲得多項獎項，其中Garena榮獲「最佳行動遊戲發行商」獎，Free Fire則獲選為「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.

這些透過持續推出內容並強調社群建設活動、以擴大並強化Free Fire平台的努力，已帶來明確成果，不僅體現在強勁的用戶指標與財務表現上，也體現在用戶黏著度上。

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.

確實，我們對Free Fire的同批用戶（cohort）分析顯示，自2020年第二季起，我們核心市場即使曾實施嚴格封鎖，也已逐步放寬。Free Fire的每日活躍用戶（DAU）人均使用時長仍遠高於疫情前水準。看到較早期同批用戶仍有此表現，我們備受鼓舞。每位活躍用戶的使用時長，尤其是付費用戶比例，仍在上升，儘管這些用戶自Free Fire早期便已開始遊玩。新的同批用戶起步也比舊同批用戶更強，展現出更高且成長更快的付費用戶比例，並隨時間推移超越舊同批用戶。

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，我們將持續規劃充實的創新內容管線、全新合作夥伴關係以及令人振奮的電競活動，以進一步並更有效地與我們不斷成長的全球用戶社群互動。我們也致力確保長期遊戲產品組合的研發管線保持強勁。我們在全球超過1,000名內部遊戲開發人員持續投入新點子，同時我們也持續與第三方遊戲工作室洽談合作，尋求具潛力且互補的遊戲研發與發行機會。

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.

接下來談電商。Shopee第一季交出卓越成績，延續2020年的亮眼表現，並持續累積動能、吸引更多買家與賣家。第一季，Shopee錄得11億筆總訂單，年增153%；GMV為126億美元，年增103%。GAAP營收年增250%至9.223億美元。本季訂單年增率持續加速，凸顯我們不斷強化的市場領導地位。我們也很高興看到每筆訂單的調整後EBITDA虧損再次下降，本季年減38%至0.38美元，顯示即使我們持續投資成長，核心電商營運效率仍在提升。

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資料，Shopee於本季在東南亞與台灣的購物類別中，按Android端平均月活躍用戶數及App總使用時長持續排名第一。在印尼（Shopee最大的市場），我們在上述相同指標上也持續排名第一，同時本季總訂單年增率進一步加速。我們也看到巴西用戶對我們平台的接受度持續提升。我們將持續審慎評估當地趨勢與機會，並以高效率方式投資，持續強化我們為用戶提供的平台服務。

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.

我們對卓越執行的專注，仍是推動Shopee持續成功的關鍵因素。在我們所做的一切中，我們都高度重視優化表現並最大化產出。第一季，我們推出更多措施以支持區域賣家與品牌。例如，針對中小型賣家，我們於3月與新加坡SkillsFuture合作推出「Step Back Tech」計畫，成功協助其轉型線上。針對品牌方面，我們推出如「Regional Champion Brands Programme」及「1億美元課程」等新計畫，協助其最大化線上成長潛力。我們也頒發如「最佳產品上市」或「最佳科技創新」等獎項，以表揚在我們平台上展現差異化的品牌，例如P&G、Disney、L'Oreal、Samsung與Unilever。我們也很高興分享，與Shopee Mall合作的品牌數量已成長至超過25,000家。

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.

總結而言，我們認為，儘管疫情爆發以來數位化出現階躍式提升，但在我們所有市場中，電商滲透率仍然偏低。在此背景下，我們仍將致力於以高效率方式投資，以在長期把握具吸引力的成長潛力。我們相信，我們的高度在地化與精準鎖定策略，加上我們對長期聚焦並以效率投資的承諾，將使我們能建立健康且可持續的生態系，為買家與賣家以及其他利害關係人提供最佳的長期價值。

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.

接著談數位金融服務。SeaMoney本季延續去年優異表現，持續維持高速成長。第一季，SeaMoney的行動錢包服務總支付金額達34億美元，較一年前的11億美元成長逾三倍。本季季度付費用戶數突破2,610萬。我們很高興看到ShopeePay作為快速且便利的線上與非接觸式支付選項，持續獲得更多採用。事實上，根據Snapcart Indonesia於3月的調查，ShopeePay在第一季是印尼消費者使用最多、記憶度最高且最喜愛的行動錢包。

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.

除了善用Shopee平台內強勁且持續成長的使用情境外，我們也持續擴展平台外的使用情境。例如，ShopeePay現已可在Indomaret（印尼領先的連鎖便利商店之一）作為付款選項使用，亦可在Wendy's與Domino's Pizza等多家受歡迎的餐飲連鎖（F&D）使用。迄今市場反應強勁。在與Indomaret合作的第一週，使用ShopeePay完成支付的交易筆數即超過100萬筆。

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.

我們也為ShopeePay體驗新增功能，以提升其對消費者與ShopeePay商家的實用性。4月，我們推出名為「malls around you」（或「Promo / Deals Near Me」）的新功能，向用戶展示其周邊的優惠。用戶可在App上購買相關券並立即於實體門市兌換。此功能在帶動已上線的線下商家實際到店人流方面非常成功。我們認為，本區域的數位金融服務產業仍處於早期階段，預期未來將逐步發展出更多使用情境、功能與機會。隨著我們擴大此業務規模，我們將延續迄今在各項業務中所達成的同樣嚴謹、紀律與效率。

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.

總結而言，我們第一季的業績為今年開了個好頭。我們各項業務均表現亮眼，並已做好準備把握具吸引力的長期產業潛力。即使線下活動持續恢復，我們仍預期數位採用率上升將成為支撐此一持續成長的順風。我們也將持續審慎且高效率地投資，以強化我們的競爭護城河，並為新機會做好布局。我們以科技服務消費者與中小企業的承諾比以往更為堅定，並決心讓社群中更多人受惠於數位經濟。

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

接下來，我將邀請Tony來說明我們的財務表現。

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，也感謝各位參與本次電話會議。我們已在今日新聞稿中附上詳細的財務附表及相對應的指標分析，Forrest也已分享部分財務重點。因此，我將把評論重點放在其他相關指標上。

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.

就Sea整體而言，GAAP總營收年增147%至18億美元。這主要由電商業務的強勁表現所帶動，我們持續推出工具以更好地滿足用戶需求；同時，數位娛樂業務亦成長，尤其是我們自研遊戲Free Fire。數位娛樂預訂（bookings）年增117%至11億美元；GAAP營收年增111%至7.813億美元。成長主要來自活躍用戶基礎擴大與付費用戶滲透率加深，因我們持續透過新內容、合作夥伴推廣以及電競活動來凝聚並互動社群。

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.

數位娛樂調整後EBITDA為7.173億美元，年增140%。這主要歸因於強勁的營收成長，以及我們自研遊戲在總預訂中的占比提升。電商方面，我們第一季GAAP營收為9.223億美元，其中包含GAAP平台服務營收（marketplace revenue）7.159億美元，年增285%；以及GAAP產品營收（product revenue）2.064億美元，年增167%。強勁的結果顯示電商滲透率持續加深，以及我們在持續強化平台服務、為平台用戶創造更大價值的同時，具備把握此一加速成長機會的能力。

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.

電商調整後 EBITDA 虧損為 4.129 億美元，因為我們持續投資以充分把握我們市場中的機會。我們仍致力於以高效率進行投資並擴大生態系，以更好地服務使用者。數位金融服務 GAAP 營收為 5,130 萬美元，較 2020 年第一季的 1,030 萬美元年增 396%。成長主要來自於我們持續擴展服務組合、帶動使用者採用度提升。調整後 EBITDA 虧損為 1.531 億美元，而 2020 年同期虧損為 9,310 萬美元。這主要是因為我們持續推動行動錢包採用。

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.

回到我們的合併數字。我們在 2021 年第一季認列淨非營業損失 2,330 萬美元，而 2020 年第一季為淨非營業收益 1,120 萬美元。2021 年第一季的非營業損失主要是由於可轉換貸款的利息費用增加。我們在 2021 年第一季的所得稅費用淨額為 5,100 萬美元，主要來自於我們數位娛樂業務所認列的公司所得稅與預扣稅。因此，剔除股份基礎給付後的淨損在 2021 年第一季為 3.20 億美元，而 2020 年同期為 2.395 億美元。

With that, let me turn the call to Yanjun.

接下來，我把電話會議交給 Yanjun。

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

謝謝你，Forrest 和 Tony。我們現在準備開放提問。接線生？

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

（接線生指示）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?

你能否評論一下 Free Fire 的生命週期，以及在 MAU 與使用者 ARPU 方面的成長驅動因素？往後我們是否應該預期成長更多來自拉丁美洲（LatAm）？

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，不好意思，你的線路不是很清楚。我理解你的問題是關於 Free Fire 的生命週期，以及使用者與 ARPPU 的成長驅動因素，還有成長是否來自拉丁美洲（LatAm）地區？是這些對嗎？

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，我認為從我們披露的季度活躍用戶、季度付費用戶與訂單額（bookings），以及最終的調整後 EBITDA 來看——這在很大程度上也歸因於 Free Fire 是一款全球性遊戲，並在全球以非常健康的速度成長。我們仍然認為——它還處於生命週期的早期階段。事實上，我們也越來越把它視為一個平台，以及一個重要的 IP 系列（franchise）。

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.

我們專注於持續擴大使用者基礎。成長——驅動因素同時來自東南亞、拉丁美洲（LatAm）、印度以及世界其他地區。無論是使用者基礎或付費使用者基礎，情況都相同。因此，我們仍處於推動這款遊戲的使用者基礎與付費使用者基礎成長的早期階段，並把它發展成一個社交平台，讓人們不僅來玩核心玩法，也能享受其他模式：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.

遊戲內的使用時長仍然非常高，每位日活躍用戶每天 2 到 3 小時。正如我們在先前評論中討論的，我們在同群分析（cohort analysis）上也觀察到非常令人鼓舞的趨勢：較早期就加入的老同群，在遊玩時長以及付費比例方面呈現更強的趨勢。我們也看到近期加入的較新同群，在付費用戶比例的成長以及黏著度方面展現更快的提升。

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.

此外，正如我們提到的，付費用戶與——以及遊戲黏著度之間存在正向回饋循環。當使用者付費並付得更多時，他們往往會玩得更多，並在遊戲中停留更久。我們也一直專注於在電競、生態社群以及與第三方 IP 的合作上建立我們的生態系。正如我們先前提到的，我們曾與例如《一拳超人》合作，這是一個非常成功的活動，進一步促進了我們遊戲的參與度。因此，我認為這在很大程度上是廣泛的使用者成長以及付費用戶成長，我們將持續專注於在全球範圍內擴大這款遊戲。

The next question comes from Piyush Mubayi from Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）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?

當我看電商業務時，我希望你能說明一下你們在巴西的進展，並幫助我們理解我們看到的抽成率（take rate）改善的驅動因素。另外，關於電商，為了更好理解目前的支出情況，你能否告訴我們或讓我們大致了解，在第一季這個階段，電商端的投資規模有多少、以及它對電商端 EBITDA 造成的拖累有多大？

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.

如我們先前提到的，我們在巴西持續看到使用者的正面回饋，並將持續投資以強化對賣家的服務與擴大當地使用者基礎。就目前階段而言，對我們來說仍非常早期，我們會持續觀察當地趨勢，並專注於在當地進行高效率的投資。

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?

你能否說明一下，就電商而言，在該地區以外的投資是否會對整體 EBITDA 造成拖累？

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.

鑑於目前仍處於非常早期階段，我認為現在要分別談論各個市場仍為時過早。整體而言，從電商角度來看，我們在毛利貢獻方面看到的表現仍然非常正面。我們每筆訂單的 EBITDA 虧損持續下降。而在營收成長方面，達到 250%，在各方面都非常、非常強勁。因此，我認為對我們而言，巴西仍處於非常早期的階段，甚至要把它當作一個獨立的大市場來討論都還太早。

The next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗（Citigroup）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.

恭喜取得穩健的業績。我有兩個簡短問題。第一個，想請管理層分享一下印度的情況。考量 Free Fire 在當地的熱度，以及封城措施，你們是否真的看到使用時長增加？還是因為疾病與不穩定而看到一些負面影響？所以想請你們補充一些印度遊戲表現的細節。

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?

第二個問題是關於外送業務。如果可以的話，請分享你們的計畫與企圖心。它會更偏向互補性業務？還是屬於必須取勝（need-to-win）的戰略，也就是你們想要挑戰市場領導者？

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，我們也在觀察當地情勢。希望印度——如我們在財報中提到的——仍然是成長最快的市場之一，我們的遊戲在當地表現非常強勁。每位使用者的使用時長仍然非常高。我們看到付費用戶比例上升。我們認為這是一個極具潛力的市場，且有非常長的成長跑道，將持續對我們的遊戲成長做出重要貢獻。我們也會專注於在印度推廣我們的遊戲並提升使用者參與度。

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.

至於外送，我們把它視為 Shopee 上的一個品類。我們自然也看到非常強勁的使用者回饋；而且類似於我們能夠在 Shopee 上擴大其他品類的方式——透過強力執行、正確的商業模式與使用者參與度。正如我們先前提到的，對於餐飲外送，我們更把它視為對其他電商服務的互補。我們也可能會自然成為市場領導者，就像在越南發生的情況一樣；如果如此我們也樂見其成。但我們的重點是健康成長與可持續成長，作為整體電商生態系的一部分。

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

下一個問題來自摩根大通（JPMorgan）的 Ranjan Sharana（原文如此）[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。第一，關於拉丁美洲（LatAm）的 Shopee。你們在巴西或墨西哥推動採用方面已看到成功。你們也能否分享一下，你們如何看待拉丁美洲其他地區作為電商機會？第二，關於外送，你們在越南、也在印尼，我們應該如何看待 ShopeeFood 在亞洲各地的擴張？

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.

就我們的拉丁美洲市場而言，再次強調，即使是巴西對我們來說也仍處於非常、非常早期的階段，更不用說其他國家了。目前我們沒有太多可更新的內容；若有任何進展，我們會向市場更新。食品業務也是同樣的看法。我們一直在越南做食品業務，並在那裡測試市場領導者。在印尼方面，我們最近才先在雅加達推出，並隨時間逐步——擴展到其他市場。但我們尚未宣布任何計畫或其他市場。若有任何更新，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。第一，能否請您更新一下 Shopee 在大東南亞核心市場的競爭定位？第二，這個問題之前有人問過，但我還是要再問一次。銷售與行銷支出高於預期。能否請您就銷售與行銷支出提供更多說明？以及巴西擴張是否是推動銷售與行銷支出的主要因素？

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.

就競爭格局而言，隨著我們在各方面持續擴大市場領導地位，情況對我們而言持續改善。這也反映在我們營收端 GMV 訂單成長以非常高的速度改善——在東南亞加台灣超過 150%——以及我們的抽成率隨時間提升與變現能力提升。至於銷售與行銷支出，我認為我們的營收端成長在某種程度上也可能超出市場共識。因此，銷售與行銷費用占 GMV 的比例其實是季對季下降的。我想我們會持續觀察這些趨勢。

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.

另外非常重要的是要注意，這其實是我們在評估各種機會時所管理出來的結果。以公司而言，這是我們連續第 11 個季度在營收端呈現三位數成長。我認為以我們的規模、體量與成長速度，可能沒有太多其他大型科技網路公司能展現如此長期、持續的高成長。我們的成長是透過審慎且有效率的支出，以及對商業模式長期發展的投資所精心管理的成果。而且我們所在的是高成長區域，數位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.

因此，成長跑道非常、非常長。競爭格局並不是那種紅海、零和博弈的情況。相反地，我們持續看到我們的市場領導地位在擴大；因為我們在變得更大的同時，也相信我們的成長速度比許多其他玩家更快。這對我們的機會非常有利；我們也希望持續投資於長期商業模式，我們相信這能在未來為我們及股東在長期最大化獲利能力。

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。第一，在電商業務方面，展望未來，你們如何看待自建物流與第三方（3P）物流的組合？第二，Gojek 與 Tokopedia 合併對你們的業務有何影響？以及你們是否認為沒有叫車業務會有任何劣勢？

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.

就物流而言，我們的做法一直相當一致，也就是主要與本區域的第三方物流服務供應商合作。他們也一直專注於與我們一起投資成長；我們也與他們進一步更深度整合，協助他們提升效率與服務品質，讓用戶受益。我們也持續看到配送時間縮短、效率提升，以及成本隨時間下降。

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.

我們自有的快遞配送服務在這個市場中是對第三方物流服務的補充。當然，我們也會——持續保有第一方能力，以確保用戶能獲得良好服務，特別是在旺季，或有時在封鎖期間可能出現運能受限的情況。

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，首先我們要恭喜我們的朋友成功完成合併。我們認為，正如我提到的，這在我們的區域是一個巨大的機會。成長跑道很長，我們應該共同專注於把餅做大、推動區域數位經濟成長，並以長期投入來更好地服務用戶與社群。至於沒有某一特定業務是否會有劣勢，我們並不這麼看。我們認為我們很幸運，能在所處的高成長區域中擁有三個最大的消費者網路機會，並且能在眾多複雜且不同的市場中加以管理。

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.

憑藉三個成長引擎，尤其是高獲利的遊戲業務，所產生的資金在很大程度上支持了我們在電商與數位金融服務的成長。我們認為我們處於最佳位置，能把握這個機會，打造本區域最大的消費者網路生態系。我們將持續專注於核心業務的執行，同時也建構這些生態系。

The next question comes from Piyush Choudhary from HSBC.

下一個問題來自 HSBC 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?

恭喜取得穩健的成果。兩個問題。第一，針對 Free Fire，你能分享一下你們認為在哪些方面有機會進一步擴大用戶基礎，以及每位用戶的使用時長可能在哪些方面提升嗎？第二，關於你們錢包以外的數位金融服務策略，能否談談你們的消費者貸款與商戶貸款產品？先買後付與商戶貸款的反應如何，以及區域擴張的展望？

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。我認為我們持續看到在——所有市場擴大用戶基礎的機會，包括東南亞、拉丁美洲，當然也包括印度與世界其他地區。事實上，歷史上一直有一個一致的趨勢：我們看到滲透率隨時間持續加深，付費用戶滲透率也是如此。隨著我們持續推出更多 IT 與互動內容、不同的遊戲模式，並透過線上與線下的各種活動與用戶互動、社群參與，我們認為確實有機會進一步擴大用戶基礎，以及提升用戶在平台上的使用時長。

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.

我們看到部分頂級用戶的使用時長很高，他們每天可以在平台上花好幾個小時；但我們關注的是更廣泛的整體使用時長，而不是少數用戶的極高使用時長。當然，以 1 億日活躍用戶而言，我們談的是一個隨時間擴大的更大社群。因此，我們的重點是持續推動一個大眾化的線上平台與線上社群，為他們提供內容與社交互動的機會，嘗試不同的遊戲模式、不同的角色、化身，或不同的玩法。例如，我們最近推出了一種更偏向解謎的遊戲模式，有點像《Among Us》，並加入玩家在遊戲中擁有的寵物。因此我們會持續創新，帶來更多內容。這就是我們在擴大用戶基礎、提升每位用戶使用時長與遊戲互動方面所專注的方向。

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（buy-now-pay-later）計畫而言，我們將其視為 SeaMoney 服務於我們一站式 Shopee 用戶的重要組成部分。隨著我們持續改善模型並更了解用戶行為，我們可能會逐步把該計畫推廣到更——更大的用戶基礎以及更多市場，但我們仍會專注於效率、高品質放貸，以及在這方面的用戶體驗管理。我認為這個計畫一方面促進錢包使用，同時也進一步促進我們電商平台的成長，並讓我們能提供更好的服務，並建立更好的模型，在其上我們可以發展其他數位金融服務，例如網路科技與財富管理科技服務。再次強調，我們會持續專注於以科技驅動，將金融服務提供給服務不足的社群；同時我們也專注於與其他金融機構合作，共同把市場做大。

The next question comes from Varun Ahuja from Crédit Suisse.

下一個問題來自 Crédit Suisse 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。第一，在電商方面，我認為第一季通常會較弱，因為是從強勁的第四季之後下來。但這一季 GMV 仍然季對季成長 6%，屬於強勁成長。你能否提供一些說明，哪些品類與哪些國家表現較好？另外，你們顯然沒有提供印尼的訂單數字；如果能在這方面提供一些說明，會很有幫助。

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，您能否就是否已推出 Free Fire MAX 提供更多細節？以及任何關於——任何遊戲上線、任何計畫、任何資訊補充，都會很有幫助？另外，如果是關於 Free Fire MAX，能否分享一下它在已開發市場的趨勢如何？

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，在數位金融服務方面，若您方便分享，這 34 億美元的 TPV 中，有多少與電商（您自家平台）相關、又有多少來自第三方？能否提供任何拆分？這會很有幫助。

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.

就電商業務而言，是的，我們在所有市場與品類仍持續呈現高速成長。因此，我們的品類結構其實沒有太大變化。我們也持續看到所有主要品類的成長；不同市場亦然。以印尼為例，我們提到年對年成長率其實進一步加速，事實上，這是我們近期所見到的最高年對年成長率。

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.

至於 Free Fire MAX，我們持續在遊戲本身做改進，並在理解使用者偏好與行為方面持續精進；我們已在特定市場的受控環境中進行測試，以優化分發。我想我們的目標是提供不同的產品選擇，滿足不同偏好的使用者，並在我們的遊戲中提供整合且無縫的使用者體驗。

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.

在新遊戲上線的產品管線方面，我想我們先前已公布 Undawn，這是一款開放世界生存遊戲，我們相信它也將為我們的遊戲世界社群帶來新鮮內容。另外還有《天涯明月刀》（Moonlight Blade），這是一款 MMORPG，並且在亞洲部分地區是較知名的 IP。我想這些是我們在——在我們管線中提到的一些例子。

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.

不過再次強調，依照慣例，雖然我們確實有很長的潛在 IP 管線，但我們不會在財報中預先公告。我們更希望遊戲社群能第一時間直接從我們的遊戲端得知相關消息。至於 TPV，大部分仍與 Shopee 以及我們自有服務相關。如我先前所提，我們認為成長 SeaMoney 業務、特別是電子錢包業務，最有效率的方式，是透過擴大我們自有生態系中的自有使用情境；而這些情境也恰好是最大——也是一些最高品質的線上使用情境，能讓我們有效率地擴大錢包規模，並在其上進行高品質的使用者分析與理解，以便在其上建立更全面的數位金融服務。因此，這將持續是我們的策略。

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

（接線員指示）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?

我有兩個問題。第一，關於 Garena，鑑於 Free Fire 持續擴大其用戶基礎，我們能否理解為何利潤率會季對季下滑？

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 影響相關。我們看到亞洲及世界其他地區的 COVID 情況惡化，可能在新加坡、泰國，也在印度。Sea 這次準備得如何？如果情況持續惡化，我們是否應預期相較去年看到的賣家支持計畫，力度會較小？

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.

就 EBITDA 利潤率而言，我們先前提到，我們認為 EBITDA 利潤率可能會不時波動，但相較於產業平均仍會維持在較高水準。以第一季來說，如我所提，我們有像《一拳超人》這類的 IP 合作，這也可能導致我們需要向第三方 IP 持有人支付額外分成。但整體而言，我們認為這對於進一步提升使用者參與度、將我們的遊戲推廣到更廣泛的用戶基礎，以及促進付費用戶，都非常有幫助。

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，我們將持續專注於擴大用戶基礎、付費用戶基礎以及使用者參與度。我們已證明我們具備商業化的能力——無論是自研內容或導入第三方 IP——並能在多個市場廣泛推進。

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 COVID 影響而言，您說得對，我們確實看到病例回升，並在我們區域內如台灣、新加坡、泰國、越南等地，重新啟動某種形式的封鎖或社交移動限制；當然，印度也是——我們也看到非常大量的病例。至於印尼、馬來西亞、菲律賓等國家，我們仍持續看到大量病例。因此我認為我們仍然處於 COVID 情境之中；我們相信自己已做好充分準備來應對。自去年初以來，即便在——疫情首次爆發時，我想我們的團隊已展現韌性與適應力，能在更嚴格的封鎖下，仍向社群提供迫切需要的服務並維持服務水準；我們也持續以品質滿足這些服務與需求。

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.

我想我們也已為任何新一波病例激增做好準備，並將持續保持警覺。我認為不論 COVID 與否，數位化的加速我們相信將會持續，這也已在我們的數據中得到印證。當然，如果進一步出現封鎖與移動限制，我們認為社群對我們線上服務的需求將更大，以觸及更廣泛的社群，而我們已準備好提供服務。

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 的追問。

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?

我想就 Free Fire 在美國的表現做個快速追問。看起來它在美國的人氣大幅提升。您能否分享一下是什麼在驅動這個趨勢？另外，若互動度維持在目前水準，您對今年給出的指引有何看法？

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。我們持續看到 Free Fire 在北美等已開發市場獲得正面回饋並成長，我們認為這是非常令人鼓舞的訊號，我們也會持續服務當地使用者。我想——並非所有大逃殺遊戲都一樣。每一款頂級熱門遊戲都有其對應受眾的獨特吸引力。而我們的遊戲在吸引力上有所差異：它面向更廣泛的受眾，不一定是以動作為核心的受眾，而是具備更廣泛的吸引力，包含奇幻元素、社交元素、各種形式的互動與遊戲模式，以及對不同社群更友善——涵蓋不同性別、年齡，以及對大逃殺或動作遊戲整體而言不同程度的經驗。

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.

我認為這有助於把我們的遊戲推廣給不同類型的受眾，而我們——他們——無論如何都會找到我們；我們也看到遊戲內社群強勁的自然成長。我們將持續專注於在已開發市場中，以我們的遊戲觸及合適的社群並把服務做好。至於遊戲業務指引，當然，我們本季看到非常強勁的結果。我們會持續觀察；若需要更新指引，我們會讓大家知道。但目前我們會繼續觀察趨勢。

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

以上為問答環節的結束。我想把電話會議交回給 Min Ju Song，請他做任何結語。

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

感謝各位參加今天的電話會議。我們期待在下個季度再次與各位交流。謝謝。

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

本次電話會議到此結束。感謝各位出席今天的簡報。您現在可以中斷連線。