Sea Ltd (SE) 2023 Q1 法說會逐字稿

Good day, and welcome to the Sea Limited First Quarter 2023 Results Conference Call.

美好的一天，歡迎來到 Sea Limited 2023 年第一季度業績電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the conference over to Ms. Min Ju Song. Please go ahead.

我現在想把會議轉交給 Min Ju Song 女士。請繼續。

Hello, everyone, and welcome to Sea's 2023 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 2023年第一季度財報電話會議。我是來自 Sea's Group 首席公司官辦公室的 Min Ju Song。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and 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，這些陳述本質上受到風險和不確定性的影響，並且由於我們新聞稿中所述的各種原因，未來可能無法實現。

Also, this call includes the discussion of certain non-GAAP financial measures, such as adjusted EBITDA. 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.

此外，此次電話會議還討論了某些非 GAAP 財務指標，例如調整後的 EBITDA。我們相信，這些措施在用作我們的 GAAP 披露的補充時，可以增強我們的投資者對我們主要業務的實際現金流量的了解。

For a discussion of the use of non-GAAP financial measures and reconciliation with the closest GAAP measures, please refer to the section on non-GAAP financial measures in our press release.

有關非 GAAP 財務措施的使用以及與最接近的 GAAP 措施的調節的討論，請參閱我們新聞稿中關於非 GAAP 財務措施的部分。

I have with me Sea's Chairman and Group Chief Executive Officer, Forrest Li; Group Chief Financial Officer, Tony Hou; and Group Chief Corporate Officer, Yanjun Wang. Our management will share the strategy and business updates, operating highlights and financial performance for the First Quarter of 2023. This will be followed by a Q&A session in which we welcome any questions you have.

與我同行的還有 Sea 的董事長兼集團首席執行官 Forrest Li；集團首席財務官 Tony Hou；和集團首席企業官王延軍。我們的管理層將分享 2023 年第一季度的戰略和業務更新、經營亮點和財務業績。隨後將舉行問答環節，我們歡迎您提出任何問題。

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

有了這個，讓我把電話轉給福雷斯特。

Hello, everyone, and thank you for joining today's call. On May 8, we celebrated our 14th Birthday. It is a chance to remind ourselves of our humble beginnings and the culture of entrepreneurship, creativity and adaptability that has made Sea what we are today. It also gives us an opportunity to reflect on the year gone by.

大家好，感謝您參加今天的電話會議。 5 月 8 日，我們迎來了 14 歲生日。這是一個提醒自己的機會，讓我們想起我們卑微的出身，以及造就 Sea 今天的企業家精神、創造力和適應性的文化。這也讓我們有機會回顧過去的一年。

The last year has been testing for our teams. And I want to take this opportunity to thank all of our employees for the dedication and determination they have shown. I'm proud of how our teams pivoted rapidly in difficult (inaudible) to achieve our goal of self-sufficiency. We have innovated to do more with fewer resources while never losing sight of our commitment to our users and never letting our service standards for our results for the quarter are a testament to their commitment and creativity. I also want to take this opportunity to thank our investors and partners for your ongoing support over the last 14 years.

去年一直在測試我們的團隊。我想藉此機會感謝我們所有員工所表現出的奉獻精神和決心。我為我們的團隊如何在困難（聽不清）中迅速轉變以實現我們的自給自足目標而感到自豪。我們進行了創新，以更少的資源做更多的事情，同時從不忽視我們對用戶的承諾，從不讓我們本季度業績的服務標准證明他們的承諾和創造力。我還想藉此機會感謝我們的投資者和合作夥伴在過去 14 年中的持續支持。

The first quarter of 2023 was another strong quarter for us. Across our businesses, we are focused on maximizing operational efficiency and improving user experiences. We continued to make meaningful progress on both fronts. We deepened our commitment to achieving strong cost leadership for our ecosystem we believe this will reinforce our structural advantages in driving profitable long-term growth in our market. As a result, we continued to see significant year-on-year improvement in profitability of both Shopee and the SeaMoney. We also achieved positive total cash flow for the quarter, our cash, cash equivalents, short-term investments and other treasury investments increased by $258 million from the previous quarter.

2023 年第一季度對我們來說又是一個強勁的季度。在我們的業務中，我們專注於最大限度地提高運營效率和改善用戶體驗。我們繼續在這兩個方面取得有意義的進展。我們加深了對我們生態系統實現強大成本領先地位的承諾，我們相信這將加強我們在推動市場盈利長期增長方面的結構優勢。因此，我們繼續看到 Shopee 和 SeaMoney 的盈利能力同比顯著提高。我們還實現了本季度的正現金流，我們的現金、現金等價物、短期投資和其他資金投資比上一季度增加了 2.58 億美元。

In addition, we made solid progress in elevating user experiences across our businesses. At Shopee, we are driving improvements in both logistics service levels and speed while enhancing experiences at key points of the customer journey. As a result, user engagement deepened. At Garena, we are working to optimize various aspects of gameplay and game mechanics based on user feedback, ensuring that players continue to enjoy the highly engaging and highly social experiences they associate with our games.

此外，我們在提升整個業務的用戶體驗方面取得了堅實的進展。在 Shopee，我們正在推動物流服務水平和速度的提高，同時增強客戶旅程關鍵點的體驗。結果，用戶參與度加深了。在 Garena，我們致力於根據用戶反饋優化遊戲玩法和遊戲機制的各個方面，確保玩家繼續享受他們與我們的遊戲相關的高度參與和高度社交的體驗。

In the quarter and into April, we started to see some initial signs of recovery in the active user base of our largest game, Free Fire. At SeaMoney, we are expanding the product offerings and features within each product so that our users can enjoy a more comprehensive suite of products and services that meet their underserved financial needs.

在本季度和 4 月，我們開始看到我們最大的遊戲 Free Fire 的活躍用戶群出現一些復甦的初步跡象。在 SeaMoney，我們正在擴展每個產品的產品供應和功能，以便我們的用戶可以享受更全面的產品和服務套件，以滿足他們未得到充分滿足的金融需求。

We are pleased with the progress we have made so far to strengthen the fundamentals of our business as we continue to fine-tune our operations and navigate near-term macro uncertainties, we remain highly confident in the long-term opportunities in our markets and our ability to capture those profitably.

我們對迄今為止在加強業務基礎方面取得的進展感到高興，因為我們繼續微調我們的運營並應對近期的宏觀不確定性，我們對我們市場和我們的長期機會充滿信心捕獲那些有利可圖的能力。

Now let's discuss each business segment in more detail. Beginning with e-commerce, we are very pleased to report that Shopee has delivered another strong quarter. Despite the macro volatility, Shopee's business remained resilient, and we have made significant progress in deepening our competitive mode by strengthening our cost leadership and uplifting the user experience.

現在讓我們更詳細地討論每個業務部門。從電子商務開始，我們很高興地報告 Shopee 又一個強勁的季度。儘管宏觀波動，Shopee 的業務仍然保持彈性，我們通過加強成本領先和提升用戶體驗，在深化競爭模式方面取得了重大進展。

In the first quarter of 2023, GAAP revenue was $2.1 billion, up 36% year-on-year, driven by deeper monetization. Core Marketplace revenue increased by 54% year-over-year to $1.2 billion due to an increase in transaction-based fees and advertising revenue. Adjusted EBITDA was $208 million, improving from a loss of $743 million from last year. The improvement was driven by increased monetization and greater operating cost efficiency. For our Asia market, we achieved an adjusted EBITDA of $276 million during the quarter, improving substantially from a loss of $408 million in the same period last year.

2023 年第一季度，GAAP 收入為 21 億美元，同比增長 36%，受更深層次貨幣化的推動。由於基於交易的費用和廣告收入的增加，核心市場收入同比增長 54% 至 12 億美元。調整後的 EBITDA 為 2.08 億美元，比去年的虧損 7.43 億美元有所改善。改善是由增加的貨幣化和更高的運營成本效率推動的。對於我們的亞洲市場，我們在本季度實現了 2.76 億美元的調整後 EBITDA，比去年同期的 4.08 億美元虧損大幅改善。

In our other markets, the adjusted EBITDA loss was $68 million, narrowing meaningfully from last year when losses were $335 million. Contribution margin loss per order in Brazil improved by 77% year-on-year to reach $0.34, reflecting better monetization and higher efficiency in our sales and marketing expense. As we see significant opportunities in the market, we plan to continue to invest in capturing more of these opportunities in Brazil.

在我們的其他市場，調整後的 EBITDA 虧損為 6800 萬美元，較去年虧損 3.35 億美元大幅收窄。巴西每筆訂單的邊際收益損失同比改善 77%，達到 0.34 美元，反映出更好的貨幣化和更高的銷售和營銷費用效率。當我們看到市場上的重大機會時，我們計劃繼續投資以在巴西抓住更多這些機會。

Let me talk through a few specific areas we focused on during the quarter. Firstly, we continue to enhance our logistics cost leadership and deliver experience by improving the capacity and integration of our in-house logistics arm, while continuing to work closely with our third-party logistics partners. We introduced more automation to our delivery services. Thanks to these efforts, we have managed to bring down average delivery time by more than half a day across our markets within the first quarter. We are also expanding the buyer coverage of our logistics services across our markets. In our largest market, Indonesia, which consists of more than 10,000 islands, 95% of our buyer base is now covered by our delivery services.

讓我談談我們在本季度關注的幾個具體領域。首先，我們通過提高內部物流部門的能力和整合度，同時繼續與我們的第三方物流合作夥伴密切合作，繼續提升我們的物流成本領先優勢和交付經驗。我們為我們的送貨服務引入了更多的自動化。由於這些努力，我們在第一季度成功地將整個市場的平均交貨時間縮短了半天以上。我們還在我們的市場中擴大我們物流服務的買家覆蓋範圍。在我們最大的市場印度尼西亞，該市場由 10,000 多個島嶼組成，我們的送貨服務現已覆蓋 95% 的買家群。

In Brazil, we already have 8 distribution and the sorting centers with the most recent expansion in Northeast Brazil. We have also been working to expand our first and last mile hubs in the market. In recent months, we opened 50 new hubs to further strengthen our logistics capabilities. In addition, we are looking carefully at every stage of the customer journey and improving our processes, policies and services to enhance the user experience. We started to pilot on the spot returns in some markets for better services to our buyers. We have also started handling returns on behalf of some sellers with our teams directly engaging with the buyer instead of putting this burden on the seller. This improves the experience for our buyers who can deal with our twin team and frees up our sellers to focus on growing their business.

在巴西，我們已經擁有 8 個配送和分揀中心，最近在巴西東北部進行了擴張。我們還一直在努力擴大我們在市場上的第一英里和最後一英里樞紐。最近幾個月，我們開設了 50 個新樞紐，以進一步加強我們的物流能力。此外，我們正在仔細研究客戶旅程的每個階段，並改進我們的流程、政策和服務，以提升用戶體驗。我們開始在一些市場試行現場退貨，以便為我們的買家提供更好的服務。我們還開始代表一些賣家處理退貨，我們的團隊直接與買家打交道，而不是把這個負擔推給賣家。這改善了可以與我們的雙胞胎團隊打交道的買家的體驗，並讓我們的賣家騰出時間專注於發展他們的業務。

We are deepening our AI capabilities to drive a better user experience and operational efficiency. AI helps us recommend more relevant and personalized offerings to our users. This has driven higher order conversion as users discover products more quickly and easily. We have also adopted large language models to improve our AI-powered chatbot ability to understand users in different languages and return the most relevant solutions given the context. This improved resolution rate and helped reduce wait times.

我們正在深化我們的人工智能能力，以推動更好的用戶體驗和運營效率。人工智能幫助我們向用戶推薦更多相關和個性化的產品。隨著用戶更快、更輕鬆地發現產品，這推動了更高的訂單轉換。我們還採用了大型語言模型來提高我們的人工智能聊天機器人理解不同語言用戶的能力，並在給定上下文的情況下返回最相關的解決方案。這提高了解決率並有助於減少等待時間。

On top of that, AI is being leveraged to more comprehensively screen and the future items to comply with our marketplace policies. More recently, we have further stepped up consumer protection efforts to ensure our buyers enjoy a safe, reliable and hassle-free experience. For example, in Singapore, we launched the Shop Safe with Shopee initiative through the adoption of the Consumers Association of Singapore standard dispute management framework, among other initiatives. These and other related initiatives are vital in ensuring that we offer all our buyers and the sellers the best possible experience on Shopee. As we enhance these key differentiators, we attract more buyers and sellers, strengthening our overall ecosystem and widening our competitive moat. Indeed, despite the more uncertain macro environment, we continue to diversify our local seller base and strengthening our relationship with other ecosystem participants, such as influencers.

最重要的是，人工智能正在被用來更全面地篩选和未來的項目，以符合我們的市場政策。最近，我們進一步加強了消費者保護工作，以確保我們的買家享受安全、可靠和無憂的體驗。例如，在新加坡，我們通過採用新加坡消費者協會標準糾紛管理框架等舉措，推出了 Shopee with Shopee 計劃。這些和其他相關舉措對於確保我們在 Shopee 上為所有買家和賣家提供最佳體驗至關重要。隨著我們增強這些關鍵差異化因素，我們吸引了更多的買家和賣家，加強了我們的整體生態系統並拓寬了我們的競爭護城河。事實上，儘管宏觀環境更加不確定，但我們繼續使我們的本地賣家基礎多樣化，並加強我們與其他生態系統參與者（例如有影響力的人）的關係。

In Brazil, we have reached more than 3 million registered local Brazilian sellers on our platform who now account for around 85% of our Brazil orders. We have also seen strong traction in our Shopee affiliate program, as we work to empower influencers and content creators to be part of our ecosystem. This program invites social media influencers to promote our products sold on Shopee. Across our markets, we have more than 4 million registered influencers participating in our affiliate program today. In our largest market, Indonesia, orders generated by our affiliate partners more than tripled in 2022. Across our markets, we continue to see growth in the number of brands joining Shopee Mall and in the percentage contribution of GMV from our more sellers. As a leader in our market, we have remained focused on creating value for our brand partners through our technological capabilities.

在巴西，我們已經在我們的平台上覆蓋了超過 300 萬註冊的巴西當地賣家，他們現在約占我們巴西訂單的 85%。我們還看到了我們的 Shopee 聯盟計劃的強大吸引力，因為我們致力於讓有影響力的人和內容創作者成為我們生態系統的一部分。該計劃邀請社交媒體影響者推廣我們在 Shopee 上銷售的產品。在我們的市場中，今天有超過 400 萬名註冊影響者參與了我們的聯屬網絡營銷計劃。在我們最大的市場印度尼西亞，我們的聯屬合作夥伴產生的訂單在 2022 年增加了兩倍多。在我們的市場中，我們繼續看到加入 Shopee Mall 的品牌數量和我們更多賣家的 GMV 貢獻百分比有所增長。作為我們市場的領導者，我們一直專注於通過我們的技術能力為我們的品牌合作夥伴創造價值。

Recently, we announced enhancements to Shopee seller tools that help brands track and understand key trends and the buyer behavior, enhanced consumer loyalty and protect their IP rights. All these efforts have further strengthened our relationships with brands. In Thailand, we partnered with the Embassy of Italy and the Italian commercial office to bring made in Italy brands closer to tie consumers. In Vietnam, we have become the exclusive partner of the government of Canada in launching a campaign to bring high-quality Canadian food products to the local consumers.

最近，我們宣布增強 Shopee 賣家工具，幫助品牌跟踪和了解主要趨勢和買家行為，提高消費者忠誠度並保護他們的知識產權。所有這些努力進一步加強了我們與品牌的關係。在泰國，我們與意大利大使館和意大利商業辦公室合作，讓意大利製造的品牌更貼近消費者。在越南，我們已成為加拿大政府的獨家合作夥伴，發起一項旨在將優質加拿大食品帶給當地消費者的活動。

Looking ahead, while there may be near-term fluctuations driven by the underlying market environment and our fine-tuning of operations. We continue to focus on building up our long-term structural advantages in our e-commerce ecosystem. We believe this strategy will be key in unlocking future growth opportunities and making sure that we have a growing and a wide reaching positive impact across our local communities.

展望未來，雖然在潛在市場環境和我們對運營的微調的推動下，短期內可能會出現波動。我們繼續專注於在我們的電子商務生態系統中建立我們的長期結構優勢。我們相信這一戰略將是釋放未來增長機會的關鍵，並確保我們對當地社區產生越來越廣泛的積極影響。

Now let's discuss digital entertainment. As previously shared, Garena continued to focus on improving gameplay and creating a stronger community for our games first and foremost. While there was some weakening in monetization, mainly as a result of lower paying user ratio, we saw some initial signs of improvement in our quarterly active user base, which increased from 485 million last quarter to 492 million in the first quarter. In April, we also observed a positive user trends with Free Fire achieving a new peak in monthly active users in the last 8 months period. While we are mindful of seasonality effects we are pleased to see this as a positive sign for Free Fire, which remains one of the largest mobile games in the world. We will continue to monitor closely for trends going forward.

現在讓我們討論數字娛樂。正如之前分享的那樣，Garena 繼續專注於改進遊戲玩法，並首先為我們的遊戲創建更強大的社區。雖然變現有所減弱，主要是由於付費用戶比例較低，但我們看到了季度活躍用戶群有所改善的初步跡象，從上一季度的 4.85 億增加到第一季度的 4.92 億。 4 月份，我們還觀察到積極的用戶趨勢，Free Fire 在過去 8 個月的月度活躍用戶中達到了新的高峰。雖然我們注意到季節性影響，但我們很高興將此視為 Free Fire 的一個積極信號，它仍然是世界上最大的手機遊戲之一。我們將繼續密切關注未來的趨勢。

As we strengthened our efforts in enhancing gameplay and user engagement, we have received positive responses from our user community on a number of initiatives we launched to make the game experience smoother. These initiatives include game package size optimization and gameplay like reduction with an emphasis on devices commonly used in our market. Our users have indicated that these recent changes are highly responsive to their feedback and share that they are enjoying a better gameplay experience as a result.

隨著我們加強在增強遊戲性和用戶參與度方面的努力，我們已經收到了用戶社區對我們推出的多項旨在使遊戲體驗更流暢的舉措的積極響應。這些舉措包括遊戲包大小優化和遊戲玩法減少，重點放在我們市場上常用的設備上。我們的用戶表示，這些最近的變化對他們的反饋反應迅速，並分享說他們正在享受更好的遊戲體驗。

Our second largest game, Arena of Valor showed strong performance, especially during the Lunar New Year period. The game once again achieved a new peak in quarterly active users and bookings after more than 6 years since its launch. We believe this is a further indication of our ability to engage users for the long term with solid monetization. At the same time, our pipeline remains healthy and we will be launching some new titles in the coming months. We have opened pre-registration for Undawn an open world survival game, which we will publish across Southeast Asia in the coming months. We will also be publishing Black Clover Mobile, a collection RPG mobile title based on the popular anime series Black Clover across a number of markets globally. Pre-registrations are expected to open within the first half of the year, following the conclusion of a closed better task held last year. As with the other business segments, we have been very focused on enhancing our operations at Garena with AI. Our current capabilities have allowed us to improve the oral efficiency of our game operations. For example, we are exploring opportunities to leverage AI to localize some of our game content and to further advance our operational capabilities for higher efficiency. We are confident that these initiatives, combined with our strong track record in execution and localization will help drive the long-term success of Garena.

我們的第二大遊戲《王者榮耀》表現強勁，尤其是在農曆新年期間。該遊戲時隔6年多再次創下季度活躍用戶和預訂量的新高峰。我們認為，這進一步表明我們有能力通過穩固的貨幣化長期吸引用戶。與此同時，我們的渠道保持健康，我們將在未來幾個月推出一些新遊戲。我們已經開放了開放世界生存遊戲 Undawn 的預註冊，我們將在未來幾個月內在整個東南亞發布。我們還將發布 Black Clover Mobile，這是一款基於全球多個市場的熱門動漫系列 Black Clover 的 RPG 手游合集。預註冊預計將在今年上半年開放，繼去年舉行的封閉式更好的任務結束後。與其他業務部門一樣，我們一直非常專注於通過人工智能增強我們在 Garena 的運營。我們目前的能力讓我們能夠提高遊戲運營的口頭效率。例如，我們正在探索利用人工智能將我們的一些遊戲內容本地化並進一步提升我們的運營能力以提高效率的機會。我們相信，這些舉措，加上我們在執行和本地化方面的良好記錄，將有助於推動 Garena 的長期成功。

Lastly, moving on to our digital financial services business. We are enhancing our operations and risk management capabilities while improving the user experience for Seamoney. We have also been working to diversify our fintech product offerings, both on and off the Shopee platform and across different markets to enhance user stickiness. Seamoney's GAAP revenue was $413 million in the first quarter of 2023, up 75% year-on-year. Adjusted EBITDA was $99 million during the quarter, a substantial improvement from a loss of $125 million in the first quarter of 2022. This was driven by both strong top line growth and our ongoing efforts to optimize costs and improve efficiency, particularly around sales and marketing expenses.

最後，轉向我們的數字金融服務業務。我們正在增強我們的運營和風險管理能力，同時改善 Seamoney 的用戶體驗。我們還一直致力於在 Shopee 平台內外以及跨不同市場使我們的金融科技產品多樣化，以增強用戶粘性。 Seamoney 的 GAAP 收入在 2023 年第一季度為 4.13 億美元，同比增長 75%。本季度調整後的 EBITDA 為 9,900 萬美元，與 2022 年第一季度 1.25 億美元的虧損相比有了顯著改善。這是由強勁的收入增長和我們為優化成本和提高效率所做的持續努力所推動的，尤其是在銷售和營銷方面花費。

On digital wallet, we continued to expand ShopeePay's use cases. For instance, it recently became a payment method for ecom services in our Southeast Asia market. On credit, as of the end of the first quarter of 2023, the total loans receivable on our balance sheet was $2 billion, net of a lower for credit loss of $281 million. Nonperforming loans past due by more than 90 days as a percentage of our total gross loans receivable remained stable at around 2%. During the quarter, we continued to diversify the sources of funding for our credit business.

在數字錢包方面，我們繼續擴展 ShopeePay 的用例。例如，它最近成為我們東南亞市場電子商務服務的一種支付方式。在信貸方面，截至 2023 年第一季度末，我們資產負債表上的應收貸款總額為 20 億美元，扣除較低的信貸損失 2.81 億美元。逾期 90 天以上的不良貸款占應收貸款總額的比例穩定在 2% 左右。本季度，我們繼續使信貸業務的資金來源多樣化。

In addition to funding through our own bank deposits, we have seen increased volume funded through channeling arrangements or electoral asset-backed facilities with local and regional banks. We are working to further diversify our funding sources to broader financial investors. Currently, a large part of our loan book is already funded by alternative sources as opposed to cash on our balance sheet. To further strengthen our risk management capabilities, we are using AI to help us to assess the fraud risk and the credit risk of our users as well as to enhance the KYC process of our products. This enables us to offer our financial products to more users while tightly controlling risk.

除了通過我們自己的銀行存款提供資金外，我們還看到通過與當地和區域銀行的渠道安排或選舉資產支持設施提供資金的數量有所增加。我們正在努力使我們的資金來源進一步多樣化，以吸引更廣泛的金融投資者。目前，我們的大部分貸款賬簿已經由其他來源提供資金，而不是資產負債表上的現金。為了進一步加強我們的風險管理能力，我們正在使用人工智能來幫助我們評估欺詐風險和用戶的信用風險，並加強我們產品的 KYC 流程。這使我們能夠在嚴格控制風險的同時向更多用戶提供我們的金融產品。

We are also diversifying and enriching our product offerings at Seamoney. We piloted new insurtech products and expanded use cases, features and services in our banking apps. This has provided even greater convenience and accessibility to financial products for our users. In addition, we have further integrated many of these products into our broader ecosystem, making the user experience seamless across Shopee and Seamoney. We remain focused on evaluating opportunities in digital financial services across our markets and enriching our product and service offerings. We are confident in Seamoney's long-term potential and very carefully managing the business amid the macro uncertainties. We believe we are well positioned to capture the significant and underserved opportunities available in our markets.

我們還在 Seamoney 豐富和豐富我們的產品。我們試用了新的保險科技產品，並在我們的銀行應用程序中擴展了用例、功能和服務。這為我們的用戶提供了更大的金融產品便利性和可訪問性。此外，我們進一步將其中許多產品整合到我們更廣泛的生態系統中，使用戶體驗在 Shopee 和 Seamoney 之間無縫銜接。我們仍然專注於評估我們市場中數字金融服務的機會，並豐富我們的產品和服務。我們對 Seamoney 的長期潛力充滿信心，並在宏觀不確定性的情況下非常謹慎地管理業務。我們相信，我們已做好充分準備，能夠抓住市場上重要且未得到充分利用的機會。

To conclude, our results for the quarter once again demonstrates the fundamental strength and the resilience of our business model, and our ability to drive efficiency improvements while maintaining our leadership position. We are confident that we can continue to create value for our ecosystem participants as well as delivering long-term growth and sustainable returns to our shareholders.

總而言之，我們本季度的業績再次證明了我們業務模式的基本實力和彈性，以及我們在保持領先地位的同時提高效率的能力。我們有信心能夠繼續為我們的生態系統參與者創造價值，並為我們的股東帶來長期增長和可持續的回報。

Separately, as we noted in our press release earlier today, David Ma has joined our Board of Directors as of May 15, and will no longer serve as the Chief Investment Officer of Sea Capital. David has played an invaluable role as a member of our leadership team. I would like to express our sincere thanks to him for his contributions in this position. I'm very glad that we'll continue to benefit from his expertise and experience in his new role as a member of our Board.

另外，正如我們在今天早些時候的新聞稿中指出的那樣，David Ma 已於 5 月 15 日加入我們的董事會，並將不再擔任 Sea Capital 的首席投資官。作為我們領導團隊的一員，David 發揮了不可估量的作用。我要對他在這個職位上所做的貢獻表示衷心的感謝。我很高興我們將繼續受益於他作為董事會成員的新角色的專業知識和經驗。

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.

謝謝你，福雷斯特，感謝大家加入電話會議。

We have included detailed financial schedules together with the corresponding management analysis in today's press release and Forrest has discussed some of our financial highlights. So I will focus my comments on the other relevant metrics. At Sea overall, total GAAP revenue increased 5% year-on-year to $3 billion. This was primarily driven by the improved monetization in our e-commerce and digital financial service businesses. Partially offset by lower GAAP revenue in our digital entertainment business.

我們在今天的新聞稿中包含了詳細的財務時間表以及相應的管理分析，Forrest 討論了我們的一些財務亮點。所以我將把我的評論集中在其他相關指標上。總體而言，在海上，GAAP 總收入同比增長 5% 至 30 億美元。這主要是由於我們的電子商務和數字金融服務業務的貨幣化程度有所提高。部分被我們數字娛樂業務的 GAAP 收入減少所抵消。

On e-commerce, our first quarter GAAP revenue of $2.1 billion included GAAP marketplace revenue of $1.8 billion, up 46% year-on-year and GAAP product revenue of $0.2 billion. Within GAAP marketplace revenue, core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues was $1.2 billion. Whereas, rest value-added services revenue, mainly consisting of revenues related to logistic services was $0.7 billion. E-commerce adjusted EBITDA was $208 million in the first quarter of 2023 compared to an adjusted EBITDA loss of $743 million in the first quarter of 2022. Digital entertainment bookings were $462 million, and GAAP revenue was $540 million. Adjusted EBITDA was $230 million.

在電子商務方面，我們第一季度的 GAAP 收入為 21 億美元，其中 GAAP 市場收入為 18 億美元，同比增長 46%，GAAP 產品收入為 2 億美元。在 GAAP 市場收入中，核心市場收入（主要包括基於交易的費用和廣告收入）為 12 億美元。而主要包括與物流服務相關的收入的其餘增值服務收入為 7 億美元。 2023 年第一季度電子商務調整後 EBITDA 為 2.08 億美元，而 2022 年第一季度調整後 EBITDA 虧損為 7.43 億美元。數字娛樂預訂量為 4.62 億美元，GAAP 收入為 5.4 億美元。調整後的 EBITDA 為 2.3 億美元。

Digital Financial Services GAAP revenue was up by 75% year-on-year to $413 million. This was mainly driven by the growth in our credit business. Adjusted EBITDA was $99 million in the first quarter of 2023, compared to an adjusted EBITDA loss of $125 million in the first quarter of 2022. Improvements in the bottom line were driven by both strong top line growth and optimization of sales and marketing spend. We recognized a net nonoperating income of $23 million in the first quarter of 2023 compared to a net nonoperating loss of $6 million in the first quarter of 2022.

數字金融服務 GAAP 收入同比增長 75% 至 4.13 億美元。這主要是受我們信貸業務增長的推動。 2023 年第一季度調整後的 EBITDA 為 9900 萬美元，而 2022 年第一季度調整後的 EBITDA 虧損為 1.25 億美元。利潤的改善得益於強勁的收入增長以及銷售和營銷支出的優化。我們確認 2023 年第一季度的非營業淨收入為 2300 萬美元，而 2022 年第一季度的非營業淨虧損為 600 萬美元。

The higher net nonoperating income was mainly due to higher interest income from higher yields. We had a net income tax expense of $62 million in the first quarter of 2023 compared to net income tax expense of $82 million in the first quarter of 2022. As a result, net income was $87 million in the first quarter of 2023 as compared to a net loss of $580 million in the first quarter of 2022. With that, let me turn the call to Min Ju.

較高的淨非營業收入主要是由於較高的收益率帶來較高的利息收入。我們在 2023 年第一季度的淨所得稅費用為 6200 萬美元，而 2022 年第一季度的淨所得稅費用為 8200 萬美元。因此，與 2023 年第一季度相比，我們的淨收入為 8700 萬美元2022 年第一季度淨虧損 5.8 億美元。有了這個，讓我把電話轉給 Min Ju。

Thank you Forrest and Tony. We are now ready to open the call for questions. As usual, our Group Chief Corporate Officer, Yanjun Wang, will lead this part. Operator?

謝謝福雷斯特和托尼。我們現在準備好開始提問了。與往常一樣，我們的集團首席企業官 Yanjun Wang 將領導這一部分。操作員？

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

（操作員說明）我們的第一個問題來自高盛的 Pang Vitt。

Good afternoon, everyone, and thank you very much for the opportunity. For questions from my side. Number one, on Shopee. Can you provide more color on the current trend that you see, are we seeing any further slowdown in GMV momentum in the quarter? And what kind of take rate trend can we see now.

大家下午好，非常感謝您給我這個機會。對於我這邊的問題。第一，在 Shopee 上。您能否提供更多關於您所看到的當前趨勢的顏色，我們是否看到本季度 GMV 勢頭進一步放緩？我們現在可以看到什麼樣的 take rate 趨勢。

Number two, also related to Shopee. Can you comment on the current strategy for Shopee going into the rest of the year? Should we expect to see Shopee, reinvesting to grow more into the later part? Or you will focus on further expanding on the margins? What type of growth should we expect. And if you plan to reinvest where will you spend money on?

第二，也與 Shopee 有關。您能否評論 Shopee 進入今年剩餘時間的當前戰略？我們是否應該期望看到 Shopee 進行再投資以在後期增長更多？或者您將專注於進一步擴大利潤率？我們應該期待什麼樣的增長。如果你打算再投資，你會把錢花在什麼地方？

And number three, they will be related to gaming. Cross booking see further pressure, but we see margins continue to expand nicely. What's the current strategy for the division?

第三，它們將與遊戲有關。交叉預訂看到進一步的壓力，但我們看到利潤率繼續良好擴大。該部門目前的戰略是什麼？

With the recent peak in monthly active user for Free Fire, are we already seeing some stabilized trend for the game? When should we expect bottom line to bottom out -- sorry, the top line to bottom out in the year? And lastly, for your SeaMoney business, why revenue continued to increase despite seeing your loan book largely flat quarter-on-quarter. Why do we also see the provision for credit loss on SeaMoney increase quarter-on-quarter as well.

隨著最近 Free Fire 每月活躍用戶的高峰，我們是否已經看到遊戲的一些穩定趨勢？我們應該期望什麼時候底線觸底——抱歉，今年底線觸底？最後，對於您的 SeaMoney 業務，為什麼儘管您的貸款賬簿環比基本持平，但收入仍在繼續增長。為什麼我們也看到 SeaMoney 的信用損失準備金也環比增加。

Thank you Pang, for the question. In terms of the Shopee growth, while we don't disclose GMV quarter-on-quarter, generally overall, the trend has been consistent in terms of seasonality trends we are seeing quarter-on-quarter with last the year's first quarter. And if we look at more details at the different markets, Indonesia showed a relatively strong performance in Asia and Thailand and Malaysia also showed quarter-on-quarter growth.

謝謝龐老師的提問。就 Shopee 的增長而言，雖然我們沒有披露季度環比的 GMV，但總體而言，我們看到的季度環比季節性趨勢與去年第一季度的趨勢一致。如果我們查看不同市場的更多細節，印度尼西亞在亞洲表現相對強勁，泰國和馬來西亞也出現季度環比增長。

Of course, we also see -- continue to see tough year-on-year comps for the market. And then the rest of the markets are in line with the overall seasonality trends we are observing for Asia as what we saw last year.

當然，我們也看到——繼續看到市場同比表現艱難。然後其他市場與我們去年觀察到的亞洲整體季節性趨勢一致。

And Brazil, of course, remains a growth market for us. As we mentioned earlier, Brazil is -- we see significant opportunities there. We're only in Brazil for 4 years. So it's a relatively earlier market for us. However, we have achieved a very significant scale being one of the leading e-commerce players, especially on the local to local e-commerce marketplace, targeting mass market segment in that country. And given our scale and operational efficiency, we already achieved there, we believe we can break even any time, but we may continue to choose to invest in the market to capture the significant long-term opportunities we observe in the market.

當然，巴西仍然是我們的增長市場。正如我們之前提到的，巴西 - 我們在那裡看到了重要的機會。我們只在巴西呆了 4 年。所以這對我們來說是一個相對較早的市場。然而，我們已經取得了非常顯著的規模，成為領先的電子商務參與者之一，特別是在本地到本地的電子商務市場上，目標是該國的大眾細分市場。鑑於我們的規模和運營效率，我們已經實現了這一點，我們相信我們可以隨時收支平衡，但我們可能會繼續選擇投資市場，以抓住我們在市場上觀察到的重要長期機會。

So that's a quick capture of the overall trend. In terms of the strategies, for e-commerce, as we shared before, we think the long-term opportunities for both our Asian markets as well as Latin American markets, are very significant, given the strong and positive demographic features, the store penetration under development of infrastructure and long-term -- sorry, offline retail, which give more opportunity for digital penetration to go even further beyond. Some of the -- what we might have seen in some of the developed markets.

所以這是對整體趨勢的快速捕捉。就電子商務戰略而言，正如我們之前分享的那樣，我們認為亞洲市場和拉丁美洲市場的長期機遇都非常重要，因為強大而積極的人口特徵、商店滲透率在基礎設施和長期的發展下——對不起，線下零售，這為數字滲透提供了更多機會，甚至更進一步。一些——我們可能在一些發達市場看到的。

And the early stage in terms of e-commerce penetration, these markets act with a lot more of the services that we can provide to especially the underserved mass market that our model has very strong advantages in targeting. So we continue to invest in the long-term growth of our markets.

在電子商務滲透的早期階段，這些市場提供了我們可以提供的更多服務，尤其是服務不足的大眾市場，我們的模式在定位方面具有非常強大的優勢。因此，我們繼續投資於我們市場的長期增長。

And the investment will focus on both in terms of the quality of the user experiences and services. As we shared on the call earlier, we are very focused on bringing larger assortment of products with -- in partnership with brands and SMEs in our communities. And bring better search and discovery experience, more personalized shopping experience, better customer services enabled by AI and other technologies. Better returns and logistics experience to further bring the convenience to our buyers.

投資將側重於用戶體驗和服務的質量。正如我們之前在電話會議上分享的那樣，我們非常專注於與我們社區中的品牌和中小企業合作，帶來更多種類的產品。並通過人工智能和其他技術帶來更好的搜索和發現體驗、更個性化的購物體驗、更好的客戶服務。更好的退貨和物流體驗，進一步為我們的買家帶來便利。

And at the same time, we also focus on the cost of the ecosystem. And many times have shared before that we are very much working towards continuing to bring down the cost of the entire ecosystem in terms of logistics, payments and other infrastructure. And that has been a very clear focus for us in terms of the long-term ecosystem construction. And we also believe that this will allow us to capture and strengthen our long-term competitive mode.

同時，我們也關註生態系統的成本。之前已經多次分享過，我們正在努力繼續降低整個生態系統在物流、支付和其他基礎設施方面的成本。就長期生態系統建設而言，這一直是我們非常明確的重點。我們也相信，這將使我們能夠捕捉並加強我們的長期競爭模式。

In the immediate term, in terms of the investment in the market and growth trends you might see, a lot will depend on the specific market conditions market-by-market and period to period. We remain very nimble and very focused from a bottom-up perspective, looking at each market conditions, both macro user behavior, competitive landscape, and other trends, seasonality, holiday season, et cetera. And also from a period-to-period in terms of week-by-week, day-by-day review of the markets to see what be the best investment and in what areas we should be making.

在短期內，就您可能看到的市場投資和增長趨勢而言，很大程度上取決於逐個市場和不同時期的具體市場條件。我們從自下而上的角度保持非常靈活和專注，審視每個市場狀況，包括宏觀用戶行為、競爭格局和其他趨勢、季節性、假期等。並且從一個時期到另一個時期，每週、每天對市場進行審查，以了解什麼是最好的投資以及我們應該在哪些領域進行投資。

So overall, I think the long-term execution direction is very clear. In short term, we also closely monitor the market. I think our past track record has shown that we can execute growth and managing bottom line at the same time as well. So that remains our competitive strength in the long run, we believe. In terms of game trends, we are very pleased to see that there's some initial sign of quarterly active user increase quarter-on-quarter for our game. And in particular, for Free Fire, our largest game. And that increase was also broadly across different markets and not specific to any particular single market.

所以總體來說，我覺得長期的執行方向是非常明確的。短期內，我們也密切關注市場。我認為我們過去的記錄表明，我們也可以同時實現增長和管理底線。我們相信，從長遠來看，這仍然是我們的競爭優勢。在遊戲趨勢方面，我們很高興看到我們遊戲的季度活躍用戶環比增長的初步跡象。特別是我們最大的遊戲 Free Fire。而且這種增長也廣泛存在於不同的市場，而不是特定於任何特定的單一市場。

This is -- as we shared on the call, quite in line with our efforts and direction of our focus recently to continue to improve and enhance our user experience to retain and reattract our users to our game. And this has been our focus and priority in the past periods, and we are pleased to see some initial results. I will continue to observe the trends going forward. Moreover, we also mentioned that our second largest game Arena of Valor also enjoyed a very strong performance in the past quarter. In fact, it was a new high, both in terms of quarterly active user base and bookings.

正如我們在電話會議上分享的那樣，這與我們最近的努力和重點方向非常一致，即繼續改善和增強我們的用戶體驗，以留住我們的用戶並將其重新吸引到我們的遊戲中。這一直是我們過去一段時間的重點和優先事項，我們很高興看到一些初步成果。我將繼續觀察未來的趨勢。此外，我們還提到我們的第二大遊戲《Arena of Valor》在上個季度也有非常強勁的表現。事實上，無論是在季度活躍用戶群還是預訂量方面，它都創下了新高。

So all in all, we are very pleased with the results so far, and we'll continue to work towards the set direction of improving user experience. And monetization, I think, is not an immediate priority. However, our margin remained -- EBITDA margin remained high compared to industry standards. And actually improved quarter-on-quarter. We will remain very disciplined in terms of the bottom line and efficiency of an investment into the segment. And we also mentioned some new launches that might come up in the coming months. And we also will closely observe the trends in those new games.

所以總而言之，我們對目前的結果非常滿意，我們將繼續朝著改善用戶體驗的既定方向努力。我認為，貨幣化不是當務之急。然而，我們的利潤率仍然存在——與行業標準相比，EBITDA 利潤率仍然很高。實際上環比有所改善。我們將在該領域的投資底線和效率方面保持非常嚴格的紀律。我們還提到了未來幾個月可能會推出的一些新產品。我們也會密切關注這些新遊戲的動向。

In terms of Seamoney, as we shared on the call, we have been diversifying the sources of our funding. And in collaboration with third-party financial institutions to fund growth of the loan book. And therefore, you observe a revenue increase that actually exceed the loan book increase.

就 Seamoney 而言，正如我們在電話會議上分享的那樣，我們一直在多元化我們的資金來源。並與第三方金融機構合作，為貸款賬簿的增長提供資金。因此，您觀察到收入增長實際上超過了貸款賬簿的增長。

In terms of provisions increase, I think the provisions similar trends quarter-on-quarter. But if you look at year-on-year, the products have expanded in terms of the features and tenure and types of loans we offer. So there is a shift in product as well as the loan book expansion. So there is some shift. But overall, if you look at our NPL, it has remained very stable and low.

就撥備增加而言，我認為撥備與上一季度的趨勢相似。但是，如果您按年看，這些產品在我們提供的貸款的特點、期限和類型方面都有所擴展。因此，產品發生了變化，貸款賬簿也在擴大。所以有一些轉變。但總的來說，如果你看一下我們的不良貸款，它一直保持非常穩定和較低。

Our next question comes from Piyush Choudhary from HSBC.

我們的下一個問題來自匯豐銀行的 Piyush Choudhary。

Yes, thanks for the call and opportunity to ask questions. Three questions. Firstly, on the e-commerce, could you tell us on the industry GMV growth trends across the markets in Asia and Brazil. Has it started to improve in 2Q so far? If not, then when do you expect acceleration in growth?

是的，感謝您的來電和提問的機會。三個問題。首先，關於電子商務，您能告訴我們亞洲和巴西市場的行業 GMV 增長趨勢嗎？到現在二季度開始好轉了嗎？如果沒有，那麼您預計什麼時候會加速增長？

And just some color on the competitive environment, what's the impact of TikTok and how you're trying to defend the market share there?

只是競爭環境的一些顏色，TikTok 的影響是什麼以及您如何努力捍衛那裡的市場份額？

Secondly, on the logistics, what percentage of -- if you can talk about your strategy over there, what percentage of orders are fulfilled by Shopee Xpress and orders fulfilled within 24 hours. Is there a target which you have in mind? And thirdly, company is generating free cash flow now. So what would be your capital allocation priorities for growth investments? Would you restart growth investment in Brazil and Latin America or the markets or what level will make -- give that confidence to restart growth investments?

其次，在物流方面，有多少百分比——如果你能在那裡談談你的戰略，Shopee Xpress 完成的訂單和 24 小時內完成的訂單的百分比是多少。你心中有一個目標嗎？第三，公司現在正在產生自由現金流。那麼，您對增長投資的資本配置優先順序是什麼？您會重新啟動對巴西和拉丁美洲或市場的增長投資，或者將達到什麼水平 - 給予重新啟動增長投資的信心？

Yes. Thank you, Piyush. In terms of industry trends, given Shopee's relative size, and we believe, generally, industry trends are in line with our trends that we've been observing for our own e-commerce platform, as I shared earlier. And -- it's hard to say what we're going to see immediately because on the one hand, I think our economies in Southeast Asia remained relatively resilient so far.

是的。謝謝你，皮尤什。就行業趨勢而言，考慮到 Shopee 的相對規模，我們認為，總體而言，行業趨勢與我們一直在為自己的電子商務平台觀察的趨勢一致，正如我之前分享的那樣。而且 - 很難說我們會立即看到什麼，因為一方面，我認為我們在東南亞的經濟體到目前為止仍然保持相對彈性。

And we haven't seen -- while the inflation trend is still ongoing. It hasn't caused major disruptions to the economy. And at the same time, we continue to see reopening trends. But on the other hand, there are still global macro uncertainty. And many of our economies are export-driven, which might be exposed to risks in global and uncertainties in global economies as well. So we remain -- we have to observe ongoing trends closely. It's a market-by-market and period-by-period assessment. As I shared earlier, some markets, for example, Indonesia, in particular, for us, which is also the largest market for us, performed quite well and remained relatively strong. In some other markets, there might be more year-on-year tough comps and then there will be other markets where we saw a start to some pickup and as reopening effects right now. On the other hand, it's still early to tell.

我們還沒有看到——而通脹趨勢仍在持續。它沒有對經濟造成重大破壞。與此同時，我們繼續看到重新開放的趨勢。但另一方面，全球宏觀經濟仍存在不確定性。我們的許多經濟體都是出口驅動的，這可能會面臨全球風險和全球經濟的不確定性。所以我們仍然 - 我們必須密切觀察持續的趨勢。這是一個逐個市場和逐個時期的評估。正如我之前分享的那樣，一些市場，例如印度尼西亞，特別是對我們來說，這也是我們最大的市場，表現得很好並且保持相對強勁。在其他一些市場，可能會有更多的同比艱難競爭，然後我們會看到其他市場開始出現一些回升，並立即出現重新開放的影響。另一方面，現在下結論還為時過早。

So we'll -- again, our strategy is we remain very nimble and flexible, and we observed market very closely. And this has been our strength. We've been very close to each market. And having operational strength and profitability across all our markets allow us much more flexibility to invest from period-to-period on market -- and from market-to-market based on what makes the most sense at any particular point in time in that market. And that will be our immediate focus going forward.

因此，我們將 - 再一次，我們的戰略是我們保持非常靈活和靈活，並且我們非常密切地觀察市場。這一直是我們的優勢。我們與每個市場都非常接近。並且在我們所有市場中擁有運營實力和盈利能力，使我們能夠更加靈活地根據在該市場的任何特定時間點最有意義的方式在不同時期和不同市場進行投資.這將是我們未來的直接重點。

But long-term focus of investment, as I shared, it's going to be in all the infrastructure, as I mentioned. When people think about investments, sometimes people oversight -- overemphasized subsidies shipping subsidies. I don't think that's a fair characterization of our focus of investment. Rather, our focus will be on investing in the long-term infrastructure that will provide better services to our customers and the lower the cost of the ecosystem that will significantly expand the profitable TAM of e-commerce in our region. And also build much stronger competitive moat in the long run for us.

但正如我所分享的那樣，長期投資重點將放在所有基礎設施中，正如我提到的那樣。當人們考慮投資時，有時人們會疏忽——過分強調補貼運輸補貼。我不認為這是對我們投資重點的公平描述。相反，我們的重點將放在投資長期基礎設施上，這將為我們的客戶提供更好的服務，並降低生態系統的成本，從而顯著擴大我們地區電子商務的盈利 TAM。從長遠來看，還可以為我們建立更強大的競爭護城河。

In terms of the Shopee logistics, we -- again, this is a -- we adopt a very pragmatic approach to it. We look at it based on the user experience and the cost of service to users. If we can do it in any market more effectively, efficiently at any point of time ourselves, we will allocate more to our own logistics services. On the other hand in markets where 3PLs has been competitive. We're happy very -- to allocate also more to 3PL. And it's a highly dynamic process. We don't have a particular KPI that we must target. It's all based on the quality of services and the cost of services to our users and to continue to optimize over the long run, and we are very keen to work with all the partners who are happy to work with us in that front.

就 Shopee 物流而言，我們——再一次，這是——我們採用了一種非常務實的方法。我們根據用戶體驗和為用戶提供服務的成本來看待它。如果我們自己能夠在任何時間點更有效、更高效地在任何市場上做到這一點，我們就會將更多的資源分配給我們自己的物流服務。另一方面，在 3PL 競爭激烈的市場中。我們非常高興——也為 3PL 分配更多資金。這是一個高度動態的過程。我們沒有必須針對的特定 KPI。這一切都基於服務質量和我們用戶的服務成本，並從長遠來看繼續優化，我們非常渴望與所有樂於在這方面與我們合作的合作夥伴合作。

And in terms of Free Fire -- sorry, free cash flow generation and allocation, as I mentioned, investment across different markets actually, again, it's going to be a market-by-market assessment. Long-term potential across different markets are quite strong. And therefore, we won't say, oh, we deprioritize any market and prioritize any other market. Obviously, short term, Brazil is a relatively younger market for us. As I shared, we've been in Southeast Asia for doing e-commerce for close to a decade. And we are only there for about 4 years. But even within 4 years, we achieved a strong position and scale, significant enough scale to allow us to break even as we choose to.

就 Free Fire 而言——抱歉，正如我提到的，自由現金流的產生和分配，實際上，不同市場的投資，這將是一個逐個市場的評估。不同市場的長期潛力相當強勁。因此，我們不會說，哦，我們取消任何市場的優先級並優先考慮任何其他市場。顯然，短期內，巴西對我們來說是一個相對年輕的市場。正如我所分享的，我們在東南亞從事電子商務已有近十年的時間。我們只在那里呆了大約 4 年。但即使在 4 年內，我們也取得了強大的地位和規模，規模足以讓我們按照自己的選擇實現收支平衡。

So that is a very good position to be in, but we also want to continue to focus on capturing more of the market opportunities there, which has a very large underserved user segment and is even compared to Southeast Asia, we believe e-commerce as underpenetrated in Brazil. And we have a unique advantage coming from serving underserved segments and mass market segments in Southeast Asia, dealing with highly complex infrastructure and regulatory challenges. We believe that gives us -- prepare us quite well to also continue to focus on the similar segment in Brazil.

所以這是一個非常好的位置，但我們也希望繼續專注於捕捉那裡的更多市場機會，那裡有一個非常大的服務不足的用戶群，甚至與東南亞相比，我們認為電子商務在巴西滲透不足。我們擁有獨特的優勢，服務於東南亞服務欠缺的細分市場和大眾市場，應對高度複雜的基礎設施和監管挑戰。我們相信這給了我們 - 讓我們做好充分準備，也可以繼續專注於巴西的類似部分。

As we shared on the earnings call earlier, we opened more centers and sorting hubs as well as other last mile hubs closer to our [bio communities] especially in some of the more underpenetrated regions in Brazil. So we believe there's significant opportunity there. But again, our investment and cash flow in terms of investing the cash flow, we will remain highly vigilant and disciplined and highly focused on the cost efficiency because as I mentioned again, again, cost of the ecosystem and cost to serve our consumers is a key focus of our operations, and we'll continue to improve on that.

正如我們早些時候在財報電話會議上分享的那樣，我們開設了更多的中心和分揀中心以及其他離我們 [生物社區] 更近的最後一英里中心，尤其是在巴西一些滲透率較低的地區。所以我們相信那裡有很大的機會。但同樣，就投資現金流而言，我們的投資和現金流，我們將保持高度警惕和紀律，並高度關注成本效率，因為正如我再次提到的，生態系統成本和服務消費者的成本是我們運營的重點，我們將繼續改進這一點。

Our next question comes from Alicia Yap from Citigroup.

我們的下一個問題來自花旗集團的 Alicia Yap。

So I have a couple of quick ones. One is the follow-up on the quarterly active user growth. Do you think the trend that we saw this quarter will continue into the future quarter? And if we can get a little bit qualitative comment in terms of the profile, of this new users? And is this driven by your effective marketing campaign? Or is it more driven by your content update?

所以我有幾個快速的。一是跟進季度活躍用戶增長情況。您認為我們在本季度看到的趨勢會持續到未來的季度嗎？如果我們可以就這些新用戶的個人資料獲得一些定性評論？這是由您有效的營銷活動驅動的嗎？或者它更多地是由您的內容更新驅動的？

And then second question is, I think we still wanted to get more comfortable and the sense about the sustainable EBITDA margins and also how you would balance between reinvest strategically to drive your top line growth while also maintaining a certain expenses level and the margin level. So if you can elaborate what's your strategy over there will be helpful.

然後第二個問題是，我認為我們仍然希望對可持續的 EBITDA 利潤率以及如何在戰略性再投資以推動收入增長與保持一定的支出水平和利潤率水平之間取得平衡感到更加自在和了解。因此，如果您能詳細說明您的策略，那將會很有幫助。

Yes. Thank you, Alicia. In terms of the trends for Free Fire, I think that looking at the active user base, we saw some initial signs, but also, as I mentioned, we continue to observe the trends going forward. We hope to stabilize also the active user base and as soon as we can as well, that's the effort the team is also focused on.

是的。謝謝你，艾麗西亞。就 Free Fire 的趨勢而言，我認為從活躍的用戶群來看，我們看到了一些初步跡象，但正如我所提到的，我們還會繼續觀察未來的趨勢。我們希望也能盡快穩定活躍的用戶群，這也是團隊關注的重點。

In terms of the monetization again, this has not been the immediate focus. But as I shared, before that usually for a large DAU game, once you get a large user base, monetization usually follows. And in our past track record, we have shown very strong capability in monetizing across different user segments and periods. And in terms of the user profile and what's driving these initial positive signs. So I think the user profile hasn't really changed much the same target users we have originally because Free fire is a very massive DAU game. It's more of the largest games -- mobile games in the world by DAU. So it's a very broadly targeting general population and enjoy the highly diverse communities.

再次就貨幣化而言，這並不是當前的重點。但正如我分享的那樣，在此之前通常對於大型 DAU 遊戲，一旦你獲得了龐大的用戶群，通常就會隨之而來。在我們過去的業績記錄中，我們在不同的用戶群和時期表現出了非常強大的貨幣化能力。就用戶個人資料以及推動這些初步積極跡象的因素而言。所以我認為用戶配置文件並沒有真正改變我們最初的目標用戶，因為 Free fire 是一款非常龐大的 DAU 遊戲。它更多的是最大的遊戲——DAU 世界上的手機遊戲。所以它是一個非常廣泛的目標人群，享受高度多樣化的社區。

And so in terms of the way we target them, as we shared earlier, it's by focusing on better user engagement, user experience, community building, and responding to user feedback on features, et cetera, as opposed to through marketing efforts. As you can see, our EBITDA margin actually hasn't really changed that much and actually improved a little bit quarter-on-quarter. So we're very careful about the sustainability of our long-term engagement with users all the efforts being directed at making Free Fire into a long-term franchise and a large significant platform on which we can build on more new content and attract more users. We think that there's a very good chance this can be made into a strong evergreen game.

因此，就我們針對他們的方式而言，正如我們之前分享的那樣，它是通過專注於更好的用戶參與、用戶體驗、社區建設以及響應用戶對功能的反饋等，而不是通過營銷努力。正如您所看到的，我們的 EBITDA 利潤率實際上並沒有真正改變那麼多，實際上環比有所改善。因此，我們非常關注與用戶長期互動的可持續性，所有努力都是為了讓 Free Fire 成為一個長期特許經營權和一個重要的大型平台，我們可以在這個平台上構建更多新內容並吸引更多用戶.我們認為這很有可能成為一款強大的常青遊戲。

And in terms of the EBITDA margin for e-commerce, I think that, as I shared while we're not immediately targeting to push the envelope to maximize margin, we think there's -- as a leading marketplace player, any -- the margin you generally see in different markets or a leading marketplace player can also be achievable by us. And in different markets, we have seen even at this early stage where we just turned it profitable for only a couple of quarters. We have seen a very healthy EBITDA over revenue margin even towards like more than 30%, 40% in some of the markets. So that is -- the margin is not the biggest concern for us. If we want to achieve high margin, I think it's doable.

就電子商務的 EBITDA 利潤率而言，我認為，正如我分享的那樣，雖然我們沒有立即將目標推向極限以最大化利潤率，但我們認為 - 作為領先的市場參與者，任何 - 利潤率您通常在不同的市場或領先的市場參與者中看到的，我們也可以實現。在不同的市場，我們甚至在這個早期階段就已經看到，我們只是在幾個季度內就實現了盈利。我們已經看到非常健康的 EBITDA 與收入利潤率甚至超過 30%，在某些市場中達到 40%。那就是 - 利潤率不是我們最關心的問題。如果我們想實現高利潤率，我認為這是可行的。

The question is, how do we maximize the long-term profitability and maximize the opportunity we can capture in this region and in all our markets. Because we really continue to see significant opportunity. So our focus is on the long term and not immediate margin expansion. But having the support of healthy margins also give us more resources to allocate across different markets and from period-to-period, into investing in different markets and to even further strengthen our ecosystem. As I shared, both for our long-term goals of expanding the profitable TAM and build strengthening our competitive moat and also in the near term to respond to market dynamics within each market. So again, we're not particularly worried about the margin. I think it's more about how we build a healthy long-term ecosystem that will maximize the long-term profitable growth of our business.

問題是，我們如何最大限度地提高長期盈利能力，並最大限度地抓住我們在該地區和我們所有市場中可以抓住的機會。因為我們真的繼續看到重要的機會。因此，我們的重點是長期而非即時的利潤率擴張。但是，在健康利潤率的支持下，我們也可以在不同的市場和不同時期分配更多資源，投資不同的市場，甚至進一步加強我們的生態系統。正如我分享的那樣，這既是為了我們擴大盈利的 TAM 和建立加強我們的競爭護城河的長期目標，也是為了在短期內響應每個市場的市場動態。因此，我們並不是特別擔心利潤率。我認為更多的是我們如何建立一個健康的長期生態系統，以最大限度地實現我們業務的長期盈利增長。

Our next question comes from Jiong Shao from Barclays.

我們的下一個問題來自巴克萊銀行的邵炯。

First, I want to make sure I heard you correctly. I think earlier, you mentioned that GMV for Q1 this year was consistent with Q1 last year. Did you mean by U.S. dollar terms or by constant currency?

首先，我想確定我沒聽錯。我想早些時候，你提到今年第一季度的 GMV 與去年第一季度一致。您是指美元還是固定匯率？

Could you also talk about the FX impact on your GMV or revenue for this quarter? And anything you can share about the number of orders for both Asia and Brazil. And lastly, any comments about your headquarter costs both year-over-year or quarter-over-quarter, anything even qualitatively would be great.

您能否也談談外匯對本季度 GMV 或收入的影響？關於亞洲和巴西的訂單數量，您可以分享任何信息。最後，任何關於你的總部成本的評論，無論是同比還是環比，任何質量上的評論都會很棒。

Thank you, Jiong. In terms of GMV, as I mentioned, we don't discuss quarter-on-quarter GMV numbers specifically. And what I mentioned though was that the trend we're observing, the general trend Q-on-Q, observed for this quarter versus last quarter is in line as what we observed in Q1 last year versus Q4 2021.

謝謝你，炯。在 GMV 方面，正如我提到的，我們不會具體討論季度 GMV 數字。不過，我提到的是，我們觀察到的趨勢，即本季度與上季度觀察到的 Q-on-Q 總體趨勢，與我們在去年第一季度與 2021 年第四季度觀察到的情況一致。

And in terms of ForEx impact, we disclosed that for our GAAP revenue in e-commerce on the constant currency basis, the GAAP revenue would be up 41.7% year-on-year. And on a USD basis, 36.3% year-on-year. So I think that probably gives you a sense of what the ForEx impact is. And in terms of our order number, again, we don't discuss specific order numbers quarter-on-quarter, but you can assume that our basket size doesn't change dramatically quarter-on-quarter anyway. So roughly in line with GMV trends. In terms of HQ costs for the quarter, we continue to see improvement on the cost and of course, adjusting for any onetime accrual reversal that we had in the previous quarter.

就外匯影響而言，我們披露，對於我們在固定匯率基礎上的電子商務 GAAP 收入，GAAP 收入將同比增長 41.7%。按美元計算，同比增長 36.3%。所以我認為這可能會讓您了解 ForEx 的影響是什麼。同樣，就我們的訂單數量而言，我們不會按季度討論具體的訂單數量，但您可以假設我們的籃子規模無論如何都不會按季度發生顯著變化。所以大致符合GMV趨勢。就本季度的總部成本而言，我們繼續看到成本有所改善，當然，還要針對上一季度的任何一次性應計逆轉進行調整。

Our next question comes from Varun Ahuja from Credit Suisse.

我們的下一個問題來自瑞士信貸的 Varun Ahuja。

I've got quick 4 questions. First, on the gaming side, can you provide an update on Tencent side of First Refusal. So it's coming up for if I understand, in September, October. So how should we think about that agreement and its impact potential?

我有 4 個問題。首先，在遊戲方面，你能提供一下騰訊方面的最新消息嗎？因此，如果我理解的話，它會在 9 月、10 月提出。那麼我們應該如何考慮該協議及其潛在影響？

Secondly, on the sticking to Garena, on the margin side, it looks like going to launch some games in the second half. So how should we think about margins given you may need to invest on marketing of the games? So it should trend down from current 50% that we have shown in the quarter.

其次，在堅持 Garena 方面，在利潤率方面，看起來要在下半年推出一些遊戲。那麼，鑑於您可能需要投資於遊戲營銷，我們應該如何考慮利潤率？因此，它應該從我們在本季度顯示的當前 50% 下降。

Third, on the e-commerce side, as kind of mentioned earlier that you have not turned free cash flow positive on the overall company level. What's your aspiration on the overall Latin America markets. I understand you're still operating in some of the countries as a -- on a export basis. So how should we think about it? Are you going to reinvest in those markets you have cut back once you have sizable cash flow. So how should we think about overall Latin America given now that you've turned free cash flow positive.

第三，在電子商務方面，正如之前提到的那樣，你沒有在整個公司層面上將自由現金流轉為正數。您對整個拉丁美洲市場有何期望？我知道您仍在某些國家/地區以出口為基礎開展業務。那麼我們應該如何思考呢？一旦您擁有可觀的現金流量，您是否打算再投資於您削減的那些市場？那麼，鑑於您已經將自由現金流轉為正數，我們應該如何考慮整個拉丁美洲。

Lastly, I'm not too sure if you have given that number. What is the total loan book size? I understand 2 to get is -- on your own balance sheet, but overall, what is the loan book size of Sea FS.

最後，我不太確定你是否提供了那個號碼。貸款賬簿的總規模是多少？我知道要獲得的 2 是——在你自己的資產負債表上，但總的來說，Sea FS 的貸款賬簿規模是多少。

Yes. Thank you, Varun. And in terms of the -- I believe your first question is regarding our agreement -- commercial agreement with Tencent for our game publishing. And I think we mentioned before, it's over renewal unless either party terminates it. We are not aware of any changing circumstances and the agreement is publicly filed, so you can refer to the terms there.

是的。謝謝你，瓦倫。關於——我相信你的第一個問題是關於我們的協議——與騰訊就我們的遊戲發行達成的商業協議。我想我們之前提到過，除非任何一方終止它，否則它已經過續約。我們不知道有任何變化的情況，並且該協議是公開提交的，因此您可以參考那裡的條款。

And in terms of the margin for the new game launches. Now I think there will be some initial marketing spend, but again, we will remain highly disciplined and will be commensurate with the performance of the game overall and remain tight on that. So we do not, at this point, anticipate a major impact on marketing because of the marketing spend related to the new game launch. And in terms of the LatAm plans for Shopee, our focus is still on Brazil, which is the largest market in the region and where we already established a significant scale and leadership in the segment that we target.

就新遊戲發布的利潤而言。現在我認為會有一些初始營銷支出，但同樣，我們將保持高度自律，並將與遊戲的整體表現相稱，並在這方面保持嚴格。因此，在這一點上，我們預計不會因為與新遊戲發布相關的營銷支出而對營銷產生重大影響。就 Shopee 的 LatAm 計劃而言，我們的重點仍然放在巴西，這是該地區最大的市場，我們已經在我們的目標細分市場中建立了顯著的規模和領導地位。

With respect to -- and then Brazil, obviously, is a local commerce market for us. And it's predominantly local sellers selling to local buyers on our platform. For the other LatAm markets that we still retain some presence, we don't have an immediate plan to aggressively grow those markets and we'll remain efficient about those markets at this time. I think our loan book size disclosed is the amount on our balance sheet. And therefore, it doesn't reflect the entire loan book size, but you can refer to the past disclosure for reference.

關於 - 然後巴西顯然是我們的本地商業市場。在我們的平台上，主要是本地賣家向本地買家銷售商品。對於我們仍然保留一些存在的其他拉美市場，我們沒有立即計劃來積極發展這些市場，我們目前將在這些市場上保持高效。我認為我們披露的貸款賬簿規模是我們資產負債表上的金額。因此，它並不能反映整個貸款賬簿的規模，但您可以參考過去的披露以供參考。

And we don't anticipate a significant increase in loan book size quarter-on-quarter immediately. Given, as I shared before, overall, our approach to the credit business is focused on risk management building up a resilient underwriting capabilities and also better user experiences.

而且我們預計貸款賬簿規模不會立即環比大幅增加。正如我之前分享的那樣，總體而言，我們對信貸業務的方法側重於風險管理，以建立有彈性的承保能力和更好的用戶體驗。

Our next question comes from Venugopal Garre from Bernstein.

我們的下一個問題來自伯恩斯坦的 Venugopal Garre。

Just very quick 3 small questions. On gaming, you mentioned about some new games in the second half of the year. I don't know whether I missed out on the comment, but are you talking about self-developed games? Or is it more related with publishing for others? That's the first question.

只是非常快的 3 個小問題。關於遊戲，您提到了下半年的一些新遊戲。不知道是不是我漏評論了，你說的是自研遊戲嗎？還是與為他人出版更相關？這是第一個問題。

The second thing is I'm sort of for whatever reason, not very sure around the strategy for e-commerce and growth versus profitability. While I do appreciate that a lot of comments have been made in this call. But what I want to understand is that the focus would be more centered around sustenance of market share and defending share. Or the focus would probably be at some stage about stimulating the market to deliver growth and deliver market share growth.

第二件事是，無論出於何種原因，我對電子商務和增長與盈利的戰略不太確定。雖然我很感激在這次電話會議中提出了很多意見。但我想了解的是，重點將更多地集中在維持市場份額和捍衛份額上。或者重點可能會在某個階段刺激市場實現增長並實現市場份額增長。

The third question for me is on fintech. What do we see from here on the contribution from Singapore, Digibank given that it's still in early stages. But as I understand, a lot of your regulatory capital requirements would kick in over time. So is it something which is a priority in terms of the focus area?

我的第三個問題是關於金融科技的。我們從這裡看到了新加坡 Digibank 的貢獻，因為它仍處於早期階段。但據我所知，隨著時間的推移，你的許多監管資本要求都會生效。那麼，就重點領域而言，這是優先事項嗎？

Yes. Thank you. The new games we mentioned in the pipeline are third-party published game for us, and not self-developed.

是的。謝謝。我們在管道中提到的新遊戲是第三方為我們發布的遊戲，而不是自主開發的遊戲。

In terms of the Shopee strategy of growth versus profitability, as I mentioned earlier, I think at this point, longer term, we think we will continue to invest in the long-term growth opportunities being a profitable, sustainable way that also, hopefully, we can expand the profitable TAM for our region by focusing on user experience and the cost to service. But short term, in terms of the profitability versus growth, again, we already achieved profitability. We're not focused on trying to maximize profitability in every market for every period. We are focusing on closely observing the market trends and allocate resources nimbly and adapt to the local comp market conditions from period-to-period, and from market-to-market.

正如我之前提到的，就 Shopee 的增長與盈利戰略而言，我認為在這一點上，從長遠來看，我們認為我們將繼續投資於長期增長機會，這是一種有利可圖的、可持續的方式，也希望，我們可以通過關注用戶體驗和服務成本來擴大我們地區的盈利 TAM。但短期內，就盈利能力與增長而言，我們已經實現了盈利能力。我們並不專注於嘗試在每個市場的每個時期最大化盈利能力。我們注重密切觀察市場趨勢，靈活分配資源，因地制宜，逐期、逐市。

It's going to be a very bottom-up decision-making. And we are doing so to again strengthen our market leadership, but more importantly, for the long run to expand the total profitable TAM in our markets as a strong market leader. And I think that's a significant opportunity that we are really seeing. And in terms of the MariBank in Singapore, it's still very early stage. And so I want to have any material contribution whether the top line or bottom line.

這將是一個非常自下而上的決策。我們這樣做是為了再次加強我們的市場領導地位，但更重要的是，從長遠來看，要擴大我們市場的總盈利 TAM 作為強大的市場領導者。我認為這是我們真正看到的一個重要機會。就新加坡的 MariBank 而言，它仍處於早期階段。因此，無論是頂線還是底線，我都想做出任何實質性貢獻。

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

為了節省時間，我們的問答環節到此結束。我想將會議轉回給 Min Ju Song 作任何閉幕詞。

Thank you, and thank you all for joining today's call. I will look forward to speaking to all of you again next quarter.

謝謝，也感謝大家參加今天的電話會議。我期待著下個季度再次與大家交談。

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。