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.

大家好，歡迎參加Sea Limited 2023年第一季業績電話會議。

(Operator Instructions)

（操作說明）

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

現在我將會議交給宋敏珠女士。請開始吧。

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，歡迎參加Sea 2023年第一季財報電話會議。我是Sea集團首席企業長辦公室的宋敏珠。

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.

在繼續之前，我想提醒各位，我們可能會做出一些前瞻性聲明，這些聲明本身存在風險和不確定性，並且由於我們在新聞稿中所述的各種原因，這些聲明未來可能無法實現。

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，本次電話會議也將討論一些非GAAP財務指標，例如調整後EBITDA。我們相信，這些指標可以作為我們GAAP揭露資訊的補充，幫助投資人更了解我們主要業務的實際現金流量。

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.

有關非公認會計準則財務指標的使用以及與最接近的公認會計準則指標的調節的討論，請參閱我們新聞稿中關於非公認會計準則財務指標的部分。

I have with me Sea's Chairman and Group Chief Executive Officer, Forrest Li; Group Chief Financial Officer, Tony Hou; and Group Chief Corporate Officer, Yanjun Wang. Our management will share 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.

我今天陪同出席的有Sea集團董事長兼首席執行官李福瑞先生、集團首席財務官侯東尼先生以及集團首席營運官王彥軍先生。我們的管理層將分享2023年第一季的策略和業務更新、營運亮點以及財務業績。隨後將進行問答環節，歡迎各位提出任何問題。

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

那麼，我把電話交給福雷斯特吧。

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，感謝各位參加今天的電話會議。 5月8日，我們慶祝了公司成立14週年。這讓我們有機會回顧公司最初的創業歷程，以及孕育瞭如今Sea的創業精神、創造力和適應能力。同時，我們也藉此機會回顧過去一年的成就。

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.

過去一年對我們的團隊來說是充滿挑戰的一年。我想藉此機會感謝所有員工所展現的奉獻精神和堅定決心。我為我們的團隊在困難的情況下迅速調整策略，最終實現自給自足的目標而感到自豪。我們不斷創新，以更少的資源完成更多的工作，同時始終不忘對用戶的承諾，並以服務標準來衡量季度業績，這充分體現了他們的奉獻精神和創造力。我也想藉此機會感謝我們的投資者和合作夥伴在過去14年中給予我們的持續支持。

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年第一季對我們來說又是一個強勁的季度。我們致力於在所有業務領域最大限度地提高營運效率並改善用戶體驗，並在這兩個方面持續取得顯著進展。我們進一步承諾在生態系統中實現強大的成本領先優勢，相信這將鞏固我們在推動市場長期獲利成長方面的結構性優勢。因此，Shopee和SeaMoney的獲利能力均實現了顯著的同比增長。此外，本季我們的總現金流為正，現金、現金等價物、短期投資和其他國庫投資較上一季增加了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，我們在提升旗下各業務的使用者體驗方面取得了顯著進展。在 Shopee，我們致力於提升物流服務水準與速度，同時優化客戶旅程關鍵環節的體驗，進而加深使用者參與度。在 Garena，我們正根據用戶回饋優化遊戲玩法和機制的各個方面，確保玩家能夠繼續享受我們遊戲中高度互動且極具社交性的體驗。

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.

本季及四月份，我們開始看到旗下最大遊戲《Free Fire》的活躍用戶群出現初步復甦跡象。 SeaMoney 正在拓展每款產品的產品和服務，以便用戶能夠享受更全面的產品和服務，滿足他們尚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本面方面取得的進展感到滿意。我們將繼續優化運營，應對近期宏觀經濟的不確定性，我們對市場的長期機會以及我們盈利地把握這些機會的能力仍然充滿信心。

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探討各個業務板塊。首先是電子商務板塊，我們非常高興地報告，Shopee 又迎來了一個強勁的季度。儘管宏觀經濟波動，Shopee 的業務依然保持韌性，我們透過強化成本領先優勢和提升用戶體驗，在深化競爭優勢方面取得了顯著進展。

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，GAAP營收為21億美元，年增36%，主要得益於更深入的變現。核心市場收入年增54%至12億美元，主要歸功於交易費和廣告收入的成長。調整後EBITDA為2.08億美元，較去年同期的虧損7.43億美元有所改善。這項改善主要得益於更高的變現率和更佳的營運成本效益。在亞洲市場，本季調整後EBITDA為2.76億美元，較去年同期的虧損4.08億美元大幅改善。

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.

在其他市場，調整後的 EBITDA 虧損為 6,800 萬美元，較去年的 3.35 億美元虧損顯著收窄。巴西市場的每筆訂單貢獻毛利虧損年增 77%，達到 0.34 美元，反映出銷售和行銷費用的變現能力提升和效率提高。鑑於我們看到了該市場的巨大機遇，我們計劃繼續投資，以掌握在巴西的更多機會。

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.

讓我重點介紹一下本季我們關注的幾個具體領域。首先，我們透過提升內部物流部門的運能與整合能力，並持續與第三方物流合作夥伴緊密合作，持續增強物流成本優勢，提升服務體驗。我們也在配送服務中引進了更多自動化技術。由於這些努力，我們在第一季成功地將各市場的平均配送時間縮短了半天以上。此外，我們也不斷擴大物流服務的覆蓋範圍。在我們最大的市場—擁有超過1萬個島嶼的印度尼西亞，目前我們95%的買家都已享受到我們的配送服務。

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，我們已擁有8個配送中心和分類中心，最近在巴西東北部進行了擴張。我們也一直在努力拓展市場上的首端物流樞紐。近幾個月來，我們新增了50個樞紐，進一步增強了我們的物流能力。此外，我們正在認真審視客戶旅程的每個環節，並持續改善流程、政策和服務，以提升使用者體驗。我們已在部分市場試行現場退貨服務，旨在為買家提供更優質的服務。我們也開始代表部分賣家處理退貨事宜，我們的團隊將直接與買家對接，減輕賣家的負擔。這不僅改善了買家的體驗（他們可以與我們的雙人團隊直接溝通），也讓賣家能夠專注於業務成長。

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.

我們正在深化人工智慧能力，以提升使用者體驗和營運效率。人工智慧幫助我們向使用者推薦更相關、更個人化的產品/服務。由於用戶能夠更快、更輕鬆地發現產品，訂單轉換率也隨之提高。此外，我們還採用了大型語言模型，以增強人工智慧聊天機器人理解不同語言使用者的能力，並根據上下文提供最相關的解決方案。這提高了問題解決率，並有助於縮短等待時間。

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.

此外，我們也利用人工智慧技術更全面地篩選和審查未來的商品，以確保其符合我們的平台政策。近期，我們進一步加強了消費者保護工作，力求為買家提供安全、可靠、便利的購物體驗。例如，在新加坡，我們推出了「Shopee安心購物」計劃，該計劃採用了新加坡消費者協會的標準糾紛管理框架，並採取了其他一系列措施。這些措施以及其他相關措施對於確保我們為所有買家和賣家提供最佳的Shopee平台體驗至關重要。隨著我們不斷強化這些關鍵優勢，我們吸引了更多買家和賣家，從而增強了我們的整體生態系統，並擴大了我們的競爭優勢。事實上，儘管宏觀環境充滿不確定性，我們仍在持續拓展本地賣家群體，並加強與生態系統其他參與者（例如網紅）的合作關係。

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，我們平台上的註冊巴西本地賣家已超過300萬，他們貢獻了巴西訂單總量的約85%。我們的Shopee聯盟計畫也取得了顯著進展，我們致力於賦能網紅和內容創作者，讓他們加入我們的生態系統。此計劃邀請社群媒體網紅推廣我們在Shopee上銷售的產品。目前，我們在全球各市場擁有超過400萬名註冊網紅參與我們的聯盟計畫。在我們最大的市場—印度尼西亞，2022年聯盟夥伴的訂單量增加了兩倍多。在所有市場，我們都持續看到加入Shopee Mall的品牌數量以及更多賣家貢獻的GMV比例不斷增長。身為市場領導者，我們始終專注於透過自身的技術實力為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.

近期，我們宣布對Shopee賣家工具進行升級，幫助品牌追蹤並了解關鍵趨勢及買家行為，提升消費者忠誠度並保護其智慧財產權。所有這些舉措進一步加強了我們與品牌的合作關係。在泰國，我們與義大利大使館和義大利商務處合作，拉近義大利製造品牌與泰國消費者的距離。在越南，我們成為加拿大政府的獨家合作夥伴，共同發起一項活動，旨在將優質的加拿大食品帶給當地消費者。

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，儘管短期內可能受市場環境和營運調整的影響出現波動，但我們將繼續專注於建立電子商務生態系統的長期結構性優勢。我們相信，這項策略對於把握未來的成長機會至關重要，並確保我們在當地社區產生日益深遠的正面影響。

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.

現在我們來聊聊數位娛樂。如同先前所說，Garena始終將提升遊戲體驗和打造更強大的遊戲社群放在首位。雖然獲利能力有所下降（主要是由於付費用戶比例降低），但我們季度活躍用戶數量出現了一些初步改善跡象，從上季度的4.85億增長到本季的4.92億。 4月份，我們也觀察到用戶成長趨勢向好，《Free Fire》的月活躍用戶數在過去8個月中達到了新高。雖然我們意識到季節性因素的影響，但我們很高興看到這對《Free Fire》來說是一個積極的信號，它仍然是全球最大的手機遊戲之一。我們將繼續密切關注未來的發展趨勢。

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.

為了進一步提升遊戲體驗和用戶參與度，我們推出了一系列旨在優化遊戲體驗的舉措，並獲得了用戶社群的正面回饋。這些措施包括優化遊戲包大小和減少遊戲操作，尤其針對市場上常用的設備。用戶表示，這些改進措施實際回應了他們的回饋，並讓他們享受了更好的遊戲體驗。

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.

我們旗下第二大遊戲《王者榮耀》（Arena of Valor）表現強勁，尤其是在農曆新年期間。遊戲上線六年多來，季度活躍用戶數和預訂量再次創下新高。我們相信，這進一步證明了我們擁有透過穩健的獲利模式長期吸引用戶的能力。同時，我們的遊戲儲備依然充足，未來幾個月我們將推出一些新遊戲。我們已開啟開放世界生存遊戲《Undawn》的預先註冊，並將於未來幾個月在東南亞地區發行。此外，我們也將在全球多個市場發行以熱門動漫《黑色五葉草》為基礎的收藏角色扮演手遊《黑色五葉草手遊》（Black Clover Mobile）。預計在去年閉門測試結束後，預註冊將於今年上半年開啟。與其他業務部門一樣，我們一直致力於利用人工智慧提升Garena的營運效率。我們目前的能力已使我們能夠提高遊戲營運的即時效率。例如，我們正在探索利用人工智慧技術對部分遊戲內容進行在地化，並進一步提升營運能力，以提高效率。我們相信，這些舉措，結合我們以往在執行和在地化方面的出色表現，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，我們來談談我們的數位金融服務業務。我們正在提升營運和風險管理能力，同時改善Seamoney的用戶體驗。我們也努力拓展金融科技產品線，無論是在Shopee平台內外，或是不同市場，以增強用戶黏性。 Seamoney 2023年第一季的GAAP營收為4.13億美元，年增75%。該季度調整後EBITDA為9,900萬美元，較2022年第一季的虧損1.25億美元有了顯著改善。這主要得益於強勁的營收成長，以及我們持續優化成本、提高效率的努力，尤其是在銷售和行銷費用方面。

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.

在數位錢包方面，我們持續擴展ShopeePay的應用程式場景。例如，ShopeePay近期已成為東南亞市場電商服務的支付方式之一。信貸方面，截至2023年第一季末，我們資產負債表上的應收貸款總額為20億美元，扣除2.81億美元的信貸損失後淨額為20億美元。逾期超過90天的不良貸款佔應收貸款總額的比例維持穩定，約2%。本季度，我們持續擴展信貸業務的融資來源。

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.

除了透過自有銀行存款融資外，我們還看到透過與地方和區域銀行的管道安排或選舉資產支持融資方式獲得的資金量有所增加。我們正努力進一步拓展融資來源，吸引更廣大的金融投資者。目前，我們貸款組合的大部分資金已來自其他管道，而非資產負債表上的現金。為了進一步加強風險管理能力，我們正在利用人工智慧技術來評估使用者的詐欺風險和信用風險，並改善產品的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.

我們也在Seamoney不斷拓展和豐富產品線。我們試辦了新的保險科技產品，並拓展了銀行應用程式的應用場景、功能和服務。這為用戶提供了更便利的金融產品取得途徑。此外，我們還將許多產品進一步整合到更廣泛的生態系統中，使用戶在Shopee和Seamoney上的體驗更加無縫銜接。我們將繼續專注於評估各市場數位金融服務領域的機遇，並持續豐富我們的產品和服務。我們對Seamoney的長期發展潛力充滿信心，並在宏觀經濟不確定因素的影響下謹慎管理業務。我們相信，我們已做好充分準備，把握市場中存在的巨大且尚未被充分開發的機會。

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.

總之，本季業績再次展現了我們商業模式的根本實力和韌性，以及我們在保持領先地位的同時提升效率的能力。我們有信心繼續為生態系統參與者創造價值，並為股東帶來長期成長和永續回報。

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，正如我們今天稍早發布的新聞稿中所述，David Ma已於5月15日加入本公司董事會，並將不再擔任Sea Capital的首席投資長。 David作為我們領導團隊的重要成員，發揮了不可或缺的作用。我謹代表公司向他致上誠摯的謝意，感謝他在此職位上所做的貢獻。我們非常高興他將繼續以董事會成員的身份，為我們帶來他的專業知識和經驗。

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

接下來，我將邀請托尼來討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call.

謝謝你，福雷斯特，也謝謝所有參加電話會議的各位。

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附上了詳細的財務報表以及相應的管理分析，Forrest 也已經介紹了一些財務亮點。因此，我將重點放在其他相關指標上。總體而言，Sea 的總 GAAP 營收年增 5%，達到 30 億美元。這主要得益於我們電子商務和數位金融服務業務的獲利能力提升。但部分被數位娛樂業務的 GAAP 收入下降所抵消。

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，我們第一季的GAAP營收為21億美元，其中包括GAAP平台營收18億美元（年增46%）和GAAP產品營收2億美元。在GAAP平台收入中，核心平台收入（主要包括交易費和廣告收入）為12億美元。其餘加值服務收入（主要包括物流服務相關收入）為7億美元。 2023年第一季電子商務調整後EBITDA為2.08億美元，而2022年第一季調整後EBITDA虧損為7.43億美元。數位娛樂預訂收入為4.62億美元，GAAP收入為5.4億美元，調整後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.

數位金融服務業務的GAAP營收年增75%，達到4.13億美元。這主要得益於信貸業務的成長。 2023年第一季調整後EBITDA為9,900萬美元，而2022年第一季調整後EBITDA虧損為1.25億美元。淨利潤的改善得益於強勁的營收成長以及銷售和行銷支出的最佳化。 2023年第一季度，我們確認了2,300萬美元的非經營性淨收入，而2022年第一季則為600萬美元的非經營性淨虧損。

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.

非經營性淨收入增加主要歸因於收益率提高所帶來的利息收入增加。 2023年第一季度，我們的淨所得稅支出為6,200萬美元，而2022年第一季為8,200萬美元。因此，2023年第一季淨利為8,700萬美元，而2022年第一季淨虧損為5.8億美元。接下來，我將把電話會議交給閔柱先生。

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 Forrest 和 Tony。現在開始接受提問。照例，集團首席企業官王彥軍將主持此一環節。接線生？

(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.

各位下午好，非常感謝你們給我這個機會。我有幾個問題。第一個問題是關於Shopee的。能否詳細說說你​​們觀察到的當前趨勢？本季GMV成長動能是否會進一步放緩？目前的佣金率趨勢如何？

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?

第二個問題也與Shopee有關。您能否談談Shopee今年剩餘時間的策略？我們是否應該期待Shopee在下半年加大投資以實現更大成長？還是會專注於進一步擴大利潤空間？我們應該期待怎樣的成長？若計劃進行再投資，資金會投向哪些方面？

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，它們將與遊戲相關。跨平台預訂將面臨更大壓力，但我們預計利潤率將繼續穩定提升。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《Free Fire》月活躍用戶數近期達到峰值，我們是否已經看到該遊戲的發展趨勢趨於穩定？我們預計遊戲的營收何時會觸底？最後，關於您的SeaMoney業務，儘管貸款餘額環比基本持平，為何收入卻持續成長？同時，SeaMoney的信貸損失準備金為何也較上季增加？

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 Pang 的提問。關於 Shopee 的成長，雖然我們不公佈季度環比的 GMV 數據，但總體而言，其成長趨勢與去年第一季基本一致，符合季節性規律。如果我們更詳細地分析各個市場，印尼在亞洲表現相對強勁，泰國和馬來西亞也實現了環比成長。

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，市場同比基數依然很高。而其他市場的情況則與我們觀察到的亞洲整體季節性趨勢一致，與去年的情況類似。

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，巴西對我們來說仍然是一個成長型市場。正如我們之前提到的，我們看到了巴西的巨大機會。我們進入巴西市場只有四年時間，所以對我們來說，這是一個相對較新的市場。然而，我們已經取得了相當大的規模，成為領先的電商平台之一，尤其是在本地電商領域，我們瞄準了巴西的大眾市場。鑑於我們目前的規模和營運效率，我們相信隨時可以實現損益平衡，但我們可能會繼續投資巴西市場，以掌握我們觀察到的巨大長期機會。

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.

以上是對整體趨勢的簡要概述。就策略而言，正如我們之前分享的，考慮到亞洲和拉丁美洲市場強勁且積極的人口結構、不斷完善的基礎設施和長期的線下零售模式，我們認為這兩個市場的長期發展機會都非常巨大，這些因素為數位化滲透提供了更大的空間，使其能夠超越一些發達市場所呈現的趨勢。

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，這些市場需要我們提供更多服務，尤其是在服務不足的大眾市場，而我們的模式在瞄準這些市場方面具有非常強大的優勢。因此，我們將繼續投資於市場的長期成長。

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.

此次投資將著重提升用戶體驗和服務品質。正如我們之前在電話會議上提到的，我們致力於與社區內的品牌和中小企業合作，提供更豐富的產品選擇，並藉助人工智慧和其他技術，打造更優質的搜尋和發現體驗、更個人化的購物體驗以及更完善的客戶服務。此外，我們也將優化退貨與物流流程，進一步提升消費者的購物便利性。

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，我們也十分關註生態系的成本。我們先前多次強調，我們正致力於持續降低整個生態系統的成本，包括物流、支付和其他基礎設施。這始終是我們長期生態系統建設的重點。我們相信，這將有助於我們掌握並鞏固自身的長期競爭優勢。

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.

短期內，就市場投資和成長趨勢而言，很大程度取決於各個市場和各個時期的具體市場狀況。我們始終保持靈活，並自下而上地專注於分析每個市場的狀況，包括宏觀用戶行為、競爭格局和其他趨勢、季節性因素、假日等等。同時，我們也會逐週、逐日檢視市場，以確定最佳投資方向和重點領域。

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.

總的來說，我認為長期發展方向非常明確。短期內，我們也會密切關注市場動態。我認為我們過去的業績表明，我們能夠同時實現成長和獲利。因此，我們相信這仍然是我們長期的競爭優勢。就遊戲趨勢而言，我們非常高興地看到，我們的遊戲，尤其是我們最大的遊戲《Free Fire》，其活躍用戶數量出現了初步的季度環比增長。而且，這種成長遍及各個市場，並非侷限於任何單一市場。

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中所提到的，這與我們近期致力於持續改進和提升用戶體驗，以留住並吸引用戶回歸遊戲的努力和方向完全一致。這也是我們過去一段時間的重點工作和優先事項，我們很高興看到一些初步成果。我將繼續關注未來的發展趨勢。此外，我們也提到，我們第二大遊戲《王者榮耀》（Arena of Valor）在上個季度也表現非常強勁。事實上，無論從季度活躍用戶數還是預訂量來看，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.

總而言之，我們對目前的成果非常滿意，並將繼續朝著提升使用者體驗的目標努力。我認為，獲利並非當務之急。然而，我們的利潤率——EBITDA利潤率——仍然高於行業標準，並且環比有所提升。我們將始終嚴格把控利潤，確保對該業務部門的投資效率。此外，我們也提到了一些可能在未來幾個月推出的新產品。我們將密切關注這些新遊戲的發展趨勢。

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.

關於Seamoney，正如我們在電話會議上所提到的，我們一直在努力實現資金來源多元化，並與第三方金融機構合作，為貸款規模的成長提供資金。因此，您會看到收入成長實際上超過了貸款規模的成長。

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.

就撥備成長而言，我認為各季度之間的撥備趨勢相似。但如果從年比來看，我們提供的產品在功能、期限和貸款類型方面都有所擴展。因此，產品和貸款組合都發生了變化。所以確實存在一些變化。但總體而言，我們的不良貸款率一直保持非常穩定且較低。

Our next question comes from Piyush Choudhary from HSBC.

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。我有三個問題。首先，關於電子商務，您能否談談亞洲和巴西市場的行業GMV成長趨勢？第二季度至今是否有所改善？如果沒有，您預計何時會出現成長加速？

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?

另外，請您談談競爭環境，TikTok 的影響是什麼？你們是如何努力捍衛市場佔有率的？

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，關於物流方面，您能否談談貴公司在這方面的策略？ Shopee Xpress 的訂單配送比例是多少？ 24 小時內完成配送的訂單比例又是多少？貴公司是否有設定目標？第三，公司目前能夠產生自由現金流。那麼，貴公司在成長投資方面的資本配置重點是什麼？貴公司是否會重啟在巴西、拉丁美洲或其他市場的成長投資？或者說，需要達到怎樣的水平才能讓貴公司有信心重啟成長投資？

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，Piyush。就行業趨勢而言，考慮到Shopee的相對規模，我們認為，總體而言，行業趨勢與我們自身電商平台的趨勢基本一致，正如我之前提到的。而且——很難預測我們接下來會看到什麼，因為一方面，我認為東南亞的經濟至今仍保持著相對的韌性。

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.

儘管通膨趨勢仍在持續，但我們尚未看到經濟受到重大衝擊。同時，我們也持續看到經濟重啟的趨勢。但另一方面，全球宏觀經濟仍存在不確定性。我們許多經濟體都是出口導向經濟體，因此也可能面臨全球經濟風險和不確定性。所以我們仍然需要密切關注當前的趨勢。這需要逐個市場、逐期進行評估。正如我之前提到的，一些市場，例如印尼，尤其是我們最大的市場，表現相當出色，保持了相對強勁的勢頭。在其他一些市場，由於同比基數較高，數據可能較為艱難；而另一些市場則已經開始出現復甦跡象，這得益於當前的經濟重啟。但無論如何，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.

所以，我們的策略依然是保持靈活敏捷，密切關注市場動態。這正是我們的優勢。我們對每個市場都瞭如指掌。在所有市場都擁有強大的營運實力和獲利能力，使我們能夠根據市場在不同時期和不同市場的具體情況，靈活地進行投資。這將是我們未來工作的重點。

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.

正如我之前所說，長期投資的重點將放在所有基礎設施上。人們在談到投資時，有時會忽略一些細節——例如過度強調補貼和運輸補貼。我認為這並不能準確反映我們的投資重​​點。相反，我們的重點是投資長期基礎設施，從而為客戶提供更優質的服務，降低生態系統的成本，並顯著擴大我們所在地區電子商務的盈利市場規模。從長遠來看，這也有助於我們建立更強大的競爭優勢。

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.

關於Shopee的物流，我們採取非常務實的態度。我們主要從使用者體驗和服務成本出發。如果在任何市場，我們能夠更有效率地完成任何階段的物流服務，我們就會增加自有物流的投入。另一方面，在第三方物流（3PL）競爭激烈的市場，我們也樂於增加對第三方物流的投入。這是一個高度動態的過程。我們沒有必須達成的特定KPI指標。一切取決於服務品質和服務成本，以及我們長期持續優化的目標。我們非常渴望與所有願意在這方面與我們合作的夥伴攜手共進。

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.

至於Free Fire——抱歉，我說的是自由現金流的產生和分配，正如我之前提到的，在不同市場的投資實際上也是逐個市場進行評估。各個市場的長期潛力都相當強勁。因此，我們不會說我們會降低某個市場的優先級，而優先發展其他市場。顯然，短期來看，巴西對我們來說是一個相對年輕的市場。正如我之前提到的，我們在東南亞從事電子商務已經近十年了。而我們進入巴西市場只有大約四年時間。但即便在短短四年內，我們也已經建立了穩固的地位和規模，足以讓我們在需要的時候達到損益兩平。

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.

因此，我們目前所處的地位非常有利，但我們也希望繼續專注於抓住更多市場機會。巴西擁有龐大的未開發用戶群體，我們認為，即使與東南亞相比，巴西的電子商務滲透率仍然很低。我們在東南亞服務過未開發用戶群體和大眾市場，並應對過極其複雜的基礎設施和監管挑戰，這使我們擁有獨特的優勢。我們相信，這些經驗使我們能夠更好地專注於巴西的類似市場。

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.

正如我們在先前的財報電話會議上提到的，我們開設了更多配送中心、分揀樞紐以及其他靠近我們生物社區的「最後一公里」配送樞紐，尤其是在巴西一些滲透率較低的地區。因此，我們相信那裡蘊藏著巨大的機會。但是，關於投資和現金流，我們將保持高度警惕和謹慎，並高度關注成本效益，因為正如我再次強調的，生態系統成本和服務消費者的成本是我們營運的關鍵所在，我們將繼續在這方面進行改進。

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?

我還有幾個問題想問。第一個是關於季度活躍用戶成長的後續情況。您認為本季的趨勢會延續到下一季嗎？能否就這些新用戶的特徵提供一些定性分析？這是由有效的行銷活動所推動的嗎？還是更多得益於內容更新？

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.

第二個問題是，我們仍然希望更深入地了解可持續的 EBITDA 利潤率，以及您將如何在策略性再投資以推動營收成長的同時，維持一定的費用水準和利潤率水準。如果您能詳細闡述您的策略，將對我們非常有幫助。

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，艾莉西亞。關於《Free Fire》的發展趨勢，從活躍用戶數量來看，我們已經看到了一些初步跡象，但正如我之前提到的，我們將繼續觀察未來的發展趨勢。我們希望能夠盡快穩定活躍用戶數量，這也是團隊目前的工作重點。

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.

關於獲利模式，這並非我們近期的重點。但正如我之前所說，通常情況下，對於一款每日活躍用戶數（DAU）龐大的遊戲來說，一旦擁有龐大的用戶群體，獲利模式自然就會隨之而來。而我們過往的業績也證明了我們在不同用戶群和不同時期都擁有非常強大的獲利能力。至於用戶畫像以及推動這些初步正面跡象的因素，我認為用戶畫像並沒有發生太大變化，仍然與我們最初的目標用戶群體基本一致，因為《Free Fire》是一款日活躍用戶數非常龐大的遊戲。以每日活躍用戶數計算，它在全球行動遊戲中名列前茅。因此，它的目標用戶群非常廣泛，涵蓋了眾多用戶群體，並擁有高度多元化的社群。

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，就我們的目標用戶策略而言，正如我們之前提到的，我們更注重提升用戶參與度、用戶體驗、社群建設，並積極回應用戶對遊戲功能等方面的回饋，而不是依賴傳統的行銷活動。如您所見，我們的 EBITDA 利潤率實際上並沒有太大變化，而且環比略有提升。因此，我們非常重視與用戶建立長期穩定的關係，並致力於將 Free Fire 打造成一個長盛不衰的系列遊戲，一個能夠持續開發新內容並吸引更多用戶的龐大平台。我們認為，Free Fire 很有可能成為一款歷久不衰的熱門遊戲。

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.

至於電商的EBITDA利潤率，正如我之前所說，雖然我們目前並沒有刻意追求利潤率最大化，但作為領先的電商平台，我們認為其他市場或領先電商平台通常達到的利潤率，我們也能實現。在某些市場，即使在我們剛剛獲利的早期階段，也已經取得了非常健康的EBITDA利潤率，在某些市場甚至超過了30%、40%。所以，利潤率並不是我們最關心的問題。如果我們想要實現高利潤率，我認為這是完全可以做到的。

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.

問題在於，我們如何才能最大限度地提高長期盈利能力，並最大限度地掌握我們在該地區以及所有市場中能夠獲得的機會。因為我們確實持續看到巨大的發展機會。因此，我們的重點在於長期發展，而非短期利潤率的擴張。但健康的利潤率也能讓我們擁有更多資源，用於在不同市場和不同時期進行投資，進一步強化我們的生態系統。正如我之前所說，這既有利於我們實現長期目標，即擴大獲利規模並鞏固我們的競爭優勢，也有利於我們在短期內應對各個市場的動態變化。所以，我們並不特別擔心利潤率。我認為更重要的是，我們如何建立一個健康的長期生態系統，從而最大限度地提高我們業務的長期獲利成長。

Our next question comes from Jiong Shao from Barclays.

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，我想確認一下我是否理解正確。我記得您之前提到過，今年第一季的GMV與去年第一季持平。您指的是以美元計價還是以固定匯率計算？

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.

您能否談談匯率波動對本季GMV或營收的影響？能否分享一下亞洲和巴西的訂單數量？最後，能否就總部成本的同比或環比情況提供一些信息，即使是定性分析也歡迎。

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Jiong。關於GMV，正如我之前提到的，我們不專門討論季度環比GMV數據。但我之前提到過，我們觀察到的趨勢，也就是本季與上季相比的整體環比趨勢，與我們去年第一季與2021年第四季相比的趨勢一致。

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.

關於外匯影響，我們揭露，以固定匯率計算，我們的電商業務GAAP營收年增41.7%，以美元計算年增36.3%。我想這應該能讓您大致了解外匯影響。至於訂單數量，我們同樣不會公佈具體的季度環比訂單數量，但您可以假設我們的客單價在季度環比中不會有顯著變化，大致與GMV趨勢一致。關於本季的總部成本，我們看到成本持續改善，當然，我們也已對上一季的一次性應計項目衝回進行了調整。

Our next question comes from Varun Ahuja from Credit Suisse.

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?

我這裡有四個問題，請快速回答。首先，關於遊戲方面，您能否提供一下騰訊方面與First Refusal的合作進度？據我了解，合作協議將在九月或十月到期。那麼我們該如何看待這項協議及其潛在影響呢？

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，就Garena而言，從利潤率的角度來看，下半年似乎會推出一些遊戲。考慮到可能需要投資遊戲行銷，我們該如何看待利潤率？因此，利潤率應該會從本季顯示的50%有所下降。

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，關於電子商務方面，如同先前提到的，貴公司整體層面的自由現金流尚未轉正。您對整個拉丁美洲市場有何展望？我了解到貴公司目前仍在部分國家以出口為主開展業務。那我們該如何看待這個問題呢？一旦現金流達到一定規模，貴公司是否會重新投資於先前縮減的那些市場？鑑於貴公司現在已經實現了自由現金流轉正，我們應該如何看待整個拉丁美洲市場？

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，我不確定您是否已經提供過這個數字。貸款總額是多少？我知道您自己資產負債表上的貸款總額是 2，但 Sea FS 的貸款總額是多少？

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，Varun。關於你提出的第一個問題——我相信是關於我們與騰訊簽訂的遊戲發行商業協議——我想我們之前已經提到過，除非任何一方終止，否則該協議將自動續約。我們目前沒有發現任何變化，而且該協議已公開備案，你可以查閱相關條款。

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.

至於新遊戲上線的利潤空間，我認為初期會有一些行銷投入，但我們會保持高度的自律，根據遊戲的整體表現進行合理分配，嚴格把控。因此，目前我們預期新遊戲上線相關的行銷投入不會對行銷造成重大影響。至於Shopee在拉丁美洲的計劃，我們的重點仍然是巴西，它是該地區最大的市場，我們在目標細分市場已經建立了相當可觀的規模和領先地位。

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.

關於巴西市場——顯然，它對我們來說是一個本地商業市場。我們的平台上主要是本地賣家向本地買家銷售商品。至於我們仍保留部分業務的其他拉丁美洲市場，我們目前沒有立即大幅拓展這些市場的計劃，我們將保持高效運作。我認為我們揭露的貸款規模是指資產負債表上的金額。因此，它並不反映全部貸款規模，但您可以參考以往的披露資訊。

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.

我們預計短期內貸款規模不會有顯著的季度環比成長。正如我之前所說，整體而言，我們的信貸業務策略著重於風險管理、建立穩健的承銷能力以及提升使用者體驗。

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.

我只想問三個小問題。關於遊戲，您提到下半年會有一些新遊戲。我不知道是不是我錯過了您的評論，您指的是自己開發的遊戲嗎？還是說是指為其他公司發行遊戲？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.

第二點是，不知何故，我對電子商務策略以及成長與獲利之間的關係不太確定。雖然我很感謝大家在這次電話會議上提出的許多意見，但我想了解的是，重點是否會更多地放在維持和捍衛市場份額上。或者，重點可能放在刺激市場以實現成長和市場份額成長。

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。鑑於新加坡的Digibank仍處於早期階段，我們未來會看到它做出哪些貢獻？但我了解到，你們的許多監管資本要求會隨著時間的推移而生效。那麼，金融科技是否是你們的重點發展領域？

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。我們提到的正在籌備中的新遊戲都是第三方發行的遊戲，並非我們自己開發的。

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.

關於Shopee的成長與獲利策略，正如我之前提到的，我認為目前來看，從長遠來看，我們將繼續投資於能夠獲利且可持續的長期成長機會，同時，我們也希望透過專注於使用者體驗和服務成本，擴大我們所在地區的獲利市場規模。但就短期而言，就獲利與成長而言，我們已經實現了獲利。我們並不追求在每個市場、每個時期都實現利潤最大化。我們專注於密切關注市場趨勢，靈活調配資源，並根據不同時期和不同市場的本地競爭情況進行調整。

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.

這將是一個由下而上的決策過程。我們這樣做是為了再次鞏固我們的市場領導地位，但更重要的是，從長遠來看，作為強大的市場領導者，我們希望擴大我們在各個市場的總獲利規模。我認為這是一個我們真正看到的重大機會。至於新加坡的MariBank，目前仍處於非常早期的階段。因此，我希望它能做出實質的貢獻，無論是營收或利潤。

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.

有鑑於時間有限，我們的問答環節到此結束。現在我將會議交還給宋敏珠女士，請她作總結發言。

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

謝謝大家，也謝謝各位參加今天的電話會議。我期待下個季度再次與大家交流。

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

會議已結束。感謝您參加今天的報告。您可以斷開連線了。