Sea Ltd (SE) 2023 Q2 法說會逐字稿

Good morning and good evening. Welcome to the Sea Limited Second Quarter 2023 Results Conference Call. (Operator Instructions). Please note, this event is being recorded.

早上好，晚上好。歡迎參加 Sea Limited 2023 年第二季度業績電話會議。 （操作員說明）。請注意，此事件正在被記錄。

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

現在我請宋敏菊女士主持會議。請繼續。

Hello, everyone, and welcome to Sea's 2023 Second Quarter Earnings Conference Call. I'm Min Ju Song from Sea's Group Chief Corporate Officer's office.

大家好，歡迎參加Sea 2023年第二季度收益電話會議。我是 Sea's 集團首席企業官辦公室的 Min Ju Song。

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

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述本身就存在風險和不確定性，並且可能由於我們新聞稿中所述的各種原因而在未來無法實現。

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. 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.

此外，本次電話會議還討論了某些非公認會計準則財務指標，例如調整後的 EBITDA。我們相信，這些措施可以增強投資者對我們主要業務實際現金流量的理解，作為我們公認會計準則披露的補充。有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調節的討論，請參閱我們新聞稿中有關非 GAAP 財務指標的部分。

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

與我同行的還有 Sea 董事長兼集團首席執行官 Forrest Li；集團首席財務官侯先生；以及集團首席執行官王彥軍。我們的管理層將分享 2023 年第二季度的戰略和業務更新、運營亮點和財務業績。隨後將進行問答環節，歡迎您提出任何問題。

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

現在，讓我把電話轉給福雷斯特。

Hello, everyone, and thank you for joining today's call. In the second quarter of 2023, we delivered strong results, building upon many of the key initiatives we shared previously.

大家好，感謝您參加今天的電話會議。在我們之前分享的許多關鍵舉措的基礎上，我們在 2023 年第二季度取得了強勁的業績。

We are pleased to see positive developments across all 3 segments of our business during the quarter. Shopee continued to enjoy significant improvement in margins and a strong growth in revenue year-on-year as we started to ramp up growth for Shopee. It saw double-digit increase in gross orders quarter-on-quarter. Garena showed sequential active user and paying user growth, with bookings demonstrating more signs of stabilization. Moreover, Free Fire also started to see quarter-on-quarter growth in bookings. SeaMoney continued to achieve both strong growth and profitability while maintaining a relatively stable risk profile.

我們很高興看到本季度我們所有三個業務部門都取得了積極的發展。隨著我們開始加速 Shopee 的增長，Shopee 的利潤率繼續顯著提高，收入同比強勁增長。訂單總額環比增長兩位數。 Garena 的活躍用戶和付費用戶連續增長，預訂量顯示出更多穩定跡象。此外，《Free Fire》的預訂量也開始出現環比增長。 SeaMoney 繼續實現強勁的增長和盈利能力，同時保持相對穩定的風險狀況。

As a result, at the group level, we saw not only top line growth but also significant bottom line improvement from the previous year, with our cash balance, which includes certain short-term and the treasury investments, further strengthened to $7.7 billion. In the past couple of quarters, we have not only achieved self-sufficiency but also demonstrated the profitability of our model and our ability to manage fast and significant shift in operational focus as we see fit. Given this, we have strengthened our execution capabilities and increased the stickiness of our ecosystem. We believe we are now -- have far more footing to better serve our communities.

因此，在集團層面，我們不僅看到了營收增長，而且淨利潤也比上一年有了顯著改善，我們的現金餘額（包括某些短期和庫存投資）進一步增強至 77 億美元。在過去的幾個季度中，我們不僅實現了自給自足，而且還展示了我們模式的盈利能力以及我們在我們認為合適的情況下管理運營重點快速、重大轉變的能力。鑑於此，我們加強了執行能力，增加了生態系統的粘性。我們相信我們現在有更多的基礎來更好地服務我們的社區。

Meanwhile, the economics of our region have remained resilient, with inflation largely under control. This further boosts confidence in the long-term growth prospects of our markets. We're also excited to see recent ecosystem development in diversified user engagement through live streaming and short-form video as well as affiliate programs which already brought new growth to Shopee.

與此同時，本地區經濟保持彈性，通脹基本得到控制。這進一步增強了人們對我們市場長期增長前景的信心。我們也很高興看到最近生態系統的發展，通過直播和短視頻以及聯盟計劃實現多元化的用戶參與，這些已經為 Shopee 帶來了新的增長。

Such developments in our ecosystem offer us further opportunities to expand our long-term profitable trends. Given these positive developments and trends, we have started and will continue to ramp up our investments in growing the e-commerce business across our markets. Such investments will have impact on our bottom line and may result in losses for Shopee and our group as a whole in certain periods. However, this does not change our unwavering emphasis on self-sufficiency and improving cost efficiency as a key competitive moat.

我們生態系統的此類發展為我們提供了進一步擴大長期盈利趨勢的機會。鑑於這些積極的發展和趨勢，我們已經開始並將繼續加大投資，以發展整個市場的電子商務業務。此類投資將對我們的利潤產生影響，並可能在某些時期導致 Shopee 和我們整個集團的損失。然而，這並沒有改變我們對自給自足和提高成本效率作為關鍵競爭護城河的堅定不移的重視。

Moreover, we believe that the efficiency gains and a stronger footing we have achieved through our past efforts have further strengthened our ability to invest efficiently in growth. Most importantly, we will remain highly agile and prudent by closely monitoring the conditions of each market and adapting our focus and pace accordingly from period to period. As I discuss Shopee's performance later, I will further elaborate on some of our focused areas in the near term.

此外，我們相信，通過過去的努力所取得的效率提升和更堅實的基礎進一步增強了我們有效投資增長的能力。最重要的是，我們將密切關注每個市場的狀況，並根據不同時期相應地調整我們的重點和步伐，保持高度敏捷和審慎。當我稍後討論 Shopee 的表現時，我將進一步闡述我們近期的一些重點領域。

With that, let us now discuss each business segment in more detail, starting with e-commerce. As we mentioned in past quarters, we have been highly focused on reducing our ecosystem's cost to serve and improving the user experience for both our buyers and sellers. During the second quarter, we made important progress on both fronts. In the quarter, we further improved the efficiency of our logistics operations and expanded our network and capabilities across our markets.

現在，讓我們從電子商務開始更詳細地討論每個業務領域。正如我們在過去幾個季度提到的，我們一直高度重視降低生態系統的服務成本並改善買家和賣家的用戶體驗。第二季度，我們在這兩方面都取得了重要進展。本季度，我們進一步提高了物流運營效率，並擴大了我們在市場上的網絡和能力。

New initiatives such as improved digitalization of scheduling and the tracking of orders also enhanced the user experience. More delivery options have been launched to address user preferences as well. For example, in Singapore, we have recently added an additional 600 collection points across a variety of retail locations to the existing 1,000 self-collection lockers to offer more delivery options to users. In Taiwan, we installed lockers with 24-hour access at around 150 convenience stores, with plans to scale this pickup option across the market. These efforts have resulted in lower logistics costs, including manpower costs and better delivery experience across our markets. We believe that the highly cost-effective and seamless logistics operation can serve as a key competitive advantage for us.

改進調度數字化和訂單跟踪等新舉措也增強了用戶體驗。還推出了更多交付選項來滿足用戶的偏好。例如，在新加坡，我們最近在現有 1,000 個自助取貨儲物櫃的基礎上，在各個零售地點額外增加了 600 個取貨點，為用戶提供更多送貨選擇。在台灣，我們在大約 150 家便利店安裝了 24 小時開放的儲物櫃，併計劃在整個市場上推廣這種取貨選項。這些努力降低了物流成本，包括人力成本，並改善了整個市場的交付體驗。我們相信，高成本效益和無縫的物流運作可以成為我們的關鍵競爭優勢。

Our efforts certainly go beyond logistics and include all parts of our users' e-commerce journey, which has become our competitive moat as the leading integrated marketplace in our regions. We will remain highly focused on lowering the cost to serve for the entire ecosystem while continuing to improve user experience over the long run.

我們的努力當然不僅僅限於物流，還包括用戶電子商務旅程的所有部分，這已成為我們作為我們地區領先的綜合市場的競爭護城河。我們將繼續高度關注降低整個生態系統的服務成本，同時繼續改善長期用戶體驗。

We also improved our user engagement metrics this quarter, further cementing Shopee's position as the e-commerce platform of choice. For example, we have focused on growing our live streaming feature, driving significantly higher participation from buyers, sellers and creators in the second quarter. The feedback from our efforts was highly positive, reflecting the strong demand and high satisfaction for this feature from our users. Indeed, during July 7.7 live streaming-focused campaign in Indonesia, we recorded a 12x growth in transaction volume and a 10x increase in the number of buyers during the campaign as compared to a normal day. For the 8.8 shopping campaign, around 1/4 of our Indonesian buyers watched the live streams on Shopee Live and made close to 5 million orders in a single day. In fact, Shopee has already become the leading live streaming e-commerce platform in Indonesia based on a report by Populix.

本季度我們還提高了用戶參與度指標，進一步鞏固了 Shopee 作為首選電子商務平台的地位。例如，我們專注於發展直播功能，在第二季度顯著提高了買家、賣家和創作者的參與度。我們的努力得到了非常積極的反饋，反映出用戶對此功能的強烈需求和高度滿意度。事實上，在 7 月 7.7 印度尼西亞直播活動期間，我們的交易量比平常增加了 12 倍，買家數量也增加了 10 倍。在8.8購物活動中，約1/4的印尼買家觀看了Shopee Live直播，單日訂單量接近500萬。事實上，根據Populix的報告，Shopee已經成為印尼領先的直播電商平台。

We also significantly grew the pool of influencers and content creators through our Shopee affiliate program. This, in turn, enables us to efficiently attract more buyers to our platform. These affiliate partners are carefully recruited by our team and can choose to work with us directly or with the sellers on Shopee to promote products to their communities.

我們還通過 Shopee 聯盟計劃顯著擴大了影響者和內容創作者的數量。這反過來又使我們能夠有效地吸引更多買家到我們的平台。這些附屬合作夥伴是我們團隊精心招募的，可以選擇直接與我們合作或與 Shopee 上的賣家合作，向他們的社區推廣產品。

Feedback from our efforts has been very positive, and we are starting to see a tangible boost to our GMV and revenue from this initiative. Indeed, over the course of the second quarter, over 1 million influencers registered with the program. Meanwhile, we have been attracting more new users to our platform, especially including those from the less accessible areas of our market. We believe we are unique in having the full capabilities to service the mass market with the broadest coverage with our low cost to serve and strong owned infrastructure. We have also broadened our assortment of products for our core categories such as fashion, health and beauty to further enhance our competitive moat in the long-tail categories.

我們的努力得到了非常積極的反饋，我們開始看到這一舉措對我們的 GMV 和收入帶來了切實的提升。事實上，在第二季度，超過 100 萬影響者註冊了該計劃。與此同時，我們一直在吸引更多新用戶加入我們的平台，特別是來自市場上交通不便地區的用戶。我們相信，我們的獨特之處在於，我們完全有能力以最廣泛的覆蓋範圍、低成本的服務和強大的自有基礎設施為大眾市場提供服務。我們還擴大了時尚、健康、美容等核心品類的產品種類，進一步增強我們在長尾品類的競爭優勢。

As a result of our user-focused efforts, buyers' Net Promoter Score on Shopee improved by 10% over the course of the second quarter. For sellers, we continue to improve support by upgrading our services and tools to provide a more seamless onboarding process, more [attentive] seller management and better seller tools and services. We also provide our sellers with more upskilling and training opportunities to improve their competitiveness.

由於我們以用戶為中心的努力，第二季度買家在 Shopee 上的淨推薦值提高了 10%。對於賣家，我們不斷通過升級服務和工具來改善支持，提供更無縫的入職流程、更[周到]的賣家管理以及更好的賣家工具和服務。我們還為賣家提供更多技能提升和培訓機會，以提高他們的競爭力。

For example, we have conducted hundreds of daily classes and camps to train our sellers and organize the knowledge sharing events this year in Malaysia. Our Shopee on the road initiative brings free in-person training to sellers across Brazil. We partnered with Thailand's Creative Economy Agency and other industry participants to help introduce artisan products produced by local Thai communities to our global buyers and provided business training and marketing support to these Thai sellers.

例如，我們今年在馬來西亞舉辦了數百個日常課程和訓練營來培訓我們的賣家並組織知識分享活動。我們的 Shopee on the road 計劃為巴西各地的賣家提供免費的現場培訓。我們與泰國創意經濟機構和其他行業參與者合作，幫助向全球買家介紹泰國當地社區生產的手工藝品，並向這些泰國賣家提供業務培訓和營銷支持。

In summary, as we look back on the past few quarters, I'm very pleased and highly encouraged by the progress made, having significantly improved our efficiency and unique economics over the past few quarters. We have become the first and only e-commerce marketplace in Southeast Asia with a proven profitability record at scale. This track record shows our ability to manage profitability and growth in each market as we see appropriate based on market conditions.

總之，當我們回顧過去幾個季度時，我對所取得的進展感到非常高興和深受鼓舞，在過去幾個季度中顯著提高了我們的效率和獨特的經濟效益。我們已成為東南亞第一個也是唯一一個擁有良好規模盈利記錄的電子商務市場。這一業績記錄表明我們有能力根據市場條件，按照我們認為適當的方式管理每個市場的盈利能力和增長。

More importantly, this ability puts us on a much stronger footing and positions us well for maximizing our long-term potential in each market. We now have a more adaptive and efficient organization supported by our strong market leadership and financial position and underpinned by a resilient macro outlook. As shared earlier, we believe now is the right time to start reaccelerating our investments in growth. The early signs are encouraging. Gross order in the second quarter grew by more than 10% quarter-on-quarter, driven by growth in both active buyers and buyer purchase frequency.

更重要的是，這種能力使我們站穩了腳跟，並使我們能夠最大限度地發揮我們在每個市場的長期潛力。我們現在擁有一個更具適應性和效率的組織，由我們強大的市場領導力和財務狀況提供支持，並以富有彈性的宏觀前景為基礎。正如之前所分享的，我們認為現在是開始重新加速增長投資的最佳時機。早期跡象令人鼓舞。在活躍買家和買家購買頻率雙雙增長的推動下，第二季度總訂單環比增長超過10%。

Looking ahead, as we reaccelerate investments in growth, our strategic focus to build cost leadership and a continually improved user experience remains key to our long-term success. We believe that the learnings from the past help us to be even more effective in executing our strategy. We plan to stay highly agile in adapting to user preferences as well as the ever-evolving industry and competitive trends to strengthen our leading position.

展望未來，隨著我們重新加速增長投資，我們的戰略重點是建立成本領先地位和不斷改善的用戶體驗仍然是我們長期成功的關鍵。我們相信，過去的經驗教訓有助於我們更有效地執行我們的戰略。我們計劃保持高度敏捷，適應用戶偏好以及不斷發展的行業和競爭趨勢，以鞏固我們的領先地位。

Moving on to digital entertainment. Garena's performance in the second quarter was encouraging as the positive trends in the previous quarter continued to play out. During the second quarter, both quarterly active users and quarterly paying users grew quarter-on-quarter as Free Fire shows sustained signs of improvement in user retention and engagement. Bookings for the game also grew quarter-on-quarter for the first time in the past 7 quarters. These recent trends are encouraging signs of a Free Fire stabilizing while remaining one of the largest mobile games worldwide, and we continue to closely monitor if this is the beginning of a longer-term stabilization of the game.

轉向數字娛樂。隨著上一季度積極趨勢的繼續發揮，Garena 第二季度的表現令人鼓舞。第二季度，隨著 Free Fire 在用戶保留率和參與度方面顯示出持續改善的跡象，季度活躍用戶和季度付費用戶均環比增長。該遊戲的預訂量也出現了過去 7 個季度以來的首次環比增長。這些最近的趨勢是 Free Fire 穩定下來的令人鼓舞的跡象，同時仍然是全球最大的手機遊戲之一，我們將繼續密切關注這是否是該遊戲長期穩定的開始。

In recent months, we have continued to improve core user experience and optimize features and content to ensure a more seamless gaming experience for all users. We also refreshed the gameplay of Free Fire, particularly around characters and maps. We recently celebrated Free Fire's sixth anniversary with many community events that our growing user base found highly engaging. There has been sustained healthy trends across our existing long-running franchises, and we will continue to build upon these successes.

近幾個月來，我們持續改善核心用戶體驗並優化功能和內容，以確保為所有用戶提供更加流暢的遊戲體驗。我們還刷新了《Free Fire》的遊戲玩法，特別是在角色和地圖方面。最近，我們舉辦了許多社區活動來慶祝《Free Fire》六週年，我們不斷增長的用戶群發現這些活動非常有吸引力。我們現有的長期特許經營權一直呈現持續健康的趨勢，我們將繼續在這些成功的基礎上再接再厲。

One of Garena's key competitive advantages is our ability to bring best-in-class game experiences to users across diverse markets. We have repeatedly demonstrated how we build deep lasting engagement with our users, particularly through games involving complex genres and gameplay, even if they're using low-spec devices, and we are confident that we can further capitalize on this as we bring more new games to our key markets.

Garena 的主要競爭優勢之一是我們能夠為不同市場的用戶帶來一流的遊戲體驗。我們已經多次展示瞭如何與用戶建立深入持久的互動，特別是通過涉及復雜類型和遊戲玩法的遊戲，即使他們使用的是低規格設備，而且我們相信，隨著我們推出更多新產品，我們可以進一步利用這一點遊戲進入我們的主要市場。

Lastly, on our digital financial services business, SeaMoney's second quarter performance was strong as we continued to expand our features and product offerings across the business. We are also increasingly seeing growing benefits from the synergies between the Shopee and SeaMoney ecosystems. More importantly, our progress has enabled us to provide underserved segments of our markets with better access to financial services and products.

最後，在我們的數字金融服務業務方面，隨著我們繼續擴展整個業務的功能和產品範圍，SeaMoney 第二季度的業績表現強勁。我們也越來越多地看到 Shopee 和 SeaMoney 生態系統之間的協同效應帶來的好處越來越多。更重要的是，我們的進步使我們能夠為服務不足的市場領域提供更好的金融服務和產品。

In the second quarter, GAAP revenue grew 53% year-on-year, driven by our credit business. Profitability in terms of adjusted EBITDA also continued to improve meaningfully on both year-on-year and the quarter-on-quarter basis to reach $137 million while we maintained a stable and healthy risk profile, with nonperforming loans past due by more than 90 days remaining at around 2% of our total gross loan receivables.

第二季度，在信貸業務的推動下，GAAP 收入同比增長 53%。調整後 EBITDA 的盈利能力同比和環比均繼續顯著改善，達到 1.37 億美元，同時我們保持穩定和健康的風險狀況，不良貸款逾期超過 90 天保持在我們應收貸款總額的2%左右。

Over the past quarter, we continued to refine our risk policies with respect to customer credit and selection. Alternative funding from third parties for our credit business also grew as a portion of our loan book as we continue to diversify the sources of funding. We have seen progress made in further developing our digital bank offerings.

過去一個季度，我們繼續完善有關客戶信用和選擇的風險政策。隨著我們繼續實現資金來源多元化，我們信貸業務的第三方替代資金也作為我們貸款賬簿的一部分而增長。我們看到在進一步開發數字銀行產品方面取得了進展。

Our bank in Indonesia has expanded its service offerings, making our services even more convenient for our users. For instance, the bank app is now compatible with QRIS, a local QR code standard and connected to BI-FAST, a real-time simplified bank transfer service, to enable easier and faster payments and transactions for our users. Users can now purchase digital products such as mobile data and pay utilities or credit card bills through our bank app.

我們在印度尼西亞的銀行擴大了服務範圍，使我們的服務對用戶來說更加方便。例如，銀行應用程序現在與本地二維碼標準 QRIS 兼容，並連接到實時簡化銀行轉賬服務 BI-FAST，以便為我們的用戶提供更輕鬆、更快捷的支付和交易。用戶現在可以通過我們的銀行應用程序購買移動數據等數字產品並支付水電費或信用卡賬單。

Meanwhile, we have further integrated the bank into our broader ecosystem through our direct debit feature, where Shopee buyers can make payments on Shopee directly from their bank account with us. As a result of our user-friendly UI and the UX design, the rating for our bank app reached over 4.8 stars on both Apple and Google app stores, one of the highest among banks.

與此同時，我們通過直接借記功能將銀行進一步整合到我們更廣泛的生態系統中，Shopee買家可以直接從他們在我們這裡的銀行賬戶在Shopee上付款。由於我們用戶友好的 UI 和 UX 設計，我們的銀行應用程序在 Apple 和 Google 應用商店中的評級均超過 4.8 星，是銀行中最高的評級之一。

With our expanded offerings and products, we continue to focus on serving the underserved financial needs across our markets and collaborating closely with our ecosystem partners to ensure the healthy and sustainable growth of our business over the long run.

通過擴大產品範圍和產品，我們繼續專注於滿足整個市場中尚未得到滿足的金融需求，並與我們的生態系統合作夥伴密切合作，以確保我們業務的長期健康和可持續增長。

To conclude, we have made strong progress over the last quarters in our efforts to enhance our efficiency, improve user experience and solidify our market leadership as we ramp up growth with efficiency, prudence and agility and continue to strengthen our fundamentals. We are better positioned than ever to capture the sustained opportunities across our businesses and markets. We believe our efforts will translate into even greater defensibility and profitability for our business as a whole over the long term.

總而言之，過去幾個季度，我們在提高效率、改善用戶體驗和鞏固市場領導地位方面取得了巨大進展，我們以高效、審慎和敏捷的方式加速增長，並繼續鞏固我們的基本面。我們比以往任何時候都更有能力抓住我們業務和市場的持續機遇。我們相信，從長遠來看，我們的努力將轉化為我們整個業務更大的防禦性和盈利能力。

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

接下來，我將邀請託尼討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call. We have included detailed financial schedules together with the corresponding management analysis in today's press release, so I will focus my comments on the key metrics.

謝謝你，福雷斯特，也感謝大家加入電話會議。我們在今天的新聞稿中包含了詳細的財務計劃以及相應的管理分析，因此我將重點關注關鍵指標。

For Sea overall, total GAAP revenue increased 5% year-on-year to $3.1 billion. This was primarily driven by the improved monetization in our e-commerce and digital financial services businesses. Our group total adjusted EBITDA was $510 million compared to an adjusted EBITDA loss of $506 million in the second quarter of 2022.

Sea 整體 GAAP 總收入同比增長 5%，達到 31 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改善所致。我們集團調整後 EBITDA 總額為 5.1 億美元，而 2022 年第二季度調整後 EBITDA 虧損為 5.06 億美元。

On e-commerce, our second quarter GAAP revenue of $2.1 billion included GAAP marketplace revenue of $1.9 million, up 28% 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, up 38% year-on-year and 7% quarter-on-quarter as a result of both increase in advertisement uptake by sellers on our platform and commission rates.

在電子商務方面，我們第二季度的 GAAP 收入為 21 億美元，其中 GAAP 市場收入為 190 萬美元，同比增長 28%，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，同比增長 38%，環比增長 7%，這是由於廣告投放量的增加所致。我們平台上的賣家和佣金率。

Value-added services revenue, mainly consisting of revenues related to logistic services, was $0.6 billion, up 11% year-on-year. On a quarter-on-quarter basis, value-added services revenue declined 7% as we began to reaccelerate growth during the quarter and increased investment in shipping subsidies programs.

增值服務收入（主要包括物流服務相關收入）為6億美元，同比增長11%。環比來看，隨著本季度我們開始重新加速增長並增加對航運補貼計劃的投資，增值服務收入下降了 7%。

E-commerce adjusted EBITDA was $150 million in the second quarter of 2023 compared to an adjusted EBITDA loss of $648 million in the second quarter of 2022. The improvement was driven by increased monetization and greater operating cost efficiencies. For our Asia markets, we achieved an adjusted EBITDA of $204 million during the quarter, improving substantially from a loss of $316 million in the same period last year. In our other markets, the adjusted EBITDA loss was $54 million, narrowing meaningfully from last year, when losses were $332 million. Contribution margin loss per order in Brazil improved by 83% year-on-year to reach $0.24, reflecting better monetization and higher efficiency in our operations.

2023 年第二季度電子商務調整後 EBITDA 為 1.5 億美元，而 2022 年第二季度調整後 EBITDA 虧損為 6.48 億美元。這一改善是由於貨幣化程度的提高和運營成本效率的提高所推動的。對於亞洲市場，本季度調整後 EBITDA 為 2.04 億美元，較去年同期的 3.16 億美元虧損大幅改善。在我們的其他市場，調整後的 EBITDA 虧損為 5,400 萬美元，較去年的虧損 3.32 億美元大幅收窄。巴西每個訂單的邊際貢獻損失同比下降 83%，達到 0.24 美元，反映出我們運營中的貨幣化效果更好，效率更高。

Digital entertainment bookings were $443 million, and GAAP revenue was $529 million. Adjusted EBITDA was $239 million, with quarter-on-quarter growth partly driven by the sequential increase in Free Fire bookings, which has higher margins.

數字娛樂預訂量為 4.43 億美元，GAAP 收入為 5.29 億美元。調整後 EBITDA 為 2.39 億美元，季度環比增長部分受到利潤率較高的 Free Fire 預訂量環比增長的推動。

Digital financial services GAAP revenue was up by 53% year-on-year to $428 million. Adjusted EBITDA was $137 million in the second quarter of 2023 compared to an adjusted EBITDA loss of $112 million in the second quarter of 2022.

數字金融服務 GAAP 收入同比增長 53% 至 4.28 億美元。 2023 年第二季度調整後 EBITDA 為 1.37 億美元，而 2022 年第二季度調整後 EBITDA 虧損為 1.12 億美元。

On credit as of the end of the second quarter of 2023, the total loans receivable on our balance sheet was $2 billion net of allowance for credit losses of $279 million. Nonperforming loans past due by more than 90 days as a percentage of our total gross loans receivable remained stable at around 2%. We recognized a net nonoperating income of $108 million in the second quarter of 2023, compared to a net nonoperating loss of $33 million in the second quarter of 2022. The year-on-year increase was mainly due to higher interest income in the second quarter of 2023 and investment losses recognized in the second quarter of 2022.

截至 2023 年第二季度末，我們資產負債表上的應收貸款總額為 20 億美元，扣除 2.79 億美元的信貸損失準備金。逾期90天以上不良貸款占應收貸款總額的比例穩定在2%左右。我們在 2023 年第二季度確認營業外收入淨額為 1.08 億美元，而 2022 年第二季度營業外淨虧損為 3300 萬美元。同比增長主要是由於第二季度利息收入增加2023 年第二季度確認投資損失。

We had a net income tax expense of $62 million in the second quarter of 2023 compared to net income tax expense of $65 million in the second quarter of 2022. As a result, net income was $331 million in the second quarter of 2023 as compared to net loss of $931 million in the second quarter of 2022.

我們2023 年第二季度的淨利潤為6200 萬美元，而2022 年第二季度的淨利潤為6500 萬美元。因此，2023 年第二季度的淨利潤為3.31 億美元，而2022 年第二季度的淨利潤為3.31 億美元。 2022 年第二季度淨虧損 9.31 億美元。

With that, let me turn the call to Min Ju.

那麼，讓我把電話轉給敏珠。

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

謝謝你們，福雷斯特和托尼。我們現在準備開始提問。與往常一樣，我們的集團首席企業官王彥軍將領導這一部分。操作員？

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

（操作員指令）我們的第一個問題來自高盛的Pang Vitt。

Two questions from me. Firstly, on e-commerce. Any comment on GMV take rate in second quarter you can provide? Can we also have a better understanding of your e-commerce strategy right now? What exactly did you see and prompted you to be more aggressive on spending now? Any change in competitive landscape? Where do you spend right now as well? Is it on price subsidies, shipping subsidies or brand campaign overall? Why is that a lagging as well for this to show up in top line and the objective to try to achieve any guidance you can provide? And importantly, what is the line here? Will we potentially see you go back to cash burn mode or negative EBITDA on e-commerce again on a group level? That's question number one.

我有兩個問題。首先，關於電子商務。您對第二季度的 GMV 轉化率有何評論？我們現在也能更好地了解你們的電子商務策略嗎？您到底看到了什麼並促使您現在更加積極地花錢？競爭格局有什麼變化嗎？您現在也在哪裡消費？是價格補貼、運費補貼還是整體品牌宣傳？為什麼這也滯後於出現在頂線和嘗試實現您可以提供的任何指導的目標？重要的是，這裡的界限是什麼？我們是否有可能看到你們在集團層面上再次回到燒錢模式或電子商務的負 EBITDA 模式？這是第一個問題。

Question number two on gaming. We start to see a better trend on QAU and also [clear] ratio. Is it safe to say that the worst is over for Free Fire and we will likely to see some positive momentum shift toward to grow again? Any one-offs due to seasonality due to summer holiday? And can you also walk us through the improvement for your EBITDA margin here as well? Is this a new run rate we can expect?

關於遊戲的第二個問題。我們開始看到 QAU 和 [clear] 比率有更好的趨勢。是否可以肯定地說，Free Fire 最糟糕的時期已經過去，我們可能會看到一些積極的勢頭轉向再次增長？暑假期間有季節性的一次性嗎？您能否也向我們介紹一下您的 EBITDA 利潤率的改善情況？這是我們可以期待的新運行率嗎？

Thank you, Pan. That seems to be a trail of a lot of questions. Thank you. So on the e-commerce side, regarding GMV and take rate, we see a sequential growth in GMV, and we did mention that we saw double-digit growth in order number quarter-on-quarter. So that's an initial positive sign in relation to our ramp-up investments in Q2 already.

謝謝你，潘。這似乎是很多問題的線索。謝謝。因此，在電子商務方面，關於 GMV 和獲取率，我們看到 GMV 環比增長，我們確實提到我們看到訂單數量環比增長兩位數。因此，這對於我們第二季度的加大投資來說是一個初步的積極跡象。

Why we -- in terms of take rates, as some of you probably already observed, we continue to see uptick in terms of advertisement and also so much spending on our platform, and therefore, the core marketplace revenue continues to grow as a result. But of course, there is some impact on the VAS revenue because of our ramp-up investment in the logistics spending, which affects, due to GAAP accounting and netting off effects, VAS GAAP revenue. And I think that might be an ongoing trend. So if we want to highlight that in terms of take rate, we would like to get people to look more at core marketplace take rate because VAS take rate will be affected by accounting treatment of the shipping subsidies we may provide from time to time.

為什麼我們 - 就採用率而言，正如你們中的一些人可能已經觀察到的那樣，我們繼續看到廣告方面的上升以及我們平台上的大量支出，因此，核心市場收入持續增長。但當然，由於我們對物流支出的投資增加，這對增值服務收入產生了一些影響，由於公認會計原則會計和扣除效應，這影響了增值服務公認會計原則收入。我認為這可能是一個持續的趨勢。因此，如果我們想強調在使用率方面，我們希望讓人們更多地關注核心市場的使用率，因為增值服務的使用率將受到我們可能不時提供的運輸補貼的會計處理的影響。

And in terms of the what's going on that why we are reaccelerating our growth and investment in growth during this period of time, I think as we look at the past quarters, we have become the first and only e-commerce platform in our region that have achieved profitability at scale. And that shows the strength of our operations as well as our ecosystem, I think, also looking at the financial position we have achieved and the resources we have. Overall, we think we are in a much stronger position and a much stronger footing now to refocus on growth.

至於我們在這段時間內重新加速增長和投資增長的原因，我認為，回顧過去的幾個季度，我們已經成為我們地區第一個也是唯一一個電子商務平台已實現規模盈利。我認為，這顯示了我們運營和生態系統的實力，同時也考慮到我們所取得的財務狀況和我們擁有的資源。總體而言，我們認為我們現在處於更強有力的地位和基礎，可以重新關注增長。

I'd like to remind all that we keep -- during that entire lifespan, we've been talking about the growth potential of our markets, and our markets remain important growth market for e-commerce and the significant opportunities that we think ahead of us. So that should never be lost regardless of shift in focus. But the past few quarters' efforts in focusing on cost efficiency, improvements on overall cost management of the organization as well, as we mentioned, the continuing efforts to focus on cost leadership for our ecosystem as a whole has significant benefit us to grow further more efficiently in this period of time. So I think this is one benefit we can leverage as we shift to -- back to reinvestment into growth.

我想提醒大家——在整個生命週期中，我們一直在談論我們市場的增長潛力，我們的市場仍然是電子商務的重要增長市場，以及我們認為領先的重大機遇我們。因此，無論焦點如何轉移，這一點都不應丟失。但過去幾個季度我們在關注成本效率、改進組織的整體成本管理方面所做的努力，以及我們提到的，持續努力關注我們整個生態系統的成本領先地位，對我們進一步發展有很大好處這段時間高效。因此，我認為這是我們在轉向再投資以促進增長時可以利用的一項好處。

And the second thing is when we look at the macro environment in our ecosystem, we've seen resilience, in fact, in the local economy and consumption so far. And more importantly, we also see new opportunities for growth, in particularly relating to live streaming as well as e-commerce related to -- with video content.

第二件事是，當我們審視我們生態系統的宏觀環境時，事實上，到目前為止，我們已經在當地經濟和消費中看到了彈性。更重要的是，我們還看到了新的增長機會，特別是與視頻內容相關的直播和電子商務。

We think these are interesting new opportunities that we are in a great position to capture given, a, that we are an e-commerce platform. And from that angle, in terms of commerce side, we have advantage in actually converting buyers in serving their orders more efficiently and effectively with better quality than experience with our integrated logistics and payment services as well as our overall e-commerce capabilities.

我們認為這些都是有趣的新機遇，鑑於我們是一個電子商務平台，我們處於有利的位置來抓住這些機遇。從這個角度來看，在商務方面，我們在實際轉化買家方面具有優勢，比我們的綜合物流和支付服務以及整體電子商務能力的經驗更高效、更有效、更優質地服務他們的訂單。

And b, we don't forget that we are a social commerce platform in our DNA, so we're the -- one of the first platforms -- e-commerce platforms in our region to tap into social sellers. So this has always been part of our core competencies and strengths.

b，我們不要忘記，我們的基因裡就是一個社交商務平台，所以我們是我們地區最早的平台之一，是我們地區利用社交賣家的電子商務平台。因此，這一直是我們核心能力和優勢的一部分。

And c, given our larger, significantly larger scale, the only platform -- other platforms and also the profitable position we have already achieved, we're in a better-than-ever position to actually capture a larger slice of growth in the pie that we already see in the market. As Forrest previously shared just now, we actually already started to see some progress and benefits from our focus on this content-based e-commerce activity in our region, and we have attracted a significant number of top influencers and sellers to stream on our platform. As a result, our Shopee platform in Indonesia has already, we believe, become the largest live streaming platform in the country.

c，考慮到我們更大、顯著更大的規模、唯一的平台——其他平台以及我們已經實現的盈利地位，我們比以往任何時候都處於更好的位置，能夠真正獲得更大的增長份額我們已經在市場上看到了。正如 Forrest 剛才分享的那樣，我們實際上已經開始看到我們對本地區基於內容的電子商務活動的關注所取得的一些進展和收益，並且我們已經吸引了大量頂級影響者和賣家在我們的平台上直播。因此，我們相信，我們在印度尼西亞的 Shopee 平台已經成為該國最大的直播平台。

So this has been a focus area that we are ramping up investments as well. Also, we also started to ramp up investments in free shipping again to capture more of the growth opportunities we are seeing in the market. So overall, I think given our stronger operational and financial position, given the relatively strong market conditions and also given the new opportunities that we see in the market that we have a significant advantage in capturing, we do believe that now is a good time to start to invest in growth.

因此，這也是我們加大投資的重點領域。此外，我們還開始再次加大對免費送貨的投資，以抓住我們在市場上看到的更多增長機會。因此，總的來說，我認為，鑑於我們更強大的運營和財務狀況，鑑於相對強勁的市場條件，以及我們在市場上看到的新機遇，我們在抓住方面具有顯著優勢，我們確實相信現在是一個好時機開始投資於增長。

And in terms of where the investments will be made, I think it's probably covered by my answer just now. And how would it affect the top line and bottom line? I think it remains to be seen the effect on the top line. Of course, we [tell] what to expect, and we hope to see more growth from the investment. And at the same time, in terms of value impact as we explained, while we do see more dollars taking up investment on our platform, the impact on the VAS from the free shipping program may have an accounting impact on the total revenue. So we remain -- the net effect remains to be seen.

至於投資的方向，我想我剛才的回答可能已經涵蓋了。它將如何影響營收和利潤？我認為對營收的影響還有待觀察。當然，我們[告訴]期望什麼，我們希望看到投資帶來更多增長。與此同時，正如我們所解釋的，就價值影響而言，雖然我們確實看到更多的美元占用了我們平台的投資，但免費送貨計劃對增值服務的影響可能會對總收入產生會計影響。所以我們仍然——淨效應還有待觀察。

In terms of the bottom line, also as shared by Forrest earlier, it will have an impact on our bottom line for Shopee and the group as a whole. But we think given our capability and ability also that we have proven to shift focus and to manage growth as well as profitability from period to period and time to time, we believe that we will be able to manage in a very responsible, efficient and prudent manner. And we'll closely monitor each market and its conditions and growth potential and potential areas for investment from period to period. It's going to be a very much a bottom-up and closely monitored pace of investment.

就盈利而言，正如 Forrest 之前分享的那樣，這將對我們 Shopee 和整個集團的盈利產生影響。但我們認為，鑑於我們的能力和能力，我們已經證明可以轉移重點並管理不同時期和不同時期的增長和盈利能力，我們相信我們將能夠以非常負責任、高效和審慎的方式進行管理方式。我們將密切關注每個市場及其狀況、增長潛力和潛在投資領域。這將是一種自下而上且受到密切監控的投資步伐。

Now turning to games. So yes, as you pointed out, we are very happy to see positive trends on QAU, QPU and as well as start to see signs -- positive signs for Free Fire specifically on the booking number. As we also shared earlier, we think this is a strong sign. On the other hand, we continue to monitor and observe the trends ongoing to see whether this is the beginning of a long-term stabilization. In fact, if where we see games to show more seasonality, usually, that is also a positive sign. That's more stabilization of the game given seasonality.

現在轉向遊戲。所以，是的，正如您所指出的，我們很高興看到 QAU、QPU 的積極趨勢，並開始看到跡象——Free Fire 的積極跡象，特別是在預訂數量上。正如我們之前分享的那樣，我們認為這是一個強烈的跡象。另一方面，我們繼續監控和觀察當前的趨勢，看看這是否是長期穩定的開始。事實上，如果我們看到遊戲表現出更多的季節性，通常這也是一個積極的信號。考慮到季節性，這使得遊戲更加穩定。

And from an EBITDA margin perspective, as we explained as the Free Fire bookings increase vis-à-vis the other games in the portfolio, we do see a boost to our EBITDA margin. But generally speaking, during this -- over the past period, our EBITDA margin has remained at a very generally high level compared to the industry average.

從 EBITDA 利潤率的角度來看，正如我們所解釋的，隨著《Free Fire》的預訂量相對於產品組合中的其他遊戲有所增加，我們確實看到了 EBITDA 利潤率的提高。但總的來說，在過去的一段時間內，我們的 EBITDA 利潤率與行業平均水平相比一直保持在非常高的水平。

The next question comes from Alicia Yap from Citigroup.

下一個問題來自花旗集團的 Alicia Yap。

I have 2 questions as well. First of all, a follow-up on the gaming. Can you share with us what have you done that has been working on reengaging the user? And do you expect this user and booking growth could sustain? How should we reconcile the use of metrics in the GAAP revenue and the EBITDA trend into the second half?

我也有 2 個問題。首先是遊戲的後續。您能否與我們分享一下您在重新吸引用戶方面做了哪些工作？您預計用戶和預訂的增長能夠持續嗎？我們應該如何協調下半年 GAAP 收入和 EBITDA 趨勢中指標的使用？

And then for the e-commerce is also to follow up. Can management share with us what kind of results or achievements that you hope to obtain with the reacceleration of the investment? What are the cushion level of the loss that you would want to maintain along with your investment step-up? And then is there a specific country that will account for higher proportions of the investment spend?

然後對於電商來說也是要跟進的。管理層能否與我們分享一下，隨著投資的重新加速，您希望獲得什麼樣的成果或成果？在增加投資的同時，您希望維持多少損失緩沖水平？那麼是否有一個特定的國家在投資支出中所佔的比例會更高呢？

Thank you, Alicia. Regarding the game, I think all the efforts we've shared before on our earnings calls, we think, are paying off over time, i.e., focus on the game communities, focus on generating content that is tailored to our communities and focus on better engagement with them and also better user accessibility and user experience. So all these, I think, have been helping us building up demand for our content and user engagement.

謝謝你，艾麗西亞。關於遊戲，我認為我們之前在財報電話會議上分享的所有努力都隨著時間的推移而得到回報，即專注於遊戲社區，專注於生成適合我們社區的內容，並專注於更好的內容與他們互動以及更好的用戶可訪問性和用戶體驗。因此，我認為所有這些都在幫助我們建立對內容和用戶參與度的需求。

As we explained before, from a gaming perspective, we focus on active user base first and before monetization. And usually, when you see positive trends in user base, we will generally have been able to convert that down the road into better monetization as well. So I think this is a trend has been playing out. And again, we hope that this is, again, a beginning of a long-term stabilization trend for Free Fire, our largest game and one of the largest games in the world. But also on the other side, we remain cautious, and we want to continue to observe for a few more periods.

正如我們之前所解釋的，從遊戲的角度來看，我們首先關注活躍用戶群，然後才是貨幣化。通常，當你看到用戶群的積極趨勢時，我們通常也能夠將其轉化為更好的貨幣化。所以我認為這是一個已經上演的趨勢。我們再次希望，這再次成為我們最大的遊戲、世界上最大的遊戲之一《Free Fire》長期穩定趨勢的開始。但另一方面，我們仍然保持謹慎，我們希望繼續觀察幾個時期。

In terms of GAAP versus booking, we believe generally they will start to track in direction. Of course, from time to time, there could be differences due to changes in recognition periods, et cetera, from an accounting perspective. So -- but on the whole, I think we generally expect the big picture direction should be similar.

就公認會計準則與預訂而言，我們相信總體上他們將開始跟踪方向。當然，從會計角度來看，由於確認期間的變化等原因，有時可能會出現差異。所以——但總的來說，我認為我們普遍期望大局方向應該是相似的。

In terms of the e-commerce, the KPIs we look at, of course, overall, in terms of the user engagement, active user base and, in particular, user engagement in areas that we are focused on such as live streaming and as well as some core categories we are focused on such as fashion, health and beauty, home and living. And these are high-margin categories that have been traditionally our core focus area. And of course, that hopefully translates into higher order number and GMV. These are some of the key metrics you can expect us to track consistent with our past practices.

就電子商務而言，我們總體上關注的 KPI 包括用戶參與度、活躍用戶群，特別是我們重點關注的領域（例如直播等）的用戶參與度作為我們關注的核心品類，例如時尚、健康與美麗、家居與生活。這些都是高利潤類別，歷來是我們的核心關注領域。當然，這有望轉化為更高的訂單數和 GMV。這些是您可以期望我們根據我們過去的做法進行跟踪的一些關鍵指標。

The next question comes from Piyush Choudhary from HSBC -- I'm sorry.

下一個問題來自匯豐銀行的 Piyush Choudhary——抱歉。

So let me continue to answer the previous questions. And in terms of level of profit or loss we are willing to sustain during these periods, I think that overall, we want to remain as self-sufficient. That self-sufficiency as a core focus has not been changed. And as shared by our CEO just now, that continues to be our mantra. And also, in terms of cost efficiency improvements over time, we think that these are an important competitive moat. And in fact, the fact that we can become profitable so quickly and while maintaining the size of our ecosystem and our market -- strong market leadership and able to now also invest in growth while many of our peers still trying to manage their losses or are incurring very, very significant losses, that shows that the resilience and the strength of our ecosystem is and will continue to be a competitive -- important competitive moat for us.

那我就繼續回答之前的問題吧。就我們願意在這些時期維持的利潤或虧損水平而言，我認為總體而言，我們希望保持自給自足。自給自足作為核心焦點並沒有改變。正如我們首席執行官剛才所說，這仍然是我們的座右銘。而且，就隨著時間的推移成本效率的提高而言，我們認為這是一條重要的競爭護城河。事實上，事實上，我們可以如此迅速地實現盈利，同時保持我們的生態系統和市場的規模——強大的市場領導地位，並且現在也能夠投資於增長，而我們的許多同行仍在努力管理他們的損失或正在虧損。造成非常非常重大的損失，這表明我們生態系統的彈性和強度現在並將繼續成為我們的競爭性重要競爭護城河。

As we shared previously, we truly and strongly believe that in the longer run, the competition on e-commerce, it doesn't matter which angle you cut it and where you come from. It's very much a business that focused on fundamentals. You need to serve your users well at the lowest cost possible. So these are simple rules and principles that we follow. There are many ways to engage our users. There might be new ways to engage with them that we will be able to leverage. There are many different service points we can touch and also continue to improve. And there are also many cost points that we will continue to improve upon. And these are the key competencies, I think, that brought us here to the current position of strong market leadership with the lowest cost to serve a platform that allows us to be both a market leader but also profitable and one and only in Southeast Asia so far. I think we will not give up that competitive moat, and we'll continue to strengthen that.

正如我們之前所分享的，我們真誠而堅定地相信，從長遠來看，電子商務的競爭，無論你從哪個角度切入，無論你來自哪裡，都不重要。這是一個非常注重基本面的業務。您需要以盡可能最低的成本為您的用戶提供良好的服務。這些是我們遵循的簡單規則和原則。有很多方法可以吸引我們的用戶。我們可能可以利用一些新的方式與他們互動。有很多不同的服務點我們可以接觸並持續改進。還有很多成本點我們會繼續改進。我認為，這些是關鍵能力，使我們能夠以最低的成本服務於一個平台，從而獲得目前強大的市場領導地位，該平台使我們既成為市場領導者，又能夠盈利，並且是東南亞唯一的。遠的。我認為我們不會放棄競爭護城河，我們將繼續加強它。

From period to period, we may make decisions and execute based on what we see as appropriate opportunities in the market and make investments. And those investments can be significant. But we will continue to focus on our execution efficiency. And also in the longer run, everything we're doing is continuing to strengthen our long-term profitability and market leadership. So those are the principles that we will always stick to in the long run.

有時，我們可能會根據我們認為市場上合適的機會做出決策並執行並進行投資。這些投資可能是巨大的。但我們將繼續關注我們的執行效率。從長遠來看，我們所做的一切都是為了繼續加強我們的長期盈利能力和市場領導地位。因此，從長遠來看，這些是我們將始終堅持的原則。

Next question comes from Piyush Choudhary from HSBC.

下一個問題來自匯豐銀行的 Piyush Choudhary。

Two questions. Firstly, on e-commerce. Within Shopee Asia, can you talk a little bit about where you see better growth opportunities and where you will invest kind of significantly more? And what is the outlook for Shopee Brazil? Can we expect more investments even in Shopee rest of the other markets and increasing losses there? Or would you aim to reach EBITDA breakeven in rest of market first?

兩個問題。首先，關於電子商務。在 Shopee Asia 中，您能談談您在哪些方面看到了更好的增長機會以及您將在哪些方面進行更多投資嗎？ Shopee 巴西的前景如何？我們是否可以預期，即使是在 Shopee 的其他市場上，也會有更多的投資，並導致那裡的損失不斷增加？或者您的目標是首先在其他市場實現 EBITDA 盈虧平衡？

And secondly, on gaming, can you give us some insights on the performance of Undawn post its launch? Is it trending above or below your expectation? And any update on Free Fire game in India?

其次，在遊戲方面，您能否給我們介紹一下《Undawn》發布後的表現？它的趨勢是高於還是低於你的預期？印度的 Free Fire 遊戲有什麼更新嗎？

Thank you, Piyush. In terms of the Shopee Asia, the growth opportunities we are seeing are those that I shared earlier in terms of overall market conditions being conducive and consumption resilient. At the same time, we see new opportunities related to, in particular, live streaming and video content-based e-commerce that we are trying to capture, and outlook for Brazil remained strong.

謝謝你，皮尤什。就 Shopee Asia 而言，我們看到的增長機會與我之前分享的一樣，即總體市場條件有利且消費具有彈性。與此同時，我們看到了與我們正在努力抓住的直播和基於視頻內容的電子商務相關的新機遇，巴西的前景依然強勁。

As we shared this and previous quarter, we continue to see Brazil as an important growth market for us in the long run, and we will continue to invest in growth there. At the same time, we continue to focus on efficiency of growth. We see that on a quarter-on-quarter basis, we saw improvements in the EBITDA loss per order for Brazil as a result of our continuing improvement on cost efficiency, in particular, in logistics now in Brazil. We do believe this remains a long-term growth opportunity for us.

正如我們在本季度和上一季度分享的那樣，從長遠來看，我們仍然將巴西視為我們重要的增長市場，我們將繼續投資於那裡的增長。與此同時，我們繼續關注增長效率。我們發現，與上一季度相比，由於我們不斷提高成本效率，特別是目前巴西的物流效率，巴西每份訂單的 EBITDA 損失有所改善。我們確實相信這對我們來說仍然是一個長期增長機會。

For the other markets, they are relatively small for us outside of Asia and Brazil. And we believe there are -- at this point, they're mostly contribution margin-positive. It doesn't really require too much investment, but we will continue to observe all the market progress down the road.

對於亞洲和巴西以外的其他市場，它們對我們來說相對較小。我們相信，目前，它們的邊際貢獻大多為正。它實際上並不需要太多的投資，但我們將繼續觀察未來市場的所有進展。

Undawn has been launched, and usually, with a newly launched game, we first all focused on engaging with our user base and try to make sure we have a strong user base and good engagement level from these users. We would not be very much focused on monetization at the initial stage of the game, and the performance is still within expectations so far. We don't have any update on Free Fire in India at this point. Thank you.

《Undawn》已經推出，通常，對於新推出的遊戲，我們首先專注於與用戶群互動，並努力確保我們擁有強大的用戶群和這些用戶的良好參與度。遊戲初期我們不會太關注變現，目前表現還在預期之內。目前我們還沒有關於印度 Free Fire 的任何更新。謝謝。

The 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 clarify, when you said order growth double digit, I want to clarify, that's quarter-over-quarter or year-over-year? And if you can comment on order growth, are you seeing higher growth in Brazil vis-à-vis Asia?

首先，我想澄清一下，當你說訂單增長兩位數時，我想澄清一下，這是季度環比還是同比？如果您可以評論一下訂單增長，您是否認為巴西的訂單增長高於亞洲？

My question is about the take rate. I think you talked about the perhaps the higher shipping subsidies has made an impact on the take rate for this quarter. But over the last few years, it seems you have maintained or grow your take rate pretty much every single quarter. Our back-of-the-envelope calculation showing the take rate sort of was down quarter-over-quarter. Should we expect the take rate now is kind of becoming more volatile going forward? How should we think about the drivers, the reasons behind the fluctuation in the take rate if there is going to be one going forward?

我的問題是關於採納率。我想您談到了更高的運輸補貼可能對本季度的接受率產生了影響。但在過去的幾年裡，您似乎幾乎每個季度都保持或提高了您的轉化率。我們的粗略計算顯示，採用率環比下降。我們是否應該預期現在的匯率未來會變得更加不穩定？如果未來會有這樣的情況發生的話，我們應該如何考慮驅動因素以及採取率波動背後的原因？

Thank you. In terms of the order growth, double-digit order growth, we're talking about quarter-on-quarter. And Brazil order growth overall is aligned with the group level.

謝謝。就訂單增長而言，兩位數的訂單增長，我們談論的是季度環比增長。巴西訂單增長總體與集團水平一致。

In terms of take rate, as I mentioned, our core marketplace take rate continued to increase. However, if you look at the overall take rate, it's affected by VAS due to accounting netting off between -- from top line as we increase the shipping subsidies, and VAS revenue is primarily related to logistics. So under GAAP accounting rules, we have to net off shipping subsidies from logistics revenue under VAS at an order level, so that will affect the overall take rates as a result as well as the revenue growth.

就採用率而言，正如我所提到的，我們的核心市場採用率持續增長。然而，如果你看一下整體的採用率，就會發現它受到了增值服務的影響，因為我們增加了運輸補貼，而增值服務收入主要與物流相關。因此，根據GAAP會計規則，我們必須在訂單層面從增值服務項下的物流收入中扣除運輸補貼，這將影響整體的接受率以及收入增長。

So this might compound some of the trends you will be seeing down the road. But I think the general trend should still be that we believe on the -- at the core marketplace level, we believe our sellers will continue to engage with us more. And commissions also, we do see some increase in commissions from time to time, but it might not be increasing so rapidly as was in the past period. So we don't expect significant increase in the take rate, but also in the -- for the period, there might be compounding effect from VAS, which accounts for a large part of the take rate as well.

因此，這可能會加劇您將來會看到的一些趨勢。但我認為總的趨勢應該仍然是我們相信——在核心市場層面，我們相信我們的賣家將繼續與我們進行更多的互動。還有佣金，我們確實會不時看到佣金有所增加，但可能不會像過去一段時間那樣增長得那麼快。因此，我們預計採用率不會顯著增加，但在此期間，增值服務可能會產生復合效應，這也佔了採用率的很大一部分。

The next call comes from Ranjan Sharma from JPMorgan.

下一個電話來自摩根大通的 Ranjan Sharma。

Two questions from my side. Firstly, if I just look at the core marketplace revenues, I understand this seemed to be flat as well, right, from first quarter to second quarter, core marketplace revenues of around $1.2 billion. If you have higher commissions, ad revenues and GMV, shouldn't the marketplace revenues have gone up, if you can help explain what's behind these numbers?

我這邊有兩個問題。首先，如果我只看核心市場收入，我知道這似乎也持平，從第一季度到第二季度，核心市場收入約為 12 億美元。如果你的佣金、廣告收入和 GMV 更高，那麼市場收入不應該增加嗎？如果你能幫助解釋這些數字背後的原因嗎？

Secondly, if the focus of the management is shifting towards growth again, are we going to start seeing quarterly GMV being disclosed as well?

其次，如果管理層的重點再次轉向增長，我們是否也會開始披露季度GMV？

Yes. If you look at the core marketplace revenue quarter-on-quarter, actually, the growth rate has accelerated from -- in Q2 to 7.4% compared to about 2% in Q1 Q-on-Q, so I think this reflects the increase in the growth of the take rate of the core market base level.

是的。如果你按季度查看核心市場收入，實際上，增長率從第二季度加速到 7.4%，而第一季度環比約為 2%，所以我認為這反映了核心市場基礎水平的佔有率增長。

And in terms of GMV disclosure, I think we'll continue to make a decision about it quarter-on-quarter. We may provide certain spot disclosure from time to time where we see relevant. Again, no decision has been made at this point yet.

至於GMV披露方面，我認為我們將繼續按季度做出決定。我們可能會在我們認為相關的情況下不時提供某些現場披露。同樣，目前尚未做出任何決定。

The next question comes from Thomas Chong from Jefferies.

下一個問題來自 Jefferies 的 Thomas Chong。

I have a question relating to the fintech side. Can you comment about how we should think about the strategies going forward in terms of the business model as well as digital bank initiative and how we should think about the margin trend for fintech?

我有一個關於金融科技方面的問題。您能否評論一下我們應該如何考慮業務模式和數字銀行計劃方面的未來戰略，以及我們應該如何考慮金融科技的利潤率趨勢？

Thank you, Thomas. In terms of the fintech business, we're pleased to see that continue to produce strong cash flow and also a very strong year-on-year growth with a stable risk profile. And as we explained before, overall, we think at this stage, we try to maximize the synergies between our Shopee and SeaMoney ecosystem and focus on building a strong platform with resilience and strong capabilities and a good service to our users. But it's still very early stage for us at a fintech level. But it's already a very good business, producing stable good cash flow. So we're happy to see how it is. We'll focus on more on the health of the growth and synergies to make sure we maximize efficiency of the business at this stage.

謝謝你，托馬斯。就金融科技業務而言，我們很高興看到該業務繼續產生強勁的現金流，並且同比增長非常強勁，風險狀況穩定。正如我們之前所解釋的，總的來說，我們認為在現階段，我們會努力最大化Shopee 和SeaMoney 生態系統之間的協同效應，並專注於建立一個具有彈性和強大能力的強大平台，並為我們的用戶提供良好的服務。但在金融科技層面，我們仍處於非常早期的階段。但這已經是一項非常好的業務，產生穩定良好的現金流。所以我們很高興看到情況如何。我們將更多地關注增長的健康和協同效應，以確保我們在現階段最大限度地提高業務效率。

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

我們的問答環節到此結束。我想將會議轉回宋敏珠發表閉幕詞。

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

謝謝接線員，也謝謝大家參加今天的電話會議。我們期待下季度再次與大家交談。謝謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。