Sea Ltd (SE) 2024 Q4 法說會逐字稿

Good morning and good evening to all, and welcome to the Sea Limited fourth quarter and full year 2024 results conference call. (Operator Instructions) And finally, I'd like to advise all participants that this call is being recorded.

大家早安，晚上好，歡迎參加 Sea Limited 2024 年第四季和全年業績電話會議。（操作員指示）最後，我想告知所有參與者，本次通話正在錄音。

Thank you. I would now like to welcome Ms. Rebecca Lee to begin the conference. Please go ahead.

謝謝。現在，我歡迎 Rebecca Lee 女士開始開會。請繼續。

Hello, everyone, and welcome to Sea's 2024 fourth quarter and full year earnings conference call. I am Rebecca Lee from Sea's Investor Relations team.

大家好，歡迎參加Sea 2024年第四季和全年財報電話會議。我是 Sea 投資者關係團隊的 Rebecca Lee。

On this call, 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.

在本次電話會議上，我們可能會做出前瞻性陳述，這些陳述本質上受風險和不確定性的影響，並且由於我們在新聞稿中所述的各種原因，可能不會在未來實現。

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，本次電話會議也討論了某些非 GAAP 財務指標，例如調整後的 EBITDA。我們相信，這些指標作為我們 GAAP 揭露的補充，可以增強投資者對我們主要業務實際現金流的理解。有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調整的討論，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 Chief Executive Officer, Forrest Li; President, Chris Feng; and Chief Financial Officer, Tony Hou.

和我一起的還有 Sea 的董事長兼執行長 Forrest Li；總裁 Chris Feng；以及財務長Tony Hoo。

Our management will share strategy and business updates, operating highlights, and financial performance for the fourth quarter and full year of 2024. This will be followed by a Q&A session in which we welcome any questions you have.

我們的管理層將分享 2024 年第四季和全年的策略和業務更新、營運亮點和財務表現。接下來是問答環節，我們歡迎您提出任何問題。

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

說完這些，讓我把電話轉給福雷斯特。

Hello, everyone, and thank you for joining today's call.

大家好，感謝您參加今天的電話會議。

We delivered a great 2024 with all three businesses going back to strong double-digit growth, exceeding our original guidance. It was also our second consecutive year of annual positive profit with all three of our businesses recording positive adjusted EBITDA. We are very proud of achieving this milestone, and we expect each business to remain profitable and self-sufficient going forward. This strong set of results validates our strategies. We made the right decision at the right time and executed very well on them.

我們取得了 2024 年的輝煌成績，三項業務都恢復了強勁的兩位數成長，超越了我們最初的預期。這也是我們連續第二年實現年度正盈利，我們的三項業務均錄得正調整後 EBITDA。我們為實現這一里程碑感到非常自豪，並期望每個業務在未來都能保持盈利和自給自足。這組強而有力的結果驗證了我們的策略。我們在正確的時間做出了正確的決定，並且執行得非常好。

2024 also marked our 15th anniversary. It is rewarding to look back and see how over 15 years. we have created and excelled in three separate business verticals, improving the lives of hundreds of millions of people. Garena brings joy to over 100 million global gamers every day. Shopee is the clear e-commerce market leader in all seven of our Asian markets with a sizable and growing presence in Brazil. Our e-commerce GMV exceeded $100 billion for the first time in 2024. And SeaMoney, with a loan book size of over $5 billion and over 26 million active borrowers is already one of the largest consumer lending businesses in Southeast Asia. I'm very proud of the hard work from all our teams, which has made this incredible outcomes a reality and I'm very grateful to all our investors for your support across this journey.

2024年也是我們的15週年紀念。回顧過去 15 年的歷程，令人欣慰。我們在三個不同的垂直業務領域取得創新和卓越成就，改善了數億人的生活。Garena 每天為全球超過 1 億遊戲玩家帶來歡樂。Shopee 是我們所有七個亞洲市場的明顯電子商務市場領導者，在巴西的影響力相當大且不斷增長。2024年，我們的電子商務GMV首次超過1,000億美元。SeaMoney 的貸款規模超過 50 億美元，活躍借款人超過 2,600 萬，已經是東南亞最大的消費貸款企業之一。我為我們所有團隊的辛勤工作感到非常自豪，正是他們的努力使得這令人難以置信的成果成為現實，我也非常感謝所有投資者在整個旅程中的支持。

With that, let me take you through each business' performance and strategic outlook. Starting with e-commerce.

接下來，讓我帶您了解每個業務的業績和策略前景。從電子商務開始。

Shopee is celebrating its 10th year with a great set of results. GMV surpassed $100 billion with over 10 billion orders in 2024. It was our first full year of being adjusted EBITDA positive. We reinforced our market leadership by returning to high growth, with GMV growing 28% year-on-year. And we have become profitable in both Asia and Brazil.

Shopee 正在慶祝成立 10 週年，並取得了一系列輝煌的成果。2024年GMV將突破1000億美元，訂單量將超過100億筆。這是我們調整後 EBITDA 實現正成長的第一個全年年度。我們重回高成長，鞏固了市場領導地位，GMV 年成長 28%。我們在亞洲和巴西都獲利了。

We improved our monetization significantly in 2024 through higher commission and advertising take rates. This was driven by markets becoming more rational and increased adoption of our ad tech offerings among sellers. In the fourth quarter, our ad revenue increased by more than 50% year-on-year, and our ad take rate improved by more than 50 basis points compared to the same period last year.

我們透過更高的佣金和廣告收費率在 2024 年顯著提高了我們的貨幣化水準。這是由於市場變得更加理性以及賣家越來越多地採用我們的廣告技術產品。第四季度，我們的廣告收入年增超過50％，廣告接受率與去年同期相比提高了50個基點以上。

2024 has been a strong demonstration that our e-commerce strategy works. Our results reflected solid execution across our three operational priorities, enhancing price competitiveness, improving service quality to customers and strengthening our content ecosystem. I believe our ability to execute very efficiently and consistently across these priorities set us apart and has made Shopee a beloved household name across our markets. Our end-to-end integration with our logistics partners has proven to be a key differentiator of Shopee’s service quality.

2024年有力地證明了我們的電子商務策略是有效的。我們的業績反映了我們在三大營運重點方面的穩健執行，即增強價格競爭力、提高客戶服務品質和加強我們的內容生態系統。我相信，我們在這些優先事項上非常有效率且一致的執行能力使我們脫穎而出，並使 Shopee 成為我們市場上深受喜愛的家喻戶曉的品牌。事實證明，我們與物流合作夥伴的端到端整合是 Shopee 服務品質的關鍵差異因素。

SPX Express, in particular, helped us reap many efficiencies due to its geographic reach, fast delivery speed and cost leadership. After years of delivery network and the logistics chain improvements, SPX Express is now able to consistently deliver industry-leading service standards for buyers and sellers, even during seasonal peaks. Almost half of SPX Express orders in Asia were delivered within two days of order placement in the fourth quarter, an improvement from the same period last year.

尤其是 SPX Express，由於其地理覆蓋範圍、快速的交付速度和成本領先優勢，幫助我們獲得了許多效率。經過多年的配送網路和物流鏈改進，SPX Express 現在即使在季節性高峰期也能持續為買家和賣家提供業界領先的服務標準。第四季度，亞洲近一半的 SPX Express 訂單在下單後兩天內交付，比去年同期有所改善。

At the same time, we reduced the Shopee's overall logistics cost per order by 5 cents year-on-year in the fourth quarter. The efficiencies we gained from these tight logistics integration allow us to pass on savings to buyers and sellers while giving them assurance of reliable and cost-effective logistics solutions.

同時，我們在第四季將Shopee整體每筆訂單的物流成本較去年同期降低了5美分。我們從這些緊密的物流整合中獲得的效率使我們能夠將節省的成本轉嫁給買家和賣家，同時為他們提供可靠且具有成本效益的物流解決方案的保證。

Beyond logistics, we continue to adopt AI to improve service quality in a practical and effective manner. By using large language models to understand queries we have made search and discovery more accurate, helping users find relevant products faster. We provide our sellers with AI tools to enhance product listings by improving descriptions, images and videos. These initiatives have improved purchase conversion rates while also making sellers more willing to spend on ad, boosting our ad revenue.

除了物流之外，我們也將繼續採用人工智慧，以實用且有效的方式提高服務品質。透過使用大型語言模型來理解查詢，我們使搜尋和發現更加準確，幫助使用者更快找到相關產品。我們為賣家提供人工智慧工具，透過改進描述、圖片和影片來增強產品清單。這些措施提高了購買轉換率，同時也使賣家更願意在廣告上花錢，從而提高了我們的廣告收入。

We have also used AI to enhance our customer service capabilities. After upgrading our chatbots with AI, we saw a meaningful increase in our customer service satisfaction score over the past year and the reduction in our customer service cost-per-contact by nearly 30% year-on-year. We also used the large language model capabilities to enhance our buyer return-refund process by addressing a key e-commerce pain-point.

我們也利用人工智慧來增強我們的客戶服務能力。在我們的聊天機器人使用人工智慧升級後，我們發現我們的客戶服務滿意度得分在過去一年中顯著提升，並且客戶服務每次聯繫的成本比去年同期降低了近 30%。我們也利用大型語言模式功能解決了電子商務的關鍵痛點，增強了買家的退貨退款流程。

In the fourth quarter, we improved resolution times in our Asia market by more than 40% year-on-year with nearly six in 10 cases resolved within one day. We believe we are still early in the AI adoption curve and remain committed to exploring AI-driven innovations to improve efficiency and deliver better experiences for our users.

第四季度，我們在亞洲市場的解決時間年增了 40% 以上，近六成案在一天內解決。我們相信我們仍處於人工智慧採用曲線的早期階段，並將繼續致力於探索人工智慧驅動的創新，以提高效率並為我們的用戶提供更好的體驗。

We continue to strengthen our content ecosystem, which has become an integral part of our e-commerce ecosystem. In Southeast Asia, Live streaming now contributes around 15% of Shopee's overall order volume for physical goods. And in the fourth quarter, our average daily unique streamers and viewers grew strongly at over 40% and 30%, respectively, year-on-year.

我們不斷加強我們的內容生態系統，它已經成為我們電子商務生態系統不可或缺的一部分。在東南亞，直播目前佔Shopee實體商品整體訂單量的15%左右。第四季度，我們每日平均獨立主播和觀眾數量較去年同期強勁成長 40% 和 30% 以上。

In Indonesia, we have maintained our lead as the largest live streaming e-commerce platform throughout 2024. Our live streaming unit economics also improved consistently across the year driven by expanded scale, more optimized marketing spend, increased adoption of Shopee live ads and higher average basket size. Continued improvement in live streaming unit economics will help to enhance Shopee's overall profitability in 2025.

在印度尼西亞，我們在 2024 年全年一直保持最大直播電商平台的領先地位。由於擴大規模、行銷支出更加優化、Shopee直播廣告採用率提高以及平均購物籃規模增加，我們的直播單位經濟效益全年也持續改善。直播單位經濟效益的持續提升，將有助於提升Shopee在2025年的整體獲利能力。

We continue to see positive momentum from our collaboration with YouTube which enables video viewers to make seamless purchases from Shopee. It has also attracted many YouTube creators to Shopee’s content ecosystem. In Indonesia, average daily orders attributed to YouTube content in January this year have grown more than six-fold since the collaboration first launched in September last year. We are also seeing promising results since launching the collaboration in Thailand and Vietnam, and we look forward to expanding this partnership to more markets this year.

我們與 YouTube 的合作繼續帶來積極勢頭，使影片觀眾能夠從 Shopee 無縫購物。它也吸引了許多YouTube創作者加入Shopee的內容生態系統。在印度尼西亞，自去年 9 月首次啟動合作以來，今年 1 月 YouTube 內容的每日平均訂單量增加了 6 倍以上。自從在泰國和越南啟動合作以來，我們也看到了令人欣喜的成果，我們期待今年將這項合作擴展到更多市場。

Beyond Asia, I'm very proud of our strong performance in Brazil, both in terms of our market share gains and improving profitability. Our average monthly active buyers increased by more than 40% year-on-year in the fourth quarter, significantly outpaced the industry average. Our efforts to onboard more brands diversify our product categories and improve delivery speed have attracted more users to our platform and resulted in larger basket size purchases. This gave us much better unit economics, and allowed us to achieve positive adjusted EBITDA for the second consecutive quarter. Looking ahead, we remain excited about Shopee's growth potential in Brazil.

除了亞洲之外，我對我們在巴西的強勁表現感到非常自豪，無論是市場份額的成長還是獲利能力的提高。我們第四季的平均每月活躍買家年增超過40%，大幅超過業界平均。我們努力吸收更多品牌，豐富我們的產品類別，並提高配送速度，從而吸引了更多用戶使用我們的平台，並帶來了更大的購物籃購買量。這為我們帶來了更好的單位經濟效益，並使我們連續第二季實現正的調整後 EBITDA。展望未來，我們仍然對 Shopee 在巴西的成長潛力感到興奮。

In summary, I'm very pleased with Shopee's achievements in 2024. We delivered strong growth and became profitable in both Asia and Brazil. Our competitive moats are deepening, empowering us to maintain market share leadership in Asia. As market dynamics become more rational, long-term success in e-commerce will hinge on structural cost advantages and operational excellence both of which Shopee is extremely well positioned to leverage. With e-commerce penetration still low across many of our markets, we remain confident about our ability to continue delivering profitable growth in 2025. We expect Shopee's full year 2025 GMV growth to be around 20%, and with improving profitability.

總而言之，我對Shopee在2024年所取得的成就感到非常高興。我們在亞洲和巴西都實現了強勁成長並實現盈利。我們的競爭壁壘不斷加深，使我們能夠保持在亞洲的市場份額領先地位。隨著市場動態變得更加理性，電子商務的長期成功將取決於結構性成本優勢和卓越的運營，而 Shopee 非常適合利用這兩者。由於電子商務在我們許多市場的普及率仍然較低，我們仍然對在 2025 年繼續實現盈利增長的能力充滿信心。我們預計Shopee 2025年全年GMV成長率將達到20%左右，獲利能力也將持續提升。

Next, moving on to digital financial services. This segment is already a sizable and profitable business, and a meaningful contributor to our overall growth and profitability. With annual revenue of $2.4 billion and adjusted EBITDA of over $700 million. Both our top line and bottom line achieved over 30% year-on-year growth in 2024. While we have scaled fast, risk management remains our top operational priority for this segment.

接下來，談談數位金融服務。該部門已是一個規模可觀且盈利的業務，並且對我們的整體成長和盈利能力做出了有意義的貢獻。年營收為 24 億美元，調整後 EBITDA 超過 7 億美元。2024年，我們的營收和淨利潤均實現了年增30%以上。雖然我們規模迅速擴大，但風險管理仍然是我們這個部門的首要營運重點。

Today, our digital financial services business offers consumer and SME credit, digital payment, digital banking and Insurtech products in Southeast Asia and Brazil. Credit-related business is currently the main driver of our digital financial services revenue. So let us focus on there. We delivered exceptional loan book growth of more than 60% year-on-year in the fourth quarter, surpassing $5 billion as of the end of 2024, making us one of the largest consumer lending businesses in Southeast Asia.

如今，我們的數位金融服務業務為東南亞和巴西提供消費者和中小企業信貸、數位支付、數位銀行和保險科技產品。信貸相關業務目前是我們數位金融服務收入的主要驅動力。所以讓我們集中討論那裡。我們在第四季度實現了貸款帳簿年增超過 60% 的優異表現，截至 2024 年底已超過 50 億美元，使我們成為東南亞最大的消費貸款企業之一。

In the fourth quarter, we added approximately 5 million first-time borrowers, and we saw 60% year-on-year growth in our active users, which have now grown to more than 26 million. Even with this strong growth, our risk exposure has remained stable, with 90-day NPL ratio at 1.2% in the fourth quarter. Our credit business strategy focuses on sustainable healthy growth driven by a deep understanding of risk. We currently only operate this business in markets where we already have a strong e-commerce presence, giving us the ability to very deeply assess, price, and manage the risk in each market.

第四季度，我們增加了約500萬首次借款人，活躍用戶年增60%，目前已增至2,600萬多。即使成長如此強勁，我們的風險敞口仍然保持穩定，第四季度 90 天不良貸款率為 1.2%。我們的信貸業務策略著重於在深刻理解風險的基礎上實現可持續的健康成長。我們目前只在已經擁有強大電子商務影響力的市場經營這項業務，這使我們能夠非常深入地評估、定價和管理每個市場的風險。

As our large Shopee user base continues to grow in our markets, we can take a prudent, progressive approach to user acquisition and product offerings allowing us to scale up rapidly at low cost while also maintaining a very stable risk profile. Today, our credit business stands on two pillars: on-Shopee SPayLater loans and off-Shopee cash and SPayLater loans.

隨著我們龐大的 Shopee 用戶群在我們的市場上不斷增長，我們可以採取審慎、漸進的方式來獲取用戶和提供產品，從而讓我們能夠以低成本迅速擴大規模，同時保持非常穩定的風險狀況。今天，我們的信貸業務有兩大支柱：Shopee 上的 SPayLater 貸款以及 Shopee 以外的現金和 SPayLater 貸款。

In all our markets, on Shopee SPayLater purchases are the first and very natural touch point we have with most of our credit users. It allows them to build an initial credit track record and allows us to build out our credit model for the market. Once we understand the users' credit behavior, we give them access to other products with longer tenures and larger quantums. And when we have built a credit risk model for each market that we feel confident of, we then start to scale our loan book. Scaling our loan book includes diversifying into more off-Shopee scenarios, giving us access to a much larger pool of consumer spend.

在我們所有的市場中，Shopee SPayLater 購買是我們與大多數信用用戶的第一個也是非常自然的接觸點。它使他們能夠建立初步的信用記錄，並使我們能夠為市場建立我們的信用模型。一旦我們了解用戶的信用行為，我們就會向他們提供期限更長、額度更大的其他產品。當我們為每個我們有信心的市場建立了信用風險模型後，我們就開始擴大我們的貸款規模。擴大我們的貸款規模包括拓展到 Shopee 以外的更多場景，使我們能夠接觸到更大的消費者支出群體。

Across our Asian markets, off Shopee loans now account for about half of our loan book. In most of our markets, credit card penetration is still very low. Our SPayLater product acts almost as a virtual credit card for a massive addressable user base who have a huge underserved demand for credit. With rising digital adoption, we see great potential to tap into more off-Shopee consumption use cases in our markets.

在我們的亞洲市場，Shopee 以外的貸款現在約占我們貸款總額的一半。在我們的大多數市場中，信用卡普及率仍然很低。我們的 SPayLater 產品幾乎充當了一張虛擬信用卡，面向大量潛在用戶群，這些用戶對信貸有著巨大的未滿足的需求。隨著數位化應用的不斷增長，我們看到了在我們的市場上挖掘更多 Shopee 以外消費用例的巨大潛力。

In summary, 2024 was a very good year for our digital financial services business. We launched more products to serve more users and we grew both our top line and the bottom line strongly and healthily. We expect this strong momentum to continue into this year. In 2025, we expect loan book size to grow meaningfully faster than Shopee's GMV annual growth rate as we improve credit penetration, both on and off-Shopee.

總而言之，2024 年對於我們的數位金融服務業務來說是非常好的一年。我們推出了更多產品來服務更多用戶，我們的營收和淨利潤都實現了強勁健康的成長。我們預計這一強勁勢頭將持續到今年。到 2025 年，隨著 Shopee 線上線下信貸滲透率的提高，我們預期貸款規模的成長速度將遠高於 Shopee 的 GMV 年增長率。

Finally, moving on to digital entertainment. 2024 was a great year for Garena, marking Free Fire’s remarkable comeback. After the post pandemic headwinds in 2022 and 2023, Free Fire rebounded with annual bookings growing at 34% year-on-year in 2024, and we expect continued growth in 2025. In 2024, Free Fire was the world's largest mobile game by average DAU and the most downloaded title according to Sensor Tower. Despite its massive scale, average DAU in 2024 grew 28% year-on-year, standing well above $100 million.

最後，談談數位娛樂。 2024 年對 Garena 來說是偉大的一年，標誌著 Free Fire 的強勢回歸。在經歷了 2022 年和 2023 年疫情後的逆風之後，《Free Fire》實現反彈，2024 年年度預訂量同比增長 34%，我們預計 2025 年將繼續增長。根據 Sensor Tower 的數據，2024 年，《Free Fire》是全球平均每日活躍用戶最多的手機遊戲，也是下載次數最多的遊戲。儘管規模龐大，但 2024 年的平均 DAU 年增 28%，遠超 1 億美元。

With this high level of engagement and retention, even in its eighth year, we believe Free Fire has secured its place as an evergreen franchise. Free Fire’s comeback was the result of our continuous execution on constantly expanding our user base and relentlessly driving user engagement. We expanded our user base by prioritizing accessibility, ensuring that Free Fire remains lightweight enough to run smoothly on a wide range of devices. This gave us a competitive edge in high-growth emerging markets with significant untapped potential.

憑藉如此高的參與度和保留率，即使已經是第八年了，我們相信《Free Fire》已經鞏固了其作為常青系列的地位。Free Fire 的回歸是我們持續擴大用戶群和不懈地推動用戶參與的結果。我們透過優先考慮可訪問性來擴大我們的用戶群，確保 Free Fire 保持足夠輕量，可以在各種裝置上順利運作。這使我們在具有巨大未開發潛力的高成長新興市場中佔據了競爭優勢。

As a result, in addition to our increasing presence in Asia and the Americas, Africa has become one of Free Fire's fastest-growing regions. For instance, after we managed to improve connection speeds for players in Nigeria, active users there surged 90% year-on-year in December. We kept pushing ourselves to find ways to drive user engagement, both within and beyond the game. We elevated gameplay with frequent content updates, high-profile collaborations and immersive experiences that bridged the game and the real world.

因此，除了我們在亞洲和美洲的影響力不斷擴大之外，非洲已成為 Free Fire 成長最快的地區之一。例如，在我們成功提升了尼日利亞玩家的連線速度後，該國12月份的活躍用戶數量比去年同期增加了90％。我們不斷努力尋找提高遊戲內外用戶參與度的方法。我們透過頻繁的內容更新、高調的合作以及連結遊戲和現實世界的沉浸式體驗來提升遊戲體驗。

Major updates like the 7th anniversary event and collaboration with Demon Slayer and the Blue Lock energized both new and existing users. And we started 2025 with the Free Fire at the Naruto Shippuden IP collaboration. Our users have responded extremely positively to this collaboration, giving Free Fire a strong start to the year. While Free Fire is a global game played in more than 160 markets, our local teams put a lot of effort into bringing each market's local trends and elements into the game to make it feel hyper local for gamers everywhere.

七週年活動、與鬼滅之刃、藍鎖的合作等重大更新激發了新舊用戶的熱情。我們在 2025 年開啟了與火影忍者疾風傳 IP 合作的《Free Fire》。我們的用戶對此合作反應非常積極，為《Free Fire》今年開了個好頭。雖然《Free Fire》是一款在 160 多個市場中流行的全球性遊戲，但我們的本地團隊還是投入了大量精力將每個市場的本地趨勢和元素融入到遊戲中，讓世界各地的遊戲玩家都能感受到超本地化的感覺。

We celebrated local festivals with thematic in-game elements from the Day of the Dead in Mexico to Tet in Vietnam. In Indonesia we created a Ramadhan campaign that allowed our users to donate in-game currency to renovate an orphanage in West Java. Such efforts have made Free Fire feel deeply local for players across different markets, creating a much richer sense of belonging for our gamers.

我們利用遊戲內的主題元素來慶祝當地的節日，從墨西哥的亡靈節到越南的春節。在印度尼西亞，我們發起了齋戒月活動，讓我們的用戶可以捐贈遊戲貨幣來翻新西爪哇的一所孤兒院。這些努力讓不同市場的玩家對《Free Fire》有了深刻的在地化感受，為我們的遊戲玩家創造了更豐富的歸屬感。

Free Fire’s popularity is also a result of having a strong presence beyond the game app itself. It has a powerful following on social media. On major social media platforms such as TikTok and YouTube, Free Fire has accumulated more than 1 trillion views to date. And our flagship annual eSports event, the Free Fire World Series Global Finals returned to Brazil last November and generated massive excitement. Viewership hours increased by 43% compared to the previous year, thanks to our partnerships with content creators and game streamers to build hype around the event.

Free Fire 的流行也源自於其在遊戲應用之外的強大影響力。它在社交媒體上擁有大量追隨者。在TikTok和YouTube等主要社群媒體平台上，《Free Fire》迄今的累積觀看次數已超過1兆次。我們的年度旗艦電競活動「Free Fire 世界大賽全球總決賽」於去年 11 月重返巴西，引起了極大的轟動。由於我們與內容創作者和遊戲主播合作，為活動造勢，收視時間比去年增加了 43%。

These large-scale engagements, fuel word-of-mouth organic growth keeping Free Fire relevant and growing. We are incredibly proud of the sustained success of Free Fire and our very own self-developed game, and the solid performance of our long-standing published games. Looking ahead into 2025, we will continue scaling our user base and broadening our content offerings. We now expect Garena to grow double digit year-on-year for both user base and bookings in 2025.

這些大規模的活動促進了口碑的有機成長，使 Free Fire 保持相關性和不斷發展。我們對《Free Fire》和我們自主開發的遊戲的持續成功以及我們長期發行的遊戲的穩健表現感到無比自豪。展望 2025 年，我們將繼續擴大用戶群並拓寬我們的內容產品。我們目前預計，到 2025 年，Garena 的用戶群和預訂量都將實現兩位數的年增長。

In closing, we are proud of what we have achieved in 2024. Our strategies have proven effective, and our businesses are on strong footing to continue growing strongly and improving profitability in 2025. We will continue to work hard and execute well. Our goal for the next phase is to pursue high-quality growth by driving both our top line and bottom-line expansion in a healthy and sustainable manner.

最後，我們為 2024 年所取得的成就感到自豪。我們的策略已被證明是有效的，我們的業務基礎牢固，將在 2025 年繼續強勁成長並提高獲利能力。我們將繼續努力並認真執行。我們下一階段的目標是，透過健康、永續的方式推動營收和利潤的擴張，實現高品質成長。

We are in a stronger financial position now than ever, and we are a much more experienced company after going through multiple cycles. The fundamental growth opportunities in our markets remain strong. 2024’s success is just the start. 2025 will be another good year for us. Thank you, as always, for your trust and support.

我們現在的財務狀況比以往任何時候都更加強勁，而且在經歷了多個週期後，我們的公司也變得更加有經驗。我們市場的基本成長機會依然強勁。 2024年的成功只是一個開始。 2025年對我們來說又將是豐收的一年。一如既往地感謝您的信任與支持。

With that, I invite Tony to discuss our financials.

因此，我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. For Sea overall, total GAAP revenue increased 37% year-on-year to $5 billion in the fourth quarter of 2024 and 29% year-on-year to $16.8 billion for the full year of 2024. This was primarily driven by GMV growth of our e-commerce business and the growth of our digital financial services business.

謝謝你，福雷斯特，也謝謝大家參加電話會議。就 Sea 整體而言，2024 年第四季的 GAAP 總營收年增 37% 至 50 億美元，2024 年全年的 GAAP 總營收年增 29% 至 168 億美元。這主要得益於我們電子商務業務的 GMV 成長和數位金融服務業務的成長。

Our total adjusted EBITDA was $591 million in the fourth quarter of 2024, compared to an adjusted EBITDA of $127 million in the fourth quarter of 2023. For the full year of 2024, our total adjusted EBITDA was $2 billion compared to an adjusted EBITDA of $1.2 billion for the full year of 2023.

2024 年第四季度，我們的調整後 EBITDA 總值為 5.91 億美元，而 2023 年第四季的調整後 EBITDA 為 1.27 億美元。2024 年全年，我們的調整後 EBITDA 總值為 20 億美元，而 2023 年全年調整後 EBITDA 為 12 億美元。

On e-commerce, Shopee's gross orders grew 20% year-on-year to $3 billion in the fourth quarter of 2024, and GMV increased by 23% year-on-year to $28.6 billion in the fourth quarter of 2024.

電商方面，2024年第四季Shopee總訂單額年增20%至30億美元，2024年第四季GMV年增23%至286億美元。

Our fourth quarter GAAP revenue of $3.7 billion included GAAP marketplace revenue of $3.2 billion up 41% year-on-year, and GAAP product revenue of $0.5 billion. Within GAAP marketplace revenue, core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues was $2.4 billion, up 50% year-on-year.

我們第四季的 GAAP 營收為 37 億美元，其中包括 GAAP 市場收入 32 億美元，年增 41%，以及 GAAP 產品收入 5 億美元。在 GAAP 市場收入中，核心市場收入（主要包括以交易為基礎的費用和廣告收入）為 24 億美元，較去年同期成長 50%。

Value-added services revenue, mainly consisting of revenues related to logistics services was $0.8 billion, up 21% year-on-year.

加值服務收入（主要包括與物流服務相關的收入）為 8 億美元，較去年同期成長 21%。

For the full year of 2024, GAAP revenue of $12.4 billion included GAAP marketplace revenue of $10.9 billion, up 38% year-on-year and GAAP product revenue of $1.6 billion.

2024 年全年 GAAP 營收為 124 億美元，其中包括 GAAP 市場營收 109 億美元，年增 38%，GAAP 產品營收 16 億美元。

E-commerce adjusted EBITDA was $152 million in the fourth quarter of 2024 compared to an adjusted EBITDA loss of $225 million in the fourth quarter of 2023.

2024 年第四季電子商務調整後 EBITDA 為 1.52 億美元，而 2023 年第四季調整後 EBITDA 虧損為 2.25 億美元。

For 2024, full year adjusted EBITDA we achieved positive adjusted EBITDA of $156 million compared to an adjusted EBITDA loss of $214 million for the full year of 2023. Both Asia and other markets recorded positive adjusted EBITDA for the fourth quarter of 2024.

2024 年全年調整後 EBITDA 實現正 1.56 億美元，而 2023 年全年調整後 EBITDA 虧損為 2.14 億美元。2024 年第四季度，亞洲和其他市場均錄得正調整後 EBITDA。

Digital financial services GAAP revenue was up by 55% year-on-year to $733 million in the fourth quarter, and up by 35% year-on-year to $2.4 billion for the full year of 2024.

數位金融服務GAAP營收第四季年增55%至7.33億美元，2024年全年年增35%至24億美元。

Adjusted EBITDA was up by 42% year-on-year to $211 million in the fourth quarter of 2024, and up by 29% year-on-year to $712 million for the full year of 2024.

2024年第四季調整後EBITDA年增42%至2.11億美元，2024年全年調整後EBITDA年增29%至7.12億美元。

As of the end of December, our consumer and SME loans principal outstanding reached $5.1 billion, up 64% year-on-year. This consists of $4.2 billion on book and $0.9 billion off book loans principal outstanding. Non-performing loans past due by more than 90 days, as a percentage of total consumer and SME loans was 1.2% at the end of the quarter.

截至12月底，我們的消費者及中小企業貸款本金未償還金額達51億美元，年增64%。其中包括 42 億美元的帳面貸款本金和 9 億美元的帳外貸款本金未償還。截至本季末，逾期 90 天以上的不良貸款佔消費者和中小企業貸款總額的 1.2%。

Digital entertainment bookings were $543 million in the fourth quarter up 19% year-on-year and $2.1 billion for the full year of 2024, up 19% year-on-year.

第四季數位娛樂預訂金額為5.43億美元，較去年同期成長19%，2024年全年預訂金額為21億美元，較去年同期成長19%。

GAAP revenue was $519 million in the fourth quarter and $1.9 billion for the full year of 2024. Adjusted EBITDA was $290 million in the fourth quarter and $1.2 billion for the full year of 2024.

第四季 GAAP 營收為 5.19 億美元，2024 年全年 GAAP 營收為 19 億美元。第四季調整後 EBITDA 為 2.9 億美元，2024 年全年調整後 EBITDA 為 12 億美元。

Returning to our consolidated numbers. We recognized a net non-operating income of $28 million in the fourth quarter of 2024, compared to a net non-operating income of $32 million in the fourth quarter of 2023. For the full year, our non-operating income was $117 million compared to an income of $208 million for the full year of 2023.

回到我們的合併數字。我們確認 2024 年第四季的淨非營業收入為 2,800 萬美元，而 2023 年第四季的淨非營業收入為 3,200 萬美元。全年而言，我們的非營業收入為 1.17 億美元，而 2023 年全年收入為 2.08 億美元。

We had a net income tax expense of $89 million in the fourth quarter of 2024 compared to net income tax expense of $77 million in the fourth quarter of 2023. For the full year, our net income tax expense was $321 million compared to $263 million for the full year of 2023. As a result, net income was $238 million in the fourth quarter of 2024, as compared to a net loss of $112 million in the fourth quarter of 2023.

2024 年第四季，我們的淨所得稅支出為 8,900 萬美元，而 2023 年第四季的淨所得稅支出為 7,700 萬美元。全年我們的淨所得稅支出為 3.21 億美元，而 2023 年全年為 2.63 億美元。結果，2024 年第四季的淨收入為 2.38 億美元，而 2023 年第四季的淨虧損為 1.12 億美元。

For the full year, net income was $448 million as compared to net income of $163 million for the full year of 2023.

全年淨收入為 4.48 億美元，而 2023 年全年淨收入為 1.63 億美元。

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

謝謝你，福雷斯特和托尼。我們現在準備開始回答問題。操作員？

(Operator Instructions) Pang Vitt, Goldman Sachs

（操作員指令）Pang Vitt，高盛

Congratulations for a solid performance. Two questions from me. Number one, on e-commerce. Could you help us provide more color on your 2025 20% GMV growth guidance? What is the underlying assumption you put in place in terms of competitive landscape, marketing spending, service quality investment? And is this already factored in the FX impact in the numbers? On top of this, could you help us understand how profitability will trend in the upcoming quarter as well? That's number one.

恭喜您出色的表現。我有兩個問題。第一，關於電子商務。您能否幫助我們進一步闡明 2025 年 20% GMV 成長預期？就競爭格局、行銷支出、服務品質投資而言，您提出的基本假設是什麼？這個數字中已經考慮到外匯影響了嗎？除此之外，您能否幫助我們了解下一季的獲利趨勢？這是第一點。

Number two, on Fintech, strong performance across the board, both on the top line and on the bottom line and on the user trend as well. Could you help explain the driver behind, especially on the country mix and product mix? And can you help us also contextualize what do you mean by loan book to grow meaningfully faster than Shopee GMV?

第二，在金融科技方面，無論是營收、淨利或用戶趨勢，都表現強勁。您能否解釋一下背後的驅動因素，尤其是國家組合和產品組合？您能否幫我們解釋一下貸款帳簿的成長速度比 Shopee GMV 更快是什麼意思？

Thank you. On the first one, for Shopee. In 2025, as Forrest mentioned in the opening, we expect to grow around 20% on the GMV basis, we are assuming the ForEx rate to be similar to the current rate. So we are not taking a position on the ForEx forecast for now. If there's a big fluctuation in ForEx, we will look at the situations.

謝謝。第一個，針對Shopee。到 2025 年，正如 Forrest 在開頭提到的那樣，我們預計 GMV 將成長約 20%，我們假設 ForEx 匯率與當前匯率相似。因此我們暫時不對外匯預測持立場。如果外匯出現大幅波動，我們會觀察情況。

And in terms of the things we are doing to drive the growth, the growth driven by both the user number growth and also the purchase frequencies as we are executing our key operational priorities. If we look at Asia and Brazil, we expect those markets will grow quite well. Although as we have Brazil as a newer market, Brazil probably have a slightly faster growth pace than the Asian market.

就我們為推動成長所做的事情而言，成長是由用戶數量的成長和購買頻率的增加共同推動的，因為我們正在執行我們的關鍵營運重點。如果我們看看亞洲和巴西，我們預計這些市場將會成長得相當好。儘管巴西是我們的一個較新的市場，但巴西的成長速度可能比亞洲市場略快一些。

On the profitability side, we do expect the profitability for 2025 to be better than 2024 as a trend. However, as you might know, e-commerce does have some seasonality from time to time. So there might be some fluctuation due to seasonality. On the SeaMoney side of the businesses, the off-platform grows very well in terms of the loan outstanding on both the on-Shopee SPayLater and the off-Shopee part of the businesses.

在獲利能力方面，我們確實預期 2025 年的獲利能力將優於 2024 年。然而，正如您所知，電子商務有時確實具有一些季節性。因此可能會因季節性而出現一些波動。在 SeaMoney 業務方面，平台外業務在 Shopee SPayLater 內部和 Shopee 外部業務的貸款餘額方面均取得了良好的成長。

In terms of the country mix, as you probably know, we grow the loan outstanding from countries like Indonesia and Philippines first, and other countries later. So in terms of the coming quarters, we will probably see the newer country has slightly faster growth pace than the older market. for the profitability of the loan book. We do believe that because of the country mix, and as we expand to a more prime segment of user bases, there might be some impact to the return on assets, our ROA rate, driven the country mix and some of the user mix that will come in. But overall, we do believe that the absolute EBITDA will grow well in 2025.

就國家組合而言，您可能知道，我們首先增加印尼和菲律賓等國家的貸款餘額，然後再增加其他國家的貸款餘額。因此，就未來幾季而言，我們可能會看到較新的國家的成長速度略快於較舊的市場。貸款的盈利能力。我們確實相信，由於國家組合，並且隨著我們擴展到更主要的用戶群，資產回報率、我們的 ROA 率可能會受到一些影響，從而推動國家組合和一些用戶組合的發展。但總體而言，我們確實相信 2025 年絕對 EBITDA 將實現良好成長。

Just now you mentioned that the outstanding growth meaningfully faster than the Shopee GMV. I think that's partially because we will expect our SPayLater penetration on Shopee will further expand. Even in the older countries like Indonesia or Philippines, we will still expect the penetration of SPayLater to further expand. At the same time, the off-Shopee part of the businesses, the cash loan part and the SPayLater off-Shopee, will also going to further expand. So this will adding together makes our outstanding of the SeaMoney grow meaningfully faster than the Shopee GMV.

剛才您提到突出的增長明顯快於Shopee GMV。我認為部分原因是我們預計 SPayLater 在 Shopee 上的滲透率將進一步擴大。即使在印尼或菲律賓等較老的國家，我們仍預期 SPayLater 的滲透率將進一步擴大。同時，Shopee以外的業務部分，現金貸部分以及SpayLater以外的業務也將進一步拓展。因此，這些加在一起將使我們的 SeaMoney 的未償餘額比 Shopee GMV 的成長速度快得多。

And your next question comes from the line of Alicia Yap, Citigroup. Alicia, please go ahead.

您的下一個問題來自花旗集團的 Alicia Yap。艾麗西婭，請說。

Congrats on the strong results. Two questions. First is that I wanted to follow up on the assumption behind the GMV guidance. So if management could provide a little bit like how much would be driven by the growth of the new users, the increase of the purchasing frequency and also the wallet spend by user. And if management can also comment if there's any change of the consumer behavior that you have observed and how will any change affect our marketing strategy and also the category mix.

恭喜您取得的優異成績。兩個問題。首先，我想跟進 GMV 指導背後的假設。因此，如果管理層可以提供一些訊息，例如新用戶的成長、購買頻率的增加以及用戶的錢包支出將帶來多少推動力。管理階層是否可以評論您觀察到的消費者行為是否發生了變化，以及這些變化將如何影響我們的行銷策略和類別組合。

The second question very quickly on the gaming Garena guidance. When you mentioned you are expecting the active or the user base to also experience double-digit growth. Just wondering, because I think you're already in 150 markets. So just wondering -- are you expecting more deepening penetration in the existing market? Or are you actually looking for some of the new markets like you mentioned, for example, the Nigeria where you saw some fast growth. So any color in terms of the drivers for the bookings and also the active user growth for gaming would be appreciated.

第二個問題很快就會涉及到遊戲 Garena 的指導。您提到，您預計活躍用戶或用戶群也將經歷兩位數的成長。只是好奇，因為我認為您已經進入了 150 個市場。所以只是想知道——您是否預計現有市場滲透率會進一步深入？或者您實際上正在尋找一些您提到的新市場，例如您看到快速成長的尼日利亞。因此，任何有關預訂驅動因素以及遊戲活躍用戶成長的詳細資訊都會受到歡迎。

The -- on the first question on the e-commerce side, our GMV growth, driven both by the purchase frequencies and the new users, I don't think that's a particular one thing that dominates one another from what we see.

關於電子商務方面的第一個問題，我們的 GMV 成長是由購買頻率和新用戶共同推動的，從我們所看到的情況來看，我不認為有一個因素特別占主導地位。

On the consumer behavior, we don't see any particular big shift on the consumer behavior. There were a meaningful shift after COVID -- during COVID, et cetera. If you compare 2024 versus next quarter, the current quarter, we don't see anything particular that stand out. Although, as we shared that one of our priorities for Shopee is to improve our service quality. By doing so over time, we do observe that we attract more high-quality buyers to our platform which will help us to expand our categories coverage as well not only in Asia but also in Brazil.

在消費者行為方面，我們沒有看到消費者行為有任何特別大的轉變。在新冠疫情之後、新冠疫情期間等等，都發生了有意義的轉變。如果將 2024 年與下個季度（即當前季度）進行比較，我們看不到任何特別突出的特點。儘管如此，正如我們所分享的，Shopee 的首要任務之一就是提高我們的服務品質。透過長期這樣做，我們確實發現我們吸引了更多優質買家加入我們的平台，這將有助於我們不僅在亞洲而且在巴西擴大我們的品類覆蓋範圍。

If we take Brazil, for example, here, in Brazil, we have been working very hard to not only low down the cost power delivery, but also improve the delivery speed. We have seen a meaningful reduction on delivery speed in Brazil, which would help us essentially be able to serve slightly high-end users and be able to serve the categories which were historically harder to penetrate and all those things will help us essentially reach out to the better quality segment of users and serve them with a better retention over time. I think that's probably less the behavior change, more just as a consequence of we execute our strategy.

以巴西為例，在巴西，我們一直在努力降低電力傳輸成本，並提高輸送速度。我們發現巴西的配送速度顯著降低，這將幫助我們從本質上服務於稍微高端的用戶，並能夠服務於歷史上較難滲透的類別，所有這些都將幫助我們從本質上接觸到更優質的用戶群體，並隨著時間的推移為他們提供更好的保留率。我認為這可能與行為改變無關，更像是我們執行策略的結果。

On the Garena guidance, let me start, the guidance we offer here is pretty much based on our existing portfolio. This is including our self-developed game Free Fire and our publishing game portfolio like by working together with the third-party game developers. And we -- at this moment, we don't count in too much in terms of the new games, although we do have the plan to launch new games this year, but the current guidance is more focused on the existing game which we have a lot of historical data to project the forecast.

關於 Garena 指導，首先我想說，我們在此提供的指導基本上是基於我們現有的投資組合。這包括我們自主開發的遊戲《Free Fire》和透過與第三方遊戲開發人員合作發行的遊戲組合。目前，我們還沒有考慮太多新遊戲，雖然我們確實有今年推出新遊戲的計劃，但目前的指引更側重於現有遊戲，我們有大量歷史數據來預測。

And the growth, like actually, probably we can just zoom in Free Fire, which play a very, very big role in the entire portfolio. And we have observed actually the growth is across all the markets, it's including both our existing markets and some new markets, which for example, we talked about -- we highlight some Africa, like countries like specifically large market like Nigeria. So by adding in putting some specific work like effort in that market, for example, we set up a local server like for Nigerian gamers to improve the connection qualities, and the result is very, very obvious. Like in December, we see 90% growth in terms of the user base. So we see that similar trend in some other markets, a lot of parts of the world.

實際上，我們可以把 Free Fire 的成長放大，它在整個投資組合中發揮非常非常大的作用。實際上，我們已經觀察到所有市場都在成長，包括我們現有的市場和一些新市場，例如，我們談到的——我們重點介紹了一些非洲國家，例如像尼日利亞這樣的特別大的市場。因此，透過在該市場投入一些特定的工作，例如，我們為尼日利亞遊戲玩家建立了本地伺服器，以提高連接質量，結果非常明顯。例如 12 月份，我們的用戶群成長了 90%。我們在其他一些市場、世界很多地方也看到了類似的趨勢。

I think like overall, our guidance reflects our confidence of the -- both of the market. Like we -- like throughout the entire 2024, we see after like a few years kind of headwinds after COVID pandemic and we see users like the gamers start to back to the -- to kind of like spend more time to play games and it's kind of back to the after normal time compared to the -- during the post COVID time, a lot of people kind of still burnt out during the COVID and they try to do other things instead of playing games.

我認為總體而言，我們的指引反映了我們對兩個市場的信心。就像我們——就像在整個 2024 年，我們看到在新冠疫情大流行幾年後出現了一些逆風，我們看到像遊戲玩家這樣的用戶開始回歸——花更多時間玩遊戲，與後新冠疫情時期相比，這有點回到了正常時期，很多人在新冠疫情期間仍然精疲力竭，他們嘗試做其他事情而不是遊戲。

And I think it also reflects our confidence about what we have done with the Free Fire in the past few years. We mentioned that before, we have been very, very focused on the market speed of the product. And specifically on the accessibility of the game. We want to make the game is not just offer a great gaming experience, but it's more inclusive, is to make more gamers to play.

我認為這也反映了我們對過去幾年 Free Fire 所做工作的信心。我們之前提到過，我們一直非常非常關注產品的市場速度。特別是關於遊戲的可訪問性。我們希望讓遊戲不只提供出色的遊戲體驗，而是讓它更具包容性，就是讓更多的遊戲玩家來玩。

And I think we're probably one of the best companies like to focus on this and to execute this as well. And this is to us, it's a great formula. So we still see there is a lot of part in this world, and the gamers still not get a great game experience and the Free Fire will be a natural fit for them to offer them a wonderful experience. And other things we see have been really helpful is considering the scale of Free Fire and continually like as I mentioned just now, we continually focus on to capture the local trends and capture the local kind of the hot topic and into the game, and to make the game more relevant and to -- both on a global level and on the local level.

我認為我們可能是最擅長專注於此並執行此任務的公司之一。對我們來說，這是一個很棒的公式。因此，我們仍然看到這個世界存在著許多問題，遊戲玩家仍然無法獲得出色的遊戲體驗，而 Free Fire 將自然而然地適合他們，為他們提供美妙的體驗。我們認為其他真正有幫助的事情是考慮到 Free Fire 的規模，正如我剛才提到的那樣，我們不斷專注於捕捉本地趨勢，捕捉本地的熱門話題並將其融入遊戲中，並使遊戲更具相關性——無論是在全球層面還是在本地層面。

So Free Fire is not just a game anymore, it's become a phenomenon like from a hot topic, trending topic always across the social media. And this will help us continually adding kind of attractive more users, right, and to play the game and also keep our existing gamers very, very engaging for the content we offer through the game. I think put all those things together, that gave us the confidence into continued growth of this year and also already have a pretty decent -- very decent growth in 2024. And so far, we have observed the momentum is continuing into Q1 this year, which give us a very good start of the year.

所以《Free Fire》不再只是一款遊戲，它已經成為一種現象，就像社群媒體上的熱門話題、流行話題一樣。這將有助於我們不斷吸引更多的用戶來玩遊戲，同時也讓我們現有的玩家非常非常喜歡我們透過遊戲提供的內容。我認為，把所有這些因素放在一起，使我們對今年的持續成長充滿信心，並且到 2024 年已經實現了相當不錯的成長——非常不錯的成長。到目前為止，我們觀察到這一勢頭一直延續到今年第一季度，這為我們今年的開端帶來了非常好的開始。

And your next question comes from the line of Divya Kothiyal, Morgan Stanley. Divya, please go ahead.

您的下一個問題來自摩根士丹利的 Divya Kothiyal。Divya，請續。

Two questions from me. One on logistics and the other is on Brazil. On logistics, we're seeing that Shopee is selectively participating in fulfillment now in some countries like Brazil as well as Singapore. Can you elaborate more on the benefits of engaging this? And does this require more CapEx or even subsidies, which would mean wider logistics losses in the near term? And do we plan to do fulfillment in more markets? That's the first question.

我有兩個問題。一個是關於物流的，另一個是關於巴西的。在物流方面，我們看到 Shopee 目前正在巴西和新加坡等一些國家有選擇地參與物流。您能詳細闡述參與此項工作的好處嗎？這是否需要更多的資本支出甚至補貼，而這是否意味著短期內物流損失將更大？我們是否計劃在更多市場實現這一目標？這是第一個問題。

And my second question is on Brazil. Could you talk about the profitability in this market, given the high growth we've seen -- but last time, you mentioned that the profitability could be choppy quarter-to-quarter. So I would be keen to know how profitability in this market, what the guidance for 2025 is and also, if you could comment on the latest AOV in this market and the growth of the fintech business?

我的第二個問題是關於巴西的。鑑於我們看到的高成長，您能否談談這個市場的獲利能力？但上次您提到獲利能力可能會在各個季度之間波動。因此，我很想知道這個市場的獲利能力如何，2025 年的指導方針是什麼，此外，您是否可以評論一下這個市場的最新 AOV 以及金融科技業務的成長？

On Brazil, for the fulfillment, it's -- we are in a very early stage of complement businesses in Brazil, it's a proven model that some of our competitors has been engaging with in the market. The purpose of finding fulfillment is to serve sellers and especially brand sellers from the categories we were historically are not very strong at. There are group of sellers who prefer to be fulfilled by the platform rather than themselves, without the capability we're not able to serve them.

在巴西，為了實現這一目標，我們在巴西的補充業務還處於非常早期的階段，這是一個經過驗證的模式，我們的一些競爭對手已經在市場上採用了這種模式。尋求滿足的目的是為了服務賣家，特別是那些我們過去不太擅長的類別的品牌賣家。有一部分賣家更願意透過平台而不是自己來滿足需求，如果沒有平台的能力，我們就無法為他們提供服務。

This will also help us to improve the buying experience with the shorter delivery times because this will shorten the fulfillment time from the seller side. We don't expect this will meaningfully impact our profitability too much, at least in the near term because, as I said, it's still in the early stage, so it's a pretty small size. And number two is we run -- we don't own the fulfillment centers. We rent it and we operate in a pretty CapEx-light fashion.

這也將幫助我們透過更短的交貨時間來改善購買體驗，因為這將縮短賣方方面的履行時間。我們預計這不會對我們的獲利能力產生太大影響，至少在短期內不會，因為正如我所說，它仍處於早期階段，所以規模相當小。第二，我們運作－我們不擁有履行中心。我們將其出租，並以相當輕資本支出的方式運作。

Regarding whether we will do fulfillment other markets -- actually, we do have fulfillment in other in Asia quite a while. We do serve the brand sellers, especially in many of our markets for those sellers who prefer someone else to fulfill for them or -- and they could not find anyone who can do it well for them. So we do have the fulfillment business for them. And again, we don't expect this will meaningfully impact our CapEx or profitability in the foreseeable future for this. On the AOV trend in Brazil, we do see increase in average order size in Brazil because of the effort we are taking.

關於我們是否會在其他市場開展業務——實際上，我們在亞洲其他市場已經開展業務一段時間了。我們確實為品牌賣家提供服務，特別是在我們的許多市場中，那些更喜歡別人為他們履行職責的賣家，或者他們找不到任何可以為他們做好這件事的人。所以我們確實為他們提供履行業務。而且，我們預計這不會在可預見的未來對我們的資本支出或獲利能力產生重大影響。就巴西的 AOV 趨勢而言，由於我們付出的努力，我們確實看到巴西的平均訂單規模增加。

Part of that is we have a better delivery quality, delivery speed. So people are willing to buy a higher basket item from us and part of that comes from the expansion to new categories that I mentioned just now. In terms of the profitability in Brazil, I think for Q4, both Asia and Brazil are profitable. I think we are able to grow Brazil in a pretty good way with a profitable EBITDA, and whether we would further invest to grow or not, I think something we will observe and decide. But with the current profitability, EBITDA for Brazil, we are able to grow in a pretty fast pace already.

部分原因是我們擁有更好的交付品質和交付速度。因此人們願意從我們這裡購買價格更高的商品，部分原因在於我剛才提到的新類別的擴展。就巴西的獲利能力而言，我認為第四季度亞洲和巴西都是獲利的。我認為我們能夠以相當好的方式發展巴西市場並實現盈利的 EBITDA，至於我們是否會進一步投資以實現成長，我想我們將進行觀察並做出決定。但憑藉目前的獲利能力，即巴西的 EBITDA，我們已經能夠以相當快的速度成長。

For the fintech part of the business is in Brazil, we do have quite good growth in Brazil in the past few quarters. Actually, a few quarters -- two, three quarters ago, we are able to find a way to credit rate our user in Brazil in a pretty stable fashion. After that, we are able to increase the penetration of SPayLater in Shopee quarter-over-quarter. At the same time, we also launched buyer cash loan in Brazil as well. Actually, we customize the product for Brazil in the way the cash loan user and SPayLater user shares the same pool of limit, which is different from Asia.

由於金融科技部分業務在巴西，過去幾季我們在巴西確實取得了相當不錯的成長。實際上，幾個季度——兩個或三個季度前，我們找到了一種以相當穩定的方式對巴西用戶進行評級的方法。此後，我們能夠逐季提高 SPayLater 在 Shopee 的滲透率。同時，我們也在巴西推出了買家現金貸款。其實，我們是針對巴西客製化產品的，現金貸用戶和SPayLater用戶是共享額度池的，這與亞洲是不同的。

In Brazil, we also incorporate a lot more data as there are more data available in the market. And in Brazil, we're also putting quite a lot of different way of engaging the users on the SPayLater and cash loan side. So all this helped us to grow the fintech businesses in Brazil quite well in the past few quarters. And we would expect Brazil will be one of our faster growing market as the overall SeaMoney businesses.

在巴西，我們也整合了更多數據，因為市場上有更多可用的數據。在巴西，我們也在 SPayLater 和現金貸款方面嘗試了很多不同的方式來吸引用戶。所以所有這些都幫助我們在過去幾季很好地發展了巴西的金融科技業務。我們預計巴西將成為我們整體 SeaMoney 業務成長較快的市場之一。

And your next question comes from the line of Piyush Choudhary, HSBC. Piyush, please go ahead.

您的下一個問題來自匯豐銀行的 Piyush Choudhary。Piyush，請繼續。

Congratulations to the team on a great set of results. Two questions, both on e-commerce. Firstly, as 50% of your orders are now delivered through Shoppe Express in Asia in less than two days. Are there any operational targets or priorities for delivery of orders in less than one day. And are you seeing any kind of meaningful increase in order frequency as delivery speed has been improving. If you can give some examples of any examples of the country where that material difference is coming? That's the first question.

祝賀團隊取得了優異的成績。兩個問題，都是關於電子商務的。首先，現在 50% 的訂單都可以透過 Shoppe Express 在亞洲在兩天內送達​​。在一天之內完成訂單的配送，有什麼營運目標或優先事項嗎？隨著送貨速度的提高，您是否看到訂單頻率有任何顯著的增長？您能否舉一些例子來說明在哪個國家存在這種實質的差異？這是第一個問題。

Secondly, on Shoppe core marketplace take rate, which has increased to 8.5% now, what is the outlook on the take rate? And any seasonality we should expect in take rate trend going forward as ad revenue has become a larger portion

其次，Shoppe核心市場的佣金率目前已升至8.5%，佣金率的前景如何？隨著廣告收入佔比越來越大，我們可以預見未來的季節性趨勢

On the first question on the deliveries, as you mentioned, we do have about half of our orders delivered for SPX within two days. Within that, there is a meaningful growth of same-day delivery as well. But it's a little bit sort of -- it depends on different countries on the same-day deliveries. For example, in Indonesia, we have a sizable same-day deliveries around the Jakarta regions, Greater Jakarta regions.

關於交貨的第一個問題，正如您所說，我們確實有大約一半的 SPX 訂單在兩天內交付。其中，當日送達業務也呈現顯著成長。但這有點——這取決於不同國家的當日送達情況。例如，在印度尼西亞，我們在雅加達地區和大雅加達地區提供大量當日送達服務。

In Thailand and Malaysia as well in Vietnam as well, we also started same-day delivery services. In country like Singapore, same day is still quite rare in the market due to the cost structure. I think it's going to be a country-by-country view for how much do we push the same-day versus the next-day deliveries. It's correlated with the cost structure. It correlates with the -- how the seller behaves in the market as well.

在泰國、馬來西亞和越南，我們也開始了當日送達服務。在新加坡這樣的國家，由於成本結構的原因，當日送達在市場上仍然相當罕見。我認為我們將根據每個國家的具體情況，決定在多大程度上推廣當日送達和隔日送達服務。它與成本結構有關。它也與賣家在市場中的行為有關。

But as a general direction, we do -- would like to improve the service quality and the delivery speed is part of it. And part of the delivery speed is to have more share of same-day or next-day, where possible is something we would like to achieve and grow over time. As a consequence of that, I think you're absolutely right, we do see improvement on order frequencies for the user who enjoy the same-day or next-day delivery services. The -- and it's not only the speed but also the cost as well in many markets, were we are reducing delivery costs, this will also help the retention rate and will translate to the order frequencies as well.

但作為總體方向，我們確實希望提高服務質量，交付速度是其中的一部分。而配送速度的一部分就是擁有更多的當日或隔日配送份額，如果可能的話，這是我們希望實現的目標，並且隨著時間的推移不斷增長。因此，我認為你完全正確，我們確實看到享受當日或隔天送達服務的用戶的訂購頻率有所提高。在許多市場中，我們降低運輸成本不僅關係到速度，還關係到成本，這也有助於提高留存率，並轉換為訂單頻率。

Regarding the take rate, the take rate has two main parts. One is the commission part. Another part is ad take rates. And -- so on the both fronts, we do see that the potential room to grow. And I think as you pointed out, ads over time, become a bigger part of the take rate and probably the bigger part of the growth drivers. There are seasonalities in this, like, for example, in a certain period of time, if they are on a holiday for a long period of time, it does impact the take rate.

至於take rate，take rate主要有兩個部分。一是佣金部分。另一部分是廣告收取率。因此，在這兩個方面，我們確實看到了潛在的成長空間。我認為，正如您所指出的，隨著時間的推移，廣告將成為收入率中更重要的組成部分，甚至可能是成長動力中更重要的組成部分。這其中有季節性，例如，在某個時期，如果他們長時間休假，這確實會影響接受率。

But we do believe that there's still quite a lot of room to grow our ad take rate quarter-to-quarter or year-to-year. And the seasonality probably would not -- the fluctuation of seasonality will not impact the trend so much. but it does impact. But it's just like it's still -- we can still grow it even with the seasonality for the ad part.

但我們確實相信，我們的廣告接收率在季度與季度之間或年度與年度之間仍有很大的成長空間。季節性可能不會－季節性的波動不會對趨勢產生太大影響。但確實有影響。但即使受到廣告部分的季節性影響，我們仍然可以實現成長。

And your next question comes from the line of Sachin Salgaonkar, BofA. Sachin, please go ahead.

您的下一個問題來自美國銀行的 Sachin Salgaonkar。薩欽，請繼續。

Congrats on a great set of numbers. Two questions from my side. First question, we've seen your competitors in Southeast Asia increased take rates in last few quarters and the gap between your and their take rate has narrowed. So directionally, I want to understand how do you think about slightly increasing take rates. And I know there are the levers like ad and others, but any thoughts on charging merchants slightly more.

恭喜您取得一組出色的數字。我有兩個問題。第一個問題，我們發現你們在東南亞的競爭對手在最近幾季提高了接受率，你們和他們的接受率之間的差距已經縮小。因此從方向上來說，我想了解您如何看待略微提高接受率。我也知道有廣告和其他手段，但是您認為對商家收取的費用是否稍微高一些呢？

And second, given the fact that every business is now throwing a good amount of cash, you also have a good amount of cash on the balance sheet. Any directional thoughts on proceeds on uses of cash? Is there a thought, A, to go internationally at some point in the future? B, give dividends apart from any debt repayment, which is there out there? So would love to know your thoughts on this.

其次，鑑於現在每家企業都在投入大量現金，因此你的資產負債表上也會有大量現金。對於現金收益的使用有什麼方向性的想法嗎？A，未來有沒有想過走向國際化？B、除了償還債務之外還發放股息，那還有什麼呢？所以很想知道你對此的想法。

On the first question, the -- I think we talked a lot about some of the ad take rates just now.

關於第一個問題，我想我們剛剛討論了很多關於廣告收取率的問題。

On the commission side, the feedback from our ecosystem, our take rate is still quite healthy. We review our commission take rate from time to time, actually month-to-month, taking into account the factors, the seller margins, how is the competition is, as you mentioned, and also the overall economical situation for the countries. So I think it's in a dynamic process. We still believe there is a potential to grow it over time, although probably in a slower speed, as you probably observed in the last year on the commission side.

在佣金方面，從我們的生態系統的回饋來看，我們的佣金率仍然相當健康。我們會不時（實際上是按月）審查我們的佣金率，同時考慮各種因素，包括賣家的利潤率、競爭情況（正如您所說）以及各國的整體經濟狀況。所以我認為這是一個動態的過程。我們仍然相信，隨著時間的推移，它有增長的潛力，儘管速度可能會較慢，正如您可能在去年的佣金方面觀察到的那樣。

And in terms of the -- yes, in terms of the usage and the deployment of our cash reserves, yes. So you are absolutely right. And at this moment, we have -- we see our cash position is getting stronger quarter after quarter. And I think that it's a very good position to be. I think this is still some capability of our -- not just on the financial side, but in terms of our -- how we want to execute our day-to-day operations, right, and with enough resources and financial resources on hand give us more levers give us more like room to execute our day-to-day operations.

就——是的，就我們的現金儲備的使用和部署而言，是的。所以你完全正確。目前，我們看到我們的現金狀況每季都在增強。我認為這是一個非常好的職位。我認為這仍然是我們的一些能力——不僅僅是在財務方面，而且在我們如何執行日常運營方面，對吧，並且擁有足夠的資源和財務資源，為我們提供更多的槓桿，為我們提供更多的空間來執行日常運營。

And on top of operations, and we remain open-minded. And by the end of the day, we will see what is the best way, what is the better return we can generate through the -- through our cash. And as for certain things, I think it's definitely on the table, as you mentioned, it could be the dividend and could be the share buyback. So we are actively reviewing all the possibilities.

在營運方面，我們保持開放的態度。到最後，我們會看到什麼是最好的方式，什麼是我們可以透過現金產生的更好的回報。至於某些事情，我認為肯定是在考慮範圍內的，正如您所說，可能是股息，也可能是股票回購。因此我們正在積極審查所有可能性。

And at the same time, we are also like to see how our financial results can help us to serve our customers better, right, in terms of the catching up and building up a new capabilities, say, for example, like there is a lot of initiatives that there's a lot of thinking for us is like how we how we continually improve our service qualities and our efficiency through using the AI, right? And there is a certain requirement, capital requirement in terms of the -- and deploy and develop the AI capabilities.

同時，我們也想看看我們的財務表現如何幫助我們更好地服務客戶，對吧，在追趕和建立新能力方面，比如說，有很多舉措，我們在思考如何透過使用人工智慧不斷提高我們的服務品質和效率，對吧？在部署和開發人工智慧能力方面，存在著一定的要求，即資本要求。

But at this moment, this doesn't mean we have a big plan in terms of the CapEx investments, like some our industry peers doing at this moment, we want to be in a practical and a cautious way. But I think with certain level of cash on hand it gives us more flexibility as well.

但目前，這並不意味著我們在資本支出投資方面有一個大計劃，就像我們一些業內同行目前所做的那樣，我們希望採取務實和謹慎的方式。但我認為，如果手邊有一定數量的現金，我們也能獲得更大的彈性。

And in terms of the -- maybe some acquisition opportunity, we are -- in our history, where we always focus on like a self kind of like organic growth, and I think increasingly, with our cash on hand, we also remain open-minded to kind of continue to build up. Like by the other day, it's how -- what is the way inorganic way we can improve our capability and to serve our customers better. I think that will be a key consideration as well.

至於——也許有一些收購機會——在我們的歷史上，我們總是專注於自我有機增長，而且我認為，憑藉我們手頭上的現金，我們也將保持開放的心態，繼續進行建設。就像前幾天說的，這就是我們如何——以什麼方式提高我們的能力並更好地為客戶服務。我認為這也是其中一個重點考量。

And your next question comes from the line of Thomas Chong, Jefferies. Thomas, please go ahead.

您的下一個問題來自 Jefferies 的 Thomas Chong。湯瑪斯，請繼續。

My question is about AI. I think management talks quite a lot on how AI reshaping our business across a different segment. I just wanted to get some color with regard to the benefit from AI. Are we actually seeing cost efficiency, i.e., the use of AI actually save a lot of the manual labor cost? So that helps to achieve a lot of cost savings or are we actually seeing the monetization is getting better coming from AI?

我的問題是關於人工智慧的。我認為管理階層經常談論人工智慧如何重塑我們不同領域的業務。我只是想了解人工智慧帶來的好處。我們是否真正看到了成本效益，即使用人工智慧是否真的節省了大量的人力成本？那麼，這有助於節省大量成本，還是我們實際上看到人工智慧帶來的貨幣化正在變得更好？

Yes. On the -- thanks for the question. We have seen growth, in fact, for example, in our search and recommendations, we actually use the large language model to better understand user queries, making certain discovery a lot more accurate and helping users find relevant product faster. So essentially, when the user make a query, the new technology can help us expand what it means from the query, not only just from the text but also from the word knowledge.

是的。關於—感謝您的提問。事實上，我們已經看到了成長，例如在我們的搜尋和推薦中，我們實際上使用大型語言模型來更好地理解用戶查詢，從而使某些發現更加準確，並幫助用戶更快地找到相關產品。因此本質上，當使用者進行查詢時，新技術可以幫助我們從查詢中擴展其含義，而不僅僅是從文本中，還可以從詞彙知識中。

We are also using the AI to understand the product a lot better like historically, it was a syntax matching, but now we can use existing pictures and the descriptions and the reviews to generate a lot more richer understanding of the product. And all those help us essentially matching our product to users' intention a lot better.

我們也在使用人工智慧來更好地理解產品，就像歷史上一樣，它是一個語法匹配，但現在我們可以使用現有的圖片和描述和評論來更豐富地了解產品。所有這些都幫助我們更好地匹配我們的產品和用戶的目的。

We are also having a lot of AIGC, AI-generated content in our platform. We provide that as a tool to our sellers to be able to produce image, a description of the product or the videos, especially a lot better compared to what they had before. And both of this increased our conversion meaningfully in our platform.

我們的平台上還有很多 AIGC，也就是人工智慧產生的內容。我們將其作為一種工具提供給我們的賣家，使他們能夠製作圖像、產品描述或視頻，尤其是比以前好得多。這兩者都顯著提高了我們平台的轉換率。

On the other side, on the cost savings side, I think in Forrest’s opening, we talked about the chatbot, the -- if you look at our CS queries[JW1], about 80% of the queries are answered by the chatbot already, which is a meaningful cost savings for our operations. I think that's also why you can see that our cost management for e-commerce is doing quite well. Even for the 20% answer by the agent, we have an AI tool for the agent to be able to understand the context a lot better, so can help them to respond a lot faster to the customers, which help us to manage the total population of our agent for customer service.

另一方面，在成本節約方面，我想在 Forrest 的開幕式上，我們談到了聊天機器人，如果你看看我們的 CS 查詢 [JW1]，大約 80％ 的查詢已經由聊天機器人回答，這對我們的運營來說是一筆有意義的成本節約。我想這也是為什麼你會看到我們的電子商務成本管理做得很好。即使只有 20% 的答案是由代理商完成的，我們也有一個 AI 工具，使代理商能夠更好地理解上下文，從而幫助他們更快地回應客戶，這有助於我們管理客戶服務代理的總數。

Another example is we're using AI model to better -- to make better judgment on the return-refund decision. Typically, when there's a return-refund happening comes to the platform, sometimes the platform historically need to use the people to make judgment, or when there's escalation on disagreement between the buyers and sellers that will come to us. We built an AI engine to be able to make a lot better judgment on this and make it a lot faster.

另一個例子是我們正在使用人工智慧模型來更好地判斷退貨退款決定。通常，當平台出現退貨退款的情況時，有時平台需要透過人員來做出判斷，或者當買家和賣家之間的分歧加劇時，就會來找我們。我們建立了一個人工智慧引擎，以便能夠對此做出更好的判斷並使其速度更快。

This contributed to the resolution time reductions as we mentioned earlier, and also reduced the number of agents required to intervene for our return refund. I think there are many other things that we can talk about if we have time. But yes, back to your question, we see the impact on businesses on both sides.

正如我們之前提到的，這有助於減少解決時間，同時也減少了乾預退貨退款所需代理商的數量。我想如果我們有時間的話還有很多其他事情可以討論。但是，是的，回到你的問題，我們看到了對雙方企業的影響。

This concludes our question-and-answer session. I would now like to turn the conference back over to Ms. Rebecca Lee for any closing remarks.

我們的問答環節到此結束。現在，我想將會議交還給 Rebecca Lee 女士，請她作最後發言。

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

感謝大家參加今天的電話會議。我們期待下個季度再次與大家交談。

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。您現在可以斷開連線。

[JW1]CS queries?

[JW1]CS 查詢？