Sea Ltd (SE) 2025 Q2 法說會逐字稿

Good morning and good evening to all and welcome to the Sea Limited second-quarter 2025 results conference call. (Operator Instructions) I would like to advise all participants that this call is being recorded. Thank you.

大家早安，晚上好，歡迎參加 Sea Limited 2025 年第二季業績電話會議。（操作員指示）我想告知所有參與者，本次通話正在錄音。謝謝。

I'd now like to welcome Mr. K.C. Ong to begin the conference. Please go ahead.

現在，我歡迎 K.C. Ong 先生開始會議。請繼續。

Hello, everyone, and welcome to Sea's 2025 second-quarter earnings conference call. I am K.C. from Sea's Investor Relations team.

大家好，歡迎參加Sea 2025年第二季財報電話會議。我是 Sea 投資者關係團隊的 K.C。

On this call, we may make forward-looking statements which are inherently subject to risk and uncertainties and may not be realized in the future for various reasons as stated in our press release. Also, this call includes discussion of certain non-GAAP financial measures such as adjusted EBITDA. We believe these measures can enhance our investors' understanding of the actual cash flow of our major businesses when used as a complement to our GAAP disclosures. For 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 releases.

在本次電話會議上，我們可能會做出前瞻性陳述，這些陳述本質上具有風險和不確定性，並且由於我們在新聞稿中所述的各種原因，未來可能無法實現。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，這些措施作為我們 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. Our management will share strategy and business updates, operating highlights, and financial performance for the second quarter of 2025. This will be followed by a Q&A session in which we welcome any questions you have.

和我一起的還有 Sea 的董事長兼執行長 Forrest Li、總裁 Chris Feng 和財務長 Tony Hou。我們的管理層將分享 2025 年第二季的策略和業務更新、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. The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year.

大家好，感謝大家參加今天的電話會議。我們 2025 年強勁開局的勢頭一直延續到第二季。我們的三大業務都實現了強勁、健康的成長，這讓我們更有信心再創輝煌。

Shopee's GMV grew 25% year-on-year in the first half, and we expect this growth momentum to carry into Q3. Monee's loan book continues to expand rapidly while maintaining a healthy NPL ratio. And for Garena, we now expect full-year bookings to grow more than 30% year-on-year.

Shopee上半年GMV年增25%，我們預期這一成長動能將延續到第三季。Monee 的貸款規模持續快速擴張，同時保持健康的不良貸款率。對於 Garena，我們預計全年預訂量將年增 30% 以上。

Given the high potential of our market and the stage of our business now, we will continue to prioritize growth. We still see huge opportunities in our markets to serve many more users and better many more lives with technology. Expanding both our addressable market and capturing more market share will pave the way for us to maximize our long-term profitability.

鑑於我們市場的巨大潛力和我們目前的業務階段，我們將繼續優先考慮成長。我們仍然看到市場中存在著巨大的機遇，可以利用科技為更多用戶提供服務，改善更多人的生活。擴大我們的潛在市場並佔領更多的市場份額將為我們實現長期盈利能力的最大化鋪平道路。

At the same time, our company has reached a stage where we can pursue growth opportunities while improving profitability. By being disciplined and cost efficient, we have turned all three businesses EBITDA positive since the second half of last year. And we are accumulating cash each quarter as we scale. We remain committed to growing profitably with a strong balance sheet that enables us to capture future opportunities.

同時，我們公司已經達到了可以在提高獲利能力的同時追求成長機會的階段。透過嚴格紀律和成本效率，自去年下半年以來，我們三項業務的 EBITDA 都已轉為正值。隨著規模的擴大，我們每季都在累積現金。我們將繼續致力於透過強勁的資產負債表實現獲利成長，從而抓住未來的機會。

With that, let me take you through each business's performance. Starting with e-commerce, Shopee has shown stellar growth performance throughout the first half of this year. After a record high Q1, we have delivered another record-breaking Q2 with quarter-on-quarter growth in gross order volume, GMV, and revenue. This was driven by a sustained increase in our active buyers and their purchase frequency, reinforcing our leadership across all our markets.

接下來，讓我帶您了解每個企業的表現。從電商開始，Shopee在今年上半年表現出色。繼第一季創下歷史新高之後，我們在第二季度又創下了新的紀錄，總訂單量、GMV 和收入均實現環比增長。這是由於我們的活躍買家及其購買頻率的持續成長，鞏固了我們在所有市場的領導地位。

We also delivered year-on-year profitability improvements across Asia and Brazil, enabled by our expanding scale and improving cost efficiency.

由於我們規模不斷擴大、成本效率不斷提高，我們在亞洲和巴西的獲利能力也較去年同期有所提高。

Our monetization improved in the second quarter, largely driven by strong growth in advertising revenue. We have deliberately worked to both drive seller adoption and encourage existing ad-paying sellers to use our latest ad tech solutions. Since early last year, our dedicated ad tech team has worked hard to improve algorithms, enhance traffic allocation efficiency, and deploy AI technologies to better serve our ad-paying sellers.

我們的貨幣化在第二季有所改善，主要得益於廣告收入的強勁成長。我們特意努力推動賣家採用並鼓勵現有的付費廣告賣家使用我們最新的廣告技術解決方案。自去年年初以來，我們專門的廣告技術團隊一直努力改進演算法，提高流量分配效率，並部署人工智慧技術，以更好地服務我們的廣告付費賣家。

And we have seen very encouraging results. During the second quarter, the number of sellers using our ad products rose by around 20% and ad-paying sellers average quarterly ad spend grew by more than 40% year-on-year.

我們已經看到了非常令人鼓舞的結果。第二季度，使用我們廣告產品的賣家數量增加了約 20%，付費賣家的平均季度廣告支出較去年同期增加了 40% 以上。

Our tech enhancements have allowed us to more effectively optimize Shopee's GMV and advertising revenue at the same time. We saw an 8% uplift in Shopee purchase conversion rates and improved our ad take rate by almost 70 basis points this quarter, year-on-year.

我們的技術增強使我們能夠同時更有效地優化 Shopee 的 GMV 和廣告收入。本季度，Shopee 購買轉換率年增了 8%，廣告接受率也提高了近 70 個基點。

Our operational priorities have proven to be a winning formula and they remain consistent, enhancing price competitiveness, improving service quality, and strengthening our content ecosystem. In the second quarter, we reinforced our price competitive value proposition with the launch of the campaign slogan, Cheaper, Faster at Shopee. It resonated well with buyers. We saw more than 10% year-on-year uplift in overall purchase frequency during the quarter, and the buyers continued to rank us as the most price-competitive e-commerce platform in Qualtrics survey across Asia and Brazil.

我們的營運重點已被證明是一個成功的秘訣，並且始終保持一致，增強了價格競爭力，提高了服務質量，並加強了我們的內容生態系統。在第二季度，我們透過推出「Shopee 更便宜、更快捷」的活動口號，強化了我們的價格競爭價值主張。它引起了買家的強烈共鳴。本季度，我們的整體購買頻率同比增長了 10% 以上，並且在 Qualtrics 對亞洲和巴西的調查中，買家繼續將我們評為最具價格競爭力的電子商務平台。

On service quality, our logistics capabilities continue to be an important differentiator for us. In the second quarter, we reduced the logistics cost per order and improved delivery speeds across Asia and Brazil year-on-year, in both urban and rural areas. We continue to roll out new initiatives to address specific customer needs such as instant delivery options in dense urban areas. This lets some buyers receive their order within as little as four hours of order placement. Our fastest shipping channel yet. We piloted it in Indonesia, and it proved so successful that we have now rolled it out to Vietnam and Thailand as well.

在服務品質方面，我們的物流能力仍然是我們的重要差異化因素。第二季度，我們降低了每筆訂單的物流成本，並比去年同期提高了亞洲和巴西城市和農村地區的配送速度。我們將繼續推出新措施來滿足特定客戶的需求，例如在人口密集的城市地區提供即時送貨服務。這使得一些買家可以在下單後四小時內收到訂單。我們迄今為止最快的運輸渠道。我們在印尼進行了試點，結果非常成功，因此我們現在也將其推廣到越南和泰國。

Another example is intelligent demand forecasting where we pre-ship commonly ordered products to warehouses closer to where we know buyer demand will likely come from, reducing buyer waiting time when actual orders are placed. Our logistics innovations not only delight our customers by improving the service quality they receive, but they also make us more cost efficient, letting us pass savings on to buyers.

另一個例子是智慧需求預測，我們將經常訂購的產品預先運送到距離我們知道買家需求可能來自的地方較近的倉庫，從而減少買家實際下訂單時的等待時間。我們的物流創新不僅透過提高服務品質讓客戶感到滿意，而且還提高了我們的成本效率，讓我們將節省的成本轉嫁給買家。

We have also been doing more to enhance buyer loyalty and stickiness. Our Shopee VIP membership program, a paid subscription service giving buyers exclusive benefits has shown very good momentum in Indonesia. Total GMV from VIP members there grew nearly 50% quarter-on-quarter. And the VIP members bought a monthly average of around 30% more after subscribing.

我們也一直在努力提高買家忠誠度和黏性。我們的 Shopee VIP 會員計劃是一項付費訂閱服務，為買家提供專屬優惠，該計劃在印尼表現出非常好的發展勢頭。VIP會員總GMV季增近50%。VIP會員訂閱後每月平均購買量增加約30％。

VIP members have also shown a roughly 20% higher retention rate compared to non-members. Building on this success, we have expanded the program to Thailand and Vietnam. At the end of June, total VIP subscribers in this market reached 2 million. We plan to roll out the program to more markets over the rest of the year.

與非會員相比，VIP 會員的保留率也高出約 20%。基於這項成功，我們將該計劃擴展到泰國和越南。截至6月底，該市場VIP用戶總數已達200萬人。我們計劃在今年剩餘時間內將該計劃推廣到更多市場。

Our content ecosystem continues to be a powerful engine of buyer engagement and conversion. Our AI tools empower Shopee sellers to produce high-quality video content, helping them improve user conversion and make more money without having to invest in their own studio setup.

我們的內容生態系統持續成為買家參與和轉換的強大引擎。我們的 AI 工具使 Shopee 賣家能夠製作高品質的影片內容，幫助他們提高用戶轉換率並賺取更多錢，而無需投資自己的工作室設定。

In Southeast Asia, orders from live streaming and short-form videos accounted for more than 20% of our total physical goods order volume in the second quarter. Our collaboration with YouTube has also continued its strong momentum. As of June, more than 7 million YouTube videos featured Shopee product links across our Southeast Asian markets, an increase of more than 60% quarter-on-quarter.

在東南亞，直播和短視訊訂單佔第二季實體商品訂單總量的20%以上。我們與 YouTube 的合作也持續保持強勁勢頭。截至 6 月份，東南亞市場上已有超過 700 萬個 YouTube 影片展示了 Shopee 產品鏈接，環比增長超過 60%。

Moving to Brazil, Shopee has continued to deliver exceptional growth while maintaining its positive adjusted EBITDA. Average monthly active buyers rose by over 30% year-on-year in the second quarter, much faster than the industry average growth rate.

轉向巴西，Shopee 繼續實現卓越成長，同時保持正調整後 EBITDA。第二季平均每月活躍買家較去年同期成長超過30%，遠高於業界平均成長速度。

Our strong growth in Brazil is built on solid fundamentals, especially logistics improvement and product category expansion. We have brought logistics cost per order down by 16% while also reducing our average delivery time by more than two days year-on-year. In the greater Sao Paulo region, about one in four Shopee parcels were delivered next day, and 40% within two days, up from single-digit percentages in the same period last year.

我們在巴西的強勁成長建立在堅實的基礎上，尤其是物流改善和產品類別擴展。我們將每筆訂單的物流成本降低了16%，同時平均配送時間較去年同期減少了兩天多。在大聖保羅地區，大約四分之一的 Shopee 包裹在第二天送達，40% 在兩天內送達，高於去年同期的個位數百分比。

We added over 100 well-known brands to our platform, especially in higher-value product categories. This contributed to steady and healthy increases in buyer average basket sizes in the second quarter. This combination of improving delivery service while expanding our product selection has allowed us to both serve our existing users more effectively and expand into more user segments such as urban and the more affluent buyers.

我們在平台上增加了 100 多個知名品牌，尤其是在高價值產品類別中。這促使第二季買家平均購物籃規模穩定健康成長。這種改善送貨服務和擴大產品選擇的結合使我們能夠更有效地服務現有用戶，並擴展到更多的用戶群體，如城市和更富裕的買家。

We will continue to push on this front and keep our strong momentum going in Brazil. This quarter, we celebrated Shopee's five-year anniversary in Brazil, and I'm very proud of what our team has achieved in this relatively short time. We have become the market leader by order volume, we continue to grow fast, and we are operating profitably.

我們將繼續在這方面努力，保持我們在巴西的強勁勢頭。本季度，我們慶祝了Shopee在巴西成立五週年，我為我們的團隊在這相對較短的時間內所取得的成就感到非常自豪。我們已經成為訂單量的市場領導者，我們繼續快速成長，並且正在獲利。

I'm especially happy with the role we have played in promoting digital entrepreneurship to over 8 million Brazilians. 30% of our active sellers cite Shopee as their first experience selling online. And more than half of our active sellers say they rely on Shopee as their primary source of income.

我對我們向 800 多萬巴西人推廣數位創業所發揮的作用感到特別高興。 30% 的活躍賣家表示 Shopee 是他們首次在線上銷售的經驗。超過一半的活躍賣家表示他們依靠 Shopee 作為主要收入來源。

In summary, Shopee has delivered an exceptional performance in the first half of the year, with 25% GMV growth year-on-year. And we are confident that this growth momentum will carry into Q3. We remain committed to delivering strong profitable growth, while reinforcing our market leadership across Asia and Brazil.

整體而言，Shopee上半年表現優異，GMV年增25%。我們相信，這一成長動能將延續到第三季。我們將繼續致力於實現強勁的獲利成長，同時鞏固我們在亞洲和巴西的市場領導地位。

Next, moving to digital financial services. Monee had another very strong quarter. Both revenue and adjusted EBITDA continued to grow more than 50% year-on-year. And our loan portfolio remained healthy thanks to our prudent risk management.

接下來，轉向數位金融服務。Monee 又度過了一個非常強勁的季度。營收和調整後的 EBITDA 均繼續年增 50% 以上。由於我們審慎的風險管理，我們的貸款組合保持健康。

In the second quarter, our loan book grew over 90% year-on-year to reach $6.9 billion driven by both our expanding user base and our wider range of products addressing more user needs. We added over 4 million first-time borrowers during the quarter. And our newer cohort are scaling well with positive unit economics. At the end of the quarter, active users for our consumer and SME loan products exceeded 30 million for the first time, representing more than 45% year-on-year growth. Our loan portfolio remains healthy with the 90-day NPL ratio staying stable at 1.0%.

在第二季度，我們的貸款帳簿年增超過 90%，達到 69 億美元，這得益於我們不斷擴大的用戶群以及更廣泛的產品範圍，滿足了更多用戶的需求。本季我們增加了超過 400 萬首次借款人。我們的新團隊規模擴大，單位經濟效益良好。截至本季末，消費及中小企業貸款產品活躍用戶首度突破3,000萬，較去年同期成長超過45%。我們的貸款組合保持健康，90天不良貸款率穩定在1.0%。

We have delivered this strong and healthy growth across multiple markets, reducing our reliance on any single market and improving our ability to weather local economic cycles. I am happy to report that Malaysia's loan book surpassed $1 billion at the end of June. It is our third market to reach this significant milestone after Indonesia and Thailand. Brazil also delivered robust growth in the second quarter, driven by strong adoption of SPayLater and the personal cash loan products.

我們在多個市場實現了強勁健康的成長，減少了對任何單一市場的依賴，並提高了我們抵禦當地經濟週期的能力。我很高興地報告，馬來西亞的貸款總額在六月底超過了 10 億美元。這是繼印尼和泰國之後我們的第三個達到這個重要里程碑的市場。受 SPayLater 和個人現金貸款產品的廣泛採用推動，巴西第二季也實現了強勁成長。

We have achieved such high growth while managing risk very well thanks to three unique advantages that Monee has. First, deep and seamless integration with our Shopee ecosystem. Second, a very large base of users who are growing their credit track record with us over the years. Third, our increasing use of AI to improve our credit model. Together, these advantages uniquely enhance our underwriting capabilities in each market, enabling us to very effectively push for growth across our three credit product lines: On-Shopee SPayLater, Off-Shopee SPayLater, and the cash loan products.

由於 Monee 擁有三大獨特優勢，我們能夠在實現如此高的成長的同時很好地管理風險。首先，與我們的Shopee生態系統進行深度無縫整合。其次，我們擁有龐大的用戶群，多年來，他們的信用記錄不斷增長。第三，我們越來越多地使用人工智慧來改善我們的信用模型。總而言之，這些優勢以獨特的方式增強了我們在每個市場的承保能力，使我們能夠非常有效地推動三條信貸產品線的成長：On-Shopee SPayLater、Off-Shopee SPayLater 和現金貸款產品。

On-Shopee SPayLater continues to deliver solid growth across our market with GMV penetration now in the mid-teens on a market-blended basis. We promoted SPayLater's one-month interest-free option at Shopee Checkout, mimicking the benefits of credit card usage. We use the tier-based pricing to offer lower interest rates to prime user segments who have access to more credit options and are more price sensitive.

On-Shopee SPayLater 繼續在我們的市場中實現穩健成長，目前 GMV 滲透率在市場混合基礎上已達到十五六歲。我們在 Shopee Checkout 上推廣了 SPayLater 的一個月免息選項，模仿了使用信用卡的好處。我們採用分級定價，為擁有更多信用選擇且對價格更敏感的優質用戶群提供較低的利率。

We also introduced a feature that allows users to request a higher credit limit by voluntarily submitting proof of income. Such initiatives contributed to our record-high monthly numbers for first-time SPayLater borrowers in June. In addition, these measures have enabled us to capture more prime users with stronger repayment capacity and higher lifetime value. We see further runway to scale this product by deepening its penetration on Shopee in all our markets.

我們還推出了一項功能，允許用戶透過自願提交收入證明來申請更高的信用額度。這些舉措促使我們 6 月首次使用 SPayLater 的借款人數量創下了月度新高。此外，這些措施使我們能夠吸引更多還款能力更強、終身價值更高的優質用戶。我們看到，透過深化該產品在我們所有市場的 Shopee 滲透，可以進一步擴大該產品的規模。

Off-Shopee SPayLater is also growing healthily. In Malaysia, we recognize the significant user demand for greater payment flexibility, so we integrated SPayLater with Malaysia's national QR Network, DuitNow, enabling seamless and flexible offline usage on many everyday purchases. Our Off-Shopee SPayLater portfolio grew over 40% quarter-on-quarter and accounted for more than 20% of our SPayLater portfolio in Malaysia at the end of June. Building on this success, we have just launched a similar user experience with Thailand's national, PromptPay, QR network as well.

Off-Shopee SPayLater 也在健康發展。在馬來西亞，我們認識到用戶對更大支付靈活性的需求很大，因此我們將 SPayLater 與馬來西亞的國家二維碼網路 DuitNow 集成，實現許多日常購買的無縫和靈活的離線使用。我們的 Off-Shopee SPayLater 投資組合季增超過 40%，截至 6 月底，佔馬來西亞 SPayLater 投資組合的 20% 以上。基於這項成功，我們剛剛與泰國國家 PromptPay QR 網路推出了類似的使用者體驗。

We have also gained good traction with personal cash loans, addressing the strong demand we have seen in our market for credit success in people's daily lives. We have scaled this product category both quickly and profitably by cross-selling personal cash loans to SPayLater users with good repayment trends. As a result, personal cash loans outstanding has almost doubled year-on-year as of the end of June. And a lot of headroom remains for this product in our market.

我們在個人現金貸款方面也取得了良好的發展勢頭，滿足了市場對人們日常生活中信貸成功的強烈需求。我們透過向還款趨勢良好的 SPayLater 用戶交叉銷售個人現金貸款，快速且有利可圖地擴大了該產品類別的規模。因此，截至6月底，個人現金貸款餘額比去年同期幾乎翻了一番。該產品在我們的市場上還有很大的發展空間。

In summary, Monee has delivered excellent growth throughout the first half of the year, diversified its loan portfolio across markets and products, and maintained high asset quality through prudent risk management. It is exciting that our credit business is still in early stages in many of our markets, reinforcing our strong conviction in Monee's long-term growth and earnings potential.

總而言之，Monee 在上半年實現了出色的成長，實現了跨市場和跨產品的貸款組合多元化，並透過審慎的風險管理維持了較高的資產品質。令人興奮的是，我們的信貸業務在許多市場仍處於早期階段，這增強了我們對 Monee 長期成長和獲利潛力的堅定信心。

Finally, moving to digital entertainment. After a flying start to the year, Garena continued its strong growth momentum into the second quarter. Bookings were up 23% and adjusted EBITDA was up 22% year-on-year. Multiple key titles delivered double-digit growth in the second quarter, including Free Fire, Arena of Valor, EA Sports FC Online, and Call of Duty Mobile.

最後，轉向數位娛樂。在年初取得良好開局之後，Garena 在第二季度延續了強勁的成長勢頭。預訂量年增 23%，調整後 EBITDA 年增 22%。多款主要遊戲在第二季實現了兩位數成長，包括《Free Fire》、《Arena of Valor》、《EA Sports FC Online》和《決勝時刻手遊》。

Free Fire continues to be at the core of Garena's strong performance, sustaining its massive global user base of more than 100 million average daily active users. Free Fire continues to grow well even after eight years, bringing joy to more users in more markets. Because we always put what gamers want at the heart of our work.

Free Fire 持續成為 Garena 強勁表現的核心，維持著龐大的全球用戶群，平均每日活躍用戶超過 1 億。八年後，Free Fire 依然保持著良好的發展勢頭，為更多市場的更多用戶帶來了歡樂。因為我們總是把遊戲玩家的需求放在我們工作的核心。

A great example is the high-profile launch of our new map, Solara in celebration of Free Fire's eighth anniversary during the second quarter. Solara blends enjoyable nostalgia with exciting innovation. Our veteran gamers were thrilled by the return of an iconic train from Free Fire's earliest maps that used to be a central part of their game experience. And gamers, both old and new, were very excited by the new full-map slide rail feature, allowing them to move rapidly across the entire terrain, completely changing their gameplay strategy and pushing them to come up with new techniques to win. Since its launch on May 16 at the Free Fire World Series, response from players has been exceptional. It has already become our best-performing new map.

一個很好的例子就是我們在第二季高調推出的新地圖 Solara，以慶祝 Free Fire 八週年。Solara 將令人愉悅的懷舊情懷與令人興奮的創新融為一體。我們的資深玩家對 Free Fire 最早地圖上的標誌性火車的回歸感到非常興奮，這列火車曾經是他們遊戲體驗的核心部分。新舊玩家都對新的全地圖滑軌功能感到非常興奮，該功能使他們能夠在整個地形上快速移動，徹底改變他們的遊戲策略並促使他們想出新的技巧來獲勝。自 5 月 16 日在 Free Fire 世界大賽上推出以來，玩家的反應一直非常熱烈。它已經成為我們表現最好的新地圖。

We also capitalized on the excitement around this new map by introducing a new camera mode that lets players capture photos and videos of their gameplay more easily, boosting social sharing and engagement. Within a month of releasing this feature, average daily shares of in-game footage grew by nearly 4 times, dramatically expanding Free Fire's visibility.

我們還利用這張新地圖帶來的興奮感，推出了一種新的相機模式，讓玩家可以更輕鬆地捕捉遊戲照片和視頻，從而促進社交分享和參與度。在推出此功能的一個月內，遊戲內鏡頭的每日平均分享量增加了近 4 倍，大大提高了 Free Fire 的知名度。

Building on this excitement, we extended our anniversary celebrations into July with two high-impact IP collaborations: Netflix' Squid Game and Naruto Shippuden Chapter 2. Initial response from gamers has been extremely positive.

基於這種興奮，我們將週年慶典延長至 7 月，並進行了兩項具有重大影響的 IP 合作：Netflix 的《魷魚遊戲》和《火影忍者疾風傳第二章》。遊戲玩家的初步反應非常正面。

In summary, Garena has delivered a very strong performance in the first half of this year. We believe Free Fire has established itself as an evergreen franchise, both sustaining its user engagement and growing its appeal in more markets globally. We are also committed to trying out new genres and a new market and testing the boundaries of future game experiences by embracing AI. Given all of this, we are raising our full-year guidance for Garena and expect bookings to grow more than 30% in 2025, year-on-year.

總而言之，Garena 在今年上半年的表現非常強勁。我們相信，Free Fire 已成為一款歷久不衰的遊戲，既能維持用戶參與度，也能在全球更多市場提升吸引力。我們也致力於嘗試新的類型和新的市場，並透過擁抱人工智慧來測試未來遊戲體驗的界限。考慮到所有這些，我們提高了 Garena 的全年業績預期，並預計 2025 年的預訂量將年增 30% 以上。

In closing, we are very happy with the strong set of results we delivered both in Q2 and in the first half of 2025 overall. All three of our businesses have extended their track record of excellent execution, robust growth, and improving profitability. This gives us greater confidence about the second half of the year, and we look forward to delivering a strong 2025 and beyond. Thank you, as always, for your support.

最後，我們對第二季以及 2025 年上半年整體取得的強勁業績感到非常滿意。我們的三項業務均延續了其出色執行、強勁成長和獲利能力提升的記錄。這使我們對下半年更有信心，並期待在 2025 年及以後取得強勁成績。一如既往，感謝您的支持。

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 38% year-on-year to $5.3 billion in the second quarter of 2025. This was primarily driven by GMV growth of our e-commerce business and the growth of our digital financial services business. Our total adjusted EBITDA was $829 million in the second quarter of 2025, compared to an adjusted EBITDA of $448 million in the second quarter of 2024.

謝謝你，福雷斯特，也謝謝大家參加電話會議。就 Sea 整體而言，2025 年第二季 GAAP 總營收年增 38%，達到 53 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。2025 年第二季度，我們的調整後 EBITDA 總值為 8.29 億美元，而 2024 年第二季的調整後 EBITDA 為 4.48 億美元。

On e-commerce, Shopee's gross orders grew 29% year-on-year to $3.3 billion in the second quarter of 2025, and GMV increased by 28% year-on-year to $29.8 billion in the second quarter of 2025. Our second quarter GAAP revenue of $3.8 billion included GAAP marketplace revenue of $3.3 billion, up 34% year-on-year; and GAAP product revenue of $0.5 billion.

電商方面，Shopee 2025年第二季總訂單額年增29%至33億美元，GMV年增28%至298億美元。我們第二季的 GAAP 營收為 38 億美元，其中包括 GAAP 市場營收 33 億美元，年增 34%；GAAP 產品營收 5 億美元。

Within GAAP marketplace revenue, core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues, was $2.6 billion, up 46% year-on-year. Value-added services revenue, mainly consisting of revenues related to logistic services, was $0.7 billion, up 3% year-on-year. E-commerce adjusted EBITDA was $228 million in the second quarter of 2025, compared to an adjusted EBITDA loss of $9 million in the second quarter of 2024. Digital financial services GAAP revenue was up by 70% year-on-year to $883 million. Adjusted EBITDA was up by 55% year-on-year to $255 million.

在 GAAP 市場收入中，主要包括以交易為基礎的費用和廣告收入的核心市場收入為 26 億美元，較去年同期成長 46%。加值服務收入（主要包括與物流服務相關的收入）為 7 億美元，較去年同期成長 3%。2025 年第二季電子商務調整後 EBITDA 為 2.28 億美元，而 2024 年第二季調整後 EBITDA 虧損為 900 萬美元。數位金融服務 GAAP 營收年增 70%，達到 8.83 億美元。調整後EBITDA年增55%至2.55億美元。

As of the end of June, our consumer and SME loans principal outstanding reached $6.9 billion, up over 90% year-on-year. This consists of $5.9 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% at the end of the quarter.

截至6月底，我們的消費者和中小企業貸款本金餘額達到69億美元，年增90%以上。其中包括 59 億美元的帳面貸款本金和 9 億美元的帳外貸款本金。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比例為 1%。

Digital entertainment bookings grew 23% year-on-year to $661 million. GAAP revenue was up 28% year-on-year to $559 million. The growth was primarily due to the increase in our active user base as well as the deepened paying user penetration. Digital entertainment adjusted EBITDA was $368 million, up 22% year-on-year.

數位娛樂預訂量年增 23%，達到 6.61 億美元。美國通用會計準則營收年增28%至5.59億美元。成長主要歸功於我們活躍用戶群的增加以及付費用戶滲透率的加深。數位娛樂調整後EBITDA為3.68億美元，年增22%。

Returning to our consolidated numbers. We recognized the net non-operating income of $83 million in the second quarter of 2025, compared to a net non-operating income of $56 million in the second quarter of 2024. We had a net income tax expense of $144 million in the second quarter of 2025, compared to net income tax expense of $61 million in the second quarter of 2024. As a result, net income was $440 million in the second quarter of 2025 as compared to a net income of $80 million in the second quarter of 2024.

回到我們的合併數字。我們確認 2025 年第二季的淨非營業收入為 8,300 萬美元，而 2024 年第二季的淨非營業收入為 5,600 萬美元。2025 年第二季度，我們的淨所得稅支出為 1.44 億美元，而 2024 年第二季的淨所得稅支出為 6,100 萬美元。因此，2025 年第二季的淨收入為 4.4 億美元，而 2024 年第二季的淨收入為 8,000 萬美元。

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。我們現在準備開始提問。操作員？

(Operator Instructions)

（操作員指示）

Pang Vitt, Goldman Sachs.

高盛的 Pang Vitt。

Good evening, management, and congratulations on another solid quarter. Two questions from me, both on e-commerce. Number one on the GMV performance. First, the year has already been very impressive at 25% year-on-year and you also expect momentum to carry into third quarter. With this, are you also looking to rate your full-year guidance that you gave in the beginning of the year on the back of this strong performance? That's question number one. Question number two, can you share with us on the latest competitive landscape? Have you observed any changes in momentum, particularly in Brazil, have you seen any changes since your competitor reduced its free shipping threshold?

晚上好，管理層，恭喜您又取得了穩健的季度業績。我有兩個問題，都是關於電子商務的。GMV表現排名第一。首先，今年的年成長率已非常令人印象深刻，達到 25%，您也預計這一勢頭將延續到第三季。由此，您是否也希望根據這一強勁表現來評估您在年初給予的全年指導？這是第一個問題。第二個問題，您能否與我們分享最新的競爭格局？您是否觀察到任何勢頭變化，特別是在巴西，自從您的競爭對手降低免費送貨門檻以來，您是否看到任何變化？

On the first question regarding the growth momentum, as we shared in the opening, we do see the Q3 momentum will continue. I think what we are saying is that in Q3, likely to be around similar growth rate as we observed in the first half of the year as well. Obviously, if you take into consideration the full-year growth will be better than what we shared before. I think that's one.

關於成長動能的第一個問題，正如我們在開頭所分享的，我們確實看到第三季的成長勢頭將會持續下去。我認為我們所說的是，第三季的成長率可能與我們在上半年觀察到的成長率大致相同。顯然，如果考慮到全年增長情況，將會比我們之前分享的要好。我認為那是一個。

Second one regarding the competitive environment. For Brazil, as you shared, we do see certain actions from the competitors in the past few months. On our side, our Brazil business has been growing very well. Even in the last months after the competitor did their adjustment, we didn't observe any impact to our growth as we can see for now.

第二個是關於競爭環境。對於巴西，正如您所分享的，我們確實看到競爭對手在過去幾個月採取了一些行動。就我們而言，我們的巴西業務一直發展得很好。即使在競爭對手做出調整後的最後幾個月，我們也沒有觀察到對我們的成長有任何影響。

I think the key thing, if you look at Brazil for us, is number one, to make sure that we operate in a best cost structure, especially on the logistics side. Even with the improved speed of delivery, as Forrest shared in the opening, that we are two days faster than last year, we still see the costs are coming down. And our costs, we believe that much lower than where our competitor is. And even compare with that slow shipping, our cost structure is still very competitive and our speed is a lot faster than the slow shipping. So we believe that we are in a pretty good position on that. That's number one.

我認為，如果你看看巴西，對我們來說，關鍵是要確保我們以最佳的成本結構運營，特別是在物流方面。即使送貨速度有所提高，正如福雷斯特在開場時所說，我們比去年快了兩天，但我們仍然看到成本正在下降。我們相信，我們的成本比競爭對手低得多。即使與慢速運輸相比，我們的成本結構仍然非常有競爭力，而且我們的速度比慢速運輸快得多。因此我們相信我們在這方面處於相當有利的地位。這是第一點。

Number two is around the price competitiveness, and I think this is publicly available, you can do your own benchmark that our pricing is still very competitive in the market across price categories. And even with the adjustment from the other side.

第二點是關於價格競爭力，我認為這是公開的，你可以做自己的基準，確保我們的定價在各個價格類別的市場上仍然非常有競爭力。即使另一方也進行了調整。

I think number three is if you look at our brand seller side, we're expanding our seller base to higher-ticket items especially in the past few quarters. We believe that trend will continue as well and will be not impacted much by the competitor movement.

我認為第三點是，如果你看看我們的品牌賣家方面，我們正在將賣家基礎擴大到高價位商品，尤其是在過去的幾個季度。我們相信這種趨勢將會持續下去，並且不會受到競爭對手行動的太大影響。

And just all in all, we believe that in Brazil, we are still well-positioned. Our grow trend will continue, especially with our core segment group, giving a strong focus that we have on the fundamental cost structure, our price competitiveness, and also the growth of our seller side.

總而言之，我們相信，在巴西，我們仍然處於有利地位。我們的成長趨勢將會持續下去，特別是在我們的核心細分市場，我們將專注於基本成本結構、價格競爭力以及賣方的成長。

Thank you.

謝謝。

Piyush Choudhary, HSBC.

匯豐銀行的 Piyush Choudhary。

Hi. Thanks for the call and congratulations on a great set of numbers. I have two questions, both on e-commerce actually. Shopee VIP membership program in Indonesia has seen great progress. Could you share what's the potential for the user base in midterm as you are expanding across markets? And how should we think about the cost implication of this program on logistics and other benefits which you offer? Also, if you can talk about your new initiative on instant delivery, which countries you're targeting and cost implication of this?

你好。感謝您的來電，並祝賀您取得如此出色的成績。我有兩個問題，實際上都是關於電子商務的。Shopee在印尼的VIP會員計畫取得了長足的進步。隨著你們不斷拓展市場，能否分享中期用戶群的潛力？我們應該如何看待該計劃對物流和您提供的其他福利的成本影響？此外，您可以談談您在即時交付方面的新舉措嗎？您的目標國家是哪些，以及這項措施的成本影響是什麼？

Second question is on the Shopee EBITDA margin, with the push on VIP membership and instant delivery, should we expect margins to remain around similar levels in second half? And what's the outlook for 2026? Thank you.

第二個問題是關於 Shopee EBITDA 利潤率，隨著 VIP 會員和即時交付的推動，我們是否應該預期利潤率在下半年保持類似的水平？2026 年的前景如何？謝謝。

On the VIP program, we do see very good tractions in Indonesia as the first country we started. We see a very good pickup from the VIP program especially given that we are able to, over time, making sure the user can renew with a credit card or pay-later products which is the biggest problem for any of this market before. We are still in very early stage of rolling this out. As you can see, it's only a few months since we started this program. And the first two, three months was really pilot process. So I think too early to tell, but we see very good potential there to be meaningful program in our market, comparable to the other program you're seeing other e-commerce or retailers in the region or out of the region.

在 VIP 計劃方面，我們確實看到印尼作為我們啟動的第一個國家取得了非常好的進展。我們看到 VIP 計劃取得了非常好的成長，特別是考慮到我們能夠隨著時間的推移確保用戶可以使用信用卡或稍後付款產品進行續訂，這是以前這個市場面臨的最大問題。我們仍處於推出這項計劃的早期階段。正如您所看到的，我們啟動這個專案才幾個月的時間。前兩三個月其實是試點過程。所以我認為現在下結論還為時過早，但我們認為在我們的市場上推出有意義的計劃的潛力非常大，可以與您在該地區或該地區以外的其他電子商務或零售商看到的其他計劃相媲美。

And as it's a new program, we do foresee some investment in the early time to grow the acceptance, especially getting user to sign up to it, especially renewing the program to get into the habit. But we don't see this as a fundamental impact or too visible impact to our cost structure in the medium term or long term.

由於這是一個新項目，我們確實預計在早期會進行一些投資來提高其接受度，特別是讓用戶註冊，特別是更新項目以養成習慣。但我們並不認為這會對我們的中期或長期成本結構產生根本性影響或太明顯的影響。

For the instant delivery. Instant delivery, by itself, is essentially to expand our product offerings to the user base, especially on the high-end user base. Actually, those users typically are better profitability compared to the lower-end user base. So we don't foresee any negative EBITDA impact from this services. Rather on the other side, we do believe this will give us better profitability in our businesses as we grow it. But obviously, the delivery cost, for instance, of course, the actual cost is slightly higher, but typically, for those segments, people have better acceptance of how much they're willing to pay for these faster services.

即時交付。即時配送本身的本質就是擴大我們提供給用戶群的產品範圍，特別是高端用戶群。實際上，與低階用戶群相比，這些用戶的獲利能力通常更高。因此，我們預計該服務不會對 EBITDA 產生任何負面影響。另一方面，我們確實相信，隨著業務的成長，這將為我們帶來更好的獲利能力。但顯然，例如運輸成本，實際成本當然會略高一些，但通常對於這些細分市場，人們更能接受他們願意為這些更快的服務支付多少錢。

Regarding the EBITDA margin, there is a slight fluctuation on EBITDA margin, as you can see. From Q4 last year to Q1 this year to Q2 this year. I think there is a lot of seasonality involved in this. Q1, the exceptional quarter, which is the first year in our business history that Ramadan for Indonesia and Malaysia especially falls into Q1 and the holiday falling to Q2. So that has a big seasonal impact for the businesses and impacted EBITDA meaningfully. So going forward, we do expect a long-term trend of EBITDA margin will continue to improve, although, again, there might be seasonal fluctuation quarter-to-quarter, but the general trend will stay.

關於 EBITDA 利潤率，如您所見，EBITDA 利潤率略有波動。從去年Q4到今年Q1到今年Q2。我認為這與許多季節性因素有關。Q1 是一個特別的季度，這是我們業務歷史上第一次將印尼和馬來西亞的齋戒月特別安排在第一季度，而假期則安排在第二季度。因此，這對企業產生了很大的季節性影響，並對 EBITDA 產生了重大影響。因此，展望未來，我們確實預計 EBITDA 利潤率的長期趨勢將繼續改善，儘管每個季度之間可能都會出現季節性波動，但總體趨勢將保持不變。

Alicia Yap, Citigroup.

花旗集團的 Alicia Yap。

Thank you. Good evening, management. Thanks for taking my questions. Congrats on the solid result. I have a follow-up on the competitive landscape in Brazil. I understand we talked about the many impact is limited. But how should we think about the newcomer, for example, the Temu and also TikTok in Brazil, if you can comment on that. And then just curious, what is the current percentage contribution from the higher-ticket items currently in Brazil? And then second question is on gaming, given the increased booking guidance for this year, just wondering, is it mainly because of the outperformance of the Free Fire or you actually will expect a higher contribution from the new games? Thank you.

謝謝。晚上好，管理層。感謝您回答我的問題。恭喜您能取得如此堅實的成果。我對巴西的競爭格局進行了追蹤。我知道我們談論的許多影響是有限的。但是我們應該如何看待新來者，例如 Temu 和巴西的 TikTok，您能對此發表評論嗎？我很好奇，目前巴西高價商品的貢獻率是多少？第二個問題是關於遊戲的，鑑於今年預訂指導的增加，我只是想知道，這主要是因為 Free Fire 的出色表現還是您實際上期望新遊戲做出更高的貢獻？謝謝。

I think for Brazil, cross-border for Brazil has been relatively a smaller percentage due to the tech structure. So Temu has remained to be a relatively smaller player in the market, so far. We will observe how this evolves over time. For TikTok, it just started and again, the amount of orders -- the size of orders is still relatively small in the market. We will continue to observe. We’re being quite familiar with their businesses. And Brazil is quite different market compared to Asia. It's something we will observe. But structural-wise, we don't see any fundamental change to the market structure that will impact our view on the market or change our trajectory of the growth in the market so far.

我認為對於巴西來說，由於技術結構的原因，巴西的跨國比例相對較小。因此，到目前為止，Temu 在市場上仍然是一個相對較小的參與者。我們將觀察其隨時間如何演變。對於 TikTok 來說，它才剛剛起步，而且訂單量——市場上的訂單規模仍然相對較小。我們將繼續觀察。我們對他們的業務非常熟悉。巴西市場與亞洲市場相比有很大不同。這是我們將要觀察的。但從結構上看，我們沒有看到市場結構發生任何根本性變化，這將影響我們對市場的看法或改變我們迄今為止對市場成長軌蹟的預測。

But again, just to reiterate, if you look at e-commerce businesses, the fundamental businesses we're focusing on is make sure our cost is right, we can serve our customers well through our logistics, and making sure our pricing is right for the market. Then, that will be a long-term moat that we can build for the market.

但再次重申，如果你看一下電子商務業務，我們關注的基本業務是確保我們的成本合理，我們可以透過物流為客戶提供良好的服務，並確保我們的定價適合市場。那麼，這將是我們為市場建造的長期護城河。

For the second question, on the high-ticket items, it depends on how you define high-ticket item. I think if you look at our more segment of Brazil, which is probably one of the proximations you can look at the range of things, even compared to Asian market, there is a meaningful room we can grow from there. And in the long term, I do believe that the penetration of more businesses in Brazil should be higher than Asia given the GDP per cap and income gaps versus our Asian market.

對於第二個問題，關於高價商品，這取決於你如何定義高價商品。我認為，如果你看我們在巴西的更多部分，這可能是你可以觀察一系列事物的近似值之一，即使與亞洲市場相比，我們也可以從那裡獲得有意義的成長空間。從長遠來看，考慮到人均 GDP 和與亞洲市場的收入差距，我確實相信巴西企業的滲透率應該高於亞洲。

Hi, Alicia. On your question for Garena, raising guidance, in terms of the bookings, and considering the scale and the size of Free Fire, the main driver will be still Free Fire for this revised guidance. And we feel very excited. I think as a shared in my remark, we see a very, very strong momentum of growth across all the metrics for Free Fire. And in Q2, we launched the new map. This is the first new map actually we have launched since like in the past three years. It has been a tremendous effort behind it. And there's a very sizable developer team across the different countries. And this is the result of their two-year hard work. So it's very, very well received by the gamers, both the new gamers and the old gamers. So we do focus on both the new gamer boarding experience and at the same time, the retention engagement with our veteran gamers.

你好，艾莉西亞。關於您對 Garena 提出的問題，就預訂量而言，提高指導，並考慮到 Free Fire 的規模和大小，修訂指導的主要驅動力仍然是 Free Fire。我們感到非常興奮。我認為，正如我在評論中分享的那樣，我們看到 Free Fire 的所有指標都呈現出非常強勁的成長勢頭。並且在第二季度，我們推出了新地圖。這實際上是我們三年來推出的第一張新地圖。這背後付出了巨大的努力。而我們擁有遍布不同國家的規模龐大的開發團隊。這是他們兩年來努力的成果。因此它受到了新老玩家的熱烈歡迎。因此，我們既關注新玩家的登入體驗，同時也關注與老玩家的保留互動。

And the confidence also come from some IP collaboration we mentioned in Q3, specifically Netflix Squid Game and the Naruto Chapter 2. So we have very, very exciting and promising results from these IP collaborations in Q1 as we shared last quarter and this is kind of another new episode of those IP collaborations. We learned a lot and we have done great. But we also see things we can even do better. So we fine-tune our collaborations. And so far, we've seen great results from the IP collaborations. So I think that gives us the confidence with the outlook of Garena.

信心也來自於我們在第三季提到的一些IP合作，特別是Netflix的《魷魚遊戲》和《火影忍者第二章》。因此，正如我們上個季度所分享的，我們在第一季的這些 IP 合作中取得了非常令人興奮和有希望的成果，這是這些 IP 合作的另一個新篇章。我們學到了很多東西並且做得很好。但我們也看到我們可以做得更好的事情。因此，我們對我們的合作進行了微調。到目前為止，我們已經看到了 IP 合作的巨大成果。所以我認為這讓我們對 Garena 的前景充滿信心。

Thank you.

謝謝。

Divya Kothiyal, Morgan Stanley.

迪維亞·科蒂亞爾，摩根士丹利。

Thank you very much. My first question is on e-commerce. Could you talk about the upside to take rates from here on beyond advertising? Could you also maybe discuss what the seller response has been to the rising commissions in ASEAN? And how does that impact the overall competitive landscape?

非常感謝。我的第一個問題是關於電子商務的。您能否談談從現在開始除了廣告之外提高費率的優勢？您能否也討論一下賣家對於東協佣金上漲的反應？這對整體競爭格局有何影響？

And my second question is on fintech, specifically for Brazil, because you mentioned that that has also started growing quite robustly in this quarter, could you talk about your strategy of ramping up FinTech in Brazil? Where is the BNPL penetration now? And how fast do you expect it to grow? And if you can maybe point out some differences between the way it should ramp up in Brazil versus how you've been able to grow the business in ASEAN? Thanks.

我的第二個問題是關於金融科技，特別是關於巴西的金融科技，因為您提到本季金融科技也開始強勁成長，您能談談您在巴西推動金融科技發展的策略嗎？BNPL 滲透率目前處於什麼水準？您預計它的成長速度有多快？您能否指出在巴西發展業務的方式與在東協發展業務的方式有何不同？謝謝。

On the take rate side, obviously, as we shared in the opening that we see that still a strong potential on the ad side through technology improvement and also a better product that will go out to sellers, I think beyond the commissions, as you already pointed out, we do get some adjustments in the past quarter on the take rate on the seller side.

在佣金率方面，顯然，正如我們在開頭所分享的，我們看到透過技術改進廣告方面仍然具有強大的潛力，並且還會向賣家提供更好的產品，我認為除了佣金之外，正如你已經指出的那樣，我們在過去一個季度對賣方佣金率進行了一些調整。

Overall, we have been seeing a relatively calm response from the ecosystem. I think the key thing that you would be looking at is how the pricing structure will change in the ecosystem in response to the take rate change, which is a good barometer to ensure the health of the ecosystem. We've been seeing relatively expected response on the pricing side. And also, we didn't see any particular seller drop out of system, et cetera.

總體而言，我們看到生態系統的反應相對平靜。我認為你要關注的關鍵點是生態系統中的定價結構將如何隨著收取率的變化而變化，這是確保生態系統健康的一個良好晴雨表。我們在定價方面看到了相對預期的反應。而且，我們也沒有看到任何特定的賣家退出系統等等。

So I think from all the indicators, I think we have been getting a reasonable response, a calm response from the ecosystem. And at the same time, we're able to invest some of the take rate back to the ecosystem, which is very well received by both the merchants on the seller side and on the buyer side.

因此，我認為從所有指標來看，我們都得到了合理的反應，生態系統的平靜反應。同時，我們能夠將部分佣金率回饋給生態系統，這受到了賣方和買方商家的一致好評。

And on the competitive side of this, you probably can observe that relatively healthy competitive ecosystem. We observed that some of the competitors also increased their take rates. And in fact, some of them copied exactly the same thing as we did as well in certain markets. So we are left kind of worried from that front.

從競爭角度來看，您可能會觀察到相對健康的競爭生態系統。我們觀察到一些競爭對手也提高了他們的佣金率。事實上，他們中的一些人在某些市場也複製了與我們完全相同的東西。因此我們對此感到有些擔憂。

On the second question regarding the Brazil digital finance part of the services. We do see Brazil as a very important market for us on the digital finance side. We have seen very good growth on the loan books in the second quarter. Our active user for loans grew 2 times year-to-year. Our outstanding in Brazil also grew more than 2 times year-to-year.

第二個問題涉及巴西數位金融部分服務。我們確實認為巴西對於我們的數位金融而言是一個非常重要的市場。我們看到第二季的貸款成長非常好。我們的貸款活躍用戶年增2倍。我們在巴西的未償還貸款也比去年同期增加了2倍多。

One of the key things we did, I think we shared in the last earnings call, is we combined the personal cash loan and SPayLater limit to one limit which is different from how we operate in Asia. We also integrate more external data to our risk assessment system, compared to Asia. And this is because in Brazil, there are more external data available compared to Asia in the market. And we also have better integration between our Monee product offering and the Shopee product offerings. All these enable us to grow our loan book quite meaningfully and reduce our risk in the market.

我認為我們在上次收益電話會議上分享了我們所做的關鍵事情之一，就是將個人現金貸款和 SPayLater 限額合併為一個限額，這與我們在亞洲的運作方式不同。與亞洲相比，我們也將更多的外部數據整合到我們的風險評估系統中。這是因為與亞洲相比，巴西市場上有更多可用的外部數據。我們的 Monee 產品和 Shopee 產品之間也實現了更好的整合。所有這些都使我們能夠顯著增加貸款規模並降低市場風險。

On top of that, just to share a little bit on the Brazil as well that we do acquire SC license and we also get initial approval for SCFI license which will enable us to have better funding sources in future. In fact, we have formed partnership with some external lenders already to support the lending funds in Brazil market.

除此之外，我還要分享一些關於巴西的情況，我們確實獲得了 SC 許可證，並且還獲得了 SCFI 許可證的初步批准，這將使我們能夠在未來擁有更好的資金來源。事實上，我們已經與一些外部貸款機構建立合作關係，以支持巴西市場的貸款資金。

So in general, I think we are very optimistic about the potential upside of the digital financial services in Brazil. And I think we are doing a very early-stage, compared to Asia, in terms of the growth trajectories. The penetration of SPayLater on Shopee side, we're still around the single-digit to double-digit range. If you compared to Asia, we still have very large room to grow. And our personal loans are still very early stage. We have many other products in the pipeline to be rolled out to the market.

所以總的來說，我認為我們對巴西數位金融服務的潛在優勢非常樂觀。我認為，與亞洲相比，就成長軌跡而言，我們還處於非常早期的階段。SPayLater 在 Shopee 方面的滲透率仍然在個位數到兩位數的範圍內。如果與亞洲相比，我們還有很大的成長空間。我們的個人貸款仍處於早期階段。我們還有許多其他產品正在籌備中，即將推向市場。

Thank you very much.

非常感謝。

John Choi, Daiwa Capital Markets.

大和資本市場 (Daiwa Capital Markets) 的 John Choi。

Thanks for taking my question. My first question is about advertising take rate. I mean, this quarter, obviously, 70 bps is meaningful improvement. But can you kind of share like how much more upside that you see? I know that you've been implementing quite a bit of ad tech and you guys shared some metrics about ad product growth. A number of sellers are using this in this quarter by 20% and et cetera. In terms of the user or the advertiser, how much more conversion do you think you could expect? That's my first question.

感謝您回答我的問題。我的第一個問題是關於廣告收入率。我的意思是，本季度，顯然 70 個基點是一個有意義的改善。但是您能否分享一下您看到的更多好處？我知道你們已經實施了相當多的廣告技術，並且你們分享了一些有關廣告產品成長的指標。本季有 20% 的賣家正在使用此功能，等等。就用戶或廣告商而言，您認為可以期待多少轉換？這是我的第一個問題。

Second question is on Brazil right now. I think you mentioned, I think, the delivery has improved substantially to 20%, 40%, as you mentioned. What kind of investments do we have to do furthermore in order to further improve our profitability? I mean the EBITDA margin along the way or is it going to be kind of a prudent approach on trying to balance investment also profitability in the Brazil market? Thank you.

第二個問題是關於巴西的。我想您提到過，我認為交付率已大幅提高到 20%、40%，正如您所說。為了進一步提高獲利能力，我們還必須做哪些投資？我的意思是 EBITDA 利潤率，或者這會是一種審慎的方法，試圖平衡投資和巴西市場的獲利能力？謝謝。

On the ad side, there are two main drivers for the ad take rate. One is we have a better traffic allocation algorithm between the ads and organics. We had -- we are able to mix the ad slot and the organic slot in a more efficient way, which will improve how much we can essentially improve the conversion rate of the ad placement, which will improve the return on investment from the sellers, so we can essentially cater for more seller demand on the ads. I think that's number one.

在廣告方面，廣告投放率主要有兩個驅動因素。一是我們在廣告和自然廣告之間有更好的流量分配演算法。我們能夠以更有效的方式混合廣告位和自然廣告位，這將大大提高廣告投放的轉換率，從而提高賣家的投資報酬率，因此我們基本上可以滿足賣家對廣告的更多需求。我認為這是最重要的。

Number two is with the better seller-facing products we roll out GMV Max, which helps the seller to automatically allocate their ad spend more efficiently and maximize their ROI. And we also simplify a lot more set up UI to more and more sellers. I think all this helps to achieve essentially the better take rate. As you can see that we increased both how many sellers are involved in the ad product. We have a 20% increase in the active ad sellers.

第二，我們推出了面向賣家的更好的產品 GMV Max，它可以幫助賣家更有效地自動分配廣告支出並最大化他們的投資報酬率。我們也為越來越多的賣家簡化了更多設定使用者介面。我認為所有這些都有助於實現更好的接受率。正如您所看到的，我們增加了參與廣告產品的賣家數量。我們的活躍廣告銷售商數量增加了 20%。

We also have 40% rise in the ad revenue per seller. So we are improving on both sides in terms of the number of sellers and revenue per seller.

我們的每位賣家的廣告收入也增加了 40%。因此，我們在賣家數量和每位賣家的收入方面都在不斷進步。

Going forward, we do see still a meaningful improvement on the ad rate improvement because number one is our products are still rolling out to more and more sellers so that just simply, they are more seller joining the new products.

展望未來，我們確實看到廣告費率的顯著改善，因為首先我們的產品仍在向越來越多的賣家推出，因此，簡單地說，就會有更多賣家加入新產品。

I think number two is we still see a very good potential on using, especially AI technology, improving our algorithms on how to improve our conversion better. There are a few experience we are running, which yield a pretty good result so far and some of them will be brought out in the later part of the year, which will hopefully giving us a meaningful improvement on the take rate. I think the improvement at take rate, I think it will be ongoing for a period of time. I think it will not finish this quarter. I think in the next few quarters, you will see the number as we go.

我認為第二點是我們仍然看到了非常好的使用潛力，特別是人工智慧技術，可以改進我們的演算法，從而更好地提高我們的轉換率。我們正在進行一些嘗試，到目前為止取得了相當不錯的效果，其中一些將在今年稍後推出，希望這將使我們的接受率有顯著的提高。我認為接受率的提高將會持續一段時間。我認為它不會在本季度完成。我認為在接下來的幾個季度裡，你會看到這個數字。

On the second question on Brazil. Regarding the investment business, in general, our logistics service has been relatively less CapEx-heavy, so we don't buy land. We don't buy our own trucks even in Brazil. So the majority of the investment in terms of CapEx is, number one, our sorting machines, our automatic sorting machines in our sorting center. Number two is just setting up the delivery hubs across the countries.

關於第二個問題，關於巴西。關於投資業務，整體而言，我們的物流服務資本支出相對較少，因此我們不會購買土地。即使在巴西，我們也不買自己的卡車。因此，就資本支出而言，大部分投資首先是我們的分類機，也就是我們分類中心的自動分類機。第二是在各國設立配送中心。

So it will not give us a big, I guess, profitability burden in general. And in fact, as we're expanding more and more SPX coverage and improving the efficiency more and more. This will help us on the EBITDA in Brazil. Actually, this trend has been ongoing for a period of time if you track our past. We have been possible in Brazil since a few quarters ago, and we are still profitable in Brazil even we grow in such high speed for the market.

因此，我猜總體而言它不會給我們帶來很大的獲利負擔。事實上，隨著我們 SPX 覆蓋範圍的不斷擴大以及效率的不斷提高。這將有助於我們實現巴西的 EBITDA。事實上，如果你追溯過去，這種趨勢已經持續了一段時間。我們在幾個季度前就已在巴西開展業務，儘管巴西市場成長速度如此之快，但我們仍然能夠獲利。

Jiong Shao, Barclays.

邵炯，巴克萊銀行。

Thank you very much for taking my questions. And congrats first on the very strong results. I have two follow-ups. I wonder just on as, I think Chris just talked about some of the elements for ads. I was wondering what's the current take rate now for the ads? And I recall a few quarters ago, you talked about longer or medium- to long-term target of 4% to 5%.

非常感謝您回答我的問題。首先恭喜您取得如此優異的成績。我有兩個後續問題。我想知道，我認為克里斯剛才談到了廣告的一些元素。我想知道現在廣告的營收率是多少？我記得幾個季度前，您談到了 4% 到 5% 的長期或中長期目標。

I just wanted checking to see if that remains the case.

我只是想檢查一下情況是否仍然如此。

The second question is about AI. I think both Forrest and Chris talked about using AI to improve the ad-tech and among other things for your internal operations. Could you expand a bit on your thoughts all side of using AI, improving your internal efficiency. The reason I'm asking is that one field e-commerce peers in Asia recently, for example, started to expand their cloud services to external customers. Since on those lines, think about what are some potential other businesses that can go beyond your core businesses by using AI.

第二個問題是關於人工智慧的。我認為 Forrest 和 Chris 都談到了使用人工智慧來改善廣告技術以及其他內部營運。您能否詳細說明一下關於使用人工智慧、提高內部效率等各個方面的想法？我之所以問這個問題，是因為最近亞洲的一個電子商務同行開始向外部客戶擴展他們的雲端服務。從這個角度出發，思考一下有哪些潛在的其他業務可以透過使用人工智慧超越您的核心業務。

For the ad take rate, our current asset, we are still well below the peers we have seen in the regions. We have probably around 2% as we are -- and as you already pointed out, I think they are quite sizable room we can grow over time.

就廣告接受率（我們目前的資產）而言，我們仍然遠低於該地區的同行。我們目前的成長率大概在 2% 左右——正如您所指出的，我認為隨著時間的推移，我們還有很大的成長空間。

On the AI side, I think as we shared in a few occasions, we use AI at this point in time for two main purposes. One is to improve our current businesses across all different dimensions. For example, we talked about the ad improvement just now. We also use our general recommendations, and this improved our conversion quite a lot by understanding user intention better by understanding the buyer query better. We also spent a lot of effort on the AIDC initiatives that we can generate a lot more attractive pictures for the product descriptions.

在人工智慧方面，我認為正如我們幾次分享的那樣，我們目前使用人工智慧主要有兩個目的。一是全方位改善現有業務。比如我們剛才談到廣告改進。我們還使用了我們的一般建議，透過更好地理解買家查詢來更好地理解用戶意圖，這大大提高了我們的轉換率。我們也在 AIDC 計劃上投入了大量精力，以便為產品描述產生更具吸引力的圖片。

We also generate many of the video products to help the conversion of our sellers.

我們也製作了許多影片產品來幫助我們的賣家轉換。

On the customer interaction side, we -- our customer service chat board is 80% managed by AI agent. We also helping the seller to interact with the buyers through the CS chat by agent as well, not only reducing the cost for the sellers, but also improve the upselling potential for the sellers while talking to the buyers. We have many initiatives like that to -- across our businesses just to make our business better. That's the first type of category.

在客戶互動方面，我們的客戶服務聊天板 80% 由 AI 代理管理。我們還幫助賣家透過代理商的 CS 聊天與買家互動，不僅降低了賣家的成本，而且還提高了賣家在與買家交談時的追加銷售潛力。我們在整個業務中採取了許多類似的舉措，只是為了讓我們的業務變得更好。這是第一類類別。

The second type is to improve our internal operations for example, obviously, the product development side, but also many of our daily operations like, for example, if you look at the way we run our marketing campaigns, a lot of mine camping are very ultimate right now through AI tools, many of the process to process the payment AI-enabled to the agent, et cetera. I think obviously, we are actively looking at what are the potential we can -- potential business we can expand from the AI solutions. At this point in time, there is no particular concrete business yet.

第二種是改善我們的內部運營，例如，顯然是產品開發方面，但也包括我們的許多日常運營，例如，如果你看看我們開展營銷活動的方式，現在很多礦山露營都是通過人工智能工具實現的，許多處理付款給代理商的流程都是人工智能化的，等等。我認為，顯然我們正在積極尋找我們可以從人工智慧解決方案中擴展的潛在業務。目前，還沒有具體的業務。

Thomas Chong, Jefferies.

湯瑪斯‧張 (Thomas Chong)，傑富瑞 (Jefferies)。

Good evening. Thanks, management, for taking my questions and congratulations on a very strong set of results. My question is about the gaming business. Can management comment about other than the success of Free Fire, how are other games perform like Delta Force. And on the other hand, how is AI actually benefit the gaming business in driving the time spend, the monetization, et cetera? Thank you.

晚安.謝謝管理層回答我的問題，並祝賀我們取得了一系列非常強勁的成果。我的問題是關於遊戲業務的。管理階層能否評論一下除了《Free Fire》的成功之外，其他遊戲（如《Delta Force》）的表現如何？另一方面，人工智慧實際上如何使遊戲業務受益，推動時間支出、貨幣化等等？謝謝。

Sure. Thanks, Thomas. Yes, for like -- I mean, as from our philosophy, we always want to like not only continually make Free Fire more engaging attractive games, but we also focus on like a new game, like we do see a lot of opportunities in the different genre and the different markets. But like I think it's -- but I would say, like I think at this moment, even we see some promising results, and I think it's like the game like a Delta Force or like Free Cities is still at an early stage. I think it's like we're still kind of like a fine tune stage like rather than saying, okay, this will be another fantastic big hit for us.

當然。謝謝，托馬斯。是的，我的意思是，從我們的理念來看，我們不僅希望不斷讓 Free Fire 成為更具吸引力的遊戲，而且我們還專注於開發新遊戲，我們確實在不同類型的遊戲和不同的市場中看到了很多機會。但就像我認為的那樣——但我想說的是，就像我認為目前為止我們看到了一些有希望的結果，而且我認為像《三角洲部隊》或《自由城市》這樣的遊戲仍處於早期階段。我認為這就像我們仍然處於微調階段，而不是說，好吧，這對我們來說將是另一個巨大的成功。

And so we'll keep our like investors updated when we continually see like things that still are fine-tuning the product. Although for some of them, we see some initial attraction. And we are very, very excited about the AI perspective in the game industry and personally, I believe game industry will be among the first batch of industries largely benefited by the AI advancements and the technologies. And so far, like we have seen a lot of kind of upside on the -- actually on the development and the production side. And say, for example, like to develop any new content new map, we need to generate a lot of original arts.

因此，當我們不斷看到仍在對產品進行微調的事情時，我們會隨時向我們的投資者通報最新情況。儘管對於其中一些，我們看到了一些最初的吸引力。我們對遊戲產業的人工智慧前景感到非常興奮，我個人認為遊戲產業將成為首批受益於人工智慧進步和技術的產業之一。到目前為止，我們已經看到了很多方面的進步——實際上是在開發和生產方面。舉例來說，要開發任何新內容、新地圖，我們都需要創作大量的原創藝術作品。

And now a lot of like very, very basic arts can be generated by AI. So it's -- the quality is very, very decent in terms of the efficiency, the volumes are generated and the varieties that generated I mean, you can imagine it's much, much better than what a human can do. So this is largely improve our productivity, and it's really, really, really exciting. And like on the -- as you mentioned from the gamers like engagement perspective, like -- so there is a very clear opportunity we have seen in the use case is like we do believe, like I say, for example, Free Fire is a very, very social game. It's a design for team play.

現在很多非常基礎的藝術都可以由人工智慧產生。所以，從效率、生成的數量和種類來看，品質非常非常好，我的意思是，你可以想像它比人類能做的要好得多。所以這在很大程度上提高了我們的生產力，這真的非常非常令人興奮。正如您從遊戲玩家參與度的角度提到的那樣，我們在用例中看到了一個非常明顯的機會，就像我們確實相信的那樣，就像我說的那樣，例如，Free Fire 是一款非常非常社交的遊戲。這是為團隊合作而設計的。

So it's like there is much, much more fun if you play with other players, and there is a much more combination of the strategy, the technique you can use then you play as a solo gamer. But we observed the Free Fire still have a very, very sizable gamers like only play solo games. I mean they're enjoyed, but I think they haven't really fully experienced the amazing part of the game and maybe because of their shy, they don't know how to reach out to other players. So we think like the AI-enabled bot it's kind of like their -- it's an AI game agent like as their teammates, as a peer for them to play the game together, kind of play a brother throws, sister throws, coach roads in the game and give them a little bit flavor of how this interaction will kind of feel and taste in the gameplay and as an encouragement for them to reach out to play as a team rather than individuals. I think that largely helped on the retention.

因此，與其他玩家一起玩會更有趣，而且與單人遊戲相比，你可以使用更多的策略和技巧。但我們觀察到《Free Fire》仍然有非常多的玩家只喜歡玩單人遊戲。我的意思是他們很享受，但我認為他們還沒有真正體驗到遊戲的奇妙之處，也許是因為他們害羞，他們不知道如何與其他玩家接觸。因此，我們認為，像人工智慧機器人一樣，它有點像他們的——它是一個人工智慧遊戲代理，就像他們的隊友一樣，作為他們一起玩遊戲的同伴，玩兄弟投擲、姐妹投擲，在遊戲中指導道路，讓他們稍微體驗一下這種互動在遊戲中的感覺和品味，並鼓勵他們以團隊而不是個人的形式進行遊戲。我認為這在很大程度上有助於保留。

And furthermore, I think we are very actively experiencing and trying to figure out how to kind of leverage the generative AI to let gamers and to generate the content rather than -- okay, so not all today's game experience are preset and how the experience will look like. And I think with the AI tools, actually, this experience can be much more immersive and much more interactive and much more individualized. I think it's -- well, it's still early stage because like we can see some success, but we want to make sure the experience can be applied in the large scale and in a very, very consistent quality. I think that's the things we have been working on. And -- but we're sure, I think, like this will happen sooner or later yes.

此外，我認為我們正在非常積極地體驗並試圖弄清楚如何利用生成性人工智慧來讓遊戲玩家生成內容，而不是 - 好吧，所以並非所有當今的遊戲體驗都是預設的，以及體驗將會是什麼樣子。我認為，借助人工智慧工具，這種體驗實際上可以更加身臨其境、更加互動、更加個人化。我認為——嗯，這還處於早期階段，因為我們可以看到一些成功，但我們希望確保經驗能夠大規模應用，並且品質非常非常一致。我認為這就是我們一直在努力的事情。而且——但我們確信，我認為這遲早會發生。

This concludes our question-and-answer session. I would like to turn to conference back over to Mr. K.C. Ong for any closing remarks.

我們的問答環節到此結束。我想將會議交回給 K.C. Ong 先生，請他做最後發言。

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。