(SE) 2021 Q4 法說會逐字稿

Good morning and good evening. Welcome to the Sea Limited Fourth Quarter and Full Year 2021 Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Ms. Min Ju Song. Please go ahead.

早上好，晚上好。歡迎來到 Sea Limited 2021 年第四季度和全年業績電話會議。 （操作員說明）請注意，此事件正在記錄中。我現在想把會議交給 Min Ju Song 女士。請繼續。

Thank you, and hello, everyone, and welcome to Sea's 2021 Fourth Quarter and Full Year Earnings Conference Call. I'm Min Ju Song from Sea's Group Chief Corporate Officer's office.

謝謝大家，大家好，歡迎參加 Sea 的 2021 年第四季度和全年收益電話會議。我是Sea's Group首席企業官辦公室的Min Ju Song。

Before we continue, I would like to remind you that we may make forward-looking statements, which are inherently subject to risks and uncertainties and may not be realized in the future for various reasons as stated in our press release. Also, this call includes a discussion of certain non-GAAP financial measures such as adjusted EBITDA and net loss, excluding share-based compensation. 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.

在我們繼續之前，我想提醒您，我們可能會做出前瞻性陳述，這些陳述固有地受到風險和不確定性的影響，並且由於我們新聞稿中所述的各種原因，未來可能無法實現。此外，本次電話會議還討論了某些非公認會計準則財務指標，例如調整後的 EBITDA 和淨虧損，不包括基於股份的薪酬。我們相信，當這些措施用作對我們的 GAAP 披露的補充時，可以增強我們的投資者對我們主要業務的實際現金流的了解。有關使用非 GAAP 財務指標以及與最接近的 GAAP 指標對賬的討論，請參閱我們新聞稿中關於非 GAAP 財務指標的部分。

I have with me Sea's Chairman and Group Chief Executive Officer, Forrest Li; Group Chief Financial Officer, Tony Hou; and Group Chief Corporate Officer, Yanjun Wang. Our management will share strategy and business updates, operating highlights and financial performance for the fourth quarter and for the full year of 2021. This will be followed by a Q&A session in which we welcome any questions you have.

Sea 的董事長兼集團首席執行官 Forrest Li 和我在一起；集團首席財務官Tony Ho；和集團首席企業官王彥軍。我們的管理層將分享第四季度和 2021 年全年的戰略和業務更新、運營亮點和財務業績。隨後將舉行問答環節，歡迎您提出任何問題。

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

有了這個，讓我把電話轉給福雷斯特。

Thank you, Min Ju. Hello, everyone, and thank you for joining today's call. In 2021, we continue to focus on growing and evolving our business to address the fast-changing needs of our users and communities. We have invested with vision and efficiency to capture the unprecedented opportunities available to us during this period of accelerated digitalization.

謝謝你，閔菊。大家好，感謝您加入今天的電話會議。 2021 年，我們將繼續專注於發展和發展我們的業務，以滿足用戶和社區快速變化的需求。在這個加速數字化的時期，我們以遠見和效率進行投資，以抓住前所未有的機會。

As a result, we have greatly deepened our engagement with consumers and small businesses, vastly expanding our total addressable market and extended our leadership across all our businesses. Moreover, our growing scale, leadership and strong cash balance means we are well placed to leverage efficiencies across our ecosystem.

因此，我們大大加深了與消費者和小企業的接觸，極大地擴展了我們的總目標市場，並擴大了我們在所有業務中的領導地位。此外，我們不斷增長的規模、領導力和強大的現金餘額意味著我們可以很好地利用整個生態系統的效率。

As we look ahead, I would first like to take this opportunity to share with you how we plan to manage sustainable growth going forward. We believe we are now in a strong position to manage the levers of our business to reach profitability across more markets and segments in 2022 and beyond. We currently expect Shopee to achieve positive adjusted EBITDA before HQ costs allocation in Southeast Asia and Taiwan by this year. We also expect SeaMoney to achieve positive cash flow by next year. As a result, we currently expect that by 2025, cash generated by Shopee and SeaMoney collectively will enable these 2 businesses to substantially self-fund their own long-term growth. At that point, we believe Shopee and SeaMoney will be generating meaningful cash in our existing core markets of Southeast Asia and Taiwan as strong market leaders, while Shopee will also have achieved significant scale and a strong market position in our new growth market of Brazil.

展望未來，我首先想藉此機會與您分享我們計劃如何管理未來的可持續增長。我們相信，我們現在處於有利地位，可以管理我們的業務槓桿，以在 2022 年及以後在更多市場和細分市場實現盈利。我們目前預計蝦皮將在今年之前在東南亞和台灣的總部成本分配之前實現正調整 EBITDA。我們還預計 SeaMoney 將在明年實現正現金流。因此，我們目前預計，到 2025 年，Shopee 和 SeaMoney 共同產生的現金將使這兩家企業能夠實質性地為自己的長期增長提供資金。屆時，我們相信 Shopee 和 SeaMoney 將作為強大的市場領導者在我們現有的東南亞和台灣核心市場產生可觀的現金，而 Shopee 也將在我們新的增長市場巴西取得顯著的規模和強大的市場地位。

On the path to this inflection point, we plan to continue to invest in Shopee and SeaMoney with efficiency. We have around $10 billion of cash, cash equivalents and short-term investments on our balance sheet, including close to $7 billion raised in last year, which we intend to invest into the growth of Shopee and SeaMoney over the coming years. Based on our current plan, we believe that we have the financial resources required to grow the 2 businesses to the inflection point without having to heavily rely on cash generated from the digital entertainment business. Of course, any additional growth from Garena will further strengthen our position. And we remain extremely focused on developing Garena's global platform, which we see as a key strategic asset in the long run.

在通往這個拐點的道路上，我們計劃繼續高效投資 Shopee 和 SeaMoney。我們的資產負債表上有大約 100 億美元的現金、現金等價物和短期投資，其中包括去年籌集的近 70 億美元，我們打算在未來幾年投資於 Shopee 和 SeaMoney 的增長。根據我們目前的計劃，我們相信我們擁有將這兩項業務發展到拐點所需的財務資源，而不必嚴重依賴數字娛樂業務產生的現金。當然，Garena 的任何額外增長都將進一步鞏固我們的地位。我們仍然非常專注於開發 Garena 的全球平台，從長遠來看，我們認為這是一項關鍵的戰略資產。

Next, let me share with you how we are thinking about resource allocation for this period. Broadly speaking, Shopee LatAm and Brazil, in particular, as well as R&D would be our top 2 focus areas for investments. Our investments and the overall impact on the bottom line is likely front-loaded as unit economics and profitability for our businesses generally improve its scale.

接下來跟大家分享一下我們是如何思考這個時期的資源分配的。從廣義上講，尤其是 Shopee LatAm 和巴西以及研發將是我們投資的兩大重點領域。隨著我們業務的單位經濟和盈利能力普遍提高其規模，我們的投資和對底線的整體影響可能是預先加載的。

Firstly, we will continue to invest in Shopee Latam with a focus on Brazil. Of course, it'd be much easier operationally for us to just focus on the 7 existing core markets for Shopee. However, we strongly believe that by investing prudently and sustainably in Shopee LatAm and Brazil in particular, we will generate significant value for our shareholders in the long run.

首先，我們將繼續投資 Shopee Latam，重點關注巴西。當然，我們只關注 Shopee 現有的 7 個核心市場在操作上會容易得多。然而，我們堅信，通過謹慎和可持續地投資 Shopee LatAm 和巴西，從長遠來看，我們將為我們的股東創造巨大價值。

While we do not underestimate the challenges of any new market expansion. I would also like to highlight that we have established track record 7 times in 7 highly diverse and complex markets of Southeast Asia and Taiwan. When we started in each of those markets in 2015, we had significantly net resources, experience and the know-how, and as a result, faced a much more formidable competitive landscape that we currently do in our market expansion. Moreover, our growth trajectory in each existing core market has generally followed certain patterns, whereby we are able to first manage strong user and order growth with improving efficiency and then achieve market leadership and profitability with scale.

雖然我們不會低估任何新市場擴張的挑戰。我還想強調的是，我們在東南亞和台灣的 7 個高度多樣化和復雜的市場中建立了 7 次業績記錄。當我們在 2015 年開始涉足這些市場時，我們擁有大量的淨資源、經驗和專業知識，因此，我們面臨著我們目前在市場擴張中面臨的更加強大的競爭格局。此外，我們在每個現有核心市場的增長軌跡普遍遵循一定的模式，我們能夠首先以提高效率管理強勁的用戶和訂單增長，然後以規模實現市場領先和盈利能力。

As I will share in greater detail when we discuss the segment results, Shopee Brazil has already achieved strong user traction, meaningful commercialization and fast improving unit economics less than 2 years after entering the market. This gives us further confidence in managing growth in these markets.

正如我將在討論細分市場結果時更詳細地分享的那樣，Shopee Brazil 在進入市場不到 2 年的時間內已經實現了強大的用戶牽引力、有意義的商業化和快速提高的單位經濟性。這使我們對管理這些市場的增長更有信心。

Achieving success in Brazil, which is the sixth most populous country in the world where profitability model for marketplaces has also been long proven would allow Shopee to substantially expand its total addressable market that significantly enhanced its competitiveness as a global e-commerce platform and further diversify its businesses across the world.

在巴西取得成功，巴西是世界上人口第六多的國家，市場的盈利模式也得到了長期證明，這將使 Shopee 能夠大幅擴大其潛在市場，從而顯著提高其作為全球電子商務平台的競爭力並進一步多元化其業務遍及全球。

Secondly, our technology and R&D capabilities are already a strong competitive moat for us. And we aim to invest in deepening this advantage. Our scale, market leadership and ability to leverage efficiencies across our entire ecosystem position us very well to continue to build core strength [in tech]. We intend to ramp up investments in R&D to continually provide better and greater varieties of services offerings and features to our users as well as to maximize our long-term growth potential.

其次，我們的技術和研發能力已經是我們強大的競爭護城河。我們的目標是投資深化這一優勢。我們的規模、市場領導地位以及在整個生態系統中利用效率的能力使我們能夠很好地繼續建立 [in tech] 的核心實力。我們打算加大對研發的投資，以不斷為我們的用戶提供更好、更多種類的服務產品和功能，並最大限度地發揮我們的長期增長潛力。

The result of some of these investments are already visible across our business in fast evolving offerings and features. Such offerings and features range from UGC tools in Free Fire, user engagement features of Shopee and fintech products under SeaMoney to shared technology platforms, improved security and risk management structure and enhance commercialization and financial underwriting systems just to name a few. These investments are both necessary for our current operations and are highly important to our future growth. We strongly believe that our investment in technology will continue to serve as a key competitive moat across our ecosystems.

其中一些投資的結果已經在我們的業務中以快速發展的產品和功能可見。此類產品和功能範圍從 Free Fire 中的 UGC 工具、Shopee 的用戶參與功能和 SeaMoney 下的金融科技產品到共享技術平台、改進的安全和風險管理結構以及增強商業化和金融承保系統等等。這些投資對我們目前的運營來說是必要的，對我們未來的發展也非常重要。我們堅信，我們對技術的投資將繼續成為我們生態系統中的關鍵競爭護城河。

Having discussed the near to midterm plan, I would also like to share our longer-term view about the future we are working very hard towards. As we look ahead, it is clear that consumer activities and experiences are increasingly converging online at the intersection of content, commerce and community. It is also clear that agile, adaptable companies that can successfully tap into active, engaged and social communities will have a unique advantage as we move into this new era.

在討論了近期到中期計劃之後，我還想分享我們對我們正在努力工作的未來的長期看法。展望未來，很明顯，消費者活動和體驗越來越多地在內容、商業和社區的交匯處在線融合。同樣清楚的是，隨著我們進入這個新時代，能夠成功進入活躍、參與和社交社區的敏捷、適應性強的公司將擁有獨特的優勢。

Our 3 core businesses collectively offer immersive and interactive digital, social and commercial experiences to a large global community, supported by our fast-growing digital financial infrastructure and deep online-offline operational capabilities. We therefore believe that our ecosystem comprises a complete consumer stack and innovation stack that is distinctively relevant to the new opportunities being presented. All the business investment and decisions we are making today are intended to also best position us to best serve the changing needs of fast-growing digital-native generations.

在我們快速發展的數字金融基礎設施和深厚的線上線下運營能力的支持下，我們的三大核心業務共同為大型全球社區提供身臨其境的互動數字、社交和商業體驗。因此，我們相信我們的生態系統包括一個完整的消費者堆棧和創新堆棧，與所呈現的新機會截然不同。我們今天所做的所有商業投資和決策也旨在使我們處於最佳位置，以最好地滿足快速增長的數字原生代不斷變化的需求。

Let us now discuss the performance of our group and each of our businesses in the fourth quarter and the full year of 2021 and our outlook for 2022. At the group level, GAAP revenue increased 106% year-on-year to $3.2 billion and the gross profit was $1.3 billion, up 146% year-on-year for the fourth quarter. Meanwhile, for the full year of 2021 GAAP revenue grew by 128% year-on-year to reach $10 billion, and gross profit reached $3.9 billion, up 189% from 2020.

現在讓我們討論一下我們集團和我們每項業務在 2021 年第四季度和全年的業績以及我們對 2022 年的展望。在集團層面，GAAP 收入同比增長 106% 至 32 億美元，而第四季度毛利潤為 13 億美元，同比增長 146%。同時，2021 年全年 GAAP 收入同比增長 128%，達到 100 億美元，毛利潤達到 39 億美元，比 2020 年增長 189%。

Garena's bookings for the full year hit $4.6 billion, and Shopee's GAAP revenue reached $5.1 billion. Both businesses performed in line with our recently raised full year guidance. For 2022, we currently expect bookings for digital entertainment to be between $2.9 billion and $3.1 billion. With many economies reopening further in the fourth quarter and into this year, we have observed some moderation in online activities and fluctuations in user engagement. Moreover, due to unanticipated government actions, as we previously reported in a press release, Free Fire is currently unavailable in the Google Play and iOS App Stores in India. Our guidance, therefore, takes into consideration these headwind factors.

Garena 全年的預訂量達到 46 億美元，Shopee 的 GAAP 收入達到 51 億美元。這兩項業務的表現都符合我們最近提出的全年指引。到 2022 年，我們目前預計數字娛樂的預訂量將在 29 億美元至 31 億美元之間。隨著許多經濟體在第四季度和今年進一步重新開放，我們觀察到在線活動有所放緩，用戶參與度出現波動。此外，正如我們之前在新聞稿中報導的那樣，由於政府的意外行動，Free Fire 目前在印度的 Google Play 和 iOS 應用商店中不可用。因此，我們的指導考慮了這些逆風因素。

The midpoint of the guidance of $3 billion reflects our current expectations that our bookings for 2022 will be close to the level in 2020 while also considering the uncertainty in India. While we will continue to assess the longer-term trends as our markets continue to evolve, we remain highly confident in the long-term prospect of our digital entertainment business.

30 億美元指導的中點反映了我們目前的預期，即我們 2022 年的預訂量將接近 2020 年的水平，同時也考慮到印度的不確定性。隨著市場的不斷發展，我們將繼續評估長期趨勢，但我們對數字娛樂業務的長期前景仍然充滿信心。

Next, we expect GAAP revenue for e-commerce to be between $8.9 billion and $9.1 billion, representing 76% year-on-year growth at the midpoint of the guidance. This strong outlook, particularly against the very high base of 2021, reflects our deeper engagement with consumers and small businesses across our markets, vastly expanding e-commerce addressable market and continued improvement in commercialization.

接下來，我們預計電子商務的 GAAP 收入將在 89 億美元至 91 億美元之間，在指引的中點同比增長 76%。這種強勁的前景，尤其是相對於 2021 年非常高的基數，反映了我們與整個市場的消費者和小企業的更深入接觸，極大地擴大了電子商務目標市場和商業化的持續改進。

I'm also excited to share our 2022 outlook for digital financial services segment for the first time. SeaMoney made strong progress in 2021 as we continue to scale our mobile wallet experiences and launched more products and services which saw successful adoption across the ecosystem. We anticipate that this trend will continue, and (technical difficulty) growth engine for us. We expect GAAP revenue for SeaMoney for this year to be between $1.1 billion and $1.3 billion, representing 155% year-on-year growth at the midpoint of the guidance.

我也很高興首次分享我們對數字金融服務領域的 2022 年展望。隨著我們繼續擴展我們的移動錢包體驗並推出更多產品和服務，SeaMoney 在 2021 年取得了長足進步，這些產品和服務在整個生態系統中得到了成功採用。我們預計這種趨勢將繼續下去，並為我們提供（技術難度）增長引擎。我們預計 SeaMoney 今年的 GAAP 收入將在 11 億美元至 13 億美元之間，在該指引的中點處同比增長 155%。

Let's now turn to our businesses in more detail. Beginning with digital entertainment, in the fourth quarter, Garena generated bookings of $1.1 billion, an increase of 7% year-on-year. Adjusted EBITDA was 56% of bookings at $603 million. Quarterly active users reached 654 million, up 7% from a year ago, and quarterly paying users were 77 million, an increase of 6% year-on-year. For the full year of 2021, Garena recorded bookings of $4.6 billion, up 44% year-on-year. Adjusted EBITDA was up 40% compared to 2020 at $2.8 billion, representing 60% of bookings.

現在讓我們更詳細地談談我們的業務。從數字娛樂開始，Garena 在第四季度創造了 11 億美元的預訂量，同比增長 7%。調整後的 EBITDA 佔預訂量的 56%，為 6.03 億美元。季度活躍用戶達6.54億，同比增長7%；季度付費用戶7700萬，同比增長6%。 2021 年全年，Garena 的預訂量為 46 億美元，同比增長 44%。與 2020 年相比，調整後的 EBITDA 增長 40%，達到 28 億美元，佔預訂量的 60%。

During the fourth quarter, online game momentum moderated somewhat given the reopening trends in many of our markets. That said, it is worth emphasizing that Free Fire continues to have one of the largest and most engaged user communities of any game in history. According to data.ai, previously known as App Annie, for the third year in a row, Free Fire was the #1 most downloaded mobile game globally in 2021. Free Fire also ranked 2nd globally by average monthly active users for all mobile games on Google Play in the fourth quarter and full year. Free Fire also retained its leadership as the highest grossing mobile game across both iOS and Google Play in Southeast Asia and Latin America for both the fourth quarter and the full year based on data.ai. We have maintained this leading position in Southeast Asia and Latin America for 10 consecutive quarters. Furthermore, Free Fire was the highest growth in mobile battle royale game for the fourth consecutive quarter in the U.S. according to data.ai.

在第四季度，鑑於我們許多市場的重新開放趨勢，在線遊戲的勢頭有所放緩。也就是說，值得強調的是，Free Fire 繼續擁有歷史上任何遊戲中最大、參與度最高的用戶社區之一。根據 data.ai（前身為 App Annie）的數據，Free Fire 連續第三年成為 2021 年全球下載次數最多的手機遊戲。Free Fire 在所有手機遊戲的月均活躍用戶數方面也排名全球第二Google Play 在第四季度和全年。根據 data.ai 的數據，Free Fire 在第四季度和全年都保持了其在東南亞和拉丁美洲 iOS 和 Google Play 中收入最高的手機遊戲的領先地位。我們已連續 10 個季度保持在東南亞和拉丁美洲的領先地位。此外，根據 data.ai 的數據，Free Fire 連續第四個季度成為美國移動大逃殺遊戲中增長最快的遊戲。

We remain committed to investing in content in Free Fire to enhance user experience and uplift user engagement. For that, we have a comprehensive pipeline in sales that includes partnership or original and user-generated content and e-sports activities. For example, this month, we have a crossover event with Assassin's Creed, one of the most popular global video game franchises. And we're also excited to have BTS, one of the world's most streamed artists worldwide enter the universe of Free Fire as our global brand ambassadors in the coming months.

我們仍然致力於投資 Free Fire 的內容，以增強用戶體驗並提升用戶參與度。為此，我們擁有全面的銷售渠道，包括合作夥伴關係或原創和用戶生成的內容以及電子競技活動。例如，本月，我們與刺客信條（Assassin's Creed）進行了跨界活動，刺客信條是全球最受歡迎的電子遊戲系列之一。我們也很高興能在未來幾個月內讓全球最受歡迎的藝術家之一 BTS 作為我們的全球品牌大使進入 Free Fire 的世界。

Additionally, we've seen strong engagements with user-generated content through modes like Craftland, our recently introduced map editor feature. Since launch, the most popular Craftland maps are subscribed by close to 40 million users so far. We will continue to encourage user-generated content by enhancing greater features and accessibility. We believe that the strong user reception to Craftland is a positive indicator of the initial success to encourage user participation in content creation and to build Free Fire into an increasingly open platform and is well aligned with major emerging industry trends such as the metaverse.

此外，我們通過最近推出的地圖編輯器功能 Craftland 等模式看到了用戶生成的內容的強大參與。自推出以來，最受歡迎的 Craftland 地圖已被近 4000 萬用戶訂閱。我們將繼續通過增強更多功能和可訪問性來鼓勵用戶生成內容。我們認為，用戶對 Craftland 的強烈歡迎是鼓勵用戶參與內容創作並將 Free Fire 打造為一個日益開放的平台的初步成功的積極指標，並且與元界等主要新興行業趨勢非常吻合。

Besides Free Fire's strong performance, the other games in our portfolio continue to perform well. For example, Arena of Valor has grown year-on-year in 2021 across both active users and bookings despite being in its fifth year of operations.

除了 Free Fire 的強勁表現外，我們投資組合中的其他遊戲繼續表現良好。例如，儘管已經運營第五年，但 Arena of Valor 在 2021 年的活躍用戶和預訂量均同比增長。

In 2022 and beyond, we expect to expand our portfolio with more games across diverse genres such as multiplayer action, role playing, sandbox and casual games. Over the long term, our priority remains sustaining and growing our existing major franchises while diversifying our games portfolio. Our strong and growing self-development capabilities will be a key component of this diversification effort. Our teams are working on multiple prototype games across different genres and stages. In due course, we expect to bring more self-developed games to market. We also continue to actively acquire and invest in top talent and game IP to further expand our capabilities across genres and geographies. Meanwhile, we will keep growing our publishing relationships, leveraging our unique set of strengths across diverse global markets. We believe that this comprehensive approach to portfolio diversification will allow us to identify and execute around the largest game trends in the years to come.

在 2022 年及以後，我們預計將擴大我們的產品組合，推出更多不同類型的遊戲，例如多人動作、角色扮演、沙盒和休閒遊戲。從長遠來看，我們的首要任務仍然是維持和發展我們現有的主要特許經營權，同時使我們的遊戲組合多樣化。我們強大且不斷增長的自我發展能力將成為這一多元化努力的關鍵組成部分。我們的團隊正在開發不同類型和階段的多個原型遊戲。在適當的時候，我們期望將更多自主開發的遊戲推向市場。我們還繼續積極收購和投資頂尖人才和遊戲 IP，以進一步擴展我們跨類型和地域的能力。同時，我們將繼續發展我們的出版關係，利用我們在不同全球市場的獨特優勢。我們相信，這種投資組合多元化的綜合方法將使我們能夠識別和執行未來幾年最大的遊戲趨勢。

More importantly, we see games as one of the most engaging and immersive forms of entertainment, bringing communities from across the world together to play and interact. That will play a vital role in shaping the virtual experiences of users, and we are well positioned to capture new opportunities that arise, given our core competency in developing highly social, immersive and interactive global game platforms with live operation and scale. Therefore, we are highly focused on maximizing the long-term potential of Garena. We see it as our key to potentially greater success in a future world where activities, experiences, interaction and consumption are increasingly virtual.

更重要的是，我們將游戲視為最具吸引力和身臨其境的娛樂形式之一，它將來自世界各地的社區聚集在一起進行遊戲和互動。這將在塑造用戶的虛擬體驗方面發揮至關重要的作用，鑑於我們在開發具有實時運營和規模的高度社交、沉浸式和交互式全球遊戲平台方面的核心競爭力，我們已做好準備抓住新機遇。因此，我們高度專注於最大限度地發揮 Garena 的長期潛力。我們將其視為在活動、體驗、互動和消費日益虛擬化的未來世界中取得更大成功的關鍵。

Now let's turn to e-commerce. Shopee had a great year in 2021 as the business scaled and strengthened its market position across both new and existing markets. For the quarter, Shopee's GAAP revenue grew 89% year-on-year to reach $1.6 billion. It recorded gross orders of $2 billion, an increase of 90% year-on-year and a GMV grow 53% over the same period to reach $18.2 billion. The strong performance contributed to strong results for the full year of 2021 where Shopee achieved GAAP revenue of $5.1 billion, up 136% year-on-year. The full year gross orders totaled $6.1 billion, up 117% year-on-year, and GMV reached $62.5 billion, an increase of 77% from 2020.

現在讓我們轉向電子商務。隨著業務規模擴大並鞏固了其在新市場和現有市場的市場地位，Shopee 在 2021 年迎來了豐收的一年。本季度，Shopee 的 GAAP 收入同比增長 89%，達到 16 億美元。它記錄了 20 億美元的總訂單，同比增長 90%，同期 GMV 增長 53%，達到 182 億美元。強勁的表現促成了 2021 年全年的強勁業績，Shopee 實現了 51 億美元的 GAAP 收入，同比增長 136%。全年總訂單總額為 61 億美元，同比增長 117%，GMV 達到 625 億美元，比 2020 年增長 77%。

Monetization improved across all revenue components with GAAP revenue as a percentage of total GMV rising from 6.1% in 2020 to 8.2% in 2021. Our strong revenue growth shows how more merchants across the market trust the Shopee platform and understand the value we deliver to them. Our leading market position is also evident in strong brand recognition and engagements from consumers on Shopee. It was the top e-commerce brand in YouGov's Best Global Brands 2021 and ranked 6th overall.

所有收入組成部分的貨幣化都有所改善，GAAP 收入佔總 GMV 的百分比從 2020 年的 6.1% 上升到 2021 年的 8.2%。我們強勁的收入增長表明市場上越來越多的商家信任 Shopee 平台並了解我們為他們提供的價值.我們的領先市場地位也體現在強大的品牌認知度和消費者對 Shopee 的參與度上。它是 YouGov 2021 年最佳全球品牌中的頂級電子商務品牌，總體排名第 6。

In terms of engagement, our buyers shopped on Shopee over 6 times a month on average in the fourth quarter with Indonesia's monthly order frequency exceeding 8 times. We are very pleased with the progress made around engaging our buyers and will continue to deliver more value to them. According to data.ai, Shopee ranked first in the shopping category globally by downloads in the fourth quarter and the full year. In the same category for Google Play, Shopee ranked first globally by total time spent in app and second by average monthly active users in the fourth quarter and the full year.

在參與度方面，我們的買家在第四季度平均每月在 Shopee 購物超過 6 次，印度尼西亞的每月訂單頻率超過 8 次。我們對在吸引買家方面取得的進展感到非常滿意，並將繼續為他們提供更多價值。根據data.ai的數據，Shopee在第四季度和全年的下載量在全球購物類別中排名第一。在 Google Play 的同一類別中，Shopee 在應用總時間方面排名全球第一，在第四季度和全年平均每月活躍用戶方面排名第二。

During the same period, Shopee also continued to be the top-ranked app in the shopping category across both iOS and Google Play in each of Southeast Asia and Taiwan by average monthly active users and the total time spent in app. In Indonesia, Shopee was ranked the #1 app across these same metrics with gross orders growing around 88% year-on-year during the fourth quarter.

同期，按月平均活躍用戶數和應用總時長計算，Shopee 也繼續成為東南亞和台灣 iOS 和 Google Play 購物類別中排名第一的應用。在印度尼西亞，Shopee 在這些相同指標中排名第一的應用程序在第四季度的總訂單量同比增長約 88%。

We have also scaled our presence in Brazil, serving the local sellers and buyers. During the fourth quarter and the full year, Shopee was ranked first by download and the total time spent in app and the second by average monthly active users from shopping category according to data.ai. In the fourth quarter, Shopee Brazil recorded more than 140 million gross orders, growing at close to 400% year-on-year, that's more than $70 million of GAAP revenue, up by around 626% (sic) [326%] year-on-year. We believe our offering provides a new and fresh online shopping experience that caters to the underserved segment of the Brazilian market. We see Brazil as a new growth market for us as we are very excited about its growth prospects and the long-term value we can deliver to the ecosystem.

我們還擴大了在巴西的業務範圍，為當地的賣家和買家提供服務。根據 data.ai 的數據，在第四季度和全年，Shopee 的下載量和應用總時長排名第一，購物類別的月平均活躍用戶排名第二。第四季度，Shopee Brazil 的總訂單量超過 1.4 億，同比增長接近 400%，即 GAAP 收入超過 7000 萬美元，同比增長約 626% (sic) [326%] -同年。我們相信我們的產品提供了一種全新的在線購物體驗，以迎合巴西市場服務不足的部分。我們將巴西視為一個新的增長市場，因為我們對其增長前景和我們可以為生態系統提供的長期價值感到非常興奮。

Meanwhile, we continue to see efficiency gains as we scale. For Shopee Southeast Asia and Taiwan, the adjusted EBITDA loss per order before HQ cost allocation was $0.15 in the fourth quarter, an improvement from $0.21 in the fourth quarter of 2020. As shared earlier, we believe Shopee is on track to achieve positive adjusted EBITDA before HQ costs allocation in Southeast Asia and Taiwan by this year.

與此同時，隨著規模的擴大，我們繼續看到效率提升。對於 Shopee 東南亞和台灣地區，第四季度在總部成本分配之前的每個訂單的調整後 EBITDA 損失為 0.15 美元，比 2020 年第四季度的 0.21 美元有所改善。如前所述，我們相信 Shopee 有望實現調整後 EBITDA 正數在今年之前在東南亞和台灣的總部成本分配之前。

Our newer markets have also made progress with adjusted EBITDA loss per order before HQ costs allocation improving consistently in every quarter in 2021. Specifically in Brazil, our adjusted EBITDA loss per order before HQ costs allocation improved by more than 40% year-on-year during the fourth quarter to below $2. Across all of our markets, our total adjusted EBITDA loss per order was $0.45 in the fourth quarter, an increase from $0.41 for the fourth quarter of 2020. This increase was attributable to the increasing contribution from the newer market which are at a much earlier stage of development. These markets are both growing faster and incurring higher than adjusted EBITDA loss per order than Southeast Asia and Taiwan. For the full year, our total adjusted EBITDA loss per order across all markets was $0.42, improving 9% compared to 2020.

我們的新市場也取得了進展，2021 年每個季度在總部成本分配之前的每筆訂單調整後 EBITDA 損失持續改善。特別是在巴西，我們在總部成本分配之前每筆訂單的調整後 EBITDA 損失同比改善了 40% 以上第四季度跌至 2 美元以下。在我們所有的市場中，第四季度我們每筆訂單的總調整後 EBITDA 損失為 0.45 美元，高於 2020 年第四季度的 0.41 美元。這一增長歸因於處於較早階段的新市場的貢獻增加的發展。與東南亞和台灣相比，這些市場的增長速度更快，每筆訂單的 EBITDA 損失也高於調整後的 EBITDA。全年，我們在所有市場的每筆訂單的總調整後 EBITDA 損失為 0.42 美元，與 2020 年相比提高了 9%。

Over the past couple of years, we accelerated the growth of Shopee by quickly adapting and serving our buyers and sellers through the pandemic. We've also successfully strengthened our competitive position in Southeast Asia and Taiwan as well as Brazil. Going forward, we expect Southeast Asia and Taiwan to keep growing healthily, while we further strengthen our market leadership and execute towards profitability. In our new growth market, Brazil, we are focused on efficient and sustainable growth as we continue to scale and improve our service offerings to local sellers and buyers.

在過去的幾年裡，我們通過快速適應和服務我們的買家和賣家來加速 Shopee 的發展。我們還成功地加強了我們在東南亞和台灣以及巴西的競爭地位。展望未來，我們預計東南亞和台灣地區將保持健康增長，同時我們將進一步加強我們的市場領導地位並實現盈利。在我們新的增長市場巴西，我們專注於高效和可持續的增長，因為我們將繼續擴大和改進我們為當地賣家和買家提供的服務。

Finally, our digital financial services business, SeaMoney, performed well in the fourth quarter and the full year of 2021. In the fourth quarter, GAAP revenue was $198 million, up 711% year-on-year, driven by the growing adoption of our product and services. For the full year of 2021, our GAAP revenue grew 673% year-on-year to reach $470 million. Quarterly active users across our SeaMoney products and services reached 45.8 million, up 90% year-on-year.

最後，我們的數字金融服務業務 SeaMoney 在第四季度和 2021 年全年表現良好。第四季度，GAAP 收入為 1.98 億美元，同比增長 711%，這得益於我們越來越多地採用我們產品和服務。 2021 年全年，我們的 GAAP 收入同比增長 673%，達到 4.7 億美元。我們 SeaMoney 產品和服務的季度活躍用戶達到 4580 萬，同比增長 90%。

In the fourth quarter and full year 2021, we further expanded our digital financial service offerings across credit, insurtech and in digital bank services. For example, we launched the SeaBank in Indonesia during the latter half of the year with strong traction in terms of user growth. We also obtained a bank license recently in the Philippines. Indonesia, which has the most comprehensive set of products and services among our markets, over 20% of the quarterly active users have used multiple SeaMoney products and/or services in the fourth quarter.

在 2021 年第四季度和全年，我們進一步擴展了我們的數字金融服務產品，包括信貸、保險科技和數字銀行服務。例如，我們在下半年在印度尼西亞推出了 SeaBank，在用戶增長方面具有強大的牽引力。我們最近還在菲律賓獲得了銀行牌照。印度尼西亞是我們市場中產品和服務最全面的國家，超過 20% 的季度活躍用戶在第四季度使用了多種 SeaMoney 產品和/或服務。

We view this as a highly positive indicator of the strong efficiencies we can leverage in bringing new digital financial service offerings to the large and fast-growing user base in our entire consumer internet ecosystems. In particular, we see Shopee and SeaMoney as both highly synergistic with one another and enjoy a strong flywheel effect in their scaling.

我們認為這是一個非常積極的指標，表明我們可以利用強大的效率為我們整個消費者互聯網生態系統中龐大且快速增長的用戶群帶來新的數字金融服務產品。特別是，我們認為 Shopee 和 SeaMoney 相互之間具有高度協同作用，並且在它們的擴展中享有強大的飛輪效應。

The total payment volume of our mobile wallet was close to $5 billion in the fourth quarter, up 70% year-on-year, and $17.2 billion for the full year, up 120% year-on-year. In 2021, we grew our mobile wallet services across both on-platform and off-platform use cases, leveraging our growing ecosystem of products and services. This further drives a positive flywheel effect that allows us to benefit through higher growth and better efficiency as we drive adoption across both consumers and merchants.

第四季度我們的手機錢包支付總額接近50億美元，同比增長70%，全年172億美元，同比增長120%。 2021 年，我們利用我們不斷增長的產品和服務生態系統，在平台上和平台外用例中發展了我們的移動錢包服務。這進一步推動了積極的飛輪效應，使我們能夠通過更高的增長和更高的效率受益，因為我們推動了消費者和商家的採用。

In the fourth quarter, we expanded our payment acceptance points to include key merchants like AirAsia in the Philippines, 7-Eleven in Malaysia and Subway in Thailand. We believe there are many other large opportunities within our market that SeaMoney can address. We are looking forward to rolling out more digital financial products and services in 2022 as we continue serving the underserved in our ecosystem with technology. At the same time, as the business grows with our communities adopting more financial services and products, we are also excited to see that SeaMoney is on track to achieve positive cash flow by next year.

第四季度，我們擴大了支付受理點，包括菲律賓的亞航、馬來西亞的 7-11 和泰國的賽百味等主要商戶。我們相信，SeaMoney 可以解決我們市場中的許多其他重大機遇。我們期待在 2022 年推出更多數字金融產品和服務，因為我們將繼續通過技術為生態系統中服務不足的群體提供服務。同時，隨著我們的社區採用更多金融服務和產品，業務增長，我們也很高興看到 SeaMoney 有望在明年實現正現金流。

To conclude, I'm proud of the progress our team has made in 2021, both in scaling our businesses and serving our communities. We believe we are very well positioned to continue strengthening our market leadership while focusing on sustainable and efficient long-term growth. We are highly confident that the learnings and the resilience we've seen over the past year will only further enhance our ability to execute on our long-term strategies and continue to deliver significant value to our community and stakeholders. I would also like to personally and on behalf of Sea, thank our stakeholders and friends for your continued long-term support. We hope to return your trust and investment in us with continued strong execution and focus on the long-term success of the company.

最後，我為我們的團隊在 2021 年取得的進步感到自豪，無論是在擴大業務規模還是為社區服務方面。我們相信，我們已做好充分準備，繼續加強我們的市場領導地位，同時專注於可持續和高效的長期增長。我們非常有信心，我們在過去一年中所看到的學習和復原力只會進一步增強我們執行長期戰略的能力，並繼續為我們的社區和利益相關者創造重要價值。我還要個人和代表 Sea，感謝我們的利益相關者和朋友們一直以來的支持。我們希望通過持續強大的執行力和專注於公司的長期成功來回報您對我們的信任和投資。

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

有了這個，我將邀請託尼討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call. We have included detailed financial schedules together with the corresponding management analysis in today's press release, and Forrest has discussed some of our financial highlights. So I will focus my comments on the other relevant metrics.

謝謝你，Forrest，也感謝大家加入電話會議。我們在今天的新聞稿中包含了詳細的財務時間表以及相應的管理分析，Forrest 討論了我們的一些財務亮點。因此，我將把我的評論集中在其他相關指標上。

For Sea overall, total GAAP revenue increased 106% year-on-year to $3.2 billion in the fourth quarter, and 128% year-on-year to $10 billion for the full year of 2021. This was primarily driven by the growing adoption of products and services across our e-commerce and digital financial services businesses as we continue to deepen the engagement with our users as well as the growth of our digital entertainment business.

對於 Sea 整體而言，GAAP 總收入在第四季度同比增長 106% 至 32 億美元，在 2021 年全年同比增長 128% 至 100 億美元。這主要是由於越來越多地採用隨著我們繼續加深與用戶的互動以及數字娛樂業務的增長，我們的電子商務和數字金融服務業務中的產品和服務。

Digital entertainment bookings rose 7% year-on-year to $1.1 billion in the fourth quarter and 44% year-on-year to $4.6 billion for the full year of 2021. GAAP revenue was up 104% year-on-year to $1.4 billion in the fourth quarter and 114% year-on-year to $4.3 billion for the full year of 2021. Digital entertainment adjusted EBITDA was $603 million in the fourth quarter and $2.8 billion for the full year of 2021. On e-commerce, our fourth quarter GAAP revenue of $1.6 billion included GAAP marketplace revenue of $1.3 billion, up 104% year-on-year and GAAP product revenue of $0.3 billion, up 48% year-on-year.

第四季度數字娛樂預訂量同比增長 7% 至 11 億美元，2021 年全年同比增長 44% 至 46 億美元。GAAP 收入同比增長 104% 至 14 億美元第四季度，同比增長 114%，達到 2021 年全年的 43 億美元。數字娛樂調整後的 EBITDA 第四季度為 6.03 億美元，2021 年全年為 28 億美元。在電子商務方面，我們的第四季度季度 GAAP 收入 16 億美元，其中 GAAP 市場收入 13 億美元，同比增長 104%；GAAP 產品收入 3 億美元，同比增長 48%。

For the full year of 2021, GAAP revenue of $5.1 billion included GAAP marketplace revenue of $4.1 billion, up 156% year-on-year and GAAP product revenue of $1.1 billion, up 83% year-on-year. The strong results demonstrated the deepening penetration of e-commerce and our ability to capture these significant growth opportunities.

2021年全年，GAAP收入51億美元，其中GAAP市場收入41億美元，同比增長156%；GAAP產品收入11億美元，同比增長83%。強勁的業績表明電子商務的深入滲透以及我們抓住這些重要增長機會的能力。

E-commerce adjusted EBITDA loss was $878 million in the fourth quarter, and $2.6 billion for the full year of 2021 as we continued our investment to fully capture the opportunities in our markets. We remain committed to continue investing in a prudent and sustainable manner and growing the ecosystem to serve our users better.

第四季度電子商務調整後的 EBITDA 虧損為 8.78 億美元，2021 年全年為 26 億美元，因為我們繼續投資以充分抓住市場機會。我們仍然致力於繼續以審慎和可持續的方式進行投資，並發展生態系統以更好地為我們的用戶服務。

Digital financial services GAAP revenue was $198 million in the fourth quarter and $470 million for the full year of 2021. This represents year-on-year growth of 711% and 673% for the quarter and full year, respectively. The growth was primarily due to increasing traction as we continue to expand our suite of services offerings.

數字金融服務 GAAP 第四季度收入為 1.98 億美元，2021 年全年為 4.7 億美元。這分別代表該季度和全年的同比增長 711% 和 673%。增長主要是由於我們繼續擴展我們的服務產品套件而增加的牽引力。

Adjusted EBITDA loss was $150 million in the fourth quarter and $617 million for the full year of 2021. This was primarily due to our continued efforts to drive mobile wallet adoption. Returning to our consolidated numbers, we recognized a net nonoperating loss of $71 million in the fourth quarter of 2021 compared to a net nonoperating loss of $124 million in the fourth quarter of 2020. For the full year, our nonoperating loss was $132 million compared to a loss of $180 million for the full year of 2020.

第四季度調整後的 EBITDA 虧損為 1.5 億美元，2021 年全年為 6.17 億美元。這主要是由於我們繼續努力推動移動錢包的採用。回到我們的綜合數據，我們確認 2021 年第四季度的淨非經營性虧損為 7100 萬美元，而 2020 年第四季度的淨非經營性虧損為 1.24 億美元。全年，我們的非經營性虧損為 1.32 億美元，相比之下2020年全年虧損1.8億美元。

Our nonoperating loss for the fourth quarter and full year ended December 31, 2021 was primarily due to interest expense on our convertible notes. We had a net income tax expense of $106 million in the fourth quarter of 2021 and $333 million for the full year of 2021. This was primarily due to corporate income tax and withholding tax recognized in our digital entertainment business. As a result, net loss, excluding share based compensation, was $483 million in the fourth quarter of 2021 and $1.6 billion for the full year of 2021. With that, let me turn the call to Min Ju.

我們截至 2021 年 12 月 31 日的第四季度和全年的非經營性虧損主要是由於我們的可轉換票據的利息費用。我們在 2021 年第四季度的淨所得稅費用為 1.06 億美元，在 2021 年全年為 3.33 億美元。這主要是由於我們在數字娛樂業務中確認的企業所得稅和預扣稅。因此，2021 年第四季度的淨虧損（不包括基於股票的薪酬）為 4.83 億美元，2021 年全年為 16 億美元。因此，讓我把電話轉給閔菊。

Thank you, Forrest and Tony. We are now ready to open the call for 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) Our first question is from Alicia Yap from Citi GP.

（操作員說明）我們的第一個問題來自 Citi GP 的 Alicia Yap。

I have 2 questions. The first one on the digital entertainment. Regarding your guidance, I believe you are not including any of those new games that you mentioned in the pipeline that potentially you plan to publish in later the year. So I just want to clarify on that. And then related to that as well, besides India, which country do you think we'll also see some declining trend?

我有 2 個問題。第一個關於數字娛樂的。關於您的指導，我相信您沒有包括您在管道中提到的任何可能計劃在今年晚些時候發布的新遊戲。所以我只想澄清一下。然後也與此相關，除了印度，您認為哪個國家還會看到一些下降趨勢？

And then second question is on the e-commerce. With the decisions to exit trends, at what point would you also evaluate some of these cross-border tractions in Poland and Spain that you could maybe kind of prompt you to moving ahead with your next step of the penetration?

第二個問題是關於電子商務的。隨著決定退出趨勢，您何時還會評估波蘭和西班牙的一些跨境牽引力，您可能會促使您繼續下一步的滲透？

Thank you, Alicia. In terms of digital entertainment, our guidance does take into account of games that we believe might be launched this year. Of course, any new games in the initial launch stage probably will focus more on user growth and payment penetration as opposed to immediately focus on monetization. So the contribution probably might come towards the later part of the year or later part of the stage of the development of the game.

謝謝你，艾麗西亞。在數字娛樂方面，我們的指導確實考慮了我們認為可能在今年推出的遊戲。當然，任何處於初始發布階段的新遊戲可能會更多地關注用戶增長和支付滲透，而不是立即關注貨幣化。因此，貢獻可能會出現在今年下半年或遊戲開發階段的後期。

And in terms of the trends, I think the overall opening up post COVID is across all the markets. And therefore, we do start to see the weakening. I think it's industry-wide as well. And we are still evaluating the data and the trends. At the same time, we are very much focused on the long-term success of the Free Fire IP, which we see it as a very important strategic asset to us. While, of course, it is contributing billions of dollars of cash every year, but most importantly, we want to build into a long-lasting IP and with hundreds of millions of active users fully engaged and socializing and playing different types of games at most and also incorporating more IP over time into this game and platform to go into more of an important franchise which we will use as also key to the future development of the virtual economy. So I think while there are some headwinds, our focus on the long term has not wavered and our view towards the game as a long-term play has not changed.

就趨勢而言，我認為 COVID 後的整體開放遍及所有市場。因此，我們確實開始看到削弱。我認為它也是全行業的。我們仍在評估數據和趨勢。同時，我們非常關注 Free Fire IP 的長期成功，我們認為它是我們非常重要的戰略資產。當然，它每年都會貢獻數十億美元的現金，但最重要的是，我們希望打造一個持久的 IP，讓數億活躍用戶充分參與和社交，最多玩不同類型的遊戲並且隨著時間的推移將更多的 IP 整合到這個遊戲和平台中，以進入更多重要的特許經營權，我們將把它用作虛擬經濟未來發展的關鍵。所以我認為儘管存在一些不利因素，但我們對長期的關注並沒有動搖，我們對遊戲作為長期遊戲的看法也沒有改變。

In terms of e-commerce, as we shared, we are focused on Southeast Asia and Taiwan as our core existing markets, which has continued to enjoy very strong growth despite the very strong comps versus last year during the height of COVID. And as you can see, we also have gained significant ground vis-a-vis our peers. In Indonesia, we grew more than -- about 88% year-on-year in the quarter. And also in ASEAN + 6 countries, our growth rate is around 80%. So our growth rate is meaningfully, significantly, in fact, higher than our next peer, while we are already multiple times their size. So that is highly encouraging. And at the same time, we are looking at more and more markets turning profitable as we shared in terms of adjusted EBITDA before HQ costs allocation. So this will become -- the market will not only be a growth engine for us, but also potentially down the road contribute positive cash to fund our global growth.

正如我們所分享的，在電子商務方面，我們專注於東南亞和台灣作為我們的核心現有市場，儘管在 COVID 高峰期間與去年相比表現非常強勁，但這些市場仍繼續享有非常強勁的增長。正如你所看到的，我們在同行中也取得了顯著的進步。在印度尼西亞，我們在本季度同比增長超過 - 約 88%。而且在東盟+6個國家，我們的增長率也在80%左右。因此，我們的增長率實際上比我們的下一個同行要高得多，而我們的規模已經是他們的幾倍。所以這是非常令人鼓舞的。與此同時，我們正在關注越來越多的市場開始盈利，正如我們在總部成本分配之前的調整後 EBITDA 方面所分享的那樣。因此，這將成為——市場不僅將成為我們的增長引擎，而且可能在未來貢獻正現金，為我們的全球增長提供資金。

And another growth area that we focus on is Brazil. Not only we have reached top ranking in downloads and total time spent and second in MAU just 2 years after entering the market, we have also achieved more than 140 million of quarterly gross orders with $170 million revenue in the market. As we also shared for that kind of -- when we enter into the market, we focus first on user growth and then order growth and then market leadership and positive unit economics over time with scale. We have repeated that playbook 7 times in 7 highly distinct markets in Southeast Asia and Taiwan. And we are saying that we are already seeing strong user traction, strong order growth and success to market leadership and also improving -- fast-improving UE, unit economics, in that market while pointing to another potential market that could essentially double our total addressable market for e-commerce with a highly proven profitability.

我們關注的另一個增長領域是巴西。進入市場僅2年，我們不僅在下載量和總時長上排名第一，MAU排名第二，而且在市場上實現了超過1.4億的季度總訂單和1.7億美元的收入。正如我們也分享的那樣——當我們進入市場時，我們首先關注用戶增長，然後是訂單增長，然後是市場領導力和隨著時間的推移帶來的積極的單位經濟規模。我們已經在東南亞和台灣的 7 個高度不同的市場重複了 7 次該劇本。我們是說，我們已經看到強大的用戶牽引力、強勁的訂單增長和市場領導地位的成功，並且也在改善——在該市場中快速改善的用戶設備、單位經濟性，同時指出另一個潛在市場可以從根本上使我們的總目標翻一番具有高度盈利能力的電子商務市場。

Now when you look at Southeast Asia and Taiwan, we're probably the first large e-commerce player to show profitability in this market, in this region. But in Lat Am, all the existing major players are quite profitable. So the profitability model for the market is highly proven. Therefore, we are very encouraged by the results of our e-commerce and its outlook into a global platform.

現在，當你看看東南亞和台灣時，我們可能是第一個在這個市場、在這個地區表現出盈利能力的大型電子商務公司。但在拉丁美洲，所有現有的主要參與者都非常有利可圖。因此，市場的盈利模式得到了高度證明。因此，我們對電子商務的成果及其成為全球平台的前景感到非常鼓舞。

In terms of the other markets that we shared before, these are highly nascent markets where we might test the waters in from time to time. So our exit from France again shows while we are open minded, we're also very disciplined in our pilot exercise. So we'll remain disciplined and open-minded with all our markets. Again, the focus will be on the existing core Southeast Asia and Taiwan market and our new growth market in Brazil.

就我們之前分享的其他市場而言，這些都是高度新生的市場，我們可能會不時試水。因此，我們從法國的退出再次表明，雖然我們思想開放，但我們在試點演習中也非常自律。因此，我們將對所有市場保持自律和開放的態度。同樣，重點將放在現有的核心東南亞和台灣市場以及我們在巴西的新增長市場。

Our next question comes from Piyush Mubayi from Goldman Sachs.

我們的下一個問題來自高盛的 Piyush Mubayi。

Can you hear me?

你能聽到我嗎？

Yes, we can hear you.

是的，我們可以聽到你的聲音。

If I could just ask about what is built into your game forecast for 2022 for bookings that you shared with us. And how does that potentially change if India was to come back on track as an earlier than expected date potentially. So if you could just share with us how you're thinking through that, we will be grateful.

如果我能問一下您與我們分享的預訂，您對 2022 年的遊戲預測中包含什麼內容。如果印度可能早於預期日期重回正軌，這可能會發生什麼變化。因此，如果您能與我們分享您的想法，我們將不勝感激。

And the second is if it is at all possible in the gaming business to talk about how quickly you can build up a portfolio of games and move into beta stage with some of those games, that would be fantastic to understand how we can expect that trajectory to potentially proceed through the growth of 2022 quarter-by-quarter and then into 2023.

第二個是如果在遊戲業務中完全有可能談論您可以多快地建立遊戲組合併通過其中一些遊戲進入測試階段，那麼了解我們如何預期該軌跡將是非常棒的可能會逐個季度地經歷 2022 年的增長，然後進入 2023 年。

And third, this is a general question on the e-commerce business, where we noticed how the momentum is very positive, both from the standpoint of rate on account of take rate progression as well as a progression towards free cash flow and profitability. I wonder if you could just take a step back and give us a feel for how much further this business can be accelerated into 2022 versus where the guide is.

第三，這是一個關於電子商務業務的普遍問題，我們注意到從利率的角度來看，這種勢頭是非常積極的，考慮到利率的提高以及自由現金流和盈利能力的進展。我想知道您是否可以退後一步，讓我們了解一下與指南相比，這項業務在 2022 年可以進一步加速多少。

Okay. Thank you, Piyush. So the voice quality wasn't very good, I'll try to answer your question, if it's not clear, please let me now. In terms of the game guidance, as we shared in the earnings that given the opening of our markets and the trends we're seeing and also some unexpected government action we are facing, we have taken into -- this into consideration. And therefore, we, at this point, believe our 2022 game bookings will probably be close to the level of 2020. That means we are getting back some of the gains we made during -- partially during the COVID. And also with some additional discounts to reflect the situation in India, which is highly uncertain. Again, I think at this point, given the uncertainties we are facing, this is probably more art than science for us.

好的。謝謝你，皮尤什。所以語音質量不是很好，我會盡力回答你的問題，如果不清楚，請讓我現在。在遊戲指導方面，由於我們分享了市場開放和我們所看到的趨勢以及我們面臨的一些意想不到的政府行動的收益，我們已經考慮到了這一點。因此，在這一點上，我們相信我們 2022 年的遊戲預訂量可能會接近 2020 年的水平。這意味著我們正在恢復我們在疫情期間取得的一些收益——部分是在 COVID 期間。並且還有一些額外的折扣來反映印度的情況，這是高度不確定的。同樣，我認為在這一點上，鑑於我們面臨的不確定性，這對我們來說可能更像是藝術而不是科學。

In terms of the game portfolio, we are very focused on diversifying our game genres. As we shared before, we are looking into different genres such as sandbox, RPG and other more casual games to supplement our existing offerings. Now I think these will still be early stage games. And also given the size of Free Fire, which is one of the largest and highest grossing mobile games in history, it is probably hard to come up immediately with other games that can match the size of Free Fire. However, everything we're doing is to a, diversify our portfolio and capability; and b, at the same time, will prepare for the long run while we already have such a big platform of Free Fire that we can incorporate different types of game modes and IP into and leverage that platform to introduce more content and more types of games and more IP to our user base, which still remains probably one of the largest user bases in the world. So while we have some earnings headwinds on the game side, our focus is really on the long run to make sure that we stand ready to capture the next wave of major opportunities that might come.

就遊戲組合而言，我們非常專注於多元化我們的遊戲類型。正如我們之前分享的，我們正在研究不同類型的遊戲，例如沙盒、RPG 和其他更休閒的遊戲，以補充我們現有的產品。現在我認為這些仍將是早期階段的遊戲。而且考慮到 Free Fire 的規模，它是歷史上最大、收入最高的手機遊戲之一，可能很難立即找到其他遊戲可以與 Free Fire 的規模相媲美。然而，我們所做的一切都是為了使我們的投資組合和能力多樣化；同時，我們會為長遠做準備，我們已經有這麼大的Free Fire平台，我們可以將不同類型的遊戲模式和IP融入其中，並利用該平台推出更多內容和更多類型的遊戲並為我們的用戶群提供更多 IP，這仍然可能是世界上最大的用戶群之一。因此，雖然我們在遊戲方面遇到了一些收益逆風，但我們的重點實際上是長期來看，以確保我們隨時準備好抓住可能到來的下一波重大機遇。

If you look at our track record, so far, it's been quite strong. We captured the mobile league, for example, on the PC side with the rise of League of Legends, and we are the exclusive publisher that took us to where we initially were at the time of IPO as a gatekeeper of Southeast Asia and Taiwan in terms of game publishing. And then we also captured the next mobile wave with the publishing of Arena of Valor, development of Free Fire by ourselves which expanded our TAM of Southeast Asia-focused market to a global platform. And then we also captured the battle royale wave with the rise of Free Fire and that significantly enhanced our game side, the business side of the business and also the overall strength of the business. I think our track record speaks for itself. So what we are doing now is continue to get us ready and strengthen our capabilities to capture the next major wave that might come our way.

如果你看看我們的記錄，到目前為止，它一直很強勁。例如，隨著英雄聯盟的興起，我們在 PC 端佔領了移動聯盟，我們是獨家發行商，將我們帶到了最初在 IPO 時作為東南亞和台灣守門人的位置的遊戲發行。然後我們也抓住了下一波移動浪潮，發布了 Arena of Valor，我們自己開發了 Free Fire，將我們以東南亞市場為中心的 TAM 擴展到了一個全球平台。然後我們還隨著 Free Fire 的興起抓住了大逃殺浪潮，這顯著增強了我們的遊戲方面、業務的業務方面以及業務的整體實力。我認為我們的業績不言而喻。因此，我們現在正在做的是繼續讓我們做好準備並加強我們的能力，以捕捉可能出現的下一個主要浪潮。

In terms of the take rates, so we are -- as we shared before, we believe a high single, low double-digit rate is achievable in the longer run. We still believe that. And as you can see, we are progressing well towards that rate in most of the markets. We're already getting a high single-digit rate and we believe this will continue to rise, although we think a gradual and well-managed progression will be adapted for our business in the long run.

就獲取率而言，正如我們之前分享的那樣，我們相信從長遠來看，可以實現高個位數、低兩位數的利率。我們仍然相信這一點。正如你所看到的，我們在大多數市場都朝著這個速度前進。我們已經獲得了很高的個位數比率，我們相信這將繼續上升，儘管我們認為從長遠來看，我們的業務將適應漸進和管理良好的進展。

And also for the newer markets such as Brazil, as you can see, the prevailing rate in the market are more at 15% to 18% charged by some of the leading players. So it is a very high take rate market also. So we're not particularly worried about the e-commerce take rates.

正如您所看到的，對於巴西等較新的市場，市場上的現行稅率更多的是由一些領先企業收取的 15% 至 18%。所以這也是一個非常高的市場。所以我們並不特別擔心電子商務的收取率。

And in terms of profitability, as we shared, we believe Southeast Asia and Taiwan will achieve positive adjusted EBITDA before HQ costs allocation by this year. That means more and more markets will break even on that term over time this year and maybe going into next year. So that will give us also a strong footing in further growing our other new growth markets, as I shared before, where profitability has long been proven.

而在盈利能力方面，正如我們所分享的，我們相信東南亞和台灣將在今年實現總部成本分配前調整後的 EBITDA 為正。這意味著隨著時間的推移，越來越多的市場將在今年甚至明年實現收支平衡。因此，正如我之前分享的那樣，這也將為我們進一步發展其他新的增長市場奠定堅實的基礎，這些市場的盈利能力早已得到證明。

Our next question comes from Jiong Shao from Barclays.

我們的下一個問題來自巴克萊的邵炯。

This is Roger on behalf of Jiong. So I have 2 quick questions. First of all is, can management talk a little bit about your view on the 2022 GMV growth? And the second is, can the management help to sort of break down the rough mix of Asia and new markets in terms of EBITDA loss this quarter?

這是Roger代表Jong。所以我有兩個快速的問題。首先，管理層能否談談您對 2022 年 GMV 增長的看法？第二個是，管理層能否在本季度 EBITDA 損失方面幫助分解亞洲和新市場的粗略組合？

Yes. So we don't give guidance on GMV, but we did give guidance on GAAP revenue for e-commerce. We believe that it reflects our view about the potential growth rate. And I also mentioned that in terms of the take rate increase, there will be -- while we will continue to increase take rate, the pace will be moderated and well measured.

是的。所以我們沒有給出關於 GMV 的指導，但我們確實給出了關於電子商務的 GAAP 收入的指導。我們認為這反映了我們對潛在增長率的看法。而且我還提到，就採取率的增加而言，將會有 - 雖然我們將繼續提高采取率，但步伐將適度且有條不紊。

We don't also do the -- give the breakdown in terms of the EBITDA, but we have given the order number for fourth quarter on Brazil and also the EBITDA loss pre-HQ allocation per order in Brazil. So I think you can roughly do the math.

我們也沒有給出 EBITDA 的細分，但我們給出了巴西第四季度的訂單號，以及巴西每個訂單的 EBITDA 損失前總部分配。所以我認為你可以粗略地做數學。

Our next question comes from Piyush Choudhary from HSBC Singapore.

我們的下一個問題來自新加坡匯豐銀行的 Piyush Choudhary。

Two questions. Firstly, on e-commerce, your guidance to achieve positive adjusted EBITDA in your core markets, this would be driven by what key factors? Is it higher take rate or lower sales and marketing? And any color over there would be helpful. And if you can throw some light on the competitive landscape in core markets?

兩個問題。首先，在電子商務方面，您對在核心市場實現正調整 EBITDA 的指導，這將受到哪些關鍵因素的推動？是更高的接受率還是更低的銷售和營銷？那裡的任何顏色都會有幫助。如果你能對核心市場的競爭格局有所了解？

Secondly, your cash and cash equivalents went down by $1.6 billion quarter-on-quarter to $10.2 billion. Can you highlight what factors drove that decline? Is there any other investments?

其次，您的現金和現金等價物環比減少 16 億美元至 102 億美元。你能強調一下是什麼因素導致了這種下降嗎？有其他投資嗎？

Sure. In terms of our e-commerce cost of EBITDA in Southeast Asia and Taiwan, this is as a result of both the higher take rates and also cost efficiency as we scale. As we always mentioned, the platform, the marketplace model that we are pursuing enjoys a strong silo effect and the economy of scale as we continue to grow our business, the unit economics just keeps improving. And then naturally, it comes to a breakeven point.

當然。就我們在東南亞和台灣的 EBITDA 電子商務成本而言，這是由於更高的收取率和我們擴大規模時的成本效率。正如我們一直提到的，隨著我們業務的不斷發展，我們所追求的平台、市場模式享有強大的筒倉效應和規模經濟，單位經濟也在不斷提高。然後自然而然地達到了盈虧平衡點。

And at the same time, as you can see, we have been rapidly ramping up the take rate, especially on the margin take rate in terms of transaction-based revenue as well as advertisement. We are broadly charging more types of sellers and gradually raising the take rate each type of sellers might pay. And at the same time, more importantly, voluntary sellers are adopting more of our free shipping program, advertisement program and they're actually paying more as our business and their business stay on our platform to facilitate further growth of their business.

同時，正如您所看到的，我們一直在迅速提高收取率，尤其是在基於交易的收入和廣告方面的保證金收取率方面。我們正在廣泛地向更多類型的賣家收取費用，並逐步提高每種類型的賣家可能支付的費率。同時，更重要的是，自願賣家正在更多地採用我們的免費送貨計劃、廣告計劃，他們實際上支付了更多費用，因為我們的業務和他們的業務都留在我們的平台上，以促進他們的業務進一步增長。

So as the marketplace model, its profitability is actually quite proven. But it takes certain investment and time to get there. We believe we probably will be one of the first to get there as a major e-commerce player in this region, but we are very happy that at the same time, we're still growing at a very strong rate despite the tough comp against the COVID period and also extending our market leadership vis-a-vis all our peers.

因此，作為市場模式，它的盈利能力實際上已經得到了充分證明。但它需要一定的投資和時間才能到達那裡。我們相信我們可能會成為第一批在該地區成為主要電子商務參與者的公司之一，但我們很高興與此同時，儘管面臨艱難的競爭，我們仍然以非常強勁的速度增長COVID 時期，並擴大了我們在所有同行中的市場領導地位。

I'd like to invite Tony to address the second question.

我想請託尼回答第二個問題。

Yes, sure. About the cash position, we are trying to optimize the cash yield by investing into a shortened time deposit, some of which are over the period of 3 months and by [GAAP] is categorized as structured investment and that amounts to a quite significant $800 million to $900 million. So if you add that back, actually, the cash position is over $10 billion.

是的，當然。關於現金頭寸，我們正試圖通過投資縮短的定期存款來優化現金收益，其中一些期限超過 3 個月，並且被 [GAAP] 歸類為結構性投資，金額高達 8 億美元至 9 億美元。所以如果你把它加回來，實際上，現金頭寸超過 100 億美元。

Yes, so this is just to say that the cash isn't gone. It's just [made] to us some savings by us.

是的，所以這只是說現金沒有消失。我們只是為我們節省了一些錢。

The next question comes from Ranjan Sharma from JPMorgan.

下一個問題來自摩根大通的 Ranjan Sharma。

Two questions from my side. Firstly, if you can talk about new game development, we know there's a lot of talent available in China now. Are you changing your hiring strategies to accelerate new game development? And second question, I know it's a bit sensitive, but is there a process to get the ban revoked in India on Free Fire?

我這邊有兩個問題。首先，如果你能談談新遊戲的開發，我們知道現在中國有很多人才。您是否正在改變招聘策略以加速新遊戲的開發？第二個問題，我知道這有點敏感，但是有沒有一個程序可以讓印度在 Free Fire 上撤銷禁令？

In terms of new game development, I think our strategy has been quite consistent. We have studios globally in the States and also in Singapore, Asia and Korea and other parts of Asia. So we are focused on [income] development. And at the same time, we have been investing globally into strong development teams and IP with partnership agreements tied to such investments that also augments our organic pipeline.

在新遊戲開發方面，我認為我們的策略是相當一致的。我們在全球的美國以及新加坡、亞洲和韓國以及亞洲其他地區都設有工作室。所以我們專注於[收入]發展。與此同時，我們一直在全球範圍內投資強大的開發團隊和知識產權，並簽訂與此類投資相關的合作協議，這也增強了我們的有機管道。

And of course, there's the publishing side that we continue to work with, and we'll discuss partnerships with the global game developers to bring top IP to our region.

當然，還有我們繼續合作的發行方，我們將討論與全球遊戲開發商的合作夥伴關係，以將頂級 IP 帶到我們的地區。

And in terms of Free Fire in India, we're still working on it. Other than what's been publicly disclosed, we don't have much more to share at this point. Thank you.

就印度的 Free Fire 而言，我們仍在努力。除了公開披露的內容外，我們目前沒有更多可分享的內容。謝謝你。

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

我們的問答環節到此結束。我想把會議轉回給 Min Ju Song 做任何閉幕詞。

Thank you. Thank you all for joining today. We look forward to speaking to all of you again next quarter. Much appreciated.

謝謝你。感謝大家今天的加入。我們期待下個季度再次與大家交談。非常感激。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。