(SE) 2022 Q1 法說會逐字稿

SP1 -- Good morning and good evening. Welcome to the Sea Limited First Quarter 2022 Results Conference Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Ms. Min Ju Song. Please go ahead.

SP1——早上好，晚上好。歡迎來到 Sea Limited 2022 年第一季度業績電話會議。 （操作員說明）今天的演示結束後，將有機會提問。請注意，正在記錄此事件。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 2022 First Quarter 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 2022 年第一季度收益電話會議。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, Andrew Wang. Our management will share strategy and business updates, operating highlights and financial performance for the first quarter of 2022. 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Andrew Wang。我們的管理層將分享 2022 年第一季度的戰略和業務更新、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 Forrest

Hello, everyone, and thank you for joining today's call. I'm pleased to share that we have made a strong start to 2022. We recorded solid results across our business in the first quarter of 2022 despite challenging comparisons to the same period last year during heightened COVID-related restrictions.

大家好，感謝您加入今天的電話會議。我很高興地與大家分享，我們在 2022 年取得了良好的開端。儘管與去年同期相比，在與 COVID 相關的限制加劇期間，我們的業務取得了可觀的業績，儘管與去年同期相比具有挑戰性。

As a result, we are well on track to achieve our previously shared projections of profitability in our Asia markets, while continuing to scale our businesses and capture market share globally.

因此，我們有望在亞洲市場實現之前共同的盈利預測，同時繼續擴大我們的業務並在全球範圍內佔領市場份額。

During the first quarter, our group GAAP revenue grew 64% year-on-year to reach $2.9 billion, and we generated gross profit of $1.2 billion, an increase of 81% year-on-year. Shopping and SeaMoney continues to enjoy operating leverage and efficiency gains as they scale and strengthen their market leadership positions. In particular, Shopee's adjusted EBITDA loss per order before allocation of HQ costs in Southeast Asia and Taiwan improved by more than 70% year-on-year to $0.04. This shows that Shopee is well on track to achieve positive adjusted EBITDA before allocation of costs in the region.

第一季度，我們集團的 GAAP 收入同比增長 64%，達到 29 億美元，實現毛利潤 12 億美元，同比增長 81%。 Shopping 和 SeaMoney 在擴大規模和鞏固市場領導地位的同時，繼續享受運營槓桿和效率提升。特別是蝦皮在東南亞和台灣分配總部成本之前的每筆訂單調整後 EBITDA 損失同比改善 70% 以上至 0.04 美元。這表明 Shopee 有望在該地區成本分配之前實現正調整 EBITDA。

In addition, we currently expect Shake to achieve positive adjusted EBITDA even after allocation of HQ cost by the end of next year for this region. At the same time, Shopee enjoyed very strong growth even against the tough comparisons last year. Its gross orders grew more than 70% year-on-year, and the gas marketplace revenue increased by more than 75% year-on-year, further extending Shopee's market leadership both in terms of transaction volume and commercialization capability.

此外，我們目前預計，即使在明年年底之前為該地區分配總部成本後，Shake 仍將實現正的調整後 EBITDA。與此同時，即使與去年的艱難比較相比，Shopee 的增長也非常強勁。其訂單總額同比增長超過 70%，天然氣市場收入同比增長超過 75%，進一步鞏固了蝦皮在交易量和商業化能力方面的市場領先地位。

SeaMoney's adjusted EBITDA loss also narrowed both quarter-on-quarter and year-on-year, while GAAP revenue grew close to 350% compared to last year. Quarterly active users grew more than 78% year-on-year. This is also a strong indication of SeaMoney being on track to achieve positive cash flow, as we previously projected, while at the same time continuing to scale rapidly with efficiency. It's a significant scale, strong leadership and clear synergies achieved by Shopee and SeaMoney in Southeast Asia and Taiwan.

SeaMoney 調整後的 EBITDA 虧損環比和同比均收窄，而 GAAP 收入與去年相比增長近 350%。季度活躍用戶同比增長超過 78%。正如我們之前預測的那樣，這也有力地表明 SeaMoney 有望實現正現金流，同時繼續高效地快速擴展。這是 Shopee 和 SeaMoney 在東南亞和台灣地區取得的顯著規模、強大的領導力和明顯的協同效應。

Our consumer Internet ecosystem in the region is naturally approaching a stage of long-term profitable growth. While arena experienced headwinds in its growth post COVID, we saw some preliminary positive effects from our efforts to improve user engagement in Free Fire. In particular, the monthly user trends for Free Fire began to show some early signs of stabilizing toward the end of the fourth quarter. We are assessing the long-term trends in user engagements post COVID to better tailor our strategies and areas of focus using ever more engaging content within Free Fire and strengthening our pipeline of new games remain our key priorities.

我們在該地區的消費互聯網生態系統自然正在接近長期盈利增長階段。雖然競技場在 COVID 之後的增長中遇到了不利因素，但我們看到了我們努力提高用戶對 Free Fire 的參與度的一些初步積極影響。特別是，Free Fire 的月度用戶趨勢在第四季度末開始出現一些穩定的早期跡象。我們正在評估 COVID 後用戶參與度的長期趨勢，以使用 Free Fire 中更具吸引力的內容來更好地調整我們的策略和重點領域，並加強我們的新遊戲管道仍然是我們的主要優先事項。

In the past 2 years, we successfully navigated the major uncertainties brought by the pandemic to capture the significant growth opportunities presented to us across all businesses. As we enter a new period, we recognize that the current micro trends and uncertainties could affect our region and the work in the near to midterm. The experiences, capabilities, resources and further strengthened leadership positions, we managed to accumulate and achieve during the past period have put us in a stronger-than-ever position to navigate such uncertainties and more importantly, capture opportunities that may also arise in our regions.

在過去的兩年中，我們成功應對了疫情帶來的重大不確定性，抓住了所有業務為我們提供的重大增長機會。隨著我們進入一個新時期，我們認識到當前的微觀趨勢和不確定性可能會影響我們的地區和近期至中期的工作。在過去的一段時間裡，我們設法積累和取得的經驗、能力、資源和進一步加強的領導地位使我們處於比以往任何時候都更強大的地位來應對這些不確定性，更重要的是，抓住我們地區可能出現的機會.

As always, we will continue to focus on being humble, pragmatic and agile while consistently driving strong execution in serving the large underserved communities in our regions. With that, let me now discuss each business individually.

與往常一樣，我們將繼續專注于謙遜、務實和敏捷，同時始終如一地推動強有力的執行，為我們地區服務不足的大型社區提供服務。有了這個，現在讓我單獨討論每個業務。

In the first quarter, Shopee continued to significantly improve its unit economics while capturing market share and expanding its leadership position across our markets. Online consumption continued to grow on our Shopee platform, resulting in strong year-on-year growth. Shopee's GAAP revenue was $1.5 billion, up 64% year-on-year in the fourth quarter. And the gross orders grew 71% from last year to reach $1.9 billion. GMV was $17.4 billion, an increase of 39% year-on-year and growing at a 58% CAGR from the first quarter of 2020 before the pandemic.

在第一季度，Shopee 繼續顯著提高其單位經濟效益，同時搶占市場份額並擴大其在我們市場中的領導地位。我們的 Shopee 平台上的在線消費繼續增長，實現了強勁的同比增長。 Shopee 的 GAAP 收入為 15 億美元，第四季度同比增長 64%。總訂單比去年增長 71%，達到 19 億美元。 GMV 為 174 億美元，同比增長 39%，與大流行前的 2020 年第一季度相比以 58% 的複合年增長率增長。

Monetization also saw improvement with GAAP marketplace revenue as a percentage of total GMV rising to 7.2% during the quarter compared to 5.7% last year. It was great to see that Shopee's gross profit margin improved year-on-year due to the faster growth of transaction-based fees and advertising income, which had higher profit margin compared to revenue generated from other value-added services.

貨幣化也有所改善，GAAP 市場收入佔總 GMV 的百分比在本季度上升至 7.2%，而去年為 5.7%。很高興看到Shopee的毛利率同比有所提高，這是由於交易費用和廣告收入增長較快，與其他增值服務產生的收入相比，其利潤率更高。

At the same time, gross profit margin of revenue generated from other value-added services also improved quarter-on-quarter. Moreover, we continue to be highly focused on efficiency. Here, I would like to share a bit more on our approach to continually improving cost efficiency.

同時，其他增值服務收入的毛利率也環比提高。此外，我們繼續高度關注效率。在這裡，我想分享更多關於我們不斷提高成本效率的方法。

Our business model optimizes for unit economics through growing operating leverage across our e-commerce ecosystem with scale. We invest in growing a broad base of buyers and sellers across comprehensive core online marketplace categories and deepening engagement. This promotes user growth, conversion and retention, as well as purchase frequency, which allows us to efficiently grow order volume and density. With sufficient and continually improving order volume and density, we aim to achieve cost leadership for our ecosystem to profitably serve the broadest base of buyers and sellers as well as the largest range of consumption categories. This also allows us to efficiently cross sell more products and service offerings, including digital financial services, especially to the underserved mass market, a market segment which we believe represents the largest opportunity in our global markets.

我們的商業模式通過在我們的電子商務生態系統中以規模擴大運營槓桿來優化單位經濟。我們投資於在全面的核心在線市場類別中擴大廣泛的買家和賣家基礎並加深參與。這促進了用戶增長、轉換和保留以及購買頻率，這使我們能夠有效地增加訂單量和密度。憑藉充足且不斷提高的訂單量和密度，我們的目標是在我們的生態系統中實現成本領先，從而為最廣泛的買賣雙方以及最廣泛的消費類別提供有利可圖的服務。這也使我們能夠有效地交叉銷售更多產品和服務，包括數字金融服務，特別是向服務不足的大眾市場，我們認為這是我們全球市場上最大的機會。

We believe this strategy drives significant scale, strong profitability and deep competitive moats in the long run. Our track record in Southeast Asia and Taiwan is improving the success of this model, and our convictions have only further grown with what we have achieved in Brazil within a short period of time.

我們相信，從長遠來看，這一戰略將推動顯著的規模、強勁的盈利能力和深厚的競爭護城河。我們在東南亞和台灣的業績記錄正在提高這種模式的成功率，而我們的信念只會隨著我們在巴西在短時間內取得的成就而進一步增強。

I'm pleased to note that thanks to our focus on enhancing monetization and optimizing costs, we have once again recorded significant improvement in unit economics in the first quarter. Adjusted EBITDA loss per order before HQ costs improved both year-on-year and quarter-on-quarter for Shopee overall. In Southeast Asia and Taiwan, adjusted EBITDA loss per order before allocation of HQ costs was $0.04 a an improvement from $0.12 in the first quarter of 2021.

我很高興地註意到，由於我們專注於提高貨幣化和優化成本，我們在第一季度再次錄得單位經濟效益的顯著改善。在總部成本之前，Shopee 整體的每個訂單的調整後 EBITDA 損失同比和環比均有所改善。在東南亞和台灣，在分配總部成本之前，每個訂單的調整後 EBITDA 損失為 0.04 美元，比 2021 年第一季度的 0.12 美元有所改善。

We also made very healthy progress in Brazil in the first quarter where such loss was $1.52, an improvement of more than 45% year-on-year. Our efforts on expanding the total addressable market across our key markets, are reflected in Shopee continuing to be ranked highly on key engagement metrics among global peers. This includes data.ai. Shopee ranked first in the shopping category globally by downloads in the first quarter. Shopee also ranked first globally by total time spent in app, and second by average many active users in the shopping category on Google Play in the first quarter.

我們在第一季度在巴西也取得了非常健康的進展，虧損為 1.52 美元，同比增長超過 45%。我們在主要市場擴大潛在市場的努力反映在 Shopee 在全球同行中的關鍵參與度指標上繼續排名靠前。這包括 data.ai。 Shopee在第一季度的下載量在全球購物類別中排名第一。第一季度，Shopee 的應用總時間排名全球第一，Google Play 購物類別的平均活躍用戶數量排名第二。

Meanwhile, Shopee was the top rated app in the shopping category across both iOS and Google Play by average monthly active users and the total TAM spending app in each of Southeast Asia and Taiwan based on data.ai.

同時，根據 data.ai 的數據，Shopee 是 iOS 和 Google Play 購物類別中平均每月活躍用戶和東南亞和台灣地區 TAM 總支出應用程序中評分最高的應用程序。

In Indonesia, we were also ranked #1 app across these same metrics with gross orders up around 77% year-on-year during the first quarter. In Brazil, Shopee ranked the first by downloads and the total time spending app and the second by average monthly active users for the shopping category according to data.ai.

在印度尼西亞，我們在這些相同的指標中也排名第一，第一季度總訂單量同比增長約 77%。根據 data.ai 的數據，在巴西，Shopee 的應用下載量和總花費時間排名第一，購物類別的平均每月活躍用戶排名第二。

In March and April, Shopee Brazil had the highest number of monthly active users in the shopping category as we further expanded our leading positions. We are also growing our local sellers with over 2 million Brazilian sellers registered on the Shopee platform currently. A range from SMEs to establish the brand and we are working across the board to enable them to serve more buyers across more categories, demographics and consumption locations.

3 月和 4 月，隨著我們進一步擴大領先地位，Shopee Brazil 在購物類別中的月活躍用戶數最高。我們也在發展我們的本地賣家，目前在 Shopee 平台上註冊的巴西賣家超過 200 萬。從中小企業到建立品牌的範圍，我們正在全面合作，使他們能夠為更多類別、人口統計和消費地點的更多買家提供服務。

Our public traction in Brazil to date underlines our belief that there is a large and highly promising opportunity to serve underserved communities of sellers and buyers in that market. We continue to invest behind this opportunity while delivering more value to our sellers and tiers.

迄今為止，我們在巴西的公眾吸引力突顯了我們的信念，即為該市場上服務不足的買賣雙方社區提供服務是一個巨大且極具前景的機會。我們繼續在這個機會背後進行投資，同時為我們的賣家和層級提供更多價值。

Moreover, across our core markets, shopping malls has continued to power the way forward for our brand partners with innovative solutions and tools to support sustained growth. In the recent quarter, our more than 36,000 brand partners saw strong growth momentum and reached new milestones accounting for around 15% of GMV compared to 12% a year ago. We have also on-boarded more brand partners such as (inaudible) in Singapore as well as Page 8 and the Marc Jacob in Thailand.

此外，在我們的核心市場，購物中心繼續為我們的品牌合作夥伴提供創新的解決方案和工具，以支持持續增長。在最近一個季度，我們的 36,000 多個品牌合作夥伴看到了強勁的增長勢頭，並達到了新的里程碑，佔 GMV 的比例約為 15%，而一年前為 12%。我們還加入了更多的品牌合作夥伴，例如新加坡的（聽不清）以及泰國的 Page 8 和 Marc Jacob。

Looking ahead, our position is stronger than ever before. Across our core markets, real and social e-commerce penetration is expected to continue. At the same time, we are expanding our leadership and reaching breakeven in Southeast Asia and Taiwan and adjusted 2 years after entering Brazil, the world's sixth largest market by population. We are making rapid progress towards market leadership. We do remain focused on high-quality execution alongside consistent innovation and investments in our tech capabilities, to provide a differentiated experience to our users. This will further enhance our competitive strength and improve efficiency to better position shop for long-term growth and profitability.

展望未來，我們的地位比以往任何時候都強。在我們的核心市場中，真實和社交電子商務的滲透預計將繼續。同時，我們正在擴大我們的領先地位，在東南亞和台灣地區實現盈虧平衡，並在進入全球人口第六大市場巴西兩年後進行了調整。我們正在迅速取得市場領先地位。我們仍然專注於高質量的執行以及持續的創新和對我們技術能力的投資，為我們的用戶提供差異化的體驗。這將進一步增強我們的競爭實力並提高效率，以更好地定位商店的長期增長和盈利能力。

Meanwhile, given the current environment of elevated micro uncertainties, we now see a wider range of scenarios and outcomes for shopping this year. While we believe that our previous guidance is still achievable, we are revising our e-commerce guidance to correspondingly reflect our expectations around the upcoming macro uncertainties. We now expect e-commerce GAAP revenue to be between $8.5 billion and $9.1 billion, representing 72% year-on-year growth at the of the guidance. Let us turn to digital entertainment.

同時，鑑於當前微觀不確定性升高的環境，我們現在看到今年購物的情景和結果範圍更廣。雖然我們相信我們之前的指導仍然可以實現，但我們正在修改我們的電子商務指導，以相應地反映我們對即將到來的宏觀不確定性的預期。我們現在預計電子商務 GAAP 收入將在 85 億美元至 91 億美元之間，在該指引下同比增長 72%。讓我們轉向數字娛樂。

As reflected last quarter, we have seen softening in user base and bookings compared to the lockdown period during the pandemic, which was further impacted by free far continuing to be unavailable across app stores in India. However, expect the pullback from acceleration we saw during the pandemic. We will put our first quarter results into perspective.

正如上個季度所反映的那樣，與大流行期間的鎖定期相比，我們看到用戶群和預訂量有所下降，這進一步受到了印度應用商店仍然無法提供免費應用程序的影響。但是，預計我們在大流行期間看到的加速回落。我們將把我們的第一季度業績放在眼裡。

Our quarterly active users have shown strong growth with a CAGR of almost 24% from the first quarter of 2020. Our view regarding Verena and far being a long-term platform but digital consumption remains unchanged. Therefore, we remain focused on attracting, returning and deepening engagement with our users through investing in enhanced and diversified content UGC to improved accessibility and other user-friendly features.

與 2020 年第一季度相比，我們的季度活躍用戶顯示出強勁的增長，複合年增長率接近 24%。我們對 Verena 的看法是一個長期的平台，但數字消費保持不變。因此，我們仍然專注於通過投資增強和多樣化的內容 UGC 以改善可訪問性和其他用戶友好功能，來吸引、返回和加深與用戶的互動。

This investment, alongside with the lower bookings has led to a year-on-year decline in adjusted EBITDA as a percent of bookings for this quarter. But we will continue to take a long-term view on such investments as they are critical for the sustainability and the diversification of our key gaming franchises on the platform.

這項投資以及較低的預訂量導致調整後的 EBITDA 佔本季度預訂量的百分比同比下降。但我們將繼續從長遠角度看待此類投資，因為它們對於平台上主要遊戲特許經營權的可持續性和多樣化至關重要。

Moreover, as we navigate this pace of moderation, we are focused on user base stabilization. We saw some preliminary signs that this is starting to bear fruit with the monthly user trends for free fare beginning to show some early signs of stabilizing towards the end of the first quarter.

此外，當我們駕馭這種適度的步伐時，我們專注於穩定用戶群。我們看到一些初步跡象表明，隨著免費票價的月度用戶趨勢開始顯示出一些在第一季度末趨於穩定的早期跡象，這開始取得成果。

While these are encouraging signs, the longer-term impact of reopening around online gaming and Free Fire specifically remains to be staying, and we will continue to focus on user engagement and user base stabilization. We are also very pleased to see that Free Fire continues to be one of the most popular games across the world, as we continue to focus on high-quality content and ensuring that Free Fire is accessible to and enjoy for our large player base.

儘管這些都是令人鼓舞的跡象，但圍繞在線遊戲和 Free Fire 重新開放的長期影響仍然存在，我們將繼續關注用戶參與度和用戶群穩定。我們也很高興看到 Free Fire 繼續成為全球最受歡迎的遊戲之一，因為我們繼續專注於高質量的內容，並確保我們的龐大玩家群可以訪問和享受 Free Fire。

Indeed, according to data,ai, Free Fire remains the #1 most downloaded mobile game globally in the first quarter. The game sort serve globally by average monthly active users for all mobile games on Google Play during the same period. Our vision of building 3 products into a long-term gaming franchise and platform remains an ongoing strategy. We are focused on innovating around and investing in refi across more user engagement content and events.

事實上，根據數據，AI，Free Fire 仍然是第一季度全球下載量排名第一的手機遊戲。遊戲排序按同期 Google Play 上所有手機遊戲的平均每月活躍用戶數為全球服務。我們將 3 種產品構建為長期遊戲特許經營和平台的願景仍然是一項持續的戰略。我們專注於圍繞更多用戶參與內容和事件進行創新並投資於 refi。

Free Fire's recent partnership with BTS, one of the most popular K-pop groups globally, is a success, where we work closely with the artist to design new eye-catching items, customs and actions that has resonate well with players and expense alike.

Free Fire 最近與全球最受歡迎的 K-pop 團體之一 BTS 的合作取得了成功，我們與藝術家密切合作，設計出新的引人注目的物品、習俗和動作，這些物品在玩家和費用方面都產生了很好的共鳴。

Medium-speed in BTS artists and content on our social media channels reached over 150 million views. Additionally, Parkland, our mass editor feature, saw strong traction through driving greater engagement and interaction across creators and engagements in our community. In the first quarter, hundreds of millions of gamers played new maps on Craftland across billions of games. User-generated content is a growing key part of Free Fire's ongoing engagement strategy, and we plan to continue improving and expanding the Catlin experience.

BTS 藝術家和我們社交媒體渠道上的中速瀏覽量達到了超過 1.5 億次。此外，我們的大眾編輯功能 Parkland 通過推動創作者之間的更大參與和互動以及我們社區的參與，獲得了強大的牽引力。第一季度，數億玩家在 Craftland 上玩了數十億款遊戲的新地圖。用戶生成的內容是 Free Fire 持續參與戰略中日益重要的一部分，我們計劃繼續改進和擴展 Catlin 體驗。

As shared before, digital entertainment is a key long-term focus of our business with increasing importance of virtual consumption from the rising digital-native generation. We are committed to investing behind our existing top-tier franchises from further diversifying our portfolio of games across more new genres. An example is Moonlight Blade, a third-party massively multiplayer online low playing game, which we'll be launching across both mobile and PC in Thailand in the coming months after an earlier launch last year in Taiwan.

如前所述，數字娛樂是我們業務的一個關鍵長期關注點，隨著數字原生一代的興起，虛擬消費的重要性日益增加。我們致力於投資現有的頂級特許經營權，使我們的遊戲組合進一步多樣化，涵蓋更多新類型。一個例子是 Moonlight Blade，這是一款第三方大型多人在線低玩遊戲，繼去年早些時候在台灣推出後，我們將在接下來的幾個月內在泰國的移動和 PC 上推出這款遊戲。

Our developers have been working on new games across a wide variety of genes. At the same time, we are exploring publishing partnerships and making early investments in game studios across the world, our digital financial services business.

我們的開發人員一直致力於開發跨多種基因的新遊戲。與此同時，我們正在探索發布合作夥伴關係，並對我們的數字金融服務業務在全球的遊戲工作室進行早期投資。

SeaMoney continues its strong growth into the first quarter of 2022. We remain focused on driving the adoption of our products and services in a thoughtful and disciplined way while leveraging the multiple synergies across our Shopee and SeaMoney ecosystem.

SeaMoney 將繼續強勁增長到 2022 年第一季度。我們仍然專注於以周到和規範的方式推動我們的產品和服務的採用，同時利用我們 Shopee 和 SeaMoney 生態系統的多重協同效應。

GAAP revenue for the quarter was $236 million, up 350% year-on-year. Totally active users across our SeaMoney products and services grew 78% year-on-year to reach 49 million. Adoption of SeaMoney financial products and services across credit and digital banking were key drivers of revenue growth during the quarter, and we expect this to continue.

本季度 GAAP 收入為 2.36 億美元，同比增長 350%。我們 SeaMoney 產品和服務的總活躍用戶同比增長 78%，達到 4900 萬。在信貸和數字銀行業務中採用 SeaMoney 金融產品和服務是本季度收入增長的主要驅動力，我們預計這種情況將繼續下去。

As we optimize our models and expand our partnerships with financial institutions, these products are expected to be solid and high-quality value drivers in the long run without the need for significant investments to scale. The total payment volume of our mobile wallet was $5.1 billion in the first quarter, an increase of 49% year-on-year.

隨著我們優化模型並擴大與金融機構的合作夥伴關係，從長遠來看，這些產品有望成為可靠和高質量的價值驅動因素，而無需大量投資來擴大規模。第一季度，我們的移動錢包支付總額為51億美元，同比增長49%。

Over the past few years, we have successfully leveraged the shop ecosystem to build leading mobile wallet position across our markets. We have also expanded our credit products across more markets accessible to more white-listed users. Our credit portfolio currently serves both consumers and merchants across a variety of products.

在過去的幾年裡，我們成功地利用商店生態系統在我們的市場中建立了領先的移動錢包地位。我們還將信貸產品擴展到更多白名單用戶可以訪問的更多市場。我們的信貸組合目前為各種產品的消費者和商家提供服務。

Our digital banking initiatives saw strong early traction as well. On a related note, I'm proud to share that our application for a digital bank license in Malaysia, together with YTL Digital Capital, was approved in April.

我們的數字銀行計劃也獲得了強大的早期牽引力。在相關的說明中，我很自豪地分享我們在馬來西亞的數字銀行牌照申請以及 YTL Digital Capital 於 4 月獲得批准。

In Indonesia, which has the most comprehensive set of products and services among our markets, over 30% of the quarterly active users have used multiple SeaMoney products or services in the first quarter. The size of the opportunity for SeaMoney is massive and has only been expanding as we have grown the suite of products and services we offer to the underserved in our markets.

在我們的市場中擁有最全面的產品和服務的印度尼西亞，超過 30% 的季度活躍用戶在第一季度使用了多種 SeaMoney 產品或服務。 SeaMoney 的機會規模巨大，並且隨著我們為市場中服務不足的人群提供的產品和服務套件不斷增加而不斷擴大。

We are excited about the growth perspective of the segment as well as strong sustained ecosystem benefits across both Shopee and SeaMoney.

我們對該細分市場的增長前景以及 Shopee 和 SeaMoney 強大的持續生態系統效益感到興奮。

To conclude, we believe that we are in a much stronger position now compared to a couple of years ago when the pandemic just started, with significantly expanded capabilities, more resources, a proving track record and a much clearer and more certain path to achieve our long-term objectives.

總而言之，我們認為，與幾年前大流行剛剛開始時相比，我們現在處於更有利的地位，我們的能力顯著擴大，資源更多，業績記錄良好，實現我們的道路更加清晰和確定長期目標。

With Shopee, we continue to capture market share and deepen our strong bonds with sellers and consumers across our markets. We have highly promising growth opportunities in front of us, and we continue to invest prudently and with discipline while driving ever improving efficiency across the business.

借助 Shopee，我們將繼續佔領市場份額，並加深我們與整個市場的賣家和消費者之間的牢固聯繫。我們面前有非常有前途的增長機會，我們將繼續審慎、有紀律地投資，同時推動整個業務的效率不斷提高。

With Arena, we are leveraging our strength in content creation and community engagement to ensure the popularity of our platform endures even as the global games industry faces headwinds from market reopenings. Concurrently, we are focused on broadening our portfolio of games across different genres. And with SeaMoney, we are scaling up our third growth engine in a highly disciplined and efficient way, ensuring that we are ideally placed to capture the significant growth opportunities ahead of new segment. Building on the strong first quarter performance, we will continue to focus on strong execution with balanced growth and efficiency to deliver solid results.

借助 Arena，我們正在利用我們在內容創作和社區參與方面的優勢，以確保我們平台的受歡迎程度能夠持續，即使全球遊戲行業面臨市場重新開放帶來的逆風。同時，我們專注於擴大不同類型的遊戲組合。借助 SeaMoney，我們正在以高度規範和高效的方式擴展我們的第三個增長引擎，確保我們處於理想的位置，可以在新的細分市場之前抓住重要的增長機會。在強勁的第一季度業績的基礎上，我們將繼續專注於強勁的執行力以及平衡的增長和效率，以實現穩健的業績。

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 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 64% year-on-year to $2.9 billion. This was mainly driven by the growing adoption of products and services across our e-commerce and digital financial services businesses as we continue to leverage the synergies across our various platforms.

對於 Sea 整體而言，GAAP 總收入同比增長 64% 至 29 億美元。這主要是由於我們的電子商務和數字金融服務業務越來越多地採用產品和服務，因為我們繼續利用我們各個平台的協同效應。

On e-commerce, our first quarter GAAP revenue of $1.5 billion included GAAP marketplace revenue of $1.3 billion, up 75% year-on-year, and GAAP product revenue of $0.3 billion, up 27% year-on-year.

在電子商務方面，我們第一季度 15 億美元的 GAAP 收入包括 13 億美元的 GAAP 市場收入，同比增長 75%，以及 3 億美元的 GAAP 產品收入，同比增長 27%。

E-commerce adjusted EBITDA loss was $743 million, as we continued to deepen e-commerce penetration in our core markets and also gain positive traction in newer markets. Digital entertainment bookings were $0.8 billion compared to $1.1 billion for the first quarter of 2021.

電子商務調整後的 EBITDA 虧損為 7.43 億美元，因為我們繼續深化電子商務在核心市場的滲透，並在新市場獲得積極的牽引力。數字娛樂預訂額為 8 億美元，而 2021 年第一季度為 11 億美元。

GAAP revenue was up 45% year-on-year to $1.1 billion. The increase in GAAP revenue was primarily due to recognition of accumulated deferred revenue from previous quarters. Digital entertainment adjusted EBITDA was $431 million, compared to $717 million for the first quarter of 2021.

GAAP 收入同比增長 45% 至 11 億美元。 GAAP 收入的增加主要是由於確認了前幾個季度的累計遞延收入。數字娛樂調整後的 EBITDA 為 4.31 億美元，而 2021 年第一季度為 7.17 億美元。

Digital Financial Services GAAP revenue was $236 million, an increase of 360% year-on-year from $51 million in the first quarter of 2021. The growth was primarily due to the growing adoption of our financial products and services.

數字金融服務 GAAP 收入為 2.36 億美元，比 2021 年第一季度的 5100 萬美元同比增長 360%。增長主要是由於我們的金融產品和服務的採用率不斷提高。

Adjusted EBITDA loss was $125 million as we continued our efforts to drive mobile wallet adoption. Returning to our consolidated numbers. We recognized a net nonoperating loss of $6 million in the first quarter of 2022 compared to a net nonoperating loss of $23 million in the first quarter of 2021. We had a net income tax expense of $82 million in the first quarter of 2022, which 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 $445 million in the first quarter of 2022 as compared to $320 million for the same period in 2021.

隨著我們繼續努力推動移動錢包的採用，調整後的 EBITDA 損失為 1.25 億美元。回到我們的綜合數字。我們在 2022 年第一季度確認了 600 萬美元的淨營業外虧損，而 2021 年第一季度的淨營業外虧損為 2300 萬美元。我們在 2022 年第一季度的淨所得稅費用為 8200 萬美元，即主要是由於我們的數字娛樂業務中確認的企業所得稅和預扣稅。因此，2022 年第一季度的淨虧損（不包括股權補償）為 4.45 億美元，而 2021 年同期為 3.2 億美元。

The net cash used in investing activities amounted to $1.1 billion for the first quarter of 2022. This was primarily attributable to an increase in loans and receivables of $410 million to support the growth of digital financial service businesses, as well as net placement of $333 million into time deposits and liquid investment products for better cash yield management.

2022 年第一季度用於投資活動的現金淨額為 11 億美元。這主要是由於支持數字金融服務業務增長的貸款和應收賬款增加 4.1 億美元，以及淨配售 3.33 億美元定期存款和流動投資產品，以更好地管理現金收益。

At the end of the first quarter of 2022, we had around $8.8 billion of cash, cash equivalents and short-term investments on our balance sheet. With that, let me turn the call to Min Ju.

截至 2022 年第一季度末，我們的資產負債表上有大約 88 億美元的現金、現金等價物和短期投資。有了這個，讓我把電話轉給敏菊。

Thank you, Forrest and Tony. We are now ready to open the call for questions. The question will be addressed by Forrest, Tony and Andrew. Operator? .

謝謝你，福雷斯特和托尼。我們現在準備開始提問。 Forrest、Tony 和 Andrew 將回答這個問題。操作員？ .

We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Alicia Yap from Citigroup.

我們現在開始問答環節。 （操作員說明）我們的第一個問題來自花旗集團的 Alicia Yap。

I have 2 questions. The first one is in light of the various cities under the lockdown condition in China. Can management share any impact from the lockdown in China for your cross-border business? Is that one of the reasons that caused you to widen your e-commerce guidance? Besides that, any other macro conditions that prompt you to become a bit more cautious for your Shopee business?

我有 2 個問題。第一個是針對中國處於封鎖狀態的各個城市。管理層能否分享中國封鎖對您的跨境業務的影響？這是導致您擴大電子商務指導的原因之一嗎？除此之外，是否還有其他宏觀條件促使您對 Shopee 業務更加謹慎？

The second question is on your D&A business. Management mentioned on the prepared remarks, there is some improvement in the user engagement in Free Fire can you share which countries that you're actually seeing the improvement in user trend? Do you think the user trends -- metrics could further improve, or you think this is far less to stabilizing the user metrics? Any updates on new games in the pipeline that you can share?

第二個問題是關於你的 D&A 業務。管理層在準備好的評論中提到，Free Fire 的用戶參與度有所改善，您能否分享您實際看到哪些國家的用戶趨勢有所改善？你認為用戶趨勢——指標可以進一步改善，還是你認為這遠不及穩定用戶指標？您可以分享有關正在籌備中的新遊戲的任何更新嗎？

Thank you, Alicia. Regarding the first question on CB, so far, we haven't seen major impact and cross-border is also not a very significant part of our business. Our business is primarily local to local.

謝謝你，艾麗西亞。關於CB的第一個問題，到目前為止，我們還沒有看到重大影響，跨境也不是我們業務中非常重要的一部分。我們的業務主要是本地到本地。

And the reason to broaden the guidance range for Shopee, as we shared in the earnings that we see macro trends such as increasing inflation, increasing some disruptions in the supply chain and also rising interest rates across various markets and the world I think we want to be prudent in looking at it.

以及擴大 Shopee 指導範圍的原因，正如我們在收益中分享的那樣，我們看到宏觀趨勢，例如通貨膨脹加劇、供應鏈中的一些中斷以及各個市場和世界的利率上升，我認為我們想要謹慎看待它。

But also as shared, we still think the original guidance is achievable for us. However, given the uncertainties -- we do want to be able to manage the situation closely and also track the market dynamics more closely as we progress. So while there are challenges, we also see some bright spots, in particular, in our region, for example, most of our markets so far has emerged relatively resilient out of COVID, and inflation in many of the markets are still relatively in check and also some of our markets are net exporters of commodities and -- or have been benefited from the shift in global supply chain in terms of investment -- foreign direct investment in manufacturing, et cetera.

但也正如所分享的，我們仍然認為最初的指導對我們來說是可以實現的。然而，考慮到不確定性——我們確實希望能夠密切管理局勢，並隨著我們的進展更密切地跟踪市場動態。因此，儘管存在挑戰，但我們也看到了一些亮點，特別是在我們的地區，例如，到目前為止，我們的大多數市場在 COVID 的影響下都相對具有彈性，許多市場的通脹仍然相對得到控制，我們的一些市場也是商品的淨出口國，並且 -- -- 或者已經從投資方面全球供應鏈的轉變中受益 -- -- 對製造業等的外國直接投資。

So relatively speaking, we think there are -- while there are challenges and uncertainties, there are also opportunities in the region that we could look to capture. Again, I think the key is just like when we entered COVID, there are huge uncertainties and challenges. But in the end, we emerged as a much bigger and stronger business, much more diversified and close to approaching long-term profitable growth in our key markets.

因此，相對而言，我們認為存在 - 雖然存在挑戰和不確定性，但我們可以在該地區尋找機會。再次，我認為關鍵就像我們進入 COVID 時一樣，存在巨大的不確定性和挑戰。但最終，我們成為一個更大、更強大的企業，更加多元化，接近在我們的主要市場實現長期盈利增長。

So all these helped us a lot in managing and navigating the new challenges and uncertainties that might face us. And as a business, I think we continue to focus on being humble, agile and pragmatic and focus on strong execution. I think our track record shows that we almost excel even more clearly in tough situations. And I think we're also in a relatively stronger position compared to many of our peers in navigating that. So in terms of the game business, we see that they are close to the end of the quarter, there is some stabilization in the user trends in Southeast Asia and some other parts of the world.

因此，所有這些都極大地幫助了我們管理和應對可能面臨的新挑戰和不確定性。作為一家企業，我認為我們將繼續專注于謙遜、敏捷和務實，並專注於強大的執行力。我認為我們的業績記錄表明，我們在艱難的情況下幾乎表現得更加出色。而且我認為與我們的許多同行相比，我們在導航方面也處於相對更有利的位置。所以在遊戲業務方面，我們看到他們接近季度末，東南亞和世界其他一些地區的用戶趨勢出現了一些穩定。

However, this remains to be seen in terms of the long-term trends post COVID and still early stage. So we want to caution this is some preliminary signs. However, I think we'll continue to make efforts in terms of deepening user engagement. And therefore, we also shared and put things in perspective a sharing our 2-year CAGR to show that the significant user base that we gained during the COVID. For some of them, we have been able to retain, and we continue to make effort to retain more of those as we continue to build our game into a long-term platform, and we are very focused on the longevity of the promotion longevity of Free Fire as increasing our game platform by introducing more diversified content and game modes and tax of play and including UGC tools into the game.

但是，從 COVID 之後的長期趨勢來看，這仍有待觀察，而且仍處於早期階段。所以我們要提醒的是，這是一些初步跡象。但是，我認為我們將繼續在深化用戶參與方面做出努力。因此，我們還分享了我們的 2 年復合年增長率，以展示我們在 COVID 期間獲得的重要用戶群。對於其中一些，我們已經能夠留住，並且我們會繼續努力留住更多的人，因為我們會繼續將我們的遊戲打造成一個長期的平台，並且我們非常注重推廣的長壽。 Free Fire 通過引入更多樣化的內容和遊戲模式以及遊戲稅以及在遊戲中加入 UGC 工具來增加我們的遊戲平台。

At the same time, also trying to further to diversify our game pipeline, including publishing games in more markets such as as far as mentioned, Moonlight Blade to be offered in Thailand shortly. So that's been our effort, ongoing effort on the game side as well.

同時，我們也在努力進一步豐富我們的遊戲渠道，包括在更多市場發布遊戲，如上文所述，Moonlight Blade 即將在泰國推出。所以這是我們的努力，也是在遊戲方面的持續努力。

Our next question comes from Pang Vitt from Goldman Sachs.

我們的下一個問題來自高盛的 Pang Vitt。

Two questions for me here. Can we go back to the guidance again. Maybe can you also walk us through the rationale behind it in terms of like is it largely due to lowering down the GMV assumptions or these also have taken into account like lowering down the segment assumption as well? And does mean with this new guidance, what is the implied GMV growth expectation that you can think of?

我這裡有兩個問題。我們能不能再回到指導下。也許您也可以向我們介紹其背後的基本原理，比如這主要是由於降低了 GMV 假設還是這些也考慮到了降低細分假設？並且對於這個新的指導，你能想到的隱含的 GMV 增長預期是什麼？

And what should we think of the sequential quarterly trend going forward as well? That's question number one. And secondly, in terms of cash burn and unit economy has improved likely in first quarter. We see healthy improvement of take rate as well. Can you walk us through the steps that you have taken to achieve this? Is it mainly due to the higher take rate or lower subsidies -- and how should we think about balancing between growth and profitability, especially in ASM with the macro uncertainty in mind? I also have a better understanding on how your headquarter costs will trend going forward after that's already rising quite significantly in the quarter.

我們應該如何看待未來的連續季度趨勢？這是第一個問題。其次，就現金消耗和單位經濟而言，第一季度可能有所改善。我們也看到了服用率的健康改善。你能告訴我們你為實現這一目標所採取的步驟嗎？主要是由於較高的採用率還是較低的補貼 - 我們應該如何考慮增長和盈利能力之間的平衡，特別是在考慮到宏觀不確定性的 ASM 中？在本季度已經顯著上升之後，我也更好地了解了您的總部成本將如何發展。

Thank you, Pang. In terms of the Shopee guidance, I think, as I shared just now, we're not necessarily lowering it. We are widening the range. We still think the original guidance is potentially achievable for us. But given the economic trends, we want to be cautious and also as we face uncertainties, we do want to preserve our maximum flexibility in managing our business in line with underlying market dynamics. That could be basically a combination of all things in terms of underlying volume growth and commercialization. .

謝謝你，龐。關於 Shopee 的指導，我認為，正如我剛才分享的那樣，我們不一定會降低它。我們正在擴大範圍。我們仍然認為最初的指導對我們來說是可以實現的。但鑑於經濟趨勢，我們希望保持謹慎，而且由於我們面臨不確定性，我們確實希望根據潛在的市場動態保持最大的靈活性來管理我們的業務。就潛在的銷量增長和商業化而言，這基本上是所有事情的結合。 .

We don't specifically guide on GMV and take rate. But overall, if you look at overall GAAP revenue trends, even at the wider range, still growing at more than 70% year-on-year, which is, I believe, quite high compared to global industry peers and appears in our markets.

我們沒有專門指導 GMV 和利率。但總體而言，如果您查看整體 GAAP 收入趨勢，即使在更廣泛的範圍內，仍以超過 70% 的年增長率增長，我相信這與全球同行相比相當高，並且出現在我們的市場中。

So again, I think this is something that we are getting in abundance of caution. And regarding the unit economics improvement I think this is both in terms of better commercialization as well as efficiency gains on the cost side as we scale and further strengthen our market leadership.

再說一次，我認為這是我們非常謹慎的事情。關於單位經濟的改進，我認為這既是在更好的商業化方面，也是在成本方面的效率提升，因為我們擴大規模並進一步加強我們的市場領導地位。

As we shared just now. in terms of our thinking about unit economics, we think the best way to maximize long-term profitability, scale and defensibility and the overall value of our ecosystem to our communities and our stakeholders, including our shareholders, is by growing the order volume and order density. And through that, we're able to achieve better unit economics over time with scale.

正如我們剛才分享的那樣。就我們對單位經濟學的思考而言，我們認為最大化長期盈利能力、規模和防禦能力以及我們的生態系統對我們的社區和我們的利益相關者（包括我們的股東）的整體價值的最佳方式是增加訂單量和訂單密度。通過這一點，我們能夠隨著時間的推移實現更好的單位經濟規模。

And of course, during the process, we focused very much on the efficiency of our investments by effectively capturing users through various social entertainment, tools and marketplaces, assortments, better services, et cetera, effectively convert them, retain them and improve the frequency, purchase frequency over time so that we can maximize the return on our investment in growing and scaling the business with increasing efficiency. And eventually, if we're able to break even and enjoy long-term profitable growth at relatively low order value in terms of average basket size that makes the platform highly defensible and able to address the largest range of consumers in the largest range of categories of goods. That also allows us to effectively cross-sell many different products and services. That makes the platform highly efficient and also improves profitability down the road. That also allow us so far has allowed us to build the largest consumer Internet ecosystem in Southeast Asia and Taiwan and also approaching a stage of long-term profitable growth.

當然，在此過程中，我們非常注重投資效率，通過各種社交娛樂、工具和市場、分類、更好的服務等有效地捕捉用戶，有效地轉化、留住用戶並提高頻率，隨著時間的推移購買頻率，以便我們可以最大限度地提高投資回報，以提高效率來發展和擴展業務。最終，如果我們能夠以相對較低的平均購物籃大小的訂單價值實現盈虧平衡並享受長期盈利增長，這將使平台具有高度防禦性並能夠在最大範圍內滿足最大範圍的消費者的貨物。這也使我們能夠有效地交叉銷售許多不同的產品和服務。這使平台變得高效，並提高了未來的盈利能力。這也讓我們迄今為止已經讓我們建立了東南亞和台灣最大的消費互聯網生態系統，也接近了長期盈利增長的階段。

So this is basically the consistent approach that we have been executing towards, and we have been explaining to the market about. Again,

所以這基本上是我們一直在執行的一致方法，我們一直在向市場解釋。再次，

Regarding the HQ cost trend going forward, as we shared in the earnings that in terms of the most recent quarter, HQ costs contributed to about half of the increase in the EBITDA loss in Shoppe, and most of that is R&D headcount driven.

關於未來的總部成本趨勢，正如我們在收益中分享的那樣，就最近一個季度而言，總部成本貢獻了 Shoppe EBITDA 損失增加的一半左右，其中大部分是研發人員驅動的。

As we also previously shared that we focus on building our technology capability and our product suite to offer more services and products and more efficiently and effectively to our large communities of users. We think in the long run, this will turn into a very strong competitive edge for us and also make the platform even more efficient in serving the users and catering to their needs and offering more products and services to them. So that is a long-term investment objective.

正如我們之前分享的那樣，我們專注於構建我們的技術能力和我們的產品套件，以便為我們的大型用戶社區提供更多的服務和產品，並且更高效、更有效。我們認為從長遠來看，這將成為我們非常強大的競爭優勢，也使平台在服務用戶和滿足他們的需求方面更加高效，並為他們提供更多的產品和服務。所以這是一個長期的投資目標。

However, again, as we shared, we'll continue to be very focused and -- on efficiency and being highly pramatic as we observe the market trends and dynamics and measured in our investment to make sure we focus on long-term balanced growth.

然而，正如我們所分享的，我們將繼續非常關注效率和高度務實，因為我們觀察市場趨勢和動態，並在我們的投資中進行衡量，以確保我們專注於長期平衡增長。

[Operator Instructions) Our next question comes from Piyush Chaudhary from HSBC Singapore.

[操作員說明）我們的下一個問題來自新加坡匯豐銀行的 Piyush Chaudhary。

Two questions. Firstly, in the gaming business, can you talk about progress to expand your portfolio of self-developed games? And we noted that your game developer team has -- in-house game development team has expanded to more than 2,000. Could you tell how many developers are engaged on Free Fire and Free Fire MAX?

兩個問題。首先，在遊戲業務方面，您能否談談擴展自研遊戲組合的進展？我們注意到，您的遊戲開發團隊已經——內部遊戲開發團隊已擴大到 2,000 多人。你能說出有多少開發者參與了 Free Fire 和 Free Fire MAX 的開發嗎？

And second question for Shopee. Can you talk a little bit about this improvement on EBITDA loss per order quarter-on-quarter. Is company consciously kind of weeding out nonprofitable orders or reducing investment in new market? Or this is kind of more a scale effect? And housekeeping on number of orders and UC revenue.

Shopee的第二個問題。您能否談談每季度每筆訂單 EBITDA 損失的改善情況。公司是否有意識地淘汰非盈利訂單或減少對新市場的投資？或者這更像是一種規模效應？以及訂單數量和 UC 收入的內務管理。

Yes. So regarding the self-development pipeline. As we shared before, we always have different types of games at different stages of testing. Some are being tested anonymously in various markets, not under the Garena name to avoid the halo effect of the Gareba blend to give us better data, and some at earlier closed beta testing stage within a small circle of selected users, and some at earlier -- even earlier stage of being still within the in-house testing stage.

是的。所以關於自我開發管道。正如我們之前分享的，我們總是在不同的測試階段擁有不同類型的遊戲。有些是在各個市場匿名測試，而不是在 Garena 的名稱下，以避免 Gareba 混合的光環效應為我們提供更好的數據，有些在早期的封閉 beta 測試階段，在一小部分選定的用戶中進行，有些在早期 - - 甚至更早的階段仍處於內部測試階段。

So at any point of time, we do have things being tested. And as we grow the self-development pipeline, as usual, we don't announce the game until we formally launched publicly in the market under the Garena name. But however, this has been a focus of the development team. And I think we have about half of our team focused on new games at different stages, while the rest is still continue to focus on putting more content and also game modes and UGC tools into Free Fire and Free Fire MAX.

因此，在任何時候，我們都會進行測試。隨著我們發展自我開發管道，像往常一樣，在我們以 Garena 的名義正式在市場上公開發布之前，我們不會宣布遊戲。但是，這一直是開發團隊關注的焦點。而且我認為我們大約有一半的團隊專注於不同階段的新遊戲，而其餘的人仍在繼續專注於將更多內容以及遊戲模式和 UGC 工具添加到 Free Fire 和 Free Fire MAX 中。

Again, this is a highly dynamic process. We can -- and any time we might adjust the team setup and allocation of human and other resources, depending on the demands and needs of our game content pipeline as well as our user community.

同樣，這是一個高度動態的過程。我們可以——而且我們可以隨時調整團隊設置以及人力和其他資源的分配，這取決於我們的遊戲內容管道以及我們的用戶社區的需求。

In terms of the EBITDA last quarter, we're not -- this is not driven by cutting loss-making, so-called loss-making orders. If you look at our basket size has been relatively stable quarter-on-quarter. And our, in terms of composition of categories, have been relatively stable as well. And overall, it's been very balanced growth across all categories of consumption and across different types of orders.

就上個季度的 EBITDA 而言，我們不是——這不是由削減虧損（即所謂的虧損訂單）驅動的。如果你看一下我們的籃子大小，季度環比相對穩定。而我們的品類構成也相對穩定。總體而言，所有消費類別和不同類型訂單的增長都非常平衡。

Now we do see increasing orders coming from the mall side, which is also a positive sign, as we have more brands global, including some of the global brands we mentioned like Kiehl's, Kate Spade, joining our platform, but at the same time, and contributing more to our GMV. But at the same time, I think the bigger picture is that as the largest marketplace in our region and I think overall composition of the categories generally reflect the broadest communities we are serving. And this is also not driven by market exits, primarily either, as those are very nascent stage, the market that we exited anyway didn't contribute too significantly to the cost side, either.

現在我們確實看到來自商場方面的訂單增加，這也是一個積極的信號，因為我們有更多的全球品牌，包括我們提到的一些全球品牌，如 Kiehl's、Kate Spade，加入我們的平台，但同時，並為我們的 GMV 做出更多貢獻。但與此同時，我認為更大的圖景是，作為我們地區最大的市場，我認為這些類別的整體構成通常反映了我們所服務的最廣泛的社區。這也不是由市場退出驅動的，主要是因為這些都是非常初級的階段，我們退出的市場對成本方面的貢獻也沒有太大。

The next question...

下一個問題...

In terms of Brazil, we look -- we did provide our EBITDA loss per order as well. And as we understand the market also very focused on understanding how the efficiency gain is progressing in Brazil. In terms of overall growth, it remains to be very robust.

就巴西而言，我們看起來——我們確實也提供了每筆訂單的 EBITDA 損失。據我們了解，市場也非常關注巴西的效率提升情況。就整體增長而言，它仍然非常強勁。

We -- our order growth continued to be a very high triple-digit, close to 200% year-on-year. So it's continued to be very high gross rate. And at the same time, we are also very pleased to share that not only we're the #1 in downloads and total time spent. Most recently, we are also ranked #1 in monthly active user for March and April by data.ai. And that shows that we are fast closing and increasingly becoming a market leader in terms of user base and also in terms of orders in a market that we entered just 2 years ago, while continuing to enjoy efficiency gain in the market.

我們——我們的訂單增長繼續保持非常高的三位數，同比增長接近 200%。所以它的毛利率一直很高。同時，我們也很高興地分享，我們不僅在下載量和總花費時間方面排名第一。最近，我們還在 data.ai 的 3 月和 4 月月活躍用戶中排名第一。這表明我們正在快速關閉，並在用戶群和訂單方面日益成為市場領導者，而我們僅在 2 年前進入了這個市場，同時繼續享受市場的效率提升。

The next question comes from John Choi from Daiwa.

下一個問題來自大和的 John Choi。

I have 2 questions. First of all, on your digital finance services, a very strong growth. Can management provide some color? I mean you did say that Indonesia, you guys have 30% of the active users use multiple products. So in terms of profitability or let's say, user engagement, any economics? Can you kind of share how Indonesia stands out and how this could be extrapolated to other markets?

我有 2 個問題。首先，在您的數字金融服務上，增長非常強勁。管理層可以提供一些顏色嗎？我的意思是你確實說過印度尼西亞，你們有 30% 的活躍用戶使用多種產品。那麼就盈利能力而言，或者說，用戶參與度，任何經濟學？您能否分享一下印度尼西亞如何脫穎而出以及如何將其推廣到其他市場？

The second question is on Shopee. I think you just mentioned Brazil has seen very strong growth, like close to 200%. But if you look into like actual user engagement on the categories or the actual products that the consumers are purchasing, how does this compare to our Southeast Asia or Taiwan? I mean, where do you think you guys have to invest more in Brazil or Latin America?

第二個問題是關於 Shopee 的。我想你剛才提到巴西的增長非常強勁，接近 200%。但是，如果您查看實際用戶對類別或消費者購買的實際產品的參與度，這與我們的東南亞或台灣相比如何？我的意思是，你認為你們必須在巴西或拉丁美洲進行更多投資嗎？

Thank you, John. In Indonesia, yes, you're right that our SeaMoney business has grown well, and we also offered the most comprehensive suite of products in the market which is also the largest market in Southeast Asia and Taiwan. And so we saw a very strong traction and strong synergies with our Shopee ecosystem in growing the business, both in scale, commercialization and also, as we shared before, we believe it will be a cash flow -- will contribute positive cash flow to the group business in the short to medium term.

謝謝你，約翰。在印度尼西亞，是的，您說得對，我們的 SeaMoney 業務發展良好，而且我們還提供了市場上最全面的產品套件，這也是東南亞和台灣最大的市場。因此，我們看到了與我們的 Shopee 生態系統在發展業務方面的強大牽引力和強大的協同效應，無論是在規模、商業化方面，而且正如我們之前分享的，我們相信這將是現金流——將為中短期的集團業務。

And in other markets, we are also rolling out increasing number of cMoney products including continue to strengthen our market leadership on the e-wallet side and the leveraging that offer more products across credit to both the consumers and our SME merchants, and also the insurance product, Intertech products and potentially down the road wealth management products, of course, in collaboration with financial institutions. And our digital banking products also being rolled out not only in Indonesia.

在其他市場，我們還推出了越來越多的 cMoney 產品，包括繼續加強我們在電子錢包方面的市場領導地位，以及為消費者和我們的中小企業商家提供更多信貸產品的槓桿作用，以及保險產品、Intertech 產品，當然還有可能與金融機構合作的財富管理產品。我們的數字銀行產品也不僅在印度尼西亞推出。

But as we shared before, we have obtained also a license more recently in Singapore, the Philippines and now in Malaysia. So we will be also looking to serve the large base of communities in various countries. So we do believe there is a very significant opportunity to be captured. And our ability to leverage our large consumer Internet ecosystem our understanding, deep understanding of the user base and our easy access to them and the ability to serve them with technologies who are underserved because of the limitation of physical infrastructure and other reasons.

但正如我們之前分享的，我們最近在新加坡、菲律賓和現在在馬來西亞也獲得了許可證。因此，我們還將尋求為各個國家的廣大社區提供服務。因此，我們確實相信有一個非常重要的機會可以被抓住。我們有能力利用我們的大型消費者互聯網生態系統，我們對用戶群的理解、深刻理解以及我們對他們的輕鬆訪問，以及利用由於物理基礎設施的限制和其他原因而服務不足的技術為他們服務的能力。

So this is a significant and highly profitable opportunity that we are looking at, and we'll continue to manage the growth of the SeaMoney business across various regions over time.

因此，這是我們正在尋找的一個重要且高利潤的機會，隨著時間的推移，我們將繼續管理 SeaMoney 業務在各個地區的增長。

And in terms of our Brazil business, the categories that we are focused on for our -- for the goods sold on the platform by our the local Brazilian SME merchants are largely similar to those we have in Southeast Asia and also the basket size so far is quite similar in line with the group average basket size. So we continue also to target the underserved mass market in Brazil as we gain efficiency. In terms of the areas of investment, I think, generally also similar to how we scaled our business in Southeast Asia and Taiwan, we invested in user growth investing in building the platform and a broader range of services and offerings to our users, and at the same time, continue to improve the user experience through integrated infrastructure, logistics as well as payments.

就我們的巴西業務而言，我們專注於我們的巴西本地中小企業商家在平台上銷售的商品的類別與我們在東南亞的商品以及迄今為止的籃子大小基本相似與組平均籃子大小非常相似。因此，隨著我們提高效率，我們還將繼續瞄準巴西服務不足的大眾市場。就投資領域而言，我認為，通常也類似於我們在東南亞和台灣擴展業務的方式，我們投資於用戶增長，投資於構建平台和為用戶提供更廣泛的服務和產品，以及同時，通過綜合基礎設施、物流和支付，不斷提升用戶體驗。

If you noted, we previously also announced that we recently obtained a financial institution license in Brazil to allow us to better serve our users in terms of e-wallet and e-payment side. So I think this is something that's very similar to what we have done in Southeast Asia and Taiwan before 7x. So we are replicating that in Brazil. Of course, each market that we entered into, including all the 7 markets in Southeast Asia and Taiwan, are highly distinct and require deep localization in approaches, execution and also the management of the business down to every level of detail. And that is where I think we excel in managing highly diverse markets across different stages of development and across different cultures and regulatory regimes. And this is something that we'll keep doing. Thank you.

如果您注意到，我們之前還宣布，我們最近在巴西獲得了金融機構許可證，以便我們能夠在電子錢包和電子支付方面更好地為我們的用戶服務。所以我認為這與我們在 7x 之前在東南亞和台灣所做的非常相似。所以我們正在巴西複製這一點。當然，我們進入的每一個市場，包括東南亞和台灣的所有7個市場，都是高度不同的，需要在方法、執行和業務管理上進行深度本地化，直至每一個細節。這就是我認為我們擅長管理跨越不同發展階段、跨越不同文化和監管制度的高度多樣化市場的地方。這是我們將繼續做的事情。謝謝你。

The next question comes from Jiong Shao from Barclays. .

下一個問題來自巴克萊的邵炯。 .

My first question is a follow-up question on your guidance and your outlook for your Shopee business. Your GMV growth slow down a bit in December quarter, in the March quarter, largely because of the tough comp last year. I was wondering, just for your current outlook, is Q2 sort of the potentially the bottom in terms of the year-over-year growth for your GMV and then we start to see recovery in Q3 or the bottom is going to be some time later this year?

我的第一個問題是關於您對 Shopee 業務的指導和展望的後續問題。您的 GMV 增長在 12 月季度和 3 月季度略有放緩，主要是因為去年的艱難競爭。我想知道，就您目前的前景而言，就您的 GMV 的同比增長而言，第二季度可能是底部，然後我們開始看到第三季度的複蘇，或者底部將在一段時間後出現今年？

Related to that, previously, you talked about take rate may be up a bit less than 200 basis points this year. Sorry if I missed, you reiterated that earlier. But if you haven't, I was wondering if you have a new source about that.

與此相關的是，您之前談到今年的利率可能會上漲不到 200 個基點。對不起，如果我錯過了，你之前重申了這一點。但如果你還沒有，我想知道你是否有新的消息來源。

My second question is on competition. I was wondering, given some of the news reports about TikTok monetizing e-commerce in Southeast Asia and Tokopedia went public, Indonesia raised a few billion dollars. Are you seeing any changes in the competitive landscape in Southeast Asia plus Taiwan? If you haven't, could you highlight some of the competitive moat you think you have so to keep you in a leading position, if not expand your lead over some of your competitors?

我的第二個問題是關於競爭的。我想知道，鑑於一些關於 TikTok 在東南亞電子商務貨幣化和 Tokopedia 上市的新聞報導，印度尼西亞籌集了數十億美元。您是否看到東南亞和台灣的競爭格局有任何變化？如果您還沒有，您能否突出一些您認為擁有的競爭護城河以保持領先地位，如果不能擴大您對某些競爭對手的領先優勢？

Thank you, Joe. Regarding the GMV growth rate, we don't provide guidance on that. But as you correctly pointed out, Q1 and Q2 last year were at the height of COVID lockdowns in our region, and it also translated into some of the highest growth rates during that time last year. So we are facing a tougher comp in the first half of the year.

謝謝你，喬。關於 GMV 增長率，我們不提供指導。但正如您正確指出的那樣，去年第一季度和第二季度是我們地區 COVID 封鎖的高峰期，這也轉化為去年同期的一些最高增長率。因此，我們在今年上半年面臨著更加艱難的競爭。

And on the other hand, we don't provide specific guidance on the numbers on GMV or the take rate. In terms of our competitive landscape, I think we always take competition very seriously. And -- but at the same time, I think we came from -- for each of our businesses, in particular, e-commerce, we came from underdog position, vis-a-vis, very well-established income brands who also much better funded than we were, and we rose to the strong market leadership and become multiple times their size over time in our region and at the same time, improving our efficiency and now approaching profitability.

另一方面，我們不提供有關 GMV 數字或採取率的具體指導。就我們的競爭格局而言，我認為我們總是非常重視競爭。而且 - 但與此同時，我認為我們來自 - 對於我們的每一項業務，特別是電子商務，我們來自弱勢地位，相對於非常成熟的收入品牌，他們也很資金比我們以前更好，我們上升到強大的市場領導地位，隨著時間的推移，我們在我們地區的規模擴大了數倍，同時提高了我們的效率，現在接近盈利。

So I think eventually, it is about our ability to serve our own users and merchants, including our merchants and consumers well and leave no large segment of our communities and consumption categories that could have been served by us on served. And this is -- we don't see that as a zero-sum game. We see it as a marathon whereby our success is dependent on our ability to execute, continue to pace ourselves well and run well and be ahead of the pack. So this is our consistent approach on competition.

所以我認為最終，這關乎我們服務好我們自己的用戶和商家的能力，包括我們的商家和消費者，並且不會留下我們本可以服務的大部分社區和消費類別。這是 - 我們不認為這是一場零和遊戲。我們將其視為一場馬拉松，我們的成功取決於我們的執行能力、繼續保持良好的節奏、良好的跑步以及領先於其他人的能力。所以這是我們一貫的競爭方式。

[Operator Instructions) Next question comes from Shan Wang from CICC.

[操作員說明] 下一個問題來自中金公司的王珊。

With regards to take rates. We've noted that take rates for commission and marketplaces have actually increased in April and May. Is it a reflection of our strength in each country given that take rates were increasing varying levels down to our Southeast Asia markets? That's my first question.

關於採取率。我們注意到，佣金和市場的收取率實際上在 4 月和 5 月有所增加。考慮到我們的東南亞市場的錄取率正在不同程度地上升，這是否反映了我們在每個國家/地區的實力？這是我的第一個問題。

And the second one is with regards to not buy now, pay later. When do we think we'll be able to replicate the success of buy now, pay later in our countries -- in countries operations like Philippines and even Brazil?

第二個是關於現在不買，以後再付款。我們認為我們什麼時候能夠在我們的國家複製先買後付的成功——在菲律賓甚至巴西等國家開展業務？

Thank you, Shan. Regarding the take rate, I think this, again, we've been gradually raising take rate consistently. I think we started introducing take rate across various types of merchants and categories of goods many years ago, and we're pioneers, in fact, in many of the markets, introducing a take rate and gradually increasing -- we've been gradually increasing the take rate over time across multiple types of streams of revenue.

謝謝你，珊。關於獲取率，我認為我們一直在逐步提高獲取率。我想我們很多年前就開始在各種類型的商家和商品類別中引入take rate了，我們是先驅，事實上，在許多市場中，引入了take rate並逐漸增加——我們一直在逐漸增加隨著時間的推移，跨多種收入流的獲取率。

And as we shared in earnings for the most recent quarter, the increase also largely came from the high-margin take rates in terms of transaction-based fees as well as advertisement A lot of that is actually optional for our merchants. This involving opt-in programs that merchants can choose to pay us a high take rate for more and better services and/or better deals for their consumers.

正如我們在最近一個季度的收益中分享的那樣，增長也主要來自基於交易的費用和廣告方面的高利潤率，其中很多對於我們的商家來說實際上是可選的。這涉及選擇加入計劃，商家可以選擇向我們支付高額費用，以獲得更多更好的服務和/或為他們的消費者提供更好的交易。

So eventually, this is as the merchants basically investing in their own business on our marketplace to grow their business. And as a result, we benefit from that. So I think eventually, this is because our ability to deliver better results more sales volume and attract more users to other merchants. Their businesses are growing fast. And as a result, they are also willing to and happy to invest more in the platform that allow them their business to grow even better and faster on our platform.

所以最終，這是因為商家基本上在我們的市場上投資自己的業務以發展他們的業務。因此，我們從中受益。所以我認為最終，這是因為我們能夠提供更好的結果更多的銷量並吸引更多的用戶到其他商家。他們的業務正在快速增長。因此，他們也願意並樂於在平台上進行更多投資，讓他們的業務在我們的平台上發展得更好更快。

In terms of the buy now, pay later. So we will -- we have been introduced in the buy now, pay later programs across various markets. And I might also introduce it in Brazil that as demanded by our users, we will be also collaborating with other financial institutions to help grow the program. But we will continue to remain very prudent and to manage a highly sustainable in terms of the sustainable long-term growth of the program, we think it helps the growth of e-commerce business. And -- but at the same time, we are also cautious about extending credit to only white-listed consumers with whom we can have sufficient data, and we continue to focus on improving our underwriting capabilities across the board. So this has been something that we focus on in various markets.

就現在購買而言，以後付款。因此，我們將 - 我們已經在各個市場推出了立即購買、稍後付款的計劃。我也可能會在巴西介紹它，根據我們用戶的要求，我們還將與其他金融機構合作以幫助發展該計劃。但我們將繼續保持非常謹慎並管理一個在可持續長期增長方面具有高度可持續性的計劃，我們認為這有助於電子商務業務的增長。而且 - 但與此同時，我們也對僅向我們可以擁有足夠數據的白名單消費者提供信貸持謹慎態度，我們將繼續專注於全面提高我們的承保能力。因此，這一直是我們在各個市場上關注的事情。

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

由於時間有限，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 again for joining the call today. We look forward to speaking to all of you again next quarter. Thank you.

再次感謝您今天加入電話會議。我們期待下個季度再次與大家交談。謝謝你。

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。