Sea Ltd (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－早安，晚上好。歡迎參加 Sea Limited 2022 年第一季業績電話會議。 （操作員指示）今天的演示結束後，將有機會提問。請注意，該事件正在被記錄。現在我想將會議交給宋敏珠女士。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 2022 年第一季財報電話會議。我是 Sea 集團首席公司長辦公室的宋敏珠 (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的陳述，這些陳述本質上受風險和不確定性的影響，並且由於我們在新聞稿中所述的各種原因，可能不會在未來實現。此外，本次電話會議也討論了某些非公認會計準則財務指標，如調整後的 EBITDA 和淨虧損（不包括股權激勵）。我們相信，這些指標作為我們 GAAP 揭露的補充，可以增強投資者對我們主要業務實際現金流的理解。有關非 GAAP 財務指標的使用以及與最接近的 GAAP 指標的調整的討論，請參閱我們新聞稿中有關非 GAAP 財務指標的部分。

I have with me, Sea's Chairman and 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.

和我一起的還有 Sea 集團董事長兼執行長 Forrest Li；集團財務長侯建軍；以及集團首席企業長 Andrew Wang。我們的管理層將分享 2022 年第一季的策略和業務更新、營運亮點和財務業績。

With that, let me turn the call over to Forrest

現在，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，感謝您參加今天的電話會議。我很高興地告訴大家，我們在 2022 年取得了良好的開端。 儘管與去年同期相比，在 COVID 相關限制措施加強的情況下，業績表現具有挑戰性，但我們在 2022 年第一季度的整個業務中仍取得了穩健的業績。

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，我們預計將實現先前在亞洲市場達成的獲利預測，同時繼續擴大業務規模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 GAAP 營收年增 64%，達到 29 億美元，毛利年增 81%，達到 12 億美元。隨著 Shopping 和 SeaMoney 擴大規模並加強其市場領導地位，它們繼續享受經營槓桿和效率收益。尤其是Shopee在東南亞和台灣地區分配總部成本前的每筆訂單調整後EBITDA虧損年增超過70%，至0.04美元。這表明，Shopee 有望在該地區分配成本之前實現正的調整後 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，即使在明年年底為該地區分配總部成本後，Shake 仍將實現正的調整後 EBITDA。同時，即使與去年同期相比，Shopee 仍實現了非常強勁的成長。其總訂單量年增超過70%，天然氣市場營收年增超過75%，進一步擴大了Shopee在交易量和商業化能力方面的市場領導地位。

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 的調整後 EBITDA 虧損也比上一季和去年同期有所收窄，而 GAAP 收入與去年相比增長了近 350%。季度活躍用戶較去年同期成長超過78%。這也有力地表明，SeaMoney 預計將實現我們先前預測的正現金流，同時繼續有效率地快速擴張。 Shopee 和 SeaMoney 在東南亞和台灣取得了顯著的規模、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者網路生態系統正自然接近長期獲利成長階段。儘管競技場在 COVID 之後的成長中遇到了阻力，但我們在提高 Free Fire 用戶參與度方面的努力看到了一些初步的正面效果。特別是，Free Fire 的月度用戶趨勢在第四季度末開始顯示出一些穩定的早期跡象。我們正在評估 COVID 之後用戶參與度的長期趨勢，以便更好地自訂我們的策略和重點領域，在 Free Fire 中使用更具吸引力的內容並加強我們的新遊戲管道仍然是我們的首要任務。

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.

在過去的兩年裡，我們成功應對了疫情帶來的巨大不確定性，抓住了各業務領域面臨的巨大成長機會。當我們進入新的時期時，我們認識到當前的微觀趨勢和不確定性可能會影響我們地區和近期至中期的工作。我們在過去一段時間內累積並取得的經驗、能力、資源以及進一步加強的領導地位，使我們比以往任何時候都更有能力應對這些不確定性，更重要的是，抓住我們所在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.

像往常一樣，我們將繼續專注於保持謙遜、務實和敏捷，同時始終如一地推動強有力的執行，為我們地區的大量服務不足的社區提供服務。接下來，我將逐一討論每項業務。

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.

第一季度，Shopee 繼續大幅提高單位經濟效益，同時佔領市場份額並擴大其在各個市場的領導地位。我們的Shopee平台的線上消費持續成長，實現了強勁的年成長。 Shopee第四季GAAP營收為15億美元，年增64%。總訂單量比去年同期成長了71%，達到19億美元。 GMV 為 174 億美元，年成長 39%，與疫情前的 2020 年第一季相比，複合年增長率為 58%。

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.

貨幣化也得到了改善，GAAP 市場收入佔 GMV 總額的百分比從去年同期的 5.7% 上升至本季的 7.2%。很高興看到Shopee的毛利率同比有所提升，這得益於交易費用和廣告收入的快速增長，相對於其他增值服務產生的收入，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，其他加值服務收入毛利率亦較上一季有所提升。此外，我們持續高度注重效率。這裡我想再多分享一下我們不斷提高成本效率的做法。

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.

我們的商業模式透過擴大整個電子商務生態系統的經營槓桿來優化單位經濟。我們致力於在全面的核心線上市場類別中發展廣泛的買家和賣家基礎並深化參與。這促進了用戶的成長、轉換和保留以及購買頻率，使我們能夠有效地增加訂單量和密度。我們的目標是透過充足且不斷提升的訂單量和密度，實現生態系統的成本領先，為最廣泛的買家和賣家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，包括數位金融服務，特別是針對服務不足的大眾市場，我們認為這個細分市場代表著我們全球市場中最大的機會。

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，這項策略將帶來顯著的規模、強勁的獲利能力和深厚的競爭優勢。我們在東南亞和台灣的業績記錄正在提高這一模式的成功率，而我們在短時間內在巴西的成就也讓我們的信念更加堅定。

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.

我很高興地指出，由於我們專注於提高貨幣化和優化成本，我們在第一季再次取得了單位經濟效益的顯著改善。總體而言，Shopee 扣除總部成本前的每筆訂單調整後 EBITDA 虧損年比和季比均有所改善。在東南亞和台灣，分配總部成本前的每訂單調整後 EBITDA 虧損為 0.04 美元，較 2021 年第一季的 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.

我們第一季在巴西也取得了非常健康的進展，該季度的虧損為 1.52 美元，比去年同期改善了 45％ 以上。我們在主要市場擴大整體目標市場的努力，反映在Shopee在全球同業中的關鍵參與度指標上繼續保持高位。其中包括 data.ai。 Shopee 第一季下載量排名全球購物類別第一。此外，Shopee 第一季在 Google Play 購物類別中，按應用程式總使用時間排名全球第一，並按平均活躍用戶數排名全球第二。

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數和東南亞和台灣總 TAM 支出應用程式的最高評分應用程式。

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，我們在相同指標中也排名第一，第一季總訂單量年增約 77％。根據 data.ai 的數據，在巴西，Shopee 在購物類別的下載量和總使用時間方面排名第一，並按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，Shopee巴西購物類目月活躍用戶數最高，領先地位進一步擴大。我們的本地賣家也不斷增加，目前在 Shopee 平台上註冊的巴西賣家已超過 200 萬。從中小企業到品牌建立者，我們正在全面努力使他們能夠服務更多類別、更多人口統計和更多消費地點的買家。

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，我們在巴西的公眾支持表明了我們的信念：為該市場中服務不足的賣家和買家群體存在巨大且極具前景的機會。我們將繼續投資這一機會，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，在我們的核心市場中，購物中心繼續透過創新的解決方案和工具為我們的品牌合作夥伴提供前進的動力，以支持持續成長。最近一個季度，我們超過 36,000 個品牌合作夥伴呈現出強勁的成長勢頭，達到了新的里程碑，佔 GMV 的 15% 左右，而一年前為 12%。我們也與更多品牌合作，例如新加坡的 (聽不清楚) 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更強大。在我們的核心市場中，實體和社交電子商務的滲透預計將持續下去。同時，我們正在擴大在東南亞和台灣的領導地位並實現收支平衡，並在進入世界人口第六大市場巴西兩年後進行了調整。我們正在快速邁向市場領先地位。我們確實將繼續專注於高品質的執行，同時持續創新並投資於我們的技術能力，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和提高效率，從而更好地定位商店的長期成長和獲利能力。

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較高的環境，我們看到今年購物的情景和結果將更加多樣化。雖然我們相信先前的指引仍然可以實現，但我們正在修改我們的電子商務指引，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，年增 72%。讓我們轉向數位娛樂。

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，與疫情期間的封鎖期相比，我們的用戶群和預訂量有所下降，而印度應用商店中免費應用程式仍然無法使用，這進一步影響了用戶群和預訂量。不過，預計疫情期間的加速將會回落。我們將對第一季的業績進行綜合評估。

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.

我們的季度活躍用戶呈現強勁成長，自 2020 年第一季起複合年增長率接近 24%。因此，我們將繼續專注於吸引、回饋用戶並加深與用戶的互動，透過投資增強和多樣化的內容 UGC 來提高可訪問性和其他用戶友好功能。

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.

此項投資加上預訂量的下降，導致本季調整後 EBITDA 佔預訂量的百分比年減。但我們將繼續以長遠的眼光看待此類投資，因為它們對於我們平台上主要遊戲特許經營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，在我們調整節奏的同時，我們將重點放在用戶群的穩定。我們看到一些初步跡象表明，這一舉措開始取得成效，免費套餐的月度用戶趨勢在第一季末開始顯示出一些穩定的早期跡象。

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.

雖然這些都是令人鼓舞的跡象，但重新開放網路遊戲和 Free Fire 的長期影響仍然存在，我們將繼續專注於用戶參與度和用戶群穩定。我們也很高興地看到，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品質的內容，並確保我們的龐大玩家群能夠存取和享受 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 data,ai 的數據顯示，《Free Fire》仍是第一季全球下載量排名第一的手機遊戲。該遊戲按同一時期 Google Play 上所有手機遊戲的平均月活躍用戶數進行全球排序。我們的願景是將 3 款產品打造為長期的遊戲特許經營權和平台，這仍然是一項持續的策略。我們專注於透過更多用戶參與內容和活動進行再融資創新和投資。

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韓國流行音樂團體之一 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，引起了玩家和消費者的共鳴。

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 藝人的中速發展以及我們社群媒體頻道上的內容的觀看次數已超過 1.5 億次。此外，我們的大眾編輯功能 Parkland 透過推動創作者之間的更多參與和互動以及社區參與而獲得了強大的吸引力。第一季度，數億玩家在數十億款遊戲中暢玩了 Craftland 上的新地圖。使用者生成內容是 Free Fire 持續參與策略中越來越重要的部分，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.

如同先前所分享的，數位娛樂是我們業務的長期重點，隨著數位原生代的興起，虛擬消費的重要性日益增加。我們致力於投資我們現有的頂級系列遊戲，進一步豐富我們的遊戲組合，涵蓋更多新類型。其中一個例子就是《月光之刃》，這是一款第三方大型多人線上低玩家遊戲，繼去年在台灣推出之後，我們將在未來幾個月內在泰國的行動裝置和 PC 上推出該遊戲。

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各種基因的新遊戲。同時，我們正在探索出版合作夥伴關係，並對世界各地的遊戲工作室進行早期投資，這是我們的數位金融服務業務。

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 在 2022 年第一季繼續保持強勁成長。

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 GAAP 營收為 2.36 億美元，年增 350%。我們 SeaMoney 產品和服務的活躍用戶總數較去年同期成長 78%，達到 4,900 萬人。信貸和數位銀行領域對 SeaMoney 金融產品和服務的採用是本季營收成長的主要驅動力，我們預計這種趨勢將持續下去。

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，這些產品有望在長期內成為穩固的高品質價值驅動力，而無需進行大量投資即可擴大規模。我們行動錢包第一季的總支付額為51億美元，年增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.

在過去幾年裡，我們成功地利用商店生態系統在整個市場建立了領先的行動錢包地位。我們也將我們的信貸產品擴展到更多市場，讓更多白名單用戶可以享受。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.

我們的數位銀行計劃早期也獲得了強勁發展勢頭。順便提一下，我很自豪地告訴大家，我們與楊忠禮數位資本聯合申請的馬來西亞數位銀行牌照已於 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.

在我們市場中產品和服務最全面的印度尼西亞，超過 30% 的季度活躍用戶在第一季使用了多種 SeaMoney 產品或服務。 SeaMoney 的機會規模是巨大的，而且隨著我們不斷擴大為市場上服務不足的群體提供的產品和服務，這一機會也只會不斷擴大。

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

我們對該領域的成長前景以及 Shopee 和 SeaMoney 強勁持續的生態系統效益感到非常興奮。

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，我們相信，與幾年前疫情剛開始時相比，我們現在的地位要強大得多，能力得到了顯著增強，資源更加豐富，業績記錄良好，實現長期目標的路徑也更加清晰、更加確定。

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，我們繼續佔領市場份額並加深與各個市場賣家和消費者的緊密聯繫。我們面前有著非常光明的成長機遇，我們將繼續審慎而有紀律地進行投資，同時推動整個業務效率的不斷提高。

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，我們將利用我們在內容創作和社群參與方面的優勢，確保即使全球遊戲產業面臨市場重新開放的阻力，我們平台的受歡迎程度仍能持續。同時，我們致力於拓展不同類型的遊戲組合。借助 SeaMoney，我們正在以高度自律和高效的方式擴大我們的第三個成長引擎，確保我們處於理想的位置，能夠抓住新領域到來之前的重大成長機會。基於第一季強勁的表現，我們將繼續專注於強有力的執行，平衡的成長和效率，以實現穩健的業績。

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

因此，我將邀請托尼來討論我們的財務狀況。

Thank you, Forrest, and thanks to everyone for joining the call. 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，福雷斯特，也謝謝大家參加電話會議。我們在今天的新聞稿中提供了詳細的財務時間表以及相應的管理分析，Forrest 也討論了我們的一些財務亮點。因此，我將重點討論其他相關指標。

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，其 GAAP 總營收年增 64% 至 29 億美元。這主要是由於我們繼續利用各個平台之間的協同效應，導致我們的電子商務和數位金融服務業務中的產品和服務的採用率不斷提高。

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，我們第一季的 GAAP 營收為 15 億美元，其中包括 GAAP 市場營收 13 億美元，年增 75%；GAAP 產品營收 3 億美元，年增 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發展。數位娛樂預訂額為 8 億美元，而 2021 年第一季為 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 營收年增 45% 至 11 億美元。 GAAP 收入的增加主要歸因於確認了前幾季累計的遞延收入。數位娛樂調整後的 EBITDA 為 4.31 億美元，而 2021 年第一季為 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.

數位金融服務 GAAP 營收為 2.36 億美元，較 2021 年第一季的 5,100 萬美元年增 360%。

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.

由於我們持續努力推動行動錢包的普及，調整後的 EBITDA 虧損為 1.25 億美元。回到我們的合併數字。我們確認 2022 年第一季的淨非營業虧損為 600 萬美元，而 2021 年第一季的淨非營業虧損為 2,300 萬美元。因此，2022 年第一季（不含股權激勵費用）的淨虧損為 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年第一季投資活動所用淨現金為11億美元。

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 年第一季末，我們的資產負債表上有約 88 億美元的現金、現金等價物和短期投資。說完這些，我把電話轉給 Min Ju。

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。我們現在準備開始接受提問。福雷斯特、東尼和安德魯將解答這個問題。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。 （操作員指示）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?

我有兩個問題。第一，針對中國目前各城市處於封城狀態的情況。管理階層能否分享中國封鎖對你們跨境業務的影響嗎？這是促使您擴大電子商務指導範圍的原因之一嗎？除此之外，還有什麼宏觀條件促使您對 Shopee 業務更加謹慎嗎？

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們的D&A業務。管理層在準備好的評論中提到，Free Fire 的用戶參與度有所提高，您能分享一下在哪些國家您實際看到用戶趨勢的改善嗎？您認為使用者趨勢指標可以進一步改善嗎，或者您認為這對於穩定使用者指標的作用還遠遠不夠？您可以分享任何正在籌備的新遊戲的最新消息嗎？

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，艾莉西亞。關於第一個關於CB的問題，到目前為止，我們還沒有看到重大影響，跨國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對本地。

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.

擴大 Shopee 指引範圍的原因是，正如我們在收益中所分享的，我們看到了諸如通貨膨脹上升、供應鏈中斷增加以及各個市場和全球利率上升等宏觀趨勢，我認為我們希望謹慎地看待它。

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.

但正如大家所分享的，我們仍然認為最初的指導對我們來說是可以實現的。然而，考慮到存在不確定性，我們確實希望能夠密切管理局勢，並在進展過程中更加密切地追蹤市場動態。因此，雖然存在挑戰，但我們也看到一些亮點，特別是在我們地區，例如，到目前為止，我們的大多數市場都相對具有擺脫 COVID 的韌性，許多市場的通膨仍然相對受到控制，而且我們的一些市場是大宗商品的淨出口國，並且在投資方面受益於全球供應鏈的轉變——製造業的外國直接投資等等。

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，雖然存在挑戰和不確定性，但該地區也存在著我們可以尋求抓住的機會。再說一次，我認為關鍵在於就像我們進入新冠疫情一樣，存在著巨大的不確定性和挑戰。但最終，我們的企業規模更大、實力更強，業務更加多元化，並且接近在主要市場實現長期獲利成長。

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.

所有這些都對我們管理和應對可能面臨的新挑戰和不確定性提供了很大幫助。作為一家企業，我認為我們將繼續專注於保持謙遜、敏捷和務實，並專注於強有力的執行。我認為，我們的過往記錄表明，我們在艱難的情況下表現得更為出色。而且我認為，與許多同行相比，我們在這一方面處於相對有利的地位。因此就遊戲業務而言，我們看到接近季度末，東南亞和世界其他一些地區的用戶趨勢有所穩定。

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.

然而，就新冠疫情後的長期趨勢而言，這仍有待觀察，且仍處於早期階段。因此我們要提醒大家，這只是一些初步跡象。不過，我認為我們會繼續努力深化用戶參與度。因此，我們也分享了我們兩年的複合年增長率，以顯示我們在 COVID 期間獲得的大量用戶群。對於其中一些用戶，我們已經能夠保留下來，並且我們將繼續努力保留更多用戶，同時繼續將我們的遊戲打造為一個長期平台，並且我們非常注重 Free Fire 的推廣壽命，透過引入更多樣化的內容和遊戲模式以及遊戲稅並將 UGC 工具納入遊戲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，我們也嘗試進一步豐富我們的遊戲產品線，包括在更多市場發布遊戲，例如先前提到的《月光之刃》即將在泰國推出。這也是我們一直在努力、在遊戲方面持續努力。

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?

這裡有兩個問題我問。我們可以再次回到指導嗎？也許您也可以向我們介紹一下這背後的原因，例如，這主要是由於降低了 GMV 假設，還是也考慮到了降低細分假設？這是否意味著，根據這份新指南，您能想到的隱含 GMV 成長預期是多少？

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.

那我們該如何看待未來季度的連續趨勢呢？這是第一個問題。其次，就現金消耗和單位經濟而言，第一季可能有所改善。我們也看到了接受率的健康提升。您能向我們介紹一下您為實現這一目標所採取的步驟嗎？這主要是由於更高的接受率還是更低的補貼——我們應該如何考慮成長和獲利之間的平衡，尤其是考慮到宏觀不確定性的 ASM？在本季總部成本已經大幅上升之後，我對未來成本趨勢也有了更好的了解。

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，彭。就 Shopee 指導而言，我認為，正如我剛才分享的，我們不一定會降低它。我們正在擴大範圍。我們仍然認為我們有可能實現最初的指導目標。但考慮到經濟趨勢，我們希望保持謹慎，同時面對不確定性，我們確實希望在根據潛在市場動態管理業務時保持最大的靈活性。從基礎銷售成長和商業化的角度來看，這基本上是所有因素的結合。 。

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.

我們不專門針對GMV和佣金率進行指導。但總體而言，如果你看一下整體 GAAP 收入趨勢，即使從更廣泛的角度來看，其同比增長率仍超過 70％，我相信，與全球行業同行相比，這一增長率相當高，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.

因此，我再次認為，這是我們需要極度謹慎採取的措施。至於單位經濟效益的改善，我認為這不僅體現在更好的商業化方面，也體現在成本方面的效率提升，因為我們將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。就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。透過這種方式，我們可以隨著時間的推移和規模擴大，實現更好的單位經濟效益。

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，在這個過程中，我們非常注重投資的效率，透過各種社交娛樂、工具和市場、產品組合、更好的服務等有效地吸引用戶，有效地轉換和留住用戶，並隨著時間的推移提高購買頻率，這樣我們就可以最大限度地提高投資回報，以更高的效率發展和擴大業務。最終，如果我們能夠實現收支平衡，並以相對較低的訂單價值（以平均購物籃規模計算）實現長期盈利增長，這將使平台具有很強的防禦性，並能夠滿足最多種類商品中最多消費者的需求。這也使我們能夠有效地交叉銷售許多不同的產品和服務。這使得平台非常有效率並且還能提高未來的獲利能力。這也使得我們至今已打造出東南亞及台灣最大的消費網路生態，並接近長期獲利成長的階段。

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.

關於未來總部成本的趨勢，正如我們在收益中所分享的，就最近一個季度而言，總部成本佔 Shoppe EBITDA 損失增加的一半左右，其中大部分是由研發人員數量推動的。

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.

正如我們之前所說，我們專注於建立我們的技術能力和產品套件，以便為我們的龐大用戶群提供更多服務和產品，並更有效率、更有效地提供。我們認為從長遠來看，這將成為我們非常強大的競爭優勢，也使平台更有效率地服務用戶，滿足他們的需求，並為他們提供更多的產品和服務。所以這是一個長期投資目標。

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，我們將繼續高度關注效率並高度務實，因為我們觀察市場趨勢和動態並衡量我們的投資，以確保我們專注於長期平衡成長。

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

[操作員指示）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，您能談談擴大自研遊戲組合的進度嗎？我們注意到，你們的遊戲開發團隊——內部遊戲開發團隊已經擴大到 2,000 多人。您能告訴我有多少開發人員參與了 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.

第二個問題是關於Shopee的。您能否談談每個訂單的 EBITDA 損失環比改善的情況？公司是否有意識地淘汰不賺錢的訂單或減少新市場的投入？或者這更像是一種規模經濟？並管理訂單數量和 UC 收入。

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。因此，關於自我發展管道。正如我們之前分享的，我們在不同的測試階段總是有不同類型的遊戲。有些是在各個市場匿名測試的，而不是以 Garena 的名義，以避免 Gareba 混合的光環效應，從而為我們提供更好的數據，有些在早期的封閉 beta 測試階段，在選定的用戶的小圈子內進行，有些則在更早的——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，我們確實都會對某些事物進行測試。隨著我們自主開發管道的不斷拓展，和往常一樣，我們直到以 Garena 的名義正式在市場上公開發布遊戲後才會宣布遊戲。但無論如何，這一直是開發團隊關注的重點。我認為我們團隊中大約有一半的人專注於不同階段的新遊戲，而其餘的人仍繼續專注於在 Free Fire 和 Free Fire MAX 中添加更多內容、遊戲模式和 UGC 工具。

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.

再次強調，這是一個高度動態的過程。我們可以隨時調整團隊設定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和用戶社群的需求。

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，這並不是由削減虧損，也就是所謂的虧損訂單所推動的。如果你看一下，我們的籃子規模比上季一直相對穩定。而我們的類別組成也相對穩定。整體來看，各類消費和不同訂單都呈現非常均衡的成長。

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，加入了我們的平台，但與此同時，也為我們的GMV貢獻了更多。但同時，我認為更大的圖景是，作為我們地區最大的市場，我認為類別的整體組成通常反映了我們所服務的最廣泛的社區。這主要也不是由市場退出所驅動，因為那些市場還處於起步階段，我們退出的市場對成本方面也沒有太大的貢獻。

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，我們也提供了每個訂單的 EBITDA 損失。據我們了解，市場也非常關注巴西的效率提升進展。從整體成長來看，其仍然非常強勁。

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.

我們的訂單成長持續保持非常高的三位數，比去年同期接近 200%。因此毛利率一直維持在非常高的水準。同時，我們也非常高興地告訴大家，我們不僅在下載量和總使用時間方面排名第一。最近，我們也在 data.ai 的 3 月和 4 月月活躍用戶排名中排名第一。這表明，我們在兩年前進入的市場中，正在快速接近並日益成為用戶群和訂單的市場領導者，同時繼續享受市場效率的提升。

The next question comes from John Choi from Daiwa.

下一個問題來自 Daiwa 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?

我有兩個問題。首先，你們的數位金融服務成長非常強勁。管理階層可以提供一些顏色嗎？我的意思是你確實說過印尼有 30％ 的活躍用戶使用多種產品。那麼從獲利能力或說用戶參與度的角度來看，有什麼經濟效益嗎？您能否分享一下印尼的優勢所在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。我記得您剛才提到巴西的成長非常強勁，接近 200%。但如果你研究消費者對類別的實際使用者參與度或實際購買的產品，與東南亞或台灣相比如何？我的意思是，您認為您需要在巴西或拉丁美洲的哪些地方進行更多投資？

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，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 Shopee 生態系統在業務成長方面的強大吸引力和強大協同效應，無論是在規模上還是商業化上，而且正如我們之前所分享的，我們相信它將帶來現金流——將在短期至中期內為集團業務貢獻正現金流。

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，我們也推出了越來越多的 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，並利用這些優勢為消費者和中小企業商家提供更多的信貸產品，當然還有保險產品、Intertech 產品以及潛在的財富管理產品，當然，這些是與金融機構合作推出的。我們的數位銀行產品不僅在印尼推出。

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.

但正如我們之前所分享的，我們最近也在新加坡、菲律賓和馬來西亞獲得了許可。因此，我們也將尋求為各國的廣大社區提供服務。因此我們確實相信，這是一個非常重要的機會。我們能夠利用我們龐大的消費者網路生態系統、我們對用戶群的深刻理解、以及我們輕鬆接觸用戶的能力，以及為那些由於實體基礎設施的限制和其他原因而得不到充分服務的用戶提供技術服務的能力。

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大且高利潤的機會，我們將繼續管理 SeaMoney 業務在各個地區的成長。

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，我們重點關注的類別——巴西當地中小企業商家在平台上銷售的商品與我們在東南亞的商品大體相似，而且到目前為止的購物籃規模與集團平均購物籃規模非常相似。因此，隨著我們提高效率，我們也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，總體上也與我們在東南亞和台灣擴展業務的方式類似，我們投資於用戶增長，投資於平台建設以及為用戶提供更廣泛的服務和產品，同時，透過整合基礎設施、物流和支付繼續改善用戶體驗。

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.

如果你注意到，我們之前也宣布過，我們最近在巴西獲得了金融機構執照，以便我們在電子錢包和電子支付方面更好地為用戶提供服務。所以我認為這與我們在 7x 之前在東南亞和台灣所做的事情非常相似。因此我們在巴西也複製了這種做法。當然，我們進入的每個市場，包括東南亞和台灣的所有 7 個市場，都是高度獨特的，需要在方法、執行以及業務管理的每個細節上進行深度本地化。我認為，我們擅長管理跨不同發展階段、跨不同文化和監管制度的高度多元市場。我們會繼續這樣做。謝謝。

The next question comes from Jiong Shao from Barclays. .

下一個問題來自巴克萊銀行的邵炯。 。

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。你們的 GMV 成長在 12 月季度和 3 月季度略有放緩，這主要是因為去年的競爭很激烈。我想知道，就您目前的展望而言，第二季度是否可能是您的 GMV 同比增長的底部，然後我們將在第三季度開始看到復甦，或者底部會在今年晚些時候出現？

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，之前您談到今年的利率可能會上升不到 200 個基點。抱歉，如果我沒注意到，你之前重申過這一點。但如果您還沒有，我想知道您是否有關於此問題的新資料來源。

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。我想知道，鑑於一些關於 TikTok 在東南亞電商盈利以及 Tokopedia 上市的新聞報道，印尼籌集了幾十億美元。您是否看到東南亞和台灣的競爭格局發生了任何變化？如果沒有，您能否強調一下您認為您擁有的一些競爭優勢，以保持您領先地位，甚至擴大您對一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成長率，我們不提供相關指引。但正如您正確指出的那樣，去年第一季和第二季是我們地區新冠疫情封鎖最嚴重的時候，這也意味著去年同期的成長率最高。因此，我們上半年面臨的競爭更加嚴峻。

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，我們沒有提供關於GMV或佣金率的具體指導。就我們的競爭格局而言，我認為我們始終非常重視競爭。但同時，我認為對於我們的每項業務，特別是電子商務，我們都是從弱勢地位開始的，相對於資金雄厚、聲譽卓著的品牌，我們逐漸崛起成為強大的市場領導地位，隨著時間的推移，我們在我們所在地區的規模擴大到他們的數倍，同時，我們的效率也在提高，現在已接近盈利。

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.

所以我認為最終取決於我們能否很好地服務我們自己的用戶和商家，包括我們的商家和消費者，並且不讓我們本可以服務的社區和消費類別的大部分被拋棄。而且──我們不認為這是一場零和遊戲。我們將其視為一場馬拉松，而我們的成功取決於我們的執行能力、繼續保持良好的節奏、跑好並領先於其他人的能力。這是我們對待競爭的一貫做法。

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

[操作員指示）下一個問題來自中金公司的王山。

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.

關於收取費率。我們注意到，四月和五月佣金和市場收費率實際上有所增加。鑑於東南亞市場的接受率呈現不同程度的成長，這是否反映了我們在每個國家的實力？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?

第二個是關於先不買，後付款。我們什麼時候才能在我們國家——例如菲律賓、甚至巴西——複製「先買後付」的成功？

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，Shan。至於接受率，我認為，我們一直在逐步提高接受率。我想我們多年前就開始在不同類型的商家和商品類別中引入佣金率了，事實上，在許多市場中，我們都是先驅者，引入了佣金率，並且逐漸提高——隨著時間的推移，我們一直在逐步提高多種收入來源的佣金率。

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.

正如我們最近一個季度的收益所分享的，成長也主要來自於交易費用和廣告方面的高利潤率，其中許多對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佣金，以便為消費者提供更多更好的服務和/或更好的優惠。

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.

因此，最終，這就像商家基本上在我們的市場上投資自己的業務來發展他們的業務。結果，我們從中受益。所以我認為最終這是因為我們有能力提供更好的結果，更多的銷售量並吸引更多的用戶到其他商家。他們的業務正在快速成長。因此，他們也願意並樂意在平台上投入更多，使他們的業務在我們的平台上更好、更快地發展。

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.

就先買後付而言。因此，我們已經在各個市場推出了「先買後付」計畫。我也想在巴西介紹一下，根據我們用戶的要求，我們還將與其他金融機構合作，幫助發展該計劃。但我們將繼續保持非常謹慎的態度，並管理一個高度永續的計劃，以實現長期可持續的成長，我們認為這有助於電子商務業務的成長。但同時，我們也謹慎地只向擁有足夠數據的白名單消費者提供信貸，並且我們將繼續致力於全面提高我們的承保能力。所以這是我們在各個市場關注的重點。

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.

由於時間限制，我們的問答環節到此結束。我想將會議交還給宋敏珠 (Min Ju Song) 做結束語。

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

再次感謝您參加今天的電話會議。我們期待下個季度再次與大家交談。謝謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。