Earnings Call: Q2 2021

Aug 17, 2021

Good morning and good evening. Welcome to the Seed Limited Second Quarter 2021 Results Conference Call. All participants after today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Ms. Minju Song, please go ahead. Thank you, and hello, everyone, and welcome to Sea's 2020 Welcome to the Q2 Earnings Conference Call. I'm Mr. Song from Peace Group's Chief Corporate Officer's Office. 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 have 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 that these measures can enhance our investors' understanding of the actual cash flows of our major businesses with GAAP measures, please refer to the section on non GAAP financial measures in our press release. I have with NiFi's Chairman and Group Chief Executive Officer, will be Group Chief Financial Officer, Tony Ho and Group Chief Corporate Officer, Yanjun Wang. Our management will share strategy and business updates, operating highlights and financial performance for the Q2 of 2021. This will be followed by a Q and A session in which we welcome any questions you have. With that, let me now turn it over to Forrest. Hello, everyone, and thank you as always for are joining today's call. I'm very pleased that we are reporting sustained outperformance in the Q2 of 2021. Our efforts to capture the long term growth from the shift to digitalization across our markets continued to deliver clear and strong results. At the group level for the 2nd represent year on year. Bookings for Garena reached $1,200,000,000 are growing 65% compared to last year. Shopee recorded 1,400,000,000 gross orders, a 1 127% year on year increase and the SIMONI's mobile wallet services registered total We are very encouraged to see such strong year on year growth across our businesses. This is in comparison to our stand out results for the Q2 of 2020 when most of our markets were under the strictest form of lockdowns. Considering the strong performance observed across our businesses in the Our digital entertainment portfolio has outperformed our expectations so far this year. As such, We now expect bookings of between $4,500,000,000 $4,700,000,000 representing over 44% E commerce results in the first half of twenty twenty one also exceeded our expectations and GAAP revenue is now represent year on year growth at the midpoint of the revised guidance. While strict lockdowns have mostly been lifted in our region since the end of the Q2 last year. Many of Our market continues to see a high volume of COVID cases. In this dynamic environment, We continue to demonstrate our ability to adapt quickly to faster changing chances and to execute well to serve evolving needs of our users. We are also working hard slides supported vaccination programs and worked with local governments and partners on various initiatives to assist and the broader economy through this period. In addition, we are working with our government partners to use our platforms to distribute aid and information related to the pandemic quickly and efficiently. Also, considering the ongoing challenges to our communities, we are doubling down on our mission to better lives An example of this is our partnership with the West Java Province in Indonesia. Working with the local government, We plan to establish Shopee Centers that will serve as local e commerce hubs for more than 5 1,000 villages there. West Java is Indonesia's most populous region, home to close to 50,000,000 people. We expect these Shopee centers to provide infrastructure, training and assistance to help villagers and the small business there to accelerate their digitalization journey. Besides the Shopee Centers, we are also partnering with vocational schools across Western Java to include syllabus and courses related to Shopee in their official curriculum. In Vietnam, we have launched an initiative called Shopee Farm to enable Vietnamese are welcome to go digital. Together with government partners, Shopee works closely with Our teams organize training sessions to teach farmers the necessary skills to sell and promote their are with cultural products on the Shopee platform. Many of these rural producers are coming online for the first time. In Malaysia, we have been working with the government to distribute aid and promote digital inclusion through participation in the IBLIA program using our mobile wallet The ABLIA program is an initiative under Malaysia's Budget 2021 to help ease the This is done through giving mobile wallet credit of RMB150 to every qualified These efforts reflect our commitment to serve underserved in our markets through technology and to give back to our communities through social support. In the current environment, we see a greater urgency than ever for our Indeed, we strongly believe that our business performance is closely linked with our ability to deliver on our mission of bettering lives through technology. Let me now discuss each business segment in greater detail. Serena recorded strong results for the Q2 of 2021. Bookings were $1,200,000,000 up 65% year on year and adjusted EBITDA grew to $741,000,000 up are in the range of 70% from last year. The results are mainly due to the continued strong growth of our active and paying user base globally, we recorded quarterly active users of 725,000,000, up 45% year on year, while our quarterly paying users grew 85% over the same period to reach 92,000,000. As a result, our paying user ratio improved to 12.7% from 10% last year. Free Fire delivered excellent results during the quarter, setting multiple new records. Building on its strong performance across global markets, the game recently exceeded 1,000,000,000 cumulative downloads achieved this milestone. It was ranked 3rd globally Average monthly active users on Google Play in the 2nd quarter according to App Annie. Furthermore, Free Fire's peak daily active users hit more than 150,000,000 during the quarter. This is a new record for us, and we believe that few online games globally have ever reached this scale. Meanwhile, Free Fire continued to be the highest grossing mobile game in Southeast Asia, Latin America We have also gained traction in certain developed markets like the U. S. Where the game was ranked the Free Fire was the 2nd highest grossing mobile game in the U. S. On Google Play across all games categories in the 2nd quarter as well. The exceptional global scale of its user base and the ecosystem has solidified Free Fire as one of the largest and the most popular online game We also believe Free Fire is increasingly established as a long lasting global platform with its massive and growing user base and deepening user engagement. Free Fire's continued success is built on our relentless focus on community engagement around high quality content and immersive experiences. Pet rabble, this is a social deduction game mode where players can use their in game virtual pets to take part in a game of We are also setting new records in terms of esports engagement. In May, the finals of the Free Fire World Series Esports are a great way to connect and engage with our community as fans view and root for teams together while learning the best place from professional players. With esports growing similarities to traditional sports, we expect large esports games To activate the same level of community engagement and appeal as physical sports In addition, we have been adding to our portfolio of published titles to further diversify our game offerings. In June, we launched Moonlight Blade Mobile in Taiwan. Moonlight Blade Mobile is a 3rd party massively multiplayer online low playing game that combines fantasy and the martial arts and is an The game has received very positive reception from our users. We will continue to work closely with owe our global partners to bring more new and exciting content to our markets. Looking ahead, we will leverage our local insights and the know how to keep delivering high quality experiences to our fast Now let's turn to e commerce. Shopee continued to deliver superior retail experience to our consumers and merchants. During the quarter, Our communities continued to face challenges with the surge in pandemic cases across the region. We remain focused on helping our merchants with their digital transformation to build voices. We recorded 1,400,000,000 gross orders in the quarter, up 127% GMV grew 88% year on year to hit $15,000,000,000 GAAP revenue reached $1,200,000,000 growing 161% from last year. GAAP revenue as a percentage of total GMV improved year on year and sequentially to reach 7.7%. This deepening monetization was driven mainly by are growing merchant investments in marketing and advertisement on the Shopee platform to better attract and serve are attended the 2nd most downloaded app across the Google Play and iOS App Stores combined for the shopping category globally in the 2nd quarter. Shopee also ranked 3rd by the total time spent in app in the shopping category globally. Shopee remained the top ranked mobile app both across in Southeast Asia and in Taiwan by average monthly active users and the total time spent in app in the shopping category for the quarter. In Shopee's largest market, Indonesia, it also ranked 1st across those same metrics. Shopee continued to extend its market leadership in Indonesia with consistent triple digit year on year growth in order members. Shopee's adjusted EBITDA loss per order declined 20% year on year are happy to share that Shopee Malaysia has become our 2nd Given the highly attractive growth opportunities ahead of us, we continue to invest with shopping seasons and events, we will continue to drive improving economics over the long run as we scale. Consistently delivering value to our merchants remain an important driver of our business. During the Sample, we recently deployed Shopee More brand memberships across Southeast Asia and Taiwan. It offers a new customer management and retention tool for brands. This program allows brands to introduce their Brands which were early adopters have reported strong results, including material increase in repeat buyers and significantly higher spending by members. I'm also encouraged to note that Shopee continued to see growing traction in Brazil. According to App Annie, Shopee ranked 1st in Brazil by downloads and the total time spending app and ranked the 2nd most popular mobile app by average monthly active users in the shopping category for the 2nd quarter. While the markets that Shopee operates in are highly diverse, the consistent trend we see is that the potential for future digitalization remains high in our market. Therefore, a Substantial portion of the population in our market is increasingly benefiting from our growing and improving platform With that in mind, we will continue to invest efficiently towards the long term and highly localized growth of the Shopee ecosystem. Finally, our digital financial services business, See Money, continued to perform well in the 2nd quarter digital payment adoption deepened in our markets. Our mobile wallet services recorded total payment volume of over $4,100,000,000 up close to 150% year on year. This was driven by both user growth with quarterly paying users increasing to over 32,000,000 in the 2nd quarter and more frequent usage of our mobile wallet services with growing use cases. In particular, we are quickly expanding off platform digital payment use cases. Our mobile wallet service recently expanded its partnership with Mastercard in Thailand. This will allow our users to pay at any of the 200,000 plus Supermarket chains in the Philippines to accept our mobile wallet payment in over 400 of these even though SeaMoney is still at an early stage of development, Long term addressable opportunity is highly significant. Consumers and small businesses in our markets are moving more of their have seen many can offer. One example is the Ibelia program in Malaysia, which was run by the government to distribute financial assistance to the young people as mentioned earlier. Of the 1 point 7,000,000 AbbVie applicants recorded as of June 7, close to 1,000,000 chose to claim their received in the mobile wallet can be used in any online and offline transactions that accept such mobile wallet payments. Indeed, the strong adoption could be partly attributed to the faster growing popularity of our mobile wallet with over 750,000 touch points nationwide in Malaysia. Moreover, we are encouraged to see the strong network effects of our mobile wallet helping to drive its acceptance and adoption continue to provide more use cases, features and products to our users, utilizing and are expanding the existing relationships we have built with a growing consumer and merchant user base. We look to serve even To conclude, our performance in the first half of the year has been strong across all our business segments. Our conviction in the size of the long term opportunities we are addressing as well as the positive impact we are making in our communities has only grown. Leverage the virtual cycles and the network effects Both within and across our core business, we believe we are very well positioned to capture these long term This is also reflected in our revised full year guidance for both Garena And Shopee, more importantly, as demonstrated by our consistent track record, we continue to focus on prudence and efficiency in managing long term sustainable growth. With that, will now turn the call over to Mr. Tony to discuss our financials. Thank you, have For Sea, overall, total GAAP revenue increased 159% year on year reached $2,300,000,000 This was mainly driven by growth in the scale of our e commerce business as we continue to especially our self developed game, Free Fire, digital entertainment bookings grew 65% year on year to reached $1,200,000,000 GAAP revenue was up 167% year on year to were $1,000,000,000 The growth was primarily driven by the increase of our active user base and deepened are seeing user penetration as we continue to engage the community through quality content and immersive experiences. Digital Entertainment adjusted EBITDA was $741,000,000 This represents year on year growth were up 70%. This was mainly due to strong top line growth and an increased share of our self developed gains among our total bookings. On e commerce, our 2nd quarter GAAP revenue of $1,200,000,000 included GAAP marketplace revenue of $905,000,000 are up 191% year on year and GAAP product revenue of CAD251 1,000,000 are up 90% year on year. The strong results demonstrated the deepening penetration of e commerce and and our ability to capture these accelerated growth opportunities as we continuously enhance our offerings to create greater value for our E Commerce adjusted EBITDA loss was $580,000,000 as we continue our investments to fully capture the opportunities in our markets. We remain committed are efficiently investing in and growing the ecosystem to serve our user sector. Digital Financial Services GAAP revenue was $89,000,000 an increase of 6 59% year on year from $4,000,000 in the Q2 of 2020. The growth was primarily due to increasing will be in touch with our expectations as we continue to expand our suite of service offerings. Adjusted EBITDA loss was 100 were $55,000,000 compared to a loss of $97,000,000 in the same period of 2020. This was primarily recognized a net non operating loss of $25,000,000 in the Q2 of 2021 compared to a net non operating income of $8,000,000 in the Q2 of 2020. Our non operating loss in the Q2 of 2021 was primarily due to interest expenses on our paid $5,000,000 in the Q2 of 2021, which was primarily due to corporate income tax and the voting tax recognized in our digital entertainment business. As a result, net loss excluding share based compensation, were $321,000,000 in the Q2 of 2021 As compared to $318,000,000 for the same period in 2020. With that, let me turn the call to Ming Zhu. Thank you, Florence and Tony. And we are now ready to open the call for questions. Operator? We will now begin the question and answer session. At this time will pause momentarily to assemble our roster. Our first question comes from Thomas Chong from Jefferies. Please go ahead. Hi, good evening. Thanks management for taking my questions and congratulations on a very strong I have two questions. The first question is about Gavena, our online gaming business. We have seen a very strong performance for Free Fire in Southeast Asia and LatAm. I just want to get a sense about how we should think about potential competition For our peers developing similar theme genre in the coming months, with that aspect, Just want to get a sense how much of the new games is factored into our revised guidance? And then my second question is about The Shopee business, we have seen very strong growth in Shopee. But given that COVID, the situation is very dynamic right now. How are we seeing the trend for different product or any color on the category trends would be grateful. And thank you. Thank you, Thomas. Regarding the question on Springfire and competition, I I think as we discussed before, we believe that game is not a mainly competition driven type of business. It is more content driven and it is in particular in the case of Free Fire, which has such a large DAU and quarterly active user base across all over the world and highly social type of game is even a lot more about engagement with our ever growing user base. So in the past currently will also see other types of better oil charters in the market. And so far Free Fire has been growing robustly without being having any effect found any kind of other kind of similar type of games. Again, we see Free Fire to be increasingly a platform are incorporating different types of gameplay, IP as well as social and casual elements with a lot of fantasy Since last year, so we'll continue to focus on growing the platform and using that as a base will be introducing more different types of game elements, IP, gameplay and other social elements into the game. In terms of the new game contribution to the revised guidance, of Our revised guidance is based on our current expectation of all games in our Publishing pipeline as well as development pipeline. And as usual, we don't specifically discuss any In terms of the COVID and its effect on the category trends, so far we see that our Category trends have been quite stable. The top categories remain to be fashion, health and beauty, home and living And these long tail high margin categories, during the COVID, we tend to see High growth in particular in the home and living category as people stay at home more and work on home more. And we also start to see FMCG, including grocery, to become a more popular category over In terms of the trend going forward, I think as you probably know, there are still When this might be the cases might go down or that can be back to normal during this period of time and as COVID continue as far as shared. We focus on continuing to manage our operations efficiently To make sure we meet our users' demand for our services, and at the same time, we focus on digital inclusion That is evidenced in the accelerated rate of digitization across our markets, Which again, we see as opportunities for long term growth and sustainable growth in our markets as we believe the step the next question comes from Ranjan Sharma from JPMorgan Singapore. Please go ahead. Hi, thank you and congratulations on the results. Two questions from my side. Firstly, can you also please talk about food delivery? We have seen Shopee Foods growing aggressively in Indonesia. What your rollout plans are in other parts of ASEAN as well? And secondly, if I come back to the guidance. You had a pretty strong first half and especially the second quarter. But the guidance for the gaming is indicating Gaming revenues softening in the second half. Are you seeing any softness in the gaming trends? Are or should we think that they could be upside to the guidance? Thank you. Thank you, Rajan. In terms of Traveling Foods, we see very strong performance and As well as Vietnam in the Q2 and we'll continue to focus on the quality of our services To our users, any if there's any new market, of course, if anything that's a development, we will make announcements. But We don't have anything to report at this point. In terms of the guidance regarding the game, Okay. Again, we believe overall guidance showed a more than 40% year on year growth Compared to last year, which is also a record year for us, with commencement of lockdown. And I think this is a very strong performance already. And our focus, as you can tell, from game across the various markets in the world as we continue to see strong potential growth. And our past track record has shown that were generally good at commercialization in even markets that are known to be difficult for commercialization. So we continue to be growing our user base and making this even larger platform that allows us to really tap onto it to build the next question comes from Piyush Choudhary from HSBC Singapore. Please go ahead. Yes. Hi, good evening and congratulations for a strong set of results. Two questions. Firstly, on the e commerce, what factors and which countries are driving an increase in take rate? And could you give some color on which countries have the lowest take rate and highest potential to increase. Secondly, in e commerce, we have seen a surge in Sales and marketing expenses during the quarter, can you give some color on how the competitive dynamics has changed? Has that led to increase in customer retention cost. Thank you. Thank you, Piyush. In terms of the e commerce take rate increase, it is mostly mainly attributable to the Adoption of advertisements and increased adoption by our sellers of advertisement and marketing tools on Shopee platform, And this is across various markets across the board. It's not driven by any one particular market. And in terms of sales marketing and relating to competitive dynamics, I I think we are again, as we discussed before, given our strong market leadership, we're in a good position now that So our sales marketing is more driven by our view about the efficiency of investment into various markets at various points of time, for example, any shopping events, seasons, Any particular opportunities to promote brands, etcetera. And this is more of a managed outcome, in an efficient manner that growth, so it is not affected by competitive dynamics are in the market. And as you can tell from our growth rates, while we are multiple times larger Our next question comes from Piyush Mubayi from Goldman Sachs. Please go ahead. Thank you for taking my question. Your GMV grew very strongly. Would it be possible to shed some color on, In particular, the one new region you're moving into and any light on the tactic you're embarking on? We understand that the APEOP's popularity has risen dramatically, but there are nuances of that market and you are no novice to taking on a well established competitor. So based on what you've done in the How would you rate your strength weakness in that market? If at all possible, something you'd comment on? And then the second area is on the cash burn side where the cash burn proceeding okay. Just wanted to understand where that is. And when you look at that on a per order basis, that looks like it's rising. On the GMV, on a per order basis, also there's Some trends that are interesting, if you could comment on that. Thank you. Yes. Thank you, Piyush. In terms of new markets, I believe you're referring to the lifetime markets. As shared before, this Still very early stage for us as we continue to adapt to local market practices and to our operations and grow our business there. We did share in this quarter's earnings that even though it's We have very recently launched in those markets in particular in Brazil. Our performance so far has been are strong with top ranking in double and also the number 2 ranking MAU according to App Annie. And I think we will continue to focus on growth and in the market. Again, we're not When looking at the competition per se, it's because these markets are with still a very low level in their areas based on their various strategies and approaches and the market segments. So we will continue to grow And focus on efficient growth in those newer markets. And in the business model, I think, as we're familiar with the business model in our Southeast Asian markets, we continue to promote mobile native social focused marketplace model. It doesn't with a focus on the core categories of those long tail and high margin categories and helping the local small Businesses and sellers primarily to promote their business on the marketplace. I think that the approach and the thesis is the same for our newer markets as well as our current markets in Southeast Asia. And in terms of the cash burn, just as I mentioned on the previous question, It is more of a managed outcome as we look at the market opportunity, the timing of the market. For example, in Q2, we have Ramadan season, as you know, in our some of our largest markets, including Indonesia. Is very efficient. We have increased our buy frequency overall to more than 6 times a month And in Indonesia, it has exceeded 7 times a month, which we believe is a healthy for our marketplace And as we continue to also recruit new buyers and new users, and increase our are active user base in the region. We believe that we continue to invest efficiently. However, that said, It is important to note that our big picture view of 8 e commerce model being a highly profitable one in terms of the market based model we are pursuing. And then second, we'll continue to focus on growth efficiency And our view is that long term economics, unit economics should continue to improve long term, but it doesn't change, Because this naturally happens with scale and our continuing improvement on growth efficiency and our continued strengthening of our market leadership, these pieces never changed. So on that, I think we are continue to monitor the market trends and we'll invest efficiently. Our next question comes from Alicia Yap from Citigroup. Please go ahead. Hello, Alicia, is your line open? Hi. Yes. Can you hear me? Okay. Sorry, good evening, management. Congrats on the strong results. My question is on Shopee in Brazil, any color you could share in terms of the percentage of orders or the percentage of revenue contributor from Brazil currently and if management could also remind us your goals and expectation for these market opportunity in LATAM. And if you can elaborate the monetization rate contribution by ranking, will that actually And do you perceive the AOV for Brazil or LatAm to be higher than those in the Southeast Asia? And then second question very quickly on the positive EBITDA for Malaysia. Is that because of the better monetization rate? Or is it because of In terms of Brazil, we don't break down orders or revenue contribution by country. As we shared, we see positive reception in the market by sellers and buyers, and we'll continue to are driving the vision growth there. And our goals and expectations for LATAM, I think this is are still very early stage for us and it's involving operations for us. So we will continue to stay humble and continue to learn about the market and focus on continued improvement of our By ranking, so our as you know, most of our monetization came from the high Margin types of revenue, I. E, transaction based fees, including commissions and various types of handling fees, etcetera, as are attributable to these types and in particular for Q2, attributable to advertisement adoption And mainly from increasing adoption and increasing number of sellers are placing advertisement on our platform, It's still very early stage for us. I think our advertisement take rate is still low and we have Much more inventory to be rolled out and to be adopted. As we explained before, we believe our markets are still at an early stage for nkomba's ecosystem and it takes time for our seller community to will be trained and get familiar with various types of advertising and marketing tools. We can leverage our platform are focused on educating our sales community on that. And at the same time, their increasing adoption shows effectiveness of are in the same store as well as increasing returns our platform is creating for our seller communities So in terms of the AOV for Brazil and LATAM versus Southeast Asia, Again, this is too early for us to tell given the early stage of our operations there. We'll continue to observe And to see what will be the appropriate reach, as we noted before, AOV is Not a target KPI for us, but really as a natural outcome of the Category mix, in terms of the relevant categories and types of goods that are right For each market, and it's more of an output than an input from our perspective. So we will focus on driving the right category mix that will generally generate the right AOV for And so we might dynamically assess the market conditions as each market evolves over time to see whether In terms of positive EBITDA for Malaysia, again, we're very happy to report that Malaysia has become the 2nd market to achieve have positive EBITDA after Taiwan for our Shopee business. And of course, it is followed as a result of Better monetization over time as well as improving operation efficiency over time. As we stressed Before that, the marketplace e commerce model in terms of profitability is highly proven. And with scale and strong market leadership and ability to deliver clear and increasing value to our seller communities, We will be able to make a strong profit down the road. And this is basically are generating value to our community and by that to generate value to our shareholders as well. The next question comes from Varun Ahuja from Credit Suisse. Please go ahead. Yes. Hi. Good evening, everyone. So a quick few questions. Number 1, if you look at your User base for the Garena, again this quarter it grew very strongly. It's around 75 new quarterly active users you have It has escalated from last two quarters. Just wanted to understand despite such a game being there in the market for so long, where are you still seeing growth, any market, is it the existing market, new markets? Any color additional would be very helpful. Secondly, on Brazil, let me try a little bit differently. If you can give some color, obviously, you have seeing sequential increase in investments in e commerce and you already mentioned that 2 of the markets are profitable in ASEAN. So How should we think about it? Is increased investments going into Brazil or any color on how much on a like Like this is on AVI and how much it is, some qualitative colors will be helpful. Thirdly, on the logistics side, clearly in LatAm, the leader in e commerce has made significant investments on the logistics side And their 3rd party ecosystem isn't that great. So how does Shopee think about that part and Increasing over the next few years, are you looking to make more investments in LatAm? And even in have seen increasing investments by Shopee on logistics, so any color on that one would be helpful. Thank you. Yes. Thank you. In terms of the game user growth, we're also very happy to that actually came from all three regions of Southeast Asia and LatAm as well as the rest of the world. And in terms of Brazil investments, again, I think we're still at very early stage. Our investment is into Brazil is commensurate with growth of our operations as well as And we continue to see improving unit economics as well in results as we scale rapidly there, And we'll continue to focus on efficiency of growth. And as you know, we recently also raised take rates will adopt our free shipping programs. So we believe that the user reception has been very strong and will believe it's a good margin for continued investment, but we will again continue to assess the growth potential there. In terms of the logistics environment in LATAM, I think there could be some scenarios Early days of Southeast Asia market, part of it is a little bit of a chicken and egg problem is when there is not much of a There haven't been a lot of volume, traffic broadly generated across Different platforms, there probably there is also a lack of initial growth opportunity for logistics. On the one hand, we are also hopeful that with growing e commerce scene in the region And more focus of our global investors into the growth opportunities in the region, we may will see similar trends in those markets, and this is hopefully some contribution we can make to the market in terms of bringing more opportunities, bringing more digitization as well as e commerce ecosystem that help not just growth of Shopee, but also growth of the surrounding services, including 3PLs are within the region. And we've been partnering with 3PLs in our region very successfully in growing the e commerce ecosystem. And at the same time, these third party partners also enjoyed a very strong growth on their end as well and the close partnership with Shopee, we are very happy to continue to adopt that model going forward in Brazil and the other new markets as well. At the same time, we do have our Shopee Express services to complement Within each market as we see appropriate 3PL capacity, especially during peak volume, time, in the This concludes our question and answer session. I'd like to turn the conference back over to Minju Song