Sea (SE) Q2 2026 earnings call transcript

Hello everyone and welcome to C's 2026 second quarter earnings conference call. I am Casey from C's investor relations team. On this call we may meet 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 the discussion of certain non gap financial measures such as adjuster EBITDA. We believe these measures can enhance our investor's understanding of the actual cash flows of our major businesses when used as a complement to our own cash disclosures. For discussion of the use of non gap financial measures and reconciliation with the closest gap measures please refer to the section on non gap financial measures in our press release.

I have with me C's Chairman and Chief Executive Officer, Forest Leap, President Chris Fong and Chief Financial Officer, 20 Hope. Our management will share strategy and business updates operating highlights and financial performance for the second quarter of 2026. This will be followed by a Q&A section in which we welcome any questions you have.

With that let me turn the call over to Forest.

Hello everyone and thank you for joining today's call. Our strong momentum from the first quarter has continued into the second. She generated $7.8 billion in revenue at 48% year on year and over $917 million is adjusted EBITDA. Our investments have enabled shopping and money to continue to strengthen our market leadership while improving our user penetration. Many of our initiatives, unit economics, continue to improve a testament to our strong financial discipline and operational efficiency.

We will continue to invest prudently in serving more users and serving them better, broadening our foundation for profitable growth into the future. With that let me take you through each business's performance. Starting with Shopee, Shopee continues its strong momentum into the second quarter. GMB grew 28% year on year, marking eight consecutive quarters of sequential growth. And we again achieved new highs in gross order, volume and revenue. We generated an adjusted EBITDA of more than $250 million during the second quarter. Our improving operational efficiency and growing skills have strengthened our unique economics. We can now profitably serve a wider range of users, enabling us to lean further into user acquisition. We have engaged and reengaged several user groups to brand awareness campaigns, expanding our content channels and broadening our logistics offerings to cater to different purposes.

This just remarkable new buyer growth in the second quarter. Average monthly new active buyers grew more than 35% year on year, a significant acceleration from previous quarters. Average monthly active buyers increased 18% year on year, and overall buyer engagement also continued to improve, with purchase frequency increasing by 8% year on year. Our monetization strengthened further in the second quarter.

At revenue was up more than 70%, and at take rate improved by over 90 basis points year on year. We continued to make a advertising simpler and smarter for sellers. For example, powering ads with vouchers that are personalized to buyers to increase purchase conversion and improve the efficiency of sellers at spend. At adoption and spend continued to improve across our seller base.

The number of ad paying sellers goes around 45%, while average ad spend per seller increased more than 15% year on year. Our operational priorities remain consistent, improving price competitiveness, service quality, and our content ecosystem. To keep strengthening our execution across these priorities, we continued to deepen our structural modes across logistics, shop EVIP, and the content. Strong logistics capabilities continue to be a key contributor to shop its reputation for excellent service. We continued to make delivery faster and more reliable across a wider product assortment in the second quarter. Instant and the same day delivery gained strong traction as we captured more everyday purchases. Our instant service in Indonesia can now deliver in as fast as one hour in urban areas.

We continued to extend our presence in high frequency categories such as the growth rates and the pharmacy items to serve our buyers better.

All their volumes using instant delivery grew around 80% year on year in Indonesia, while cost per order fell by around 20%, driven by economies of skill and efficiency gains.

Beyond delivery, we also made good progress in fulfillment, with other volumes up more than 20% quarter on quarter. Fulfillment benefits both sides of our marketplace. Service offload operational complexity and skill more efficiently, while buyers enjoy faster, more reliable delivery. In some markets, more than 60% of our fulfilled puzzles are right the next day, meaningfully higher than the platform average. The games are especially noticeable in places where geography makes delivery challenging. For example, in Indonesia, a mountain region in the Philippines, where Fulfillment has fire reaching time by 1-3 days, buyers can feel the difference.

Listings that converted to Fulfillment so more than a 20% performance uplift in others on average in Southeast Asia. Second, our Shopee VIP program continued to scale strongly. Now life across Asia and Brazil, total membership exceeded 15 million at the end of June, up 45% from the previous quarter. Across Asia, VIP members contributed 24% of GMB in the quarter.

Average monthly retention remained strong at around 80%, and the members continued to show higher engagement, spending meaningfully more after subscribing. In Brazil, early adoption has been encouraging since our April launch, with membership already surpassing 1 million.

Beyond buyers, we are seeing encouraging support among both Shopee sellers and external partners for our Shopee VIP program. We have broadened member benefits across travel, dining and entertainment, improving the program's value proposition. More sellers and the partners have come on board to call some benefits, demonstrating the value they see in engaging our Shopee VIP buyer base. This has helped improve the program's unique agnomics in Asia.

Third, we have continued to improve our content ecosystem to make product discovery more engaging. Orders from live streaming and short-form media grew more than 50% year-on-year, accounting for more than 25% of physical good others in Southeast Asia. Unit economics also improved sequentially as we further optimized our marketing spend. We have deepened our relationships with YouTube and Metas' drive order growth.

Shopee updated orders generated by links created on Facebook increased by more than 85% quarter-on-quarter, which Facebook will prove to be a very popular channel to drive purchases. We have now extended our Instagram collaboration to all ages of our core markets, and we are seeing promising early results from Indonesia, the first market where we launched the partnership. I'm particularly happy with our progress in Brazil, which remained our fastest-growing market in the second quarter.

We once again outpaced the broader market on GMM growth, supported by increases in active buyers, purchase frequency, and average fast design. We continued to invest in and optimize our end-to-end logistics capabilities, expanding our networks while ramping up utilization.

We improved the delivery speed, reducing average fire rate in time by 15% year-on-year, and doubled our penetration of fulfillment orders year-on-year. These logistics improvements are also supporting our expansion at market. We onboarded nearly 500 new official brands during the culture where GMB from Shopee more sellers more than doubled year-on-year. We still see significant headroom for growth in Brazil, and we will continue to invest in this market in the disciplined and profitable manner. And please, that Shopee has delivered a strong prototype of 2026. With this solid momentum, we are optimistic that Shopee will achieve the milestone of $1 billion in adjusted EBITDA for the full year.

Next, moving to Money. Money delivered another great quarter, which continued strong growth in both revenue and adjusted EBITDA. Credit remained primary driver of growth. Our loan book reached $11.1 billion at the end of June, up 62% year-on-year. As that quality remains stable with our 90-day NPL ratio at 1.0%. The Philippines has become our speed market with a long book receiving $1 billion. We continue to expand our credit business on three fronts, acquiring new users, deepening our relationships with existing users, and expanding our credit use cases.

One key enabler of our credit business growth has been the ongoing advances we have made in our credit risk capabilities. Our latest risk models are pre-trained, a broad set of behavioral and transactional data across our ecosystem using transformer, architecture, similar to those following today's large-language models. The model learns from the full sequence of users' actions over time, capturing richer contacts around how customers interact with our platform.

Recent enhancements to our underwriting models have helped leave a poor rate by around 10% when compared to previous models, while maintaining a similar level of risk. This further reinforces the scale of our ecosystem as a durable advantage.

To further strengthen this capability, we are also drawing on more external data sources to better assess users who are newer to our ecosystem. For instance, through partnerships with local mobile operators in Indonesia and open finance data in Brazil. We have also used AI to build tools to efficiently verify a diverse range of users' submitted income documents across markets, languages, and formats. Review time reduced by around 95% while maintaining a very high level of accuracy, letting us respond to credit limit requests from users almost instantly.

Supported by this improvement in risk underwriting, we have been pushing harder on new user appreciation. We have found that many users begin using a stay later for convenience, and subsequently generate more value through repeat transactions, installment conversion, and adoption of our other credit products. So we have broadened the rollout of one month's interest free at stay later loans, giving borrowers the option to either settle their benefits within the month or easily convert purchases into interest-bearing instruments. Similarly, we have been more widely offering promotional interest rates for first-time personal cash loans. Hit them together, these efforts contributed to strong new user growth during the quarter. We added around 5.3 million units for time borrowers, and our active credit users grew around 34% year-on-year to over 40 million at the end of the quarter.

We also saw deeper user engagement, average loans outstanding per user grew around 20% year-on-year. Off-shopping at stay later has continued to scale well, driven by integration with national QR payments in structure and a continued merchant onboarding. At the end of the quarter, off-shopping accounted for over 20% of our total at stay later portfolio, with this figure as high as 35% in some markets. In Thailand, we are testing a new product, the Shopee Pay Unlimited card.

It lets users stay with their at-pay later balance at any merchant that accepts our payment, further expanding at-pay later use cases. The standalone Shopee Pay app remains a key pillar of our strategy to grow money beyond Shopee, serving as a one-stop platform for users' payment, credit, insurance, and a broader financial need. In the second quarter, monthly transaction users on the map more than doubled. The Shopee Pay app is currently live in Indonesia, Thailand, Malaysia, and Vietnam, and will launch a similar standalone app in Brazil soon.

In summary, money delivered another strong quarter with a broad space of growth across our products and markets. The advances in our risk capability are compounding. Each improvement helps us serve more users, serve them better, and reach further beyond Shopee. We are still at an early stage of growth. Only a fraction of the users across our ecosystem are using money's financial products today, and the credit penetration remains low across our markets. This gives us great confidence in money's long-term growth and earnings potential.

Next, turning to Guarina. Guarina delivered another strong quarter with a good-in-school in 15% year-on-year, with profitability remaining healthy and growing well year-on-year. Freefare anchored with strong performance, now in its next year, it's still expanding its reach and still globally, continuing to join over 100 million average daily active users. Freefare's longevity comes from a simple discipline. We keep the experience fresh with the new gameplay and the content, and we make it feel both local to the communities who play it and enjoyable for a global audience. A quick example, this quarter was undersea mystery, an ocean-themed campaign inspired by some current Thailand's water festival. We interpreted the thing into the left itself, creating a gateway into a new undersea realm.

This extended battleground gave players fresh territory to explore and fight over, and opportunity to hunt for powerful years hidden in a hydro zoom and fishing pond across the map. This continued re-inversion of the game play keeps players engaged over time. We also drove the workshop away to build excitement and engagement with our players. Our fire kick-off campaign drove football into the map itself, turning part of it into a football field. Eliminated players were sent to a one-on-one football showdown for a chance at re-join the match, and the new football form that players turned itself into a football to speed across the map and the pull-off surprise place. The campaign also resonated well beyond the game.

The original campaign song, We Are All A, became a stand-up organic driver of social engagement, generating over 315 million social media views. I'm also very excited about what lives ahead for our portfolio. We announced the two mobile games, both built on strong globally-recognized IP. Powered online is an open-world multiplayer survival adventure game developed and published by Gorina and their license from PocketPair, and Monster Hunter Outlanders is a survival hunting action game developed by Tencent based on Capcom's iconic franchise. Taken together, these titles show how Gorina is expanding into new genres, strengthening our development and publishing capabilities, and deepening our relationships with top global partners.

In summary, Gorina delivered another strong quarter. Free far is still to excel at the average green franchise, and we continue to work towards diversifying our portfolio. We remain committed to delivering the high-quality experiences our players know at four. In conclusion, these costs are strong results under support of our financial disaplace and the strength of our business. This promising momentum is at greater confidence for the rest of the year.

With that, I invite Tony to discuss our financials.

Thank you, Boris, and thanks to everyone for joining the call. For the overall, total debt revenue increased 48% year on year to 7.8 billion dollars in the second quarter of 2026. This was primarily driven by growth in shopping and money. Our total adjusted EBITDA was cut by 11% year on year to 917 million dollars in the second quarter of 2026. On shopping, growth orders increased 27% year on year to 4.2 billion in the second quarter of 2026, and GMD increased by 28% year on year to 38.3 billion dollars in the second quarter of 2026. Our second quarter debt revenue of 5.6 billion dollars included debt marketplace revenue of 4.9 billion dollars, up 49% year on year, and debt product revenue of 0.7 billion dollars.

Within debt marketplace revenue, core marketplace revenue, mainly consisting of transaction-based fees and advertising revenues was 4.3 billion dollars, up 66% year on year. Value-added services revenue, mainly consisting of revenues related to logistic services was 0.7 billion dollars. Shortly, adjusted EBITDA was up by 12% year on year to 255 million dollars in the second quarter of 2026.

Money gap revenue was up by 59% year on year to 1.4 billion dollars in the second quarter of 2026. Adjusted EBITDA was up by 13% year on year to 288 million dollars in the second quarter of 2026. As of the end of June, our consumer and SME loans principal outstanding reached 11.1 billion dollars, up 62% year on year. This consists of 10 billion dollars on book and 1.1 billion dollars of book loans principal outstanding. Non-performing loans passed due by more than 90 days as a percentage of total consumer and SME loans was 1% at the end of the quarter.

Karina Bookings grew 15% year on year to 764 million dollars. Gap revenue was up by 34% year on year to 747 million dollars. The growth was primarily due to the increase in our active user base and deeper paying user penetration. Karina adjusted EBITDA was up by 17% year to 430 million dollars.

Returning to our consolidated numbers, we recognized a net not operating income of 66 million dollars in the second quarter of 2026 compared to a net non-operating income of 83 million dollars in the second quarter of 2025. We had a net income tax expense of 251 million dollars in the second quarter of 2026 compared to net income tax expense of 144 million dollars in the second quarter of 2025. As a result, net income was up by 11% year on year to 458 million dollars.

Thank you, Torres Antonio.

I would take this question. If you look at the Shopee, I'll look for GMV growth. We still see quite good growth in Q2 as we shared in the openings. We still see the trend continues in the coming quarter. The growth has been doing well across our market in South Asia, Taiwan, and also Brazil. If we look forward for the four-year, we remain well on track and confident of achieving our four-year growth outlook of around 25%. That said, we want to make sure that we also anticipate the potential of Forex has been as well. As you can observe that many of our market has weaker currency against U. S. dollars. Q3 and Q4 also have a higher GMV base.

But again, we still believe that we are able to achieve the guidance we gave before of around 25%. In terms of investing we are doing for the few initiatives that we shared before on the VIPs, on the procurement, our logistics, et cetera. In general, we see our economic, which we share that we get an investment for a period of time. If you look at the economics has been as good as the platform already. The new initiative, although we are doing the investment phase that in general, we do see a positive trend on the economic improvement. And also in general, what we are doing is less a very capital heavy investment, even with the procurement. We usually take a capital light approach that we don't own there for human centers.

But usually we ran the place with relatively light capital, enable the growth there. In terms of the margins, I think we shared our four-year ambition of achieving 1 billion in adjusted EBITDA.

For the AI initiative, we are doing quite a lot of work over the past few quarters, both on buy-in seller side, as you mentioned. We are launching the market. Essentially, instead of the seller talk to a keycard manager, the IM, as we call it, there is a digital IM that they can talk to, which can help them to answer many questions or analysis they want to do with their shots. This is also 24 hours available, of course, compared to a keycard manager, usually not available 24 hours by 7.

And they just want the example that we are working with the sellers, among many others. On the buyer side, we spend our effort on both helping the apps have better conversions, which is lessening our Arctic rate improvement over times, but also just general conversions for our search recommendations. We have been rolling out our new GR algorithm, a generative algorithm for recommendation and search, which gives us a meaningful improvement on the conversion rate that we observed. We are also doing part of work on AIGC on contents.

If you look at our platforms, we have a lot more contents that can be generated by AI now, which can be used to do a personalized targeting for our buyers to improve the conversion as well.

And many other work we are doing. I'm just sharing to you on top of my mind.

Across the market, we see a relatively good performance. Those are growth and probabilities. I don't think the single market trends, but relatively across the market. Regarding the competitive situation, we do observe that competitive situation to be relatively stable at this point of time. And we are able to maintain our market share in certain markets. We are able to gain market shares as well over the quarters for South Asia and Taiwan.

For Brazil, we also observe that our growth is well above the market growth levels. And we believe we are growing faster than our close competitors as well.

Regarding the balance between growth and EPCA, it's always a question on what's the best balance between the growth and EPCA. And I don't think that it's a simple answer there. I think something we always observe both on how much we can optimize internally. And also look at how fast is the market growing. And of course, look at the competitive landscape to do this balancing.

At this point of time, we have been seeing the competitive situation to be relatively stable as I shared. So, the main driver of how the balancing work will lie on how we see the market growth rate look like in the rest of the year and how much we can improve our efficiency internally for this. For the full few months, I believe there's still a lot of room for us to improve, to further penetrate on the year for human businesses. I think right now, both in South Asia and Brazil and Taiwan, we're still ramping up the fulfillment sizes. For example, I think we share that our procurement growth, more than 20% in quite a few markets is more than double digit already of our businesses.

But still, if you compare the size of our procurement with some of the other places in our market, especially in Brazil, or compare with the sizes of the few players with a few businesses and market plays, we're still much smaller as the size compared to them. And with the good benefits, we see from a procurement both on reducing the speed of deliveries and enhance the buy conversions and also reduce the effort of selling our platform. We do believe this is a good investment we're taking for our platform. And also, as I shared in the early questions, our procurement has been improving, quote unquote, a driven both by the fact we are able to optimize the cost structures.

I think the learning process and also just take time to optimize the operations just in general. That's one. Also, as we grow the scale with more and more fellow joining the football businesses, it's actually we have better scale advantage on that. And number three is also because there are more and more buyers recognize the football businesses that we are offering. This gives us a better economics over time. Another thing that important point out is that we're also doing a lot more integration between fulfillment and SPX. So, essentially, to reduce the friction between how the warehouse, the iteming, our warehouse moves across the entire value chain. So, we can realize the cost energy and cost benefit by running both the warehouse and the logic together.

And all these things help us to build the fulfillment businesses and helping us to gain the advantage as the overall platform.

Yeah, again, we're also feeling in relatively light capex sessions that we don't own the land. We don't own the warehouses. We will restart a new equipment center. We do relatively light capex to enable that. We are also experimenting more automation with our equipment center, which actually reduce our cost to run as well. But for equipment centers over time.

When we look at the tick rate, we look at tick rates from multiple angles. I think one is how much the tick rate is being left in to grow the ecosystem, which is very important, plus to look at. That's number one. Number two is we look at how our price comparison is in our platform. So essentially after tick rate, we still maintain a similar gap of price leadership or not compared to the other platforms. Number three is we also look at the price of e-commerce, essentially our platform versus the offline price things. Number four, we also look at what does it mean for sellers' probabilities. I think we put all the things together in terms of consideration for the tick rate.

From what we observed so far, we have been very healthy ecosystems, even with the increase of tick rate. And the reason for that is that we bring back a large part of the tick rate to the ecosystem growth as well. And also that we're able to help the seller to operate online more efficiently over time with the combination of all the things. Our price is still very competitive, not only compared to the other market places in our market, but also compared to the offline alternatives in the market. Going forward, we still see opportunities to increase our tick rate, not only from permission, but also from the pay ads that we've been able to penetrate more and more over time.

Although you can argue that the fixed commissions probably at the pace of the fixed commission increase probably would be less than we observed before. But again, there is still a room for us to increase the overall tick rate by both helping the sellers to operate more efficient, but also helping the sellers grow by reinvesting part of the thing to the ecosystem and also increase the conversion potentials from the buyer side. With all the things together, I think we're able to grow this even more over time. On the money margin questions, if you look at individual countries of the money businesses, if you look at the EBITDA over the balance of over the outstanding ratios, it's been relatively consistent.

Our MPL has been relatively stable as well over time. I think typically when we operate, we look at products by countries by segment and the shift of the retail asset is permitted by the mix of these things. For example, the certain countries, for example, let's say in Thailand or in Malaysia, which is the later country that grows more than the previous countries, the overall our way side and lower, which kind of like we mix together, it reflects to the overall numbers. For example, some of the off-shopping SPL lending growth, which is quite meaningful, more than 20% of the SPL already, as far as sharing the the on-shop SPLs. For example, we've been trying to penetrate multiple prime segment users, which naturally have slightly lower interest rate, et cetera.

And all those growth are intentional, and as you observed from the number that it does require some investment, sometimes when we're growing to the segment, and sometimes it does mean that we're able to grow the outstanding a lot more, but we're slightly lower our age compared to the previous segment or countries or products we focus on. So we actually see that there's a positive movement rather than the nexus views out of this. Our gut we are very simple, we want to maintain stable MPL for the segment, the product and the countries when we look at it. Then when we grow new segment, new product, new countries, we wanted to make sure it bring the positive return of assets to us.

That's why as a consequences, we always see that our absolute if it's a profit from money has been a growing quarter.

On the apps growth, we do see pretty good growth on the app as we shared in the remark. I think there are a few things of helping the app growth. I'm just listening to some of the examples. One of the things smart vulture, which is we kind of combine a personalized vulture from a buyer together with apps. So we enhance the seller's abstract data, increasing the purchase conversions.

Another example is we have the ShopGMB Max Smart Diagnosis Tools. So essentially, this AI technology report and tools to help the seller to analyze how can we have better return on the app. It's left on the AI capability to analyze the apps performance and drive improvement. We also have in-depth audit insights for brand max. This feature essentially allows the more seller to view the number of shoppers in each stage of their budget journey and how does the shopper move between stages. This will give them a more robust and algorithm-driven branding solution to capture the buyers better across their lifecycles with the seller.

And on top of that, there's also quite a lot of fundamental improvement on the algorithm for the app. Both on how can we match the buyers' intention to the app product better. I think that where the AI-based algorithm, the GI algorithm, helps quite a lot. When we come to the fashion part, the other part is the content presentation. We're using develop AI tools to create better personalized content for the user when we see that. So all this incorporation helps our app take great to improve. In the coming quarters, we still see that meaningful potential to increase the app take great. I'm giving that many of the tools, many of the algorithms we're implementing are still in progress.

We can see meaningful optimization potentials while we're doing more experiments while we're optimizing everything further in the coming quarters. For Brazil, on the money side, we do believe that money has a big potential in Brazil. We're seeing very growth in Brazil for our landing businesses in India, past two quarters. We were launching an app which is similar to Shofite app in Brazil, but with the FCFI license, which means we will be similar to what Makalapago or other players in the market can offer in Brazil. We believe that Brazil is quite a big market for financial services, which is proven by a few other players in the market, with our e-commerce user base, our e-commerce data, and also with our better credit scoring algorithm that's super in Asia already.

But of course, we customize for Brazil flavour. We are able to broaden our product in Brazil over time. If you compare what we offer and what the other players offer, there are many low-lying foods that we believe that we can capture just by doing the right product structures in between the right data in our platforms to better credit scoring users, and just also with the license we acquired, which is kind of as good as others already in the market.

We still believe that 2 to 3% is quite within our reach for the percentage. I think, in fact, the sum of market are well above that. I think the balance between growth and probability is something I shared in the purpose answers. We do believe this is still a dynamic process on how do we, you know, make sure we capture the potential of the growth of the market versus taking more profit out of the ecosystem. I think, you know, this something will balance over time. But the path to, if you look at the numbers, the path from where we are to to the extent is relatively straightforward. Now we are 0.67% also, and we're talking about 1% to get where we are.

And part of that will come from over time. We don't need to invest so much in many of things we invest in, you know, like many of the programs we're doing right now, you will get mature over time. I think we invest less into it. Part of that comes from our cost improvement, fundamental cost-cutting improvements. For example, our logistics, our procurement cost, structuring improvements over time, part of that comes from better take rates from either ads or other phones. I think if you put that number together, we are really not too far. And we have done this in some market already for this. We do see, as you mentioned, the outstanding user interest year to year.

I think part of that is because we are reaching out to a new prime segment of users who naturally take bigger ticket sizes. Part of that is also our country expansion. Some of the country we grow more recently, faster than the other, has a higher income capital in the market. With all that, we do see a stable credit risk within the country, within the segments, within the product. So we didn't see any correlation between the increase of the outside user and the increase of credit risk here. The duration of the large site depends on the product countries. Some can be as long as 18 months, some of them can be 12 months, et cetera. But that's a relatively small percentage for very good prime users, or for some specific lending products like the offline motorcycle that we quite find longer period.

As you already pointed out, we share the goal of more than one billion EBITDA this year. If you do the math, it does mean that in the absolute terms, our EBITDA for second half year will be higher than first of the year. Of course, partially because of the growth of the market, it's actually the overall GMV, we believe that we do see quarter over quarter growth. So the second half of the year of GMV base will be that in the first half of the year, part of that comes from the continued work of all the initial week talks about. But again, the e-commerce is a business that kind of we adjust the pace, adjust the monetization based on many parameters, as I shared earlier, based on how we are optimizing the distance based on how the overall business growth of the country and also based on how the competitive vision is.

For Brazil, yes, I think your observation is absolutely correct. We still see that our growth is well above the market in the countries.

And if you look at the price competitiveness, we are still very price competitive a lot stronger than the competitor in the region, even after a very change on the take rate and free shipping threshold. So we believe that for e-commerce businesses, the fundamental still holds. The price competitiveness of our assortment is a completeness of our assortment. It's a fundamental structure of cost to serves and it's experienced on how the buyers can discover the product of our platform and all those things help us to grow faster than the market in Brazil. And if you look forward, we still believe that Brazil has a long way to go in terms of e-commerce growth. We are hoping to grow in Brazil in a possible fashion with a growth rate out of the market in the coming quarters.

Hi, Regent. Thank you for your question. I think for the new publishing games, like we specifically talk about two games. This quarter, when it's powered online, and since this is our self-developed game, so we're going to publish it globally. And we probably will go into launch the game like a market by market and gradually. But like the plans, we're going to this will be like a global submission opportunity for us. And for the Monster Hunter Outlander, this is a great collaboration between Greena and the Tencent. It's a Tencent developed game, and also work together with this fantastic IP owned by Capcom. We target to launch in the market in the market where we're very familiar, like South East Asia, Latin America, like Taiwan, and potentially we're going also to launch the game in Middle East and some more markets in the pipeline.

So the target last time will be this year.

I think for the provision, it's primarily controlling our loan mix. We necessarily have high provisions. One is the off-shopping STL, and the second one is the Brazil loan outstanding. Although Brazil will have very good away there, but it's a high interest, high risk market. So the higher next of this two components contribute to the higher provision you see.

Thank you all for joining today's call. We look forward to speaking to all of you again next quarter. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.