For Indonesia, it’s even bigger percentage. Indonesia is the first country we started. In some of the market (ph), we believe that we are probably the largest live stream platform in the market. Not only the scales, but while we’re growing it, we have been reducing the economics quite significantly in the past few months and continuing Q1 essentially. This also enables us to compete effectively with our competitors, which is like just from a year ago, if you look at it. If you look at a year ago, we probably don’t have this ecosystem. We have to invest to build this ecosystem. We are now in a very different status for that. I think this is sort of probably concludes on the first question for Shopee. Moving to the second question on the SeaMoney EBITDA for Q4.
So I think we probably should put into perspective on the overall SeaMoney businesses. The SeaMoney has seen the first positive in 2023, and the trajectory has been doing well, if you look at Q1, Q2, Q3, and extend to Q4. We have seen very healthy margin in our SeaMoney businesses. And given the very healthy margin in the businesses, we in Q4 leveraging on the facilities we spent, we invest more to acquire new user to the platform and this essentially will bring us a better possibility in long term. We measure our use acquisition costs very prudently. Every user requires will bring positive profit over the time. Thank you.
Operator: Your next question comes from the line of Navin Killa from UBS. Your line is open.
Navin Killa: Hi. Thank you for the opportunity. Actually, I had a couple of questions. First, I just wanted to understand a little bit about competition in the e-commerce space, particularly in Indonesia. I suppose Q4 numbers might have benefited from the fact that TikTok was not in the market for a large part of the quarter. So since the relaunch of TikTok, and as we probably come close to the end of the trial period, have you seen the intensity from the combined TikTok, Tokopedia entity evolve in a different direction over the course of the quarter? So that’s my question number one. And second question, I guess, given the strong cash balance and your expectation of, I guess, positive profit for the full year for the group. How do we think about use and allocation of this cash going forward, potentially for buybacks and other use cases? Thank you.
Forrest Li: For the first question, I think I shared quite a bit in the last answer as well. Generally, we compete with both competitors you mentioned for quite a long period of time. And you are right that it does benefit us in some extent in Q4, that TikTok wasn’t operating for the period of time, for five full period of time during the quarter. But I don’t think that’s the only reason that would grow well in Q4. We have seen similar growth trends continued in Q1 as well, even the landscape have changed. A typical e-commerce transactions, as we can see across globally, it might not necessarily 1 plus 1, plus 2, greater than 2 situations. I think for us, the most important thing is to focus on what we are great at. As I mentioned earlier, our scale advantage, our local leadership and operating teams, our infrastructure build over time, our integration with DFS.
And all this give us the competitive advantage in the past few quarters as you can see and will continue to give us the advantage in the coming quarters. And with that, I think we have shared that we’re expecting a good growth for Shopee over this coming year, in 2024 and in the coming quarters.
Minju Song: And regarding our cash balance, we think for a company of our size, it’s a prudent to maintain a strong cash balance. And we’re also very disciplined and focused in deploying our capital to capture future opportunities to maximize our long-term shareholder return. We do not rule out any options for using our cash balance in this regard.
Operator: Your next question comes from a line of Alicia from Citigroup. Your line is open.
Alicia Yap: Hi. Good evening, management. Thanks for taking my questions. Congrats on the solid result. I have two questions. First is that obviously with the Ramadan’s coming, do you anticipate your competitors in Indonesia to further step up the spending? And in the event, if your competitors in Indonesia are catching up on the market share, would you step up your spending that might actually prevent your EBITDA to regain profitability in the second half of this year? Second question is, what are the main reasons for your confidence in growing the Free Fire in double-digit in booking and user, this year. What have you done or plan to do to regain your user traction and monetization? Thank you.
Forrest Li: For the first question, so in a way, Ramadan started already in Indonesia. We are comfortable with vesting (ph) so far, let’s put it this way. So in a way, we cannot see market share as a stacked number. Market share is always dynamics. And the most important for us is to make sure that we always have a flexible leadership compared to our next competitors, so that we can sustain our scale advantage and that’s number one. Number two is, we’re able to build up our long-term mode compared to competitors who are more efficient when we compete with the competitor in the market. I think again, as I shared earlier, given all the things we have done, even with the most intensive competition in the past few quarters, we’re able to reduce our cost while increasing our market shares. I think this reflects of the mode we have been over time. And we do believe that we’ll be able to continue in the future.
Minju Song: And regarding Free Fire, as we shared earlier, we’re encouraged by the positive trends we have seen so far this year, in terms of active user base and monetization across our various markets. As a result, we share that our current expectation is for the game to achieve double-digit year-on-year growth for both user base and bookings. As a self-developed game, Free Fire also enjoys better margin for us. In terms of what we have done and will do in the future, I think our focus has been quite consistent. It’s on building better user experience, such as easy access to users, file download size, and data requirements, introducing more engaging content, and strengthen esports communities to further develop the game into a strong evergreen franchise.
