Operator: Your next question comes from the line of Piyush Choudhary from HSBC. Your line is open.
Piyush Choudhary: Yeah. Hi. Congratulations to the management team on great set of results. First question is on Shopee. If I analyze your fourth quarter GMV, that itself is implying around 18% year-on-year growth in 2024 GMV. So why does company expect to grow only high-teens range and not more than that? What is driving conservative guidance? And also for Shopee EBITDA, as you expect to turn profitable in second half, would it mean that on a full year basis, adjusted losses for Shopee would narrow year-on-year in ‘24? Secondly, on gaming, what led to fourth quarter quarterly pay users decline despite of strong seasonality and your outlook for Free Fire is strong, would that mean consol Garena will also grow double-digit and what’s the margin outlook for Garena business? Thank you.
Forrest Li: In terms of the guidance we give out, I think the high-teens for the year, we believe that is a reasonable estimate that we’ve given out based on both the market growth rate and also the EBITDA goal we set up to achieve. And on top of that, the most important thing is, with this, we’re able to sustain our market leaderships while building up all the competitive modes that we’ve been building over the past years. On top of that, even started a few other new initiatives during the year. So we are comfortable with what it is. In a way, we are not chasing for growth for the growth. We are trying to grow in efficient and prudent fashion with the long term probability in mind. In term of the second question, whether the full year were narrow over time.
I think this is something we haven’t given a guidance on. We probably wouldn’t comment too detailed on that. But generally, I think what we set to achieve, again, is to have Shopee as the overall business breakeven over the second half of the year.
Minju Song: Regarding Free Fire, I think that quarter-on-quarter user fluctuation can be many reasons including seasonality and game launch for Garena as a whole or eSports events. But for Free Fire overall, I think we have shared earlier. We are very positive based on the trends so we have seen so far. And therefore, we want to give market some indication of what we also have seen. Regarding the rest of our portfolio which are third-party games published by us, we will continue also to work closely with our partners to bring more content to our game communities as well.
Operator: Your next question comes from a line of Thomas Chong from Jefferies. Your line is open.
Thomas Chong: Hi, Good evening. Thanks, management for taking my questions and congratulations on a strong set of results. My question is, first, on Shopee, given we are looking for Adjusted EBITDA to breakeven in the second half and we have built up our competitive mode. I just want to ask about in terms of the take rate trend for Shopee in 2024? How should we think about the advertising and the commission trend? That’s number one. And then number two on the fintech side, given the strong growth momentum that we are seeing, I just want to get some color with respect to our user acquisition strategies. What kind of channel are we getting new users other than the organic one? And on that one, how are we thinking about the long performing loans expectations as a percentage of our loan book. How is our technology or our data insights, which can make it at a low level? Thank you.
Forrest Li: On the first question regarding the take rate trend, as you have seen that we have adjusted our commission side continuously over the past few quarters. We are actually reviewing every month in terms of what makes sense for our user base in terms of commissions. I think overall, the most important thing is, we want to make sure there’s a healthy ecosystem that our seller has a reasonable margin to operate, but also are able to support the overall marketplace to grow healthily. So we will probably see some adjustment on the commissions over the year. Some of them can be for specific categories, some of them for specific countries. Yeah, I think it’s probably going to be a fine tuning, I guess, over the year. On the second part, on the ad take rate, we do believe that there is a sizable potential on the ad side for the take rate, comparing to many global peers, we still have a sizable room to grow there.
