Jiong Shao: Thank you very much for taking my questions. My first question is about your growth trend in the near term. You have returned back to growth over 20% for the first time in the last year and a half. You changed your strategy a couple of times during that period. Usually this kind of momentum doesn’t sort of change very quickly. So based on what you are seeing and also given what you have said so far about Indonesia, could you talk about your near term growth momentum right now in the first quarter? Should we expect sort of similar to what you saw in Q4? My second question is about your sort of the mix between core marketplace and the VAS. I know you talked about the VAS, which is the logistics. Sort of decline your VAS, at least partially, mostly due to the subsidies for shipping.
But over the last few quarters, it looks like your core marketplace growth has been very, very good, right? 30, 40%, and your VAS growth has been relatively low, very low, and negative in Q4. Other than the subsidies, are there other reasons behind, or strategic reasons behind these pretty meaningful differences? And if you add subsidies back, what does the VAS growth being somewhat similar to your core marketplace growth? Thank you.
Forrest Li: I think for the growth trend for the near terms, I think we have seen pretty good growth in Q1. I mean, you probably can see from the external data as well, although it’s not very accurate. But bear in mind that Q1, there’s a Ramadan season for Indonesia in particular. And we have 10 new year in some other markets. So we do have to stick into the conservation personalities. But yeah, all in all, we’re pretty happy with what we see in Q1 so far.
Minju Song: The VAS versus core marketplace, I would encourage you to look at core marketplace more closely to measure our overall platform growth, as well as monetization. The reason for VAS top line growth to deviate from that is because of accounting treatment that has a contra revenue effect caused by shipping subsidies. So that actually does not only affect the bottom line, but also affects the top line for that revenue segment, causing a departure in over trend. We cannot discuss the non-GAAP revenue, adjusted revenue, but if you add that back, I think the overall growth is consistent with the platform growth.
Operator: Your next question comes from a line of Ranjan Sharma from JPMorgan, Singapore. Your line is open.
Ranjan Sharma: Hi. Good morning and thank you for the presentation. Two questions from my side. Firstly, for Chris on live streaming, is there any co-host (ph) analysis that the team has done on the impact to live streaming GMV as incentives are removed for buyers? The second question is for Forrest, if he’s there. On Garena still the discussion is around Free Fire, but are there any developments to move away from a single title franchise to a more broader studio? Thank you.
Forrest Li: For the live streams, on the co-host, yes, we do look at the co-host for live stream and we’re seeing pretty good retentions and repurchase rate for live stream. But on top of that, I think more importantly for us actually for live stream is we’re seeing very good news percentage coming to live stream, which means that it does help us to reach out to segments that we might not completely reach out to before, which help us to grow the marketplace further as time goes. And we also observed that the news coming to live stream also cross purchase from the long live stream platform as well. I think these are the encouraging signs we see and that’s also how actually we have been reducing our unit — improving our economics in the past few months.
Minju Song: Yeah. Regarding Garena, I think Garena is definitely not a single franchise platform. We have multiple titles, both self-developed and published across different genres, including Battle Royale, MOBA, sports, casual, RPG, etc. It’s just that the super successful Free Fire franchise seems to dwarf in comparison the other titles which are also highly successful and very long lasting for Garena so far. Thanks to our global teams, very strong operations and ability to build a strong pipeline in content, in partnership with our partners, as well as self-development, and also in growing our global eSports communities. I think that being said, as always, we’re very focused on building future pipeline in terms of expanding our portfolio of genres and type of content, including more user-generated content, deploy more AI tools in building, in following new models of interaction with our users.
All of these things are going on in the background that our teams have been very much focused on. So, we are very excited about the long-term prospects of Garena, again, as a leading global game company.
Operator: Here our final question comes from the line of Elly Zhang from Macquarie. Your line is open.
Elly Zhang: Great. Thank you so much for taking my question. I just have kind of two questions on the e-commerce side. Just now, management, you talked about our price competitiveness. Just wondering how do we maintain this level of the supply chain sustainability and how do we see our merchants general overlap compared to the other e-commerce apps in Indonesia. Also, in the slightly longer term, what is the end game for, I guess, overall e-commerce dynamics and how do we really evaluate longer term profitability level on the EBITDA side? Thank you.
Forrest Li: Yeah. I think for the price competitiveness, I think the platform, we are generally most competitive in the market, as you can benchmark from external numbers. The key to sustain price competitiveness are from few angles. And number one is, we have the scale. So scale does bring advantage. So assuming that the same seller sell 100 items, our platform sell 10 other platforms, clearly, we have a fairly better bargaining power in terms of how much price that can be set. I think that’s number one. Number two is the cost to serve from a seller perspective. We would like to make the process for a seller to transact to make their businesses successful on our platform much simpler compared to the other platforms that come with the tools, policies, and the fundamental concept of how the marketplace operates.
