Sea Ltd 6-K, filed Mar 1, 2022

Sea Ltd (SE)

6-K 2022-03-01 For: 2022-03-01

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Added on April 07, 2026

About this 6-K

Sea Ltd filed this 6-K on March 1, 2022.

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	SEA LIMITED

	By:	/s/ Forrest Xiaodong Li
	Name:	Forrest Xiaodong Li
	Title:	Chairman and Group Chief Executive Officer

	For the Three Months ended December 31,									For the Full Year ended December 31,
	2020			2021						2020			2021
	$			$			YOY%			$			$			YOY%
Revenue
Service revenue
Digital Entertainment		693,362			1,415,044			104.1	%		2,015,972			4,320,013			114.3	%
E-commerce and other services		656,566			1,482,665			125.8	%		1,777,330			4,564,617			156.8	%
Sales of goods		216,622			324,405			49.8	%		582,362			1,070,560			83.8	%
		1,566,550			3,222,114			105.7	%		4,375,664			9,955,190			127.5	%
Cost of revenue
Cost of service
Digital Entertainment		(208,360	)		(374,783	)		79.9	%		(702,329	)		(1,230,082	)		75.1	%
E-commerce and other services		(611,637	)		(1,235,351	)		102.0	%		(1,743,773	)		(3,825,826	)		119.4	%
Cost of goods sold		(212,841	)		(301,252	)		41.5	%		(580,657	)		(1,003,547	)		72.8	%
		(1,032,838	)		(1,911,386	)		85.1	%		(3,026,759	)		(6,059,455	)		100.2	%
Gross profit		533,712			1,310,728			145.6	%		1,348,905			3,895,735			188.8	%
Other operating income		72,697			72,294			(0.6	)%		189,645			287,946			51.8	%
Sales and marketing expenses		(665,222	)		(1,219,858	)		83.4	%		(1,830,875	)		(3,829,743	)		109.2	%
General and administrative expenses		(189,005	)		(318,597	)		68.6	%		(657,215	)		(1,105,295	)		68.2	%
Research and development expenses		(109,507	)		(286,642	)		161.8	%		(353,785	)		(831,703	)		135.1	%
Total operating expenses		(891,037	)		(1,752,803	)		96.7	%		(2,652,230	)		(5,478,795	)		106.6	%
Operating loss		(357,325	)		(442,075	)		23.7	%		(1,303,325	)		(1,583,060	)		21.5	%
Non-operating loss, net		(124,459	)		(70,995	)		(43.0	)%		(179,913	)		(132,124	)		(26.6	)%
Income tax expense		(44,166	)		(105,609	)		139.1	%		(141,640	)		(332,865	)		135.0	%
Share of results of equity investees		1,381			2,390			73.1	%		721			5,019			596.1	%
Net loss		(524,569	)		(616,289	)		17.5	%		(1,624,157	)		(2,043,030	)		25.8	%
Net loss excluding share-based compensation ⁽¹⁾		(430,722	)		(483,492	)		12.3	%		(1,333,911	)		(1,572,706	)		17.9	%
Basic and diluted loss per share based on net loss excluding share-based compensation attributable to Sea Limited’s ordinary shareholders ⁽¹⁾		(0.87	)		(0.88	)		1.1	%		(2.78	)		(2.96	)		6.5	%
Change in deferred revenue of Digital Entertainment		319,720			(333,300	)		(204.2	)%		1,170,399			276,352			(76.4	)%
Adjusted EBITDA for Digital Entertainment ⁽¹⁾		663,539			602,565			(9.2	)%		1,982,734			2,775,957			40.0	%
Adjusted EBITDA for E-commerce ⁽¹⁾		(427,474	)		(877,737	)		105.3	%		(1,306,908	)		(2,554,221	)		95.4	%
Adjusted EBITDA for Digital Financial Services ⁽¹⁾		(171,263	)		(149,813	)		(12.5	)%		(511,092	)		(616,924	)		20.7	%
Adjusted EBITDA for Other Services ⁽¹⁾		(12,668	)		(56,859	)		348.8	%		(39,551	)		(170,211	)		330.4	%
Unallocated expenses ⁽²⁾		(3,407	)		(10,296	)		202.2	%		(18,198	)		(28,196	)		54.9	%
Total adjusted EBITDA ⁽¹⁾		48,727			(492,140	)		(1,110.0	)%		106,985			(593,595	)		(654.8	)%

	For the Three Months ended December 31,
	2020		2021		YOY%
Sales and Marketing Expenses	$		$
Digital Entertainment		61,191		109,625		79.2	%
E-commerce		438,475		840,727		91.7	%
Digital Financial Services		152,359		228,729		50.1	%

	For the Full Year ended December 31,
	2020		2021		YOY%
Sales and Marketing Expenses	$		$
Digital Entertainment		165,319		357,106		116.0	%
E-commerce		1,219,607		2,630,401		115.7	%
Digital Financial Services		415,418		742,702		78.8	%

Date and time:	7:30 AM U.S. Eastern Time on March 1, 2022
	8:30 PM Singapore / Hong Kong Time on March 1, 2022

Webcast link:	https://services.choruscall.com/links/se220301.html

Dial in numbers:	US Toll Free: 1-888-317-6003	Hong Kong: 800-963-976
	International: 1-412-317-6061	Singapore: 800-120-5863
	United Kingdom: 08-082-389-063

	For the Three Months ended December 31, 2021
	Digital Entertainment			E-commerce			Digital Financial Services			Other Services⁽¹⁾			Unallocated expenses⁽²⁾			Consolidated
	$			$			$			$			$			$
Operating income (loss)		858,831			(941,028	)		(157,647	)		(59,138	)		(143,093	)		(442,075	)
Net effect of changes in deferred revenue and its related cost		(266,399	)		-			-			-			-			(266,399	)
Depreciation and Amortization		10,133			63,291			7,834			2,279			-			83,537
Share-based compensation		-			-			-			-			132,797			132,797
Adjusted EBITDA		602,565			(877,737	)		(149,813	)		(56,859	)		(10,296	)		(492,140	)

	For the Full Year ended December 31, 2021
	Digital Entertainment		E-commerce			Digital Financial Services			Other Services⁽¹⁾			Unallocated expenses⁽²⁾			Consolidated
	$		$			$			$			$			$
Operating income (loss)		2,500,081		(2,766,566	)		(640,422	)		(177,633	)		(498,520	)		(1,583,060	)
Net effect of changes in deferred revenue and its related cost		240,109		-			-			-			-			240,109
Depreciation and Amortization		35,767		212,345			23,498			7,422			-			279,032
Share-based compensation		-		-			-			-			470,324			470,324
Adjusted EBITDA		2,775,957		(2,554,221	)		(616,924	)		(170,211	)		(28,196	)		(593,595	)

	For the Three Months ended December 31,						For the Year ended December 31,
	2020			2021			2020			2021
	$			$			$			$
Net loss		(524,569	)		(616,289	)		(1,624,157	)		(2,043,030	)
Share-based compensation		93,847			132,797			290,246			470,324
Net loss excluding share-based compensation		(430,722	)		(483,492	)		(1,333,911	)		(1,572,706	)
Net loss (profit) attributable to non-controlling interests		977			(1,319	)		6,101			(3,729	)
Net loss excluding share-based compensation attributable to Sea Limited’s ordinary shareholders		(429,745	)		(484,811	)		(1,327,810	)		(1,576,435	)
Weighted average shares used in loss per share computation:
Basic and diluted		494,805,090			553,635,479			477,264,888			532,705,796
Basic and diluted loss per share based on net loss excluding share-based compensation attributable to Sea Limited’s ordinary shareholders		(0.87	)		(0.88	)		(2.78	)		(2.96	)

	As of December 31,		As of December 31,
	2020		2021
	$		$
ASSETS
Current assets
Cash and cash equivalents		6,166,880		9,247,762
Restricted cash		859,192		1,551,635
Accounts receivable, net of allowance for credit losses of $7,978 and $5,772, as of December 31, 2020 and 2021 respectively		362,999		388,308
Prepaid expenses and other assets		1,054,229		1,401,863
Loans receivable, net of allowance for credit losses of $20,872 and $91,504, as of December 31, 2020 and 2021 respectively		285,937		1,500,954
Inventories, net		64,219		117,499
Short-term investments		126,099		911,281
Amounts due from related parties		19,449		16,095
Total current assets		8,939,004		15,135,397
Non-current assets
Property and equipment, net		386,401		1,029,963
Operating lease right-of-use assets, net		234,555		649,680
Intangible assets, net		39,773		52,517
Long-term investments		190,482		1,052,861
Prepaid expenses and other assets		204,804		124,521
Loans receivable, net of allowance for credit losses of $19,612 and $6,172, as of December 31, 2020 and 2021 respectively		117,149		28,964
Restricted cash		27,321		38,743
Deferred tax assets		99,904		103,755
Goodwill		216,278		539,624
Total non-current assets		1,516,667		3,620,628
Total assets		10,455,671		18,756,025

	As of December 31,		As of December 31,
	2020		2021
	$		$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable		121,637		213,580
Accrued expenses and other payables		2,033,461		3,531,187
Advances from customers		161,379		244,574
Amounts due to related parties		42,613		74,738
Bank borrowings		–		100,000
Operating lease liabilities		74,506		186,494
Deferred revenue		2,150,165		2,644,463
Income tax payable		52,306		181,400
Total current liabilities		4,636,067		7,176,436
Non-current liabilities
Accrued expenses and other payables		36,159		76,234
Operating lease liabilities		177,870		491,313
Deferred revenue		343,297		104,826
Convertible notes		1,840,406		3,475,708
Deferred tax liabilities		1,526		6,992
Unrecognized tax benefits		107		107
Total non-current liabilities		2,399,365		4,155,180
Total liabilities		7,035,432		11,331,616

	As of December 31,			As of December 31,
	2020			2021
	$			$
Shareholders’ equity
Class A Ordinary shares		179			204
Class B Ordinary shares		76			74
Additional paid-in capital		8,526,571			14,622,292
Accumulated other comprehensive income (loss)		4,681			(28,519	)
Statutory reserves		2,363			6,144
Accumulated deficit		(5,150,958	)		(7,201,498	)
Total Sea Limited shareholders’ equity		3,382,912			7,398,697
Non-controlling interests		37,327			25,712
Total shareholders’ equity		3,420,239			7,424,409
Total liabilities and shareholders’ equity		10,455,671			18,756,025

	For the Three months ended December 31,						For the Year ended December 31,
	2020			2021			2020			2021
	$			$			$			$
Net cash generated from (used in) operating activities		185,444			(304,824	)		555,868			208,649
Net cash used in investing activities		(366,936	)		(1,775,510	)		(886,912	)		(3,767,273	)
Net cash generated from financing activities		2,949,101			385,993			3,733,132			7,401,589
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		59,032			6,509			80,727			(58,218	)
Net increase (decrease) in cash, cash equivalents and restricted cash		2,826,641			(1,687,832	)		3,482,815			3,784,747
Cash, cash equivalents and restricted cash at beginning of the period/year		4,226,752			12,525,972			3,570,578			7,053,393
Cash, cash equivalents and restricted cash at end of the period/year		7,053,393			10,838,140			7,053,393			10,838,140

	For the Year ended December 31, 2021
	Digital Entertainment		E-commerce			Digital Financial Services			Other Services⁽¹⁾			Unallocated expenses⁽²⁾			Consolidated
	$		$			$			$			$			$
Revenue		4,320,013		5,122,959			469,774			42,444			-			9,955,190
Operating income (loss)		2,500,081		(2,766,566	)		(640,422	)		(177,633	)		(498,520	)		(1,583,060	)
Non-operating loss, net																(132,124	)
Income tax expense																(332,865	)
Share of results of equity investees																5,019
Net loss																(2,043,030	)

	For the Year ended December 31, 2020
	Digital Entertainment		E-commerce			Digital Financial Services			Other Services⁽¹⁾			Unallocated expenses⁽²⁾			Consolidated
	$		$			$			$			$			$
Revenue		2,015,972		2,167,149			60,785			131,758			-			4,375,664
Operating income (loss)		1,016,793		(1,442,593	)		(520,075	)		(49,006	)		(308,444	)		(1,303,325	)
Non-operating loss, net																(179,913	)
Income tax expense																(141,640	)
Share of results of equity investees																721
Net loss																(1,624,157	)