SE 6-K

Sea Ltd (SE)

6-K 2021-09-08 For: 2021-06-30

View Original

Added on April 07, 2026

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

	Page

Unaudited Interim Condensed Consolidated Financial Statements
Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2020 and June 30, 2021	1 – 4
Unaudited Interim Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2020 and 2021	5 – 6
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the Six Months Ended June 30, 2020 and 2021	7
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2021	8 – 9
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2020 and 2021	10 – 12
Notes to the Unaudited Interim Condensed Consolidated Financial Statements	13 – 41

			As of December 31,		As of June 30,
	Note		2020		2021
			$_		$_

ASSETS
Current assets
Cash and cash equivalents				6,166,880		4,645,383
Restricted cash				859,192		1,328,060
Accounts receivable, net of allowance for credit losses of $7,978 and $4,971, as of December 31, 2020 and June 30, 2021 respectively				362,999		382,662
Prepaid expenses and other assets				1,054,229		1,202,889
Loans receivable, net of allowance for credit losses of $20,872 and $58,832, as of December 31, 2020 and June 30, 2021 respectively		4		285,937		762,485
Inventories, net				64,219		99,477
Short-term investments		5		126,099		962,141
Amounts due from related parties				19,449		14,001

Total current assets				8,939,004		9,397,098

Non-current assets
Property and equipment, net				386,401		442,122
Operating lease right-of-use assets, net				234,555		388,073
Intangible assets, net				39,773		42,137
Long-term investments		5		190,482		286,372
Prepaid expenses and other assets				204,804		301,104
Loans receivable, net of allowance for credit losses of $19,612 and $15,058, as of December 31, 2020 and June 30, 2021 respectively		4		117,149		45,488
Restricted cash				27,321		29,457
Deferred tax assets				99,904		114,862
Goodwill		3		216,278		476,334

Total non-current assets				1,516,667		2,125,949

Total assets				10,455,671		11,523,047

		As of December 31,		As of June 30,
	Note	2020		2021
		$_		$_

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable (including accounts payable of the Consolidated VIEs without recourse to the primary beneficiaries of $19,290 and $12,821 as of December 31, 2020 and June 30, 2021, respectively)			121,637		179,551
Accrued expenses and other payables (including accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries of $107,512 and $127,510 as of December 31, 2020 and June 30, 2021, respectively)			2,033,461		2,670,816
Advances from customers (including advances from customers of the Consolidated VIEs without recourse to the primary beneficiaries of $11,014 and $16,652 as of December 31, 2020 and June 30, 2021, respectively)			161,379		206,383
Amounts due to related parties (including amounts due to related parties of the Consolidated VIEs without recourse to the primary beneficiaries of $2,347 and $3,805 as of December 31, 2020 and June 30, 2021, respectively)			42,613		60,017
Operating lease liabilities (including operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of $10,122 and $6,543 as of December 31, 2020 and June 30, 2021, respectively)			74,506		113,544
Deferred revenue (including deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries of $212,377 and $204,926 as of December 31, 2020 and June 30, 2021, respectively)			2,150,165		2,538,838
Income tax payable (including income tax payable of the Consolidated VIEs without recourse to the primary beneficiaries of $566 and $1,790 as of December 31, 2020 and June 30, 2021, respectively)			52,306		114,448

Total current liabilities			4,636,067		5,883,597

			As of December 31,		As of June 30,
	Note		2020		2021
			$_		$_

Non-current liabilities
Accrued expenses and other payables (including accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries of $1,907 and $1,738 as of December 31, 2020 and June 30, 2021, respectively)				36,159		61,036
Operating lease liabilities (including operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of $16,916 and $6,642 as of December 31, 2020 and June 30, 2021, respectively)				177,870		299,476
Deferred revenue (including deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries of $55,200 and $70,953 as of December 31, 2020 and June 30, 2021, respectively)				343,297		396,138
Convertible notes (including convertible notes of the Consolidated VIEs without recourse to the primary beneficiaries of nil and nil as of December 31, 2020 and June 30, 2021, respectively)		6		1,840,406		1,282,496
Deferred tax liabilities (including deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of nil and nil as of December 31, 2020 and June 30, 2021, respectively)				1,526		1,272
Unrecognized tax benefits (including unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries of $107 and $107 as of December 31, 2020 and June 30, 2021, respectively)				107		107

Total non-current liabilities				2,399,365		2,040,525

Total liabilities				7,035,432		7,924,122

Commitments and contingencies		13

		As of December 31,			As of June 30,
	Note	2020			2021
		$			$
Shareholders’ equity
Class A Ordinary shares (Par value of US$0.0005 per share; Authorized: 14,800,000,000 and 14,800,000,000 shares as of December 31, 2020 and June 30, 2021 respectively; Issued and outstanding: 359,755,767 and 382,489,822 shares as of December 31, 2020 and June 30, 2021, respectively)			179			190
Class B Ordinary shares (Par value of US$0.0005 per share; Authorized: 200,000,000 and 200,000,000 shares as of December 31, 2020 and June 30, 2021, respectively; Issued and outstanding: 152,175,703 and 152,175,703 shares as of December 31, 2020 and June 30, 2021, respectively)			76			76
Additional paid-in capital			8,526,571			9,587,617
Accumulated other comprehensive income (loss)			4,681			(22,989	)
Statutory reserves			2,363			1,766
Accumulated deficit			(5,150,958	)		(6,006,493	)

Total Sea Limited shareholders’ equity			3,382,912			3,560,167
Non-controlling interests			37,327			38,758

Total shareholders’ equity			3,420,239			3,598,925

Total liabilities and shareholders' equity			10,455,671			11,523,047

		For the Six Months ended June 30,
Note		2020			2021
		$_			$_

Revenue
Service revenue
Digital entertainment			753,629			1,805,602
E-commerce and other services			631,264			1,772,040

Sales of goods			212,061			466,550

Total revenue			1,596,954			4,044,192

Cost of revenue
Cost of service
Digital entertainment			(299,231	)		(540,936	)
E-commerce and other services			(673,815	)		(1,491,286	)

Cost of goods sold			(216,282	)		(435,667	)

Total cost of revenue			(1,189,328	)		(2,467,889	)

Gross profit			407,626			1,576,303

Operating income (expenses)
Other operating income			57,925			147,095
Sales and marketing expenses			(694,665	)		(1,600,284	)
General and administrative expenses			(271,480	)		(491,850	)
Research and development expenses			(139,933	)		(313,693	)

Total operating expenses			(1,048,153	)		(2,258,732	)

Operating loss			(640,527	)		(682,429	)
Interest income			15,206			14,969
Interest expense			(67,927	)		(49,606	)
Investment gain (loss), net			58,968			(19,770	)
Changes in fair value of convertible notes			(87	)		–
Foreign exchange gain			12,687			6,094

Loss before income tax and share of results of equity investees			(621,680	)		(730,742	)
Income tax expense	8		(51,058	)		(126,216	)
Share of results of equity investees			(1,588	)		1,198

Net loss			(674,326	)		(855,760	)

Net profit attributable to non-controlling interests			(148	)		(372	)

Net loss attributable to Sea Limited’s ordinary shareholders			(674,474	)		(856,132	)

	For the Six Months ended June 30,
	2020			2021
	$_			$_

Cash flows from operating activities
Net loss		(674,326	)		(855,760	)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for credit losses		24,189			45,941
Amortization of discount on convertible notes		40,805			42,311
Amortization of intangible assets		5,695			7,811
Deferred income tax		(16,515	)		(17,512	)
Depreciation of property and equipment		74,526			111,256
Gain on disposal of subsidiary		(75,831	)		–
Gain on re-measurement of equity interests		(3,003	)		–
Impairment loss on investments		8,856			–
Net loss (gain) on debt extinguishment		12,158			(11,427	)
Net foreign exchange differences		(19,041	)		(16,993	)
Share-based compensation		117,186			214,560
Share of results of equity investees		1,588			(1,198	)
Unrealised loss on marketable equity securities		–			21,118
Others		2,943			2,764

Operating cash flows before changes in working capital:		(500,770	)		(457,129	)

Inventories		(36,408	)		(40,037	)
Accounts receivable		(63,383	)		(21,017	)
Prepaid expenses and other assets		(213,859	)		(188,670	)
Amounts due from related parties		(12,675	)		8,346
Operating lease right-of-use assets		(16,199	)		(155,440	)
Accounts payable		29,737			56,874
Accrued expenses and other payables		324,992			493,408
Advances from customers		36,269			50,179
Operating lease liabilities		12,361			162,612
Deferred revenue		488,206			490,938
Income tax payable		16,621			37,401
Amounts due to related parties		9,554			13,261

Net cash generated from operating activities		74,446			450,726

Cash flows from investing activities
Purchase of property and equipment		(103,961	)		(242,866	)
Purchase of intangible assets and capitalized software costs		(8,086	)		(13,594	)
Purchase of investments		(41,114	)		(980,296	)
Proceeds from disposal of property and equipment		980			227
Proceeds from sale and maturity of investments		3,644			28,047
Distribution from investments		386			–
Acquisition of businesses, net of cash acquired		(90,994	)		17,888
Disposal of subsidiary, net of cash disposed		15,380			–
Change in loans receivable		(87,047	)		(459,233	)

Net cash used in investing activities		(310,812	)		(1,649,827	)

	No of ordinary shares			Ordinary shares		Additional paid-in capital			Accumulated other comprehensive income (loss)			Statutory reserves		Accumulated deficit			Total Sea Limited shareholders’ equity			Non-controlling interests			Total shareholders’ equity
				$_		$_			$_			$_		$_			$_			$_			$_

Balance as of January 1, 2020		463,244,652			230		4,687,284			5,449			46		(3,530,585	)		1,162,424			10,228			1,172,652

Comprehensive loss:
Net loss for the period		–			–		–			–			–		(674,474	)		(674,474	)		148			(674,326	)
Foreign currency translation adjustments		–			–		–			(10,210	)		–		–			(10,210	)		(1,484	)		(11,694	)
Net change in unrealized loss on available-for-sale investments		–			–		–			(5,400	)		–		–			(5,400	)		–			(5,400	)
Acquisition of subsidiary		–			–		–			–			–		–			–			37,511			37,511
Appropriation of statutory reserves		–			–		–			–			66		(66	)		–			–			–
Equity component of convertible notes		–			–		284,727			–			–		–			284,727			–			284,727
Purchase of capped calls related to issuance of convertible notes		–			–		(135,700	)		–			–		–			(135,700	)		–			(135,700	)
Conversion and exchange of convertible notes into Class A ordinary shares		14,949,659			8		136,314			–			–		–			136,322			–			136,322
Transaction with non-controlling interests		–			–		(20,771	)		–			–		–			(20,771	)		1,729			(19,042	)
Disposal of interest in a subsidiary		–			–		–			–			–		–			–			(11,971	)		(11,971	)
Shares issued to depositary bank		2,000,000			–		–			–			–		–			–			–			–
Exercise of share options		1,122,088			–		6,262			–			–		–			6,262			–			6,262
Restricted share awards and restricted share units issued		1,785,359			1		(1	)		–			–		–			–			–			–
Share-based compensation		–			–		110,613			–			–		–			110,613			2,481			113,094
Settlement of share incentives with shares held by depositary bank		(2,807,447	)		–		–			–			–		–			–			–			–

Balance as of June 30, 2020		480,294,311			239		5,068,728			(10,161	)		112		(4,205,125	)		853,793			38,642			892,435

	$_

Cash and cash equivalent		42,294
Others		5,219
Total assets acquired		47,513

Income tax payable		(25,682	)
Others		(1,976	)
Total liabilities assumed		(27,658	)
Net assets acquired		19,855

Fulfilled by:
Share consideration⁽¹⁾		252,960
Cash consideration		29,679
Goodwill		262,784

	As of
	December 31, 2020			June 30, 2021
	$			$

Commercial		183,710			171,619
Consumer		259,860			710,244
		443,570			881,863
Allowance for credit losses		(40,484	)		(73,890	)
		403,086			807,973

	As of June 30, 2021
	Year of origination
	2021		2020		2019		2018		2017		Prior		Total
Commercial	$		$		$		$		$		$		$
Delinquency:
Current		19,522		106,345		16,132		5,217		3,812		1,607		152,635
Past due
- 1 to 30 days		668		4,365		585		2,974		100		11		8,703
- 31 to 60 days		340		3,162		276		61		128		2		3,969
- 61 to 90 days		31		287		348		112		7		70		855
- More than 90 days		–		5,017		228		131		34		47		5,457
		20,561		119,176		17,569		8,495		4,081		1,737		171,619

Consumer
Delinquency:
Current		633,129		7,871		12,325		9,461		5,989		1,313		670,088
Past due
- 1 to 30 days		10,899		866		585		513		134		37		13,034
- 31 to 60 days		6,483		506		1,000		1,676		734		119		10,518
- 61 to 90 days		4,260		1,286		130		271		64		13		6,024
- More than 90 days		7,101		2,962		246		88		25		158		10,580
		661,872		13,491		14,286		12,009		6,946		1,640		710,244

	As of December 31, 2020
	Cost or Amortized cost		Gross unrecognized gains		Gross unrecognized losses			Gross unrealized gains		Gross unrealized losses		Fair value
	$		$		$			$		$		$
Short-term investments
Debt securities:
Held to maturity		28,330		–		(1	)		–		–		28,329
Available-for-sale		20,859		–		–			910		–		21,769

Long-term investments
Debt securities:
Held to maturity		68,854		3,197		(23	)		–		–		72,028
Available-for-sale		5,174		–		–			102		–		5,276

		123,217		3,197		(24	)		1,012		–		127,402

	As of
	December 31,		June 30,
	2020		2021
	$_		$_

2023 Convertible Notes		41,263		29,190
2024 Convertible Notes		916,560		348,137
2025 Convertible Notes		882,583		905,169

		1,840,406		1,282,496

	2023 Convertible Notes			2024 Convertible Notes			2025 Convertible Notes

Liability component	$	410,926		$	897,918		$	856,635
Effective interest rate		9.38	%		6.03	%		8.21	%
Equity component	$	152,714		$	240,582		$	284,727
Debt issuance cost, allocated in proportion to the allocation of proceeds	$	11,360		$	11,500		$	8,638

	December 31, 2020												June 30, 2021
	2023 Convertible Notes			2024 Convertible Notes			2025 Convertible Notes			Total			2023 Convertible Notes			2024 Convertible Notes			2025 Convertible Notes			Total
	$			$			$			$			$			$			$			$

Principal		49,000			1,112,320			1,149,500			2,310,820			33,530			412,402			1,149,500			1,595,432
Less: unamortized issuance cost and debt discount		(7,737	)		(195,760	)		(266,917	)		(470,414	)		(4,340	)		(64,265	)		(244,331	)		(312,936	)

Net carrying amount		41,263			916,560			882,583			1,840,406			29,190			348,137			905,169			1,282,496

	2024 Convertible Notes		2025 Convertible Notes

Initial strike price per share	$	50.13	$	90.46
Initial cap price per share	$	70.36	$	136.54

	Granted in 2021

Risk-free interest rates		0.74%~1.07%
Expected term	5.6~7.5 years
Expected volatility		32.1%~33.0%
Expected dividend yield		–
Fair value of share options		$71.70~$84.14

Name of related parties	Relationship with the Company

Tencent Limited and its affiliates (“Tencent”)	A shareholder of the Company

	Six months ended June 30,
	2020		2021
	$		$_

Royalty fee and license fee to:
- Tencent		53,931		69,128

Services provided by:
- Tencent		11,369		9,935

	For the Six Months ended June 30, 2020
	Digital Entertainment		E-Commerce			Digital Financial Services			Other Services			Unallocated expenses ⁽¹⁾			Consolidated
	$		$			$			$			$			$
Revenue		753,629		706,230			22,032			115,063			–			1,596,954

Operating income (loss)		341,064		(636,541	)		(193,612	)		(23,632	)		(127,806	)		(640,527	)
Non-operating income, net																18,847
Income tax expense																(51,058	)
Share of results of equity investees																(1,588	)

Net loss																(674,326	)

	For the Six Months ended June 30, 2021
	Digital Entertainment		E-Commerce			Digital Financial Services			Other Services			Unallocated expenses ⁽¹⁾			Consolidated
	$		$			$			$			$			$
Revenue		1,805,602		2,077,487			140,039			21,064			–			4,044,192

Operating income (loss)		1,029,577		(1,084,139	)		(316,648	)		(84,582	)		(226,637	)		(682,429	)
Non-operating loss, net																(48,313	)
Income tax expense																(126,216	)
Share of results of equity investees																1,198

Net loss																(855,760	)

	Fair value measurement at December 31, 2020
	Quoted prices in active markets for identical assets (Level 1) $			Significant other observable inputs (Level 2) $		Unobservable inputs (Level 3) $		Total $

Cash equivalents		74,272			–		–		74,272
Held to maturity investments		100,071			–		286		100,357
Available-for-sale investments		5,688			–		21,357		27,045
Equity securities		76,000			–		–		76,000
Other assets		–			–		19,024		19,024
Share appreciation rights		(11,640	)		–		–		(11,640	)

		244,391			–		40,667		285,058

	Fair value measurement at June 30, 2021
	Quoted prices in active markets for identical assets (Level 1) $			Significant other observable inputs (Level 2) $			Unobservable inputs (Level 3) $		Total $

Cash equivalents		575,601			–			–		575,601
Held to maturity investments		787,122			–			486		787,608
Available-for-sale investments		49,017			–			164,459		213,476
Equity securities		55,533			–			–		55,533
Investments carried at fair value		–			–			21,992		21,992
Other assets		–			–			16,221		16,221
Derivative assets⁽¹⁾		–			67			–		67
Derivative liabilities ⁽²⁾		–			(1,204	)		–		(1,204	)
Share appreciation rights		(18,038	)		–			–		(18,038	)

		1,449,235			(1,137	)		203,158		1,651,256

	$
Assets:
Available-for-sale investments
Balance at January 1, 2020		128,418
Impairments		(13,429	)
Conversion into ordinary shares of investees		(72,000	)
Fair value loss included in other comprehensive income		(5,400	)

Balance at June 30, 2020		37,589
Addition		20,429
Impairments		(37,571	)
Fair value loss included in other comprehensive income		910

Balance at December 31, 2020	21,357
Addition	146,871
Fair value loss included in other comprehensive income		(3,769	)

Balance as at June 30, 2021		164,459

Investments carried at fair value
Balance at January 1, 2020, June 30, 2020 and December 31, 2020			–
Addition			21,992

Balance at June 30, 2021			21,992