SE Q3 FY24

In the third quarter of 2024, Sea Limited achieved total operating revenue of ¥11,869,430,000, marking a 25% increase from ¥9,446,932,000 in the same period of 2023. This growth reflects the company's positive performance in market demand and product sales, likely supported by effective marketing strategies and the introduction of new products. Sea Limited shows strong growth potential, particularly in its two main business areas: e-commerce and digital financial services.

Key Financial Metrics

• Revenue Growth: The operating revenue for the third quarter of 2024 reached ¥11.869 billion, a 25% year-over-year increase, indicating significant improvements in market demand and product sales.

• Market Demand Analysis: The company likely benefited from rising overall market demand, especially in e-commerce and digital financial sectors, showing a strong growth trend.

• Product Optimization and New Product Launches: In 2024, Sea Limited launched several new products, including e-commerce and financial services offerings, enhancing its market competitiveness.

• Marketing Strategy: The company implemented more effective marketing strategies, increasing brand awareness and market share through new media and promotional activities.

• External Economic Environment: Macroeconomic improvements and industry development trends provided a favorable external environment for revenue growth.

Peer Comparison

• Industry Overview: The overall industry is performing well, particularly in e-commerce and digital finance. Sea Limited's growth aligns with industry trends, indicating a positive outlook. According to statements by Li Xiaodong, the e-commerce business performed exceptionally well in 2023 and is expected to maintain strong growth in 2024, reflecting rising market demand.

• Peer Performance Analysis: Sea Limited's revenue growth surpasses the industry average, especially in e-commerce and digital financial services, demonstrating strong competitiveness. Compared to major competitors, Sea Limited may have increased its market share, particularly following the exit of competitors like TikTok Shop from the Indonesian market, further solidifying its market position.

Summary

Sea Limited's financial performance in 2024 is impressive, with significant revenue growth reflecting success in market demand, product optimization, and marketing strategies. The favorable trend in the overall industry supports the company's growth, particularly in e-commerce and digital finance. Compared to peers, Sea Limited clearly holds a leading competitive position.

Opportunities

• Expansion in E-commerce: Continue to strengthen leadership in the e-commerce market, particularly through expansion on the Shopee platform, which could further increase market share.

• Growth in Digital Financial Services: With rising demand for digital financial services, Sea Limited can introduce new services to meet diverse user needs.

• New Product Launches: Continuously launching new products and services, especially in digital entertainment, can attract more users.

• Improving Market Environment: The improving macroeconomic environment offers more growth opportunities, especially in Southeast Asia.

• Optimizing Marketing Strategies: Continuously optimizing supply chain and marketing strategies will aid in cost control and enhance market competitiveness.

Risks

• Intensifying Market Competition: Competition in e-commerce and digital finance may intensify, especially with the entry of emerging competitors.

• Policy Risks: Changes in external policies could impact the operating environment, particularly in digital finance.

• Dependence on Specific Markets: Over-reliance on the Southeast Asian market could lead to concentrated risks affecting overall performance.

• Technological Risks: In a rapidly changing digital environment, the pace of technological updates and product iterations requires ongoing resource investment.

• Economic Volatility Impact: Global economic fluctuations could negatively affect consumer spending and market demand, thereby impacting revenue.