Sofia Ratio's questions to Sea Ltd (SE) leadership • Q4 2024
Question
An analyst from Morgan Stanley, identified as Sofia Ratio, inquired about Shopee's selective use of fulfillment services, asking about its benefits, potential CapEx or subsidy impact, and plans for expansion. She also asked about the profitability outlook for the Brazil market in 2025, recent average order value (AOV) trends, and the growth of the fintech business in that region.
Answer
Group CFO Hou Tianyu clarified that fulfillment is an early-stage, CapEx-light initiative to better serve brand sellers and improve delivery times, with no expected meaningful impact on near-term profitability. Regarding Brazil, he noted the market is profitable and growing well, with AOV increasing due to better delivery quality and category expansion. He also confirmed that the fintech business in Brazil is growing strongly following the stabilization of their credit rating model and the launch of new loan products.