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Sea | CORRESP: CORRESP

SEC announcement ·  Jan 12 13:28
Summary by Moomoo AI
Sea Limited, operating under the stock code SE.US, has responded to the U.S. Securities and Exchange Commission (SEC) regarding comments on its Form 20-F for the fiscal year ended December 31, 2022. The SEC's letter dated December 5, 2023, sought clarifications on Sea's financial reporting, particularly on revenue recognition, operating results, and credit losses. Sea Limited provided detailed explanations and committed to enhancing future disclosures. The company addressed concerns over decreased revenue in Digital Entertainment, attributing it to a moderation in user engagement and monetization, and promised to include more metrics in future reports. Sea also explained the increase in Ecommerce and other services revenue, citing improved monetization and credit business growth. The company's credit business saw a significant...Show More
Sea Limited, operating under the stock code SE.US, has responded to the U.S. Securities and Exchange Commission (SEC) regarding comments on its Form 20-F for the fiscal year ended December 31, 2022. The SEC's letter dated December 5, 2023, sought clarifications on Sea's financial reporting, particularly on revenue recognition, operating results, and credit losses. Sea Limited provided detailed explanations and committed to enhancing future disclosures. The company addressed concerns over decreased revenue in Digital Entertainment, attributing it to a moderation in user engagement and monetization, and promised to include more metrics in future reports. Sea also explained the increase in Ecommerce and other services revenue, citing improved monetization and credit business growth. The company's credit business saw a significant increase in provision for credit losses, which was primarily driven by the growth of the loan book rather than changes in borrower characteristics or unusual events. Sea Limited also discussed the operational reasons for negative operating cash flows in fiscal 2022 and assured that its cash reserves and operating cash flow are sufficient to meet cash requirements for the next 12 months. The company's responses to the SEC's comments included commitments to provide more detailed breakdowns of revenue by type and segment, insights into gross margins, and explanations of cash flow changes in future filings.

This announcement is a separate document:

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