ORGANIZATION (Tables)

12 Months Ended

Dec. 31, 2021

Significant Subsidiaries of Company and its Consolidated Variable Interest Entities

(a)

As of December 31, 2021, significant subsidiaries of the Company include the following entities:

Entity	Date of Incorporation/ Acquisition	Place of incorporation	Percentage of direct ownership by the Company		Principal activities
			2020	2021

Garena Online Private Limited (“Garena Online”)	May 8, 2009	Singapore	100	100	Game operations and software development

Shopee Limited	January 16, 2015	Cayman Islands	100	100	Investment holding company

Shopee Singapore Private Limited	February 5, 2015	Singapore	100	100	Online platform

PT Shopee International Indonesia	August 5, 2015	Indonesia	100	100	Online platform

Financial Information of VIEs

The following tables represent the financial information of the VIEs whom the Company does not have majority voting interest as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 before eliminating the intercompany balances and transactions between the VIEs and other entities within the group:

	As of December 31,
	2020		2021
	$		$
ASSETS:
Current assets:
Cash and cash equivalents		94,502		141,985
Amounts due from intercompanies⁽¹⁾		44,928		159,349
Others		79,484		69,746
Total current assets		218,914		371,080

Non-current assets:
Property and equipment, net		35,453		40,246
Long-term investments		16,080		14,141
Deferred tax assets		47,948		43,961
Others		37,662		23,611
Total non-current assets		137,143		121,959
Total assets		356,057		493,039


LIABILITIES:
Current liabilities:
Accrued expenses and other payables		91,186		104,186
Deferred revenue		212,377		203,382
Amounts due to intercompanies⁽¹⁾		70,019		157,251
Others		31,104		20,076
Total current liabilities		404,686		484,895

Non-current liabilities:
Deferred revenue		55,200		36,189
Amounts due to intercompanies⁽¹⁾		15,710		27,596
Others		18,418		7,910
Total non-current liabilities		89,328		71,695
Total liabilities		494,014		556,590

⁽¹⁾

Amounts due from or to intercompanies consist of intercompany receivables or payables to the other companies within the group arising from intercompany transactions, and funds advanced for working capital purpose.

	Year ended December 31,
	2019			2020			2021
	$			$			$
Revenue
- Third party customers		443,401			562,347			690,383
- Intercompanies		118,833			145,848			195,639
Net (loss) profit		(2,108	)		(30,435	)		22,390

	Year ended December 31,
	2019			2020			2021
	$			$			$
Net cash (used in) generated from operating activities		(77,708	)		134,060			61,875
Net cash used in investing activities		(69,181	)		(27,399	)		(14,847	)
Net cash generated from (used in) financing activities		199,406			(13,023	)		15,030

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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