ORGANIZATION (Tables)

12 Months Ended

Dec. 31, 2022

Significant Subsidiaries of Company and its Consolidated Variable Interest Entities

(a)

As of December 31, 2022, 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
			2021	2022

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, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022 before eliminating the intercompany balances and transactions between the VIEs and other entities within the group:

	As of December 31,
	2021		2022
	$		$
ASSETS
Current assets
Cash and cash equivalents		141,985		79,922
Amounts due from intercompanies⁽¹⁾		159,349		153,070
Others		69,746		85,787
Total current assets		371,080		318,779

Non-current assets
Property and equipment, net		40,246		86,229
Long-term investments		14,141		14,500
Deferred tax assets		43,961		40,561
Others		23,611		18,059
Total non-current assets		121,959		159,349
Total assets		493,039		478,128


LIABILITIES
Current liabilities
Accrued expenses and other payables		104,186		110,526
Deferred revenue		203,382		192,243
Amounts due to intercompanies⁽¹⁾		157,251		88,639
Others		20,076		12,658
Total current liabilities		484,895		404,066

Non-current liabilities
Deferred revenue		36,189		23,886
Amounts due to intercompanies⁽¹⁾		27,596		83,958
Others		7,910		4,579
Total non-current liabilities		71,695		112,423
Total liabilities		556,590		516,489

⁽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,
	2020			2021		2022
	$			$		$
Revenue
- Third-party customers		562,347			690,383		722,607
- Intercompanies		145,848			195,639		176,072
Net (loss) income		(30,435	)		22,390		20,425

	Year ended December 31,
	2020			2021			2022
	$			$			$
Net cash generated from operating activities		134,060			61,875			22,449
Net cash used in investing activities		(27,399	)		(14,847	)		(89,160	)
Net cash (used in) generated from financing activities		(13,023	)		15,030			44,442

- 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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