$SE announced the filing of its annual report on Form 20-F for the FY ended December 31, 2020.

I was reading through the annual report and wanted to share some of the highlights below.

A lot of this information is not new but its good to remind myself why I own this company.

1. Digital Entertainment
In order to sustain revenue growth for our digital entertainment business, we must maintain paying users and convert active game players to paying users and increase their spending.

2. It is crucial to balance creating sufficient in-game monetization opportunities on the one hand, and ensuring our games continue to attract a considerable number of users by offering them an enjoyable free-to-play experience on the other.

3. E-commerce
Our focus has been on building the ecosystem of sellers and buyers and improving the shopping experience. We monetize Shopee mainly by offering sellers paid advertising services, charging transaction-based fees, and charging for certain value-added services.

4. Financial Services
We mainly monetize our digital financial services business by charging commissions to third-party merchants with respect to our mobile wallet services, and by earning interest from borrowers with respect to our consumer credit business.

5. Financials
We had net losses of US$961.0M, US$1,457.7M and US$1,624.2M in 2018, 2019 and 2020, respectively. Our net losses in 2020 were primarily due to our investments in expanding our businesses, in particular our e-commerce and digital financial services businesses.

6. M&A activity
We acquired Composite Capital Management, a Hong Kong-licensed global investment management firm in the first quarter of 2021. Concurrent with this acquisition, we established Sea Capital to manage our overall investment efforts.

7. In 2018, 2019 and 2020, our digital entertainment business contributed 55.9%, 52.2% and 46.1% of our total revenue, respectively. In addition, our gross profit in 2018, 2019 and 2020 was primarily attributable to the positive impact of our digital entertainment business.

8. Among our online games, we substantially depend on a small number of popular games. In 2020, our top five games contributed 95.6% of our digital entertainment revenue, among which Free Fire contributed a significant portion.

9. While Free Fire has so far been well-received, we are still relatively new to game development. Free Fire is available in several markets, including our region, other parts of Asia, Brazil, Mexico, India, North America and other growth markets like Russia and the Middle East.

10. Currently, some of our most popular games, including League of Legends, Arena of Valor, and Call of Duty: Mobile, are owned or developed by Tencent Holdings Limited and its affiliates, or Tencent, one of our major shareholders.

11. In December 2020, the Monetary Authority of Singapore announced that our subsidiary in Singapore has been selected for the award of a digital full bank license. As of the date of this annual report, we have not been officially awarded such digital full bank license.

12. According to MAS’ announcement, we must meet all relevant prudential requirements and licensing pre-conditions before MAS grants us the digital full bank license, and MAS expects our digital bank in Singapore to commence operations in 2022 upon obtaining the license.

13. History & Development
On May 8, 2009, we incorporated Garena Interactive Holding Limited, our holding company, as a limited liability company in the Cayman Islands. On April 8, 2017, we changed our company name from Garena Interactive Holding Limited to Sea Limited.

14. We began our digital entertainment business at our inception in May 2009, and by 2020, we had expanded our local game operations to cover Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia, Singapore and Latin America.

15. We launched our e-commerce platform, Shopee, in Indonesia, Taiwan, Vietnam, Thailand, the Philippines, Malaysia and Singapore in June and early July 2015, in Brazil in the fourth quarter of 2019, and in Mexico in the first quarter of 2021.

16. We launched our digital financial services platform in Vietnam in April 2014 and in Thailand in June 2014. In the fourth quarter of 2019, we introduced SeaMoney as the overall brand for our digital financial services business.

17. Three Core Beliefs

18. Five Core Values

19. Game Development
Our in-house game development studios now have more than 750 developers focused on enhancing Free Fire gameplay and building out our pipeline of self-developed games. In January 2020, we acquired Phoenix Labs, an independent games development studio (Canada).

20. We believe that Garena is a leading catalyst of the growth of esports in our markets as we organize hundreds of esports events annually and operate the largest mobile-game professional league in Southeast Asia, Taiwan and Brazil.

21. Shopee e-commerce platform is a mobile-centric, social-focused marketplace with integrated payment and logistics infrastructure and comprehensive seller services.

22. As part of our strategy to enhance user engagement and social activity on the Shopee platform, we have introduced a number of innovative social and gamification features on Shopee, such as “Shopee Coins,” “Shopee Live,” “Shopee Games” and “Shopee Feed.”

23. Throughout 2020, we continued to work on further integrating the mobile wallet services of SeaMoney with our Shopee platform across different markets, to promote efficient growth of SeaMoney and to reduce payment friction for Shopee users.

24. So much great information. I can spend the entire day going over all things $SE During market days like today, its good to ignore the noise and focus on high conviction names. @Soumyazen @AnthonyOhayon @TheMarkCooke @plantmath1 @StockMarketNerd @ParrotStock @BackpackerFI