Shulou(Shulou.com)11/24 Report--

Beijing time on the afternoon of September 15, it is reported that "Southeast Asia Little Tencent" Sea announced today that in order to cope with the current economic downturn, the company will continue to cut costs and the senior management team will collectively give up salaries.

"the leadership team has decided that we will not accept any cash payment until the company is self-sufficient," Forrest Li, co-founder, chairman and CEO of Sea, said in an internal memo to employees today.

Li Xiaodong added: "We can now realize that the storm will not end in the short term: these negative conditions are likely to last for a long time."

Just last week, Sea cut the size of its ecommerce unit Shopee, shutting down its local operations in Chile, Colombia and Mexico (leaving only cross-border ecommerce) and withdrawing from the Argentine market altogether. "given the increased uncertainty in the current macro situation, we need to focus our resources on our core business," Shopee said at the time.

Sea's market capitalization soared to more than $200 billion last October because its gaming and ecommerce divisions were hugely popular during the outbreak. But the company's share price has plummeted since then and now has a market capitalization of only about $27 billion.

Li Xiaodong also said today that in the face of the current economic situation, investors are becoming more and more cautious, so financing is becoming more and more difficult. He reiterated that the main goal of Sea in the next 12-18 months is to achieve positive cash flow. Sea posted a net loss of $569.8 million in the second quarter of this year, without general accounting standards, compared with a net loss of $321.2 million in the same period a year earlier.

In addition to the collective "zero salary" of the executive team, Sea has restricted business travel to economy class, limited travel meals to $30 a day, limited hotel accommodation to $150 per night, and reduced reimbursement for meals and entertainment.

"the only way to get rid of our dependence on external capital is to be self-sufficient and generate enough cash to support operational needs and projects," Li said. "

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