You Thought China’s Tech Slowdown Was Bad
Tough times at Sea, and a canceled outlook, show that buying growth is no longer a viable strategy in Southeast Asia.
Growth hurdles.
Photographer: Dimas Ardian/BloombergFor the first time in history, China’s two largest technology companies posted a decline in revenue as the nation faces unprecedented growth hurdles and an uncertain outlook. But 2,000 miles away, even bigger challenges await one of Southeast Asia’s biggest companies.
Sea Ltd., which operates online games and e-commerce portals, reported growth of 29%, the slowest in almost five years. We tend to think of revenue expansion as better than a decline, but in Singapore-based Sea’s case every dollar brought in through its e-commerce business is losing money. At least Tencent Holdings Ltd. and Alibaba Group Holding Ltd. have continued to return profits even when the top line shrinks.