Hello, everyone. Welcome to Razer Full Year 2021 Earnings webcast. Let me introduce the management team who will take you through today's presentation. We have our co-founder and CEO, Min-Liang Tan, CFO, Tan Chong Neng, and CSO, Li Meng Lee. During today's presentation, Min will start by discussing the earnings highlights, and Chong Neng will take us through the financial highlights. Min will then walk us through the ESG and outlook. After that, we'll open the floor to questions and answers. As a reminder, as the company is in the offer period for the proposed privatization of the company, all relevant details in relation to the proposed privatization have and will continue to be disclosed by way of the company's announcements published on the Hong Kong Stock Exchange. Accordingly, management will focus primarily on Razer's full year 2021 financial results during the Q&A session. For any questions relating to the proposed privatization, management will refer to the company's published announcements on the proposed privatization. For the participants joining our Zoom webcast, you can pose your questions via the chat box function at the bottom of the screen. For participants joining via dial-in, please send your question to ir@razer.com. Before we start, we would like to remind you that the presentation includes forward-looking statements and some unaudited non-GAAP financial measures. Please read the disclaimer on the deck. I must also advise you that this presentation is being recorded today. Min, please begin the presentation. Thank you. All right. Thank you very much, Kenny. I'm gonna take everyone through the highlights for the financial year of 2021. First up, we've achieved revenues of about $1.6 billion, representing about 33.3% year-over-year growth, primarily driven by demand in the first half of the year due to the pandemic. Of course, over and above, there was market share increase for the hardware business and the continued expansion of the channels and content for our services business. Over and above, gross profit margins improved to 24% as compared to 22.3% in the prior year period. Now, this was driven by the ongoing expansion of our hardware margins. However, that was also partially offset by the higher freight rates that have been plaguing the entire industry at this point in time, primarily the supply chain and the logistics areas. Adjusted non-GAAP EBITDA was $96.1 million, an increase from the $44.6 million in the prior year period of 2020. In respect of the bottom line, net profit was $43.4 million compared to the $0.8 million in the prior year period. Now, this was driven, of course, by the revenue growth, the ongoing gross margin expansion, and internally, our productivity at the company. Next up. In all the earnings reports, I go through how the gamer ecosystem has grown at Razer. First up, we continue to be the leading hardware, leading brand in gaming hardware at this point in time for gaming peripherals and premium gaming laptops. We achieved $1.452 billion in revenues in the financial year of 2021, representing a 34% year-over-year growth. Now, it's not just the hardware that we do. We've got software, and we've got services. In respect of the software, we grew our total users to about 178 million users, representing a 44.1% year-over-year growth. Now, in respect of the payment services that we offer to the youth, millennials, and the Gen Z, we grew to about $162.5 million in terms of revenues in the financial year of 2021, representing a 26.6% year-over-year growth. Next up. I'm gonna go through in greater detail the ecosystem of hardware, software services that we have at Razer. Since our IPO till now, we've got a CAGR of about 32%, achieving, as I've mentioned a little earlier, $1.452 billion worth of hardware revenues in FY 2021. In respect of the software, now, when we first went IPO, we had about 40 million users on a software platform. It's grown significantly to close to 180 million users at this point in time. Now, this has all been driven primarily due to the increased gaming live streaming activities, especially as you can see during the pandemic. Now, monthly active users have also increased 30% year-over-year in the last financial year. Next up. Rounding off the ecosystem, as I always talk about, it's really our services business unit within the Razer ecosystem. We saw 26.6% year-on-year growth in our services revenue. Today it's at $162.5 million in FY 2021. We've also maintained GPMs of 38.5% in the last year. Now at this point of time, I would like to hand this over to Tan Chong Neng, who can take us through in greater detail how we've done in the financial performance for FY 2021. Tan Chong Neng. Hey. Thank you, Min. A very good afternoon to all. Starting with our net revenue. We started the first half of financial year 2021 strong and ended the year with a 33.3% top-line growth, achieving a revenue of more than $1.6 billion. Our hardware business, consisting of peripherals and system, grew 34% to almost $1.5 billion. Our peripherals maintained its market leading position with a 14.2% growth to almost $1.1 billion. Our diversified regional presence across the globe allow us to generate a sustainable growth. Our ability to innovate and produce the best-in-class products allow us to expand our growth categories successfully. As a testimonial to this, our Razer gaming chairs has been named the best gaming chair overall by CNN. Our systems business with the successful launches of the Blade series continues to lead the U.S. premium gaming laptop segment. The systems business grew 18.6% to $368 million. Our services business, consisting of Razer Gold and Razer Fintech, grew 26.6% from $128 million to more than $162 million. Our user base across our platforms recorded growth of 44.1% to almost 178 million users as we continue to grow our gaming ecosystem. Razer Gold, our global gaming and digital entertainment payment service, recorded a 56.3% increase in TPV as we continue to increase our channel touch points to 5.6 million, entrenching Razer Gold as a partner of choice for the content providers. Razer Gold can now be used across 45,000 different gaming and entertainment content. Razer Fintech, one of the leading offline-to-online payment gateway in Southeast Asia, continues growth path with the TPV growing at 63.5% increase to almost $7 billion. With this, we have achieved a revenue CAGR of 33% since our IPO. Now moving on to gross profit. Our gross profit dollars increased 43.6% to $389 million, driven by both the strong top-line growth of 32.3% and the 170 basis point improvement in our GPM to 24%. Financial year 2021 has been a challenging year at the macro level. Headwinds in the form of freight cost increase, supply chain disruptions continue to impact the global economy. Our robust operation and diversified supply chain network built across different countries had allowed us to improve our hardware GPM, negating the margin pressure we experienced in the services business. Now moving on to operating expenses. For the past three years, our OpEx as a percentage of revenue had improved from the high of 32.2% in 2019 to the 20.8% in 2021. We have achieved this efficiency while continuing to invest in our hardware and services growth, as can be seen in our revenue CAGR. Our integrated Razer ecosystem allows us to maximize our OpEx dollars, especially our sales and marketing and R&D dollars as we continue to invest in the Razer brand and expand our product portfolio. We have built an effective cost structure, and we expect this efficiency and cost discipline to continue as we grow. Now moving on to our P&L highlights. We continue to drive the top-line growth, especially in the first half, which was driven by the pandemic. There are headwinds, but our Razer ecosystem had allowed us to achieve that 33.3% growth. Our gross profit margin improved 170 basis points driven by the hardware business as we continue to roll out gaming hardware with that greater customer preference. This had allowed us to improve our margin despite the rising cost environment. Our operating expenses increased 21.3% to $337 million, mainly driven by the increase in sales and marketing spend to promote launches and to expand our channels. With this, we end the year with a GAAP profit of $43.4 million compared to $0.8 million in the prior year. Now moving on to working capital and cash conversion cycle. Our working capital is one of the pillars of the Razer financials. We are able to partially negate the impact of the supply chain disruptions by planning ahead and deploying our inventory earlier into the different regions. This had allowed our products to reach our fan base in a timely manner. With this, our days inventory outstanding increased seven days to 46 days or approximately eight inventory turns. At eight turns, this is significantly better than the industry average of 4-5 turns. Our days sales outstanding improved by six days to 51 days, a reflection of the sell-through momentum and increasing demand for the Razer products and services. Our days payable outstanding reduced by 13 days to 141 days as we paid down our vendors faster to facilitate the shipment of our products. With this, we have achieved a negative cash conversion cycle of 44 days as we deploy our working capital to mitigate the supply chain headwind. We'll now hand over back to me to discuss our ESG and our outlook for financial year 2022. Well, thank you very much, Chong Neng Tan. I'd like to give everyone an update on our hashtag Go Green with Razer campaign, which is something that we've spoken about earlier. Now, in short, we've set ourselves a 10-year green roadmap for the organization. Now, Razer, we are known as one of the top ESG companies in the world and definitely one of the leaders when it comes down to the gaming industry. In short, we are committed to a sustainability roadmap, and pretty much we've got four main strategic pillars for this. First up, a green organization. It really looks to ourselves. I think we really look to ourselves that change has to start with ourselves as a company. As part of our Go Green with Razer campaign, we are really focused on making all our offices worldwide a greener place and reducing our global carbon footprint. It's not just our offices that we're looking at, but our products. Green products, we're really turning our forte in designing products that are both phenomenal and, in addition, to be responsible to the environment. Now, we've got one of the largest communities in the world. We've got millions of fans on social media, et cetera. The green community is the third pillar that we've got. We pledge to leverage on both our internal staff, the Team Razer, and our community to continue contributing and supporting the global green movement. Finally, we're also putting our money where our mouth is, green investments. We are committed towards a sustainable future, and we aim to play our part by supporting and investing in environment and sustainability startups. Four main strategic pillars on this front. I'm gonna go in greater detail in terms of these different areas. Now, in respect of the first pillar, the green organization, what have we been doing and what have we done? Well, in short, first up, we have adopted the GRI core standards. We've upgraded our upcoming sustainability report, so do stay tuned for that. We'll be adopting the GRI core standards, one of the world's leading sustainability reporting standards, and we'll be publishing that shortly. Second, we've joined the Science Based Targets initiative. We are one of the members where we are committed to the initiative to keep global temperature increments less than 1.5 degrees Celsius in order to achieve net carbon neutrality by 2030. Now, over and above, at Razer, we've done our inaugural disclosure under the CDP, the Carbon Disclosure Project. We've just made our first disclosure. Now, we believe in transparency, and we wanna make sure that there's transparency through this full disclosure of all the data that we've got within the organization. Finally, we've also included the risks for climate-related risks in the ERM, or enterprise risk management process. We are proactively recognizing and mitigating potential impact from climate-related risks. That's the first pillar that we've got, the green organization. Now, in respect of our products, we've recently announced a partnership with UL, which is one of the world's leading global certification bodies. We've kickstarted an industry-level effort. As one of the leaders in the entire industry, we're working closely together with UL to identify key indicators of environmental impact that should be measured by manufacturers of all gaming products worldwide. This is something that we're working really closely with UL at this point of time. Now, in respect of the community, I'm sure many of you guys are very familiar with the work that we are doing with Sneki Snek, which is one of the most recognized mascots at this point of time for the environment and sustainability, et cetera. We set ourselves a target at the start to save 100,000 trees. We've bumped that target up to 1 million trees, and to date, we've got more than 900,000 trees saved. We're coming close to the 1 million mark. Do stay tuned to our Go Green with Razer campaign, as we are working really closely with Conservation International, one of the largest environmental-based organizations in the world, to make this happen. Now finally, green investments. This is something that we're doing at this point of time, where we're investing through our Razer Green Fund. One of our first investments is with a company called Bambooloo, which has really been taking strides and pioneering how they're really looking at sustainable materials, especially bamboo, in respect for everything as banal as a toilet roll. These are some of the things that we're doing, the four main pillars. We will have a formal report coming up soon just to focus in respect of what we're doing on the Go Green with Razer or our ESG side of things. All right? Finally, to close things off for the earnings report. I've talked quite a bit about our FY 2021 results. Now a little bit of the outlook at this point of time. Three main areas in terms of the outlook for the year. First up, macro challenges and uncertainties. Now, I'm sure all of you are familiar with the volatility which is out there in the world today, the supply chain challenges, the logistics, et cetera. Well, in short, we believe that the impact of industry-wide supply chain challenges on our business, on the industry, on Razer, will persist. Freight and logistics in particular are expected to remain a challenge through the year. I think over and above, we expect a deceleration in terms of the growth momentum since second half of 2021 to continue through 2022, primarily due to the high base effect that we've had in the prior year. Now, over and above, there are still new growth areas that we're looking at Razer. For example, first up, we're really looking at extending our hardware offerings to everything else, including other gamer lifestyle categories such as furniture. Those are things that we're investing in. We see good potential growth in those areas. Over and above, in our services business, we expect to see continued regional expansion for Razer Gold and looking at new content and new areas for Razer Gold at this point of time. In respect of new growth areas, we're also looking at scaling up of TPV, or total payment volume, and geographical expansion for Razer Fintech. Now finally, what is the impact on our business performance? Well, we do see additional spending in terms of operating expenses. We expect that to be the case in 2022. Of course, as with the new growth areas, these are areas that we see are still nascent. We're still in incubation. We will expect to require significant investments in some of these new growth areas, and some of them will take time to prove out the business case as we seek to create new revenue streams, scale the existing revenue streams to greater heights. Three major areas in terms of the outlook, the macro challenges and uncertainties, the new growth areas, and finally, the impact on the business performance. With that, I think we can go straight to Q&A. Thank you, Min. We'll now take questions from the floor. The first question, please provide comment on the quarter 1 2022 performance so far, and also what's the guidance for full year 2022? Sure. I'll take the question. So as I've mentioned in the outlook, well, in short, we expect these industry-wide supply chain shocks to continue. I think component shortages, freight, logistics challenges, we expect this to maintain through this entire year. Now, that's gonna affect, I think, some of the delivery side of things and the margins side of things. On the demand side, we've also seen a bit of a deceleration. I think there was a very high base in the previous year, primarily due, driven by the pandemic. With the opening up, we see a deceleration in terms of the growth momentum from the second half of 2021 and as compared to the exceptional growth in the prior year. Now, this will expect. We expect to have this go through 2022, as a result of this high base effect. I think over and above that much that we are still investing, I think in 2022, in new growth areas, and we're building out the entire ecosystem as we speak. Before we see the fruit of a lot of these investments, as we've done in prior years, this will take some time to materialize and will require some additional spending on investments to make this happen. Thank you. The second question, can you please comment on the rationale of the privatization offer? Also, please provide comment on the considerations for the Hong Kong HKD 2.82 offer price. Maybe I'll take this question. We appreciate you raising this. To ensure consistency of disclosure, I will refer you to our existing announcements to date for details. I would like to point out that the scheme document will be sent to shareholders in due course. The scheme document would include further details about the proposal and the scheme, recommendations from the Razer independent board committee, and a letter of advice from the independent financial advisor to the Razer independent board committee. Finally, the notice of the board meeting and the Razer general meeting. The third question, I understand that the company has recently made a filing that all preconditions for the privatization offer is fulfilled. At this stage, can the offeror change the price? Maybe I'll also take this question. After the fulfillment of the precondition, the implementation of the proposal is still subject to satisfaction or where applicable, waiver of the conditions which include, among others, the approval of the scheme at the court meeting as a matter detailed in the joint announcement. If any condition is not fulfilled or where applicable, waived on or before the long stop date, that is the 23rd of August 2022, or such later date as may be agreed by the offeror and the company, the proposal and the scheme will lapse. The offeror has made a no increase statement, which means that the offeror is not allowed to increase the offer price beyond HKD 2.82. The offeror is not permitted to reduce the offer price either. The offerer consortium has made a binding offer subject to the voting. The next question, where do Razer see itself in the next five years? The Razer brand doesn't just consist of hardware gaming peripherals, so what is the plan going forward? Sure. I'll take that question. Well, in short, in all the earnings that I've done, I will always bring out at the start and talk about the ecosystem. That's really to address, you know, this question as a whole. We don't see Razer as just a hardware company. Don't get me wrong, we've crossed $1 billion in terms of hardware revenues. It's a big part of our revenues. The software and the services are equally important because we are building out this entire ecosystem. Long term, I think over the next couple of years, we are very focused in terms of, scaling up our hardware, but also in terms of investing in our software and getting a lot more users onto our software platform, and continuing to invest in our services, whether it's payment services or new services that we want to be able to kind of build, over and above. These are the areas, and, we do expect to see in the next couple of years us continuing to grow that entire ecosystem. Thank you. What are the capital allocation plans for investments into new growth areas and the split between hardware, software, and services? I'll take this. Capital allocation plans and split will take into consideration of things such as the potential of the business opportunities and the projected ROI strategic fit and the associated synergies with our unique gaming ecosystem. Thank you. The next question, can the management please provide more color on the impact of freight cost hikes and supply chain challenges? When should we expect the situation to stabilize? Please provide us the freight cost sensitivity to GPM. We expect the industry-wide supply chain shocks to continue, like what Min has highlighted, and to have an impact on our business, with freight and logistics to remain a challenge throughout the year. We are not able to share the sensitivity of the GPM, as the information is not available in the public domain. Thank you. The next question. We noticed that there is a deceleration in growth momentum, especially in markets such as U.S. and EU in second half 2021. What happened? Sure. I'll take that question. I think as the markets have opened up, there is a lot of other activities that is happening, I think at this point in time, particularly in the U.S. and, EU. As a result, I think that's where we see some deceleration in terms of the, growth momentum and over and above, the very high base that these markets have provided to us in the prior year. Thank you. The next question. Can the management please provide impact of Russia-Ukraine conflict on Razer's business? What's the percentage of Russia-Ukraine business on the group's total business? Sure. I'll take that. We don't break out, I think our numbers in respect of Russia and Ukraine, but what we can say is that there will be some impact, I think, in terms of our European business. I think on a broader macro front, you know, we've got all these geopolitical tensions. There will always be more uncertainties and challenges in the operating environment. You know, this will still be a challenge, I think, across to us and will affect our European business. Thank you. Can the management please provide guidance on OpEx ratio in the next 3-5 years? Will it stabilize at high-teens sort of range as a percentage of revenue? I'll take this. At Razer we have always been very focused on carving our lean and effective cost structure. As you can see in the slide, the trend that we have achieved from the high of 32.2% to this 20.8% that we see in 2021. Having said that, we have always been very carefully evaluating and investing into the new growth areas and to build our Razer's unique gaming ecosystem. At Razer, we definitely have the appetite to grow and invest. Before we start to see these fruits, these growth areas will take time to fully realize and will require additional spending in our operating expenses, and this may affect the short to medium term business performance. Thank you. The next question. Services business only recorded 26.6% growth in revenue. Razer Gold reported 56.3% growth in TPV, while Razer Fintech reported 63.5% growth in TPV. What are the reasons? Sure. I'll take that question. As I've mentioned, I think in the earlier earnings meetings, our focus right now is to scale up Razer Gold and Razer Fintech in terms of TPV. That's what we've been executing, I think, at this point in time. We do expect to still be very focused in respect of raising our TPV or total payment volume in the next couple of years. Thank you. The next question. Can the management provide comment on the India opportunity for Razer Gold, given the country is blocking China apps? I'll take that also. I think it is an opportunity for us. It's not just because we are agnostic. I think when it comes down to the content, and we would adhere to all local regulations. Yes, this provides an opportunity, I think, for us to enable content from all around the world to other emerging markets such as India for ourselves. We do see this as a good opportunity, I think, for Razer Gold to scale up and get additional TPV in India. Thank you. What are the reasons for the significant deceleration in merchant-based growth for Razer Fintech? What are the plans to drive merchant-based going forward? Hi, this is Li Meng Lee. I'll take it. Just looking at Fiuu, a few things that we really kind of focused on in the last 12, 18 months was the volume. Number one, we've grown a business that's actually driven a quite strong TPV growth, right? And at that point in time, we were thinking, what is the next real growth behind it? Number one is going regional. Expanding our services into the region. We spent a lot of time going after new licenses. We started focusing on larger regional or global merchants that require not just a singular country but a more regional service. While you may see a slowdown in terms of the number of merchant base, but I think the TPV growth speaks for itself. Thank you. The next question. What is the TPV target for Razer Fintech? Again, I'll take that. Unfortunately, we're not able to comment on that. Again, I think the key focus for us right now, having kind of laid the foundations of the business, getting the license, et cetera, as I said, is to focus on, you know, geographical expansion, really kind of driving this next stage of TPV growth, you know, in the region, Southeast Asia. The next question. Razer was very ambitious to build digital bank. Any changes in this company's vision? Yeah, I guess I can take this as well. I think a few things. We did spend time looking at it. I think we were obviously very, I would say, confident in around the thesis, the use case that we had. Unfortunately, in Singapore, we did not get the digital banking license. What happened at that point in time is we looked at where the real strong growth business and focus was actually in the B2B, which we have actually mentioned this in the last couple of results announcement. We literally kind of dug in and focused on that. Again, I think the continued growth of the TPV across our current Razer Fintech B2B business is a testament of that investment. We still see huge opportunities in this space, to continue to invest and grow the teams, both obviously at the headquarters, but also in country, you know, going in the next few years. Thank you. What are the M&A plans for Razer Fintech in full year 2022? What are the reasons for increasing the stake in Razer Fintech? I guess a few things. One, you know, I think the increase in the stake in Razer Fintech is a testament of our confidence in the business, or at least the group belief in the business. We've seen strong growth, you know, in the last few years. As I've also mentioned, we are looking at regionalizing and growing the businesses across Southeast Asia. Obviously, our partner before this is a great partner. They've been helping us through their, you know, portfolio company, 7-Eleven, et cetera, that continues to be strong partners of ours. As we move outside of their home ground, which is Malaysia, I think we wanted to make sure that we have more flexibility to control that growth. From an M&A perspective, I think, you know, I think we continue to always look at opportunities, whether it is to quote-unquote short-circuit any process in terms of rollout in the country. As you probably know, payments is a highly regulated industry. It takes not months, sometimes even years to get licenses, especially in Southeast Asia, which is pretty fragmented. But there are opportunities for us to look at to accelerate, you know, this growth. There is also potential of stacking on value-added services which, you know, either takes a lot of investments or time to build in-house. If we can find opportunities where we can build on, that's something that we always keep our eyes out for. Thank you. Can the management please provide comment on why is GPM improvement in hardware business is smaller than expected? What are the reasons? What is the guidance for GPM for hardware in the next two years? I'll take this. If you look at our full year hardware GPM, we actually improved by more than 200 basis points, and this is in spite of the rising cost environment. In many ways, if you really look at the strength of the Razer ecosystem, is our ability to really innovate and really come up with the best-in-class products. With that greater customer preference, this has actually allowed us to control our pricing. That's why the hardware margin actually improved in a rising cost environment. In many ways, if you really compare to some of the other industry or competitors, you do see that in their last few quarters, they are actually reporting margin decline. Here in Razer, we actually see a margin improvement. Again, going back to our ecosystem, our strength, our ability to innovate, our fan base, our ecosystem, I do see us having a good traction in terms of margin improvement as we proceed. Of course, there will be headwind. One of the challenge about the freight cost, we thought about it, the supply chain disruption. It really depends on how far this freight costs increase. As we mentioned, we do not see the freight costs dropping as of now. But what we can control internally, we do see improvement and the strength of the Razer brand and our products when it comes to the hardware GPM. Thank you. The next question. The GPM for the services business saw contraction. What are the reasons? What is the guidance for GPM for services in the next two years? Sure. I'll take this. As you'll see overall as a group, the Razer ecosystem deliver a better GPM improvement compared to last year, driven by the hardware, and this has offset the margin pressure we see in the services business. In our earlier earnings, we also mentioned that one of the key focus for the services BU, Razer Gold, Razer Fintech, is to really strive towards that increase in TPV. If you look at the end results, you'll see that Razer Gold has an increase in TPV of 56%. Razer Fintech grew their TPV by 63.5%. This is a significant increase. This is actually where we want the business to be going, to really gain that market share. Yep. Thank you. In the interest of time, we will take two more questions. First one, which market is Razer Fintech looking to enter in the near to medium term? I'll take this. For those who are not aware, I mean, our Fintech business, our core markets today include Malaysia, Philippines. We have obviously extended that across the region, whether it's in Singapore, it's in Thailand, it's in Taiwan. You know, there are some other jurisdictions that we have license applications that are in final stages. We're looking at literally the entire Southeast Asia as our kind of a growth area. I think the whole kind of digital adoption of the digital payments, et cetera continues to be there. I think there is probably some normalization of online activity per se as COVID eases in the region. But the general thing is, I think directionally the even the governments have been encouraging adoption of digital payments. We think that there's still wins, but it may take a bit, a little bit longer to get there. Thank you. The next question. Razer sees itself more than a hardware company. Will Razer work on enhancing its fintech capabilities with blockchain technology? Sure. I'll take that. I think at Razer, we are excited about all forms of new technology, and definitely blockchain, we see a lot of potential in respect of it. We are definitely evaluating, I think, you know, the blockchain and what promise it can bring across to our services business. At this point of time, I think it's too early for us to comment on whether we will actually deploy that technology or otherwise. It's still early days yet, but we are definitely considering it. Okay, the last question. Well, any updates on the Razer toaster? No updates at this point in time. Thank you. This concludes our call today. If you guys have any questions, please feel free to send it to ir@razer.com, and all the materials, including the presentation, is available on investor.razer.com. Thank you very much. Thank you. Thank you very much.