Yalla Group Limited

Good morning and good afternoon, ladies and gentlemen. Thank you for standing by for YALA Group Limited's third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I would now like to turn the call over to Ms. Carrie Gao, Director of IR of the company. Please go ahead, Ms. Carrie.

Hello, everyone, and welcome to YALA's third quarter 2021 earnings conference call. We released our earnings earlier today, and the release is now available on our IR website as well as on our news allow services. Before we continue, please note that the discussion today will contain overlooking statements made under the safe harbor provision of the U.S. Private Security Litigation Reform Act of 1995. Overlooking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in our earnings release and our registration statements filed with the SEC. YALA does not assume any obligation to update any forward-looking statements except as required by law. Please also note that YALA's earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Yala's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. Today, you will hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our recent achievements and growth strategies. He will be followed by Mr. Saifi Ismail, the company's President, who will give a brief review of our recent developments. Mrs. Karen Hu, our chief financial officer, will then provide additional details on the company's financial results and discuss financial outlook. Following management's prepared remarks, we will open up the call to questions. Our chief operating officer, Mr. Jeff Xu, will join the call for our QA session. With that said, I would now like to turn the call over to our chairman and chief executive officer, Mr. Tao Yang. Please go ahead, sir.

Thank you, Carrie. And thank you, everyone, for joining our 2021 first quarter earnings conference call. It has been a year since YALA's NLSC listing. Before updating you on our business progress during this quarter, I'd like to take a moment to elaborate on our mission, vision, and strategy. YALA was the first UAE technology unicorn to be listed in the U.S. As a company rooted in the Middle East and the North Africa, our mission is to provide MENA users with localized online social networking and entertainment services. For five years, we have been committed to promoting a healthy and orderly industry environment and providing MENA's people with better access to a digital life. MENA's population is among the youngest in the world, and we're reaching per individual average timestamp on apps is also considered the highest globally. Demand for online social networking and entertainment services is high among internet users. But historically, there have been few digital products reflecting local values or customized for local users specifically. When we drafted the perspectives for our IPO, we affirmed that our vision is to build MENA's most popular destination for online social networking and entertainment activities. After a year's time, this vision remained unchanged. We hope to realize this vision within the next 10 years, and we will apply two important strategies to achieve our goal. First, as we continue to develop Yale's ecosystem, we will diversify our business and revenue streams, and flexibly develop our business and products through investment, collaboration, and other means. Second, ELL's strong localization capabilities have always been our greatest advantage. We will continue to fortify and refine them with more comprehensive studies on local users' needs and preferences to provide customized, positive, and trendy online services. YALA is developing weapons while also facing challenges in an increasingly complex environment. Under such transformative circumstances, we thought it was critical to help our new colleagues better understand YALA's DNA and to think and act in YALA's way. We worked with all of our team members to define and refine Yale's core principles. Multicultural understanding uses first, simple, and target. Their initials constitute the memorable acronym MUST, which embodies Yale's culture and ethics. These values will guide Yale's team as we work to achieve our vision. Now let's take a closer look at some of our recent accomplishments. Last month, we released the Yellow Chat 0.2 version. We upgraded the app's foundation and improved stability and response rate, which elevate the user experience and will allow the product to support a larger user base in the future. We firmly believe that in this An IAM product with features tailored to local users' preferences is a fundamental need, and the MENA region has waited too long for a dedicated product. We feel a strong sense of responsibility to fulfill that critical need for MENA-based users. Developing a successful IAM product It's not easy, but it is a crucial element of our vision, and we are proud of our great attempt to fill this technological gap. We will continue to monitor user feedback on Yalachat's new iteration and perfect the details to cater to local users' desires. And we are aware The metaverse will be the next major revolution in social technology. Long before the metaverse concept began changing literally, our team was researching new types of social networking opportunities to provide users with a higher level of freedom and more immersive social experiences. We see strong potential for development and innovation in this area, and we are happy to share that they are working on a cutting-edge social app, which will feature the first-ever social metaverse designed for the MENA region. It might be available to our users as early as the first quarter of next year. We are also building and broadening our capabilities in game distribution. We now have a holding subsidiary, Yella Games, which will focus on the mid-core and hardcore game distribution business in the MENA region. We will identify and collaborate with game students with high potential and good content and to help distribute their games within MENA. Collaborating over strong localization capabilities, we plan to gradually opened our game distribution platform to more quality content, making Malaga Game the ideal media-based distribution partner for game developers in the near future. With respect to our internal initiative, we officially tickled our internal ESG program with Coder. We have been communicating intensively with internal and external stakeholders to gather feedback and refine our ESG guidelines. We believe a sustainable growth target is essential for Yala, our community, and our shareholders. Given the recent policies and initiatives announced by the UAE and Saudi Arabia in government, we understand that building a digital security is becoming a very important topic in this region. Our security is seeking a digital and technological transformation, which aligns with YALA's vision and mission. As a local captain, we support local government initiatives and strive to work in a direction consistent with their guidelines and priorities. Looking into the future, YALA will remain dedicated to the development of UAE's digital economy and continue to deliver online social networking, and entertainment products tailored to the community's culture. We are also proud to have fostered our leadership and governance with Corey. It is my honor to welcome Mr. Said Hamly to the board as our independent director. He is an accomplished telecommunication director with prior roles as CEO of East and South Egypt and . Among others, I believe that given his excellent leadership skills and extensive industrial experience, Mr. Saeed Hamdi will make great contributions to the company as we grow our product ecosystem, expand our footprint and our influence. I really look forward to working with him. In conclusion, I want to reiterate our vision is to build the most popular destination for online social networking and entertainment activities in MENA. And we will continue to uphold our core values of prioritizing our users, improving directives, and operating with a simple, pragmatic, pioneering, and enterprising approach as we work to achieve our goals Adhering to these principles has been the driver of our past success, and we ensure that we keep the students looking ahead. We will continue to closely watch MENA's local cultural change and develop YALA's ecosystem with various products and services tailored to meet local users' needs. Now I will turn this call over to our president, Mr. Saifi Ismail, for a closer look at our recent developments.