Yalla Group Ltd (YALA) 2025 Q3 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by for Yalla Group Limited's third-group quarter 2025 earnings conference call. (Operator Instructions). Today's conference call is being recorded.

女士們、先生們，早安，晚上好。感謝您參加雅拉集團有限公司2025年第三季業績電話會議。（操作說明）今天的電話會議正在錄音。

Now, I will turn the call over to your speaker host today, Ms. Kerry Gao, IR Director of the company. Please go ahead, ma'am.

現在，我將把電話交給今天的演講嘉賓，公司投資者關係總監高凱瑞女士。請便，女士。

Hello, everyone, and welcome to Yalla's third-quarter 2025 earnings conference call. We issued our earnings press release earlier today, and it is now available on our IR website as well as on newswire outlets.

大家好，歡迎參加 Yalla 2025 年第三季財報電話會議。我們今天早些時候發布了盈利新聞稿，現在可以在我們的投資者關係網站以及新聞通訊社上查閱。

Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provision of the US Private Securities Litigation Reform Act of 1995. Forward-looking 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 press release and our annual profile with the SEC. Yalla does not assume any obligation to update any forward-looking statements, except as required by law.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，我們未來的業績可能與今天表達的觀點有重大差異。有關這些及其他風險和不確定性的更多信息，請參閱我們的盈利新聞稿和我們向美國證券交易委員會提交的年度報告。除法律要求外，Yalla不承擔更新任何前瞻性聲明的義務。

Please also note that Yalla's earnings press release and this conference call include discussion of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Yalla's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，Yalla 的收益新聞稿和本次電話會議包含對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。Yalla 的新聞稿中包含未經審計的非 GAAP 指標與未經審計的最直接可比較 GAAP 指標的調節表。

Today, we hear from Mr. Tao Yang, our Chairman and Chief Executive Officer, who will provide an overview of our latest achievements and growth strategies. He will be followed by Mr. Saifi Ismail, the company's President who will briefly review our recent business developments. Mrs. Karen Hu, our Chief Financial Officer, will then provide additional details on the company's financial results and discuss our financial outlook. Following management's prepared remarks, we will open the call to questions. Mr. Jianfeng Xu, our Chief Operating Officer, will join the Q&A session.

今天，我們將聆聽董事長兼執行長陶陽先生的講話，他將概述我們最新的成就和成長策略。接下來將由公司總裁賽義夫·伊斯梅爾先生簡要回顧我們最近的業務發展。接下來，我們的財務長 Karen Hu 女士將提供公司財務表現的更多細節，並討論我們的財務前景。在管理階層發言結束後，我們將開放提問環節。我們的營運長徐建峰先生將參加問答環節。

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.

接下來，我將把電話交給我們的董事長兼執行長陶陽先生。請繼續，先生。

Thank you, everyone, for joining our third-quarter 2025 earnings conference call. We delivered another strong set of results in the third quarter of 2025. Our total revenue grew to USD89.6 million, once again beating the high end of our guidance. Net margin came in at 45.4%, up 1.4 percentage points year-over-year, thanks to continued operational efficiency improvement and our commitment to high-quality growth.

感謝各位參加我們2025年第三季財報電話會議。我們在2025年第三季取得了另一組強勁的業績。我們的總收入成長至 8,960 萬美元，再次超過了我們預期的上限。淨利潤率為 45.4%，年成長 1.4 個百分點，這得益於持續的營運效率提升以及我們對高品質成長的承諾。

The Middle East digital economy continues to gain momentum in the third quarter. According to Newswires' latest report, the region's gaming market is expected to reach around USD7.1 billion in 2025 with 75% year-over-year growth, the highest among all regions globally.

中東數位經濟在第三季持續保持成長動能。根據 Newswires 最新報導，該地區的遊戲市場預計到 2025 年將達到約 71 億美元，年增 75%，是全球所有地區中成長最快的。

The increases we are seeing in a number of our mobile users and their interest, including more diverse game content, reflecting MENA gaming markets vast potential. Our strategic direction positions us to capture the trend and foster a more mature, more robust digital entertainment ecosystem across the region. Meanwhile, we're also looking for opportunities to leverage our value and growing product portfolio to deliver more exceptional experience to MENA users.

我們看到行動用戶數量和興趣都在增長，包括對更多樣化遊戲內容的興趣，這反映了中東和北非遊戲市場的巨大潛力。我們的策略方向使我們能夠掌握趨勢，並在該地區培育一個更成熟、更強大的數位娛樂生態系統。同時，我們也在尋找機會，利用我們的價值和不斷增長的產品組合，為中東和北非地區的用戶提供更卓越的體驗。

Our strategy in game pipeline currently serves as our primary market expansion driver. In the third quarter, we soft launched Turbo Match, a match-free title featuring car-modification, simulation, operations on Android. We were pleased to see the initial user acquisition and retention metrics meeting our expectations.

目前，我們在遊戲產品線方面的策略是我們拓展市場的主要驅動力。第三季度，我們試營運了《Turbo Match》，這是一款在安卓平台上以汽車改裝、模擬和操作為特色的非匹配遊戲。我們很高興看到初始用戶獲取和留存指標符合我們的預期。

With two years of cumulative experience in the match-3 genre, we are confident in our team's ability to create games that resonate within our targeted audience. Furthermore, we expect to launch our self-developed roguelike game, Boom Survivor, in late this month.

憑藉兩年在三消遊戲領域的累積經驗，我們有信心我們的團隊能夠創造出能夠引起目標受眾共鳴的遊戲。此外，我們預計本月底推出我們自主開發的 roguelike 遊戲《Boom Survivor》。

Meanwhile, we continue to advance our game distribution initiatives, we are collaborating with the leading gaming studio on the distribution of newly focused SLG title. The hardcore title is well on track for year-end launch for the recent testing. We remain dedicated to providing MENA users with an ever growing selection of gaming and content tailored to MENA's local culture. For our future MENA hard-game collaboration, we will continue to leverage our existing gaming user value for precise targeting and efficient conversion to steadily deepen penetration of MENA mid-core and hardcore game markets.

同時，我們繼續推進遊戲發行計劃，我們正在與領先的遊戲工作室合作發行新推出的專注於策略、遊戲和策略 (SLG) 的遊戲。根據最近的測試，這款硬核遊戲目前進展順利，預計在年底前發布。我們將繼續致力於為中東和北非用戶提供日益豐富的遊戲和內容選擇，並根據中東和北非的當地文化進行調整。對於我們未來在中東和北非地區的硬核遊戲合作，我們將繼續利用我們現有的遊戲用戶價值進行精準定位和高效轉化，以穩步加深對中東和北非地區中核心和硬核遊戲市場的滲透。

Moving on to our AI initiatives. We are proactively developing AI to fuel our growth, led by CMIS, our in-house developed multi-modal AI module. CMIS is now fully deployed across our product line, serving as the intelligent backbone of our content moderation and security, supported by our experienced R&D games and extensive ad language and visual data set. CMIS delivered regional -- leading accuracy in annualized impact and images and detecting inappropriate content. Another self-developed AI tool, our automated creative packing model has significantly improved advertising and user acquisition efficiency.

接下來談談我們的人工智慧計劃。我們正在積極開發人工智慧以推動我們的成長，其中以我們自主研發的多模態人工智慧模組 CMIS 為主導。CMIS 現已全面部署到我們的產品線中，作為我們內容審核和安全的智慧骨幹，並得到我們經驗豐富的研發遊戲和廣泛的廣告語言和視覺資料集的支援。CMIS 在年度影響和影像方面提供了區域領先的準確性，並能偵測不當內容。我們自主研發的另一款人工智慧工具——自動化創意包裝模型，顯著提高了廣告投放和用戶獲取效率。

Furthermore, our in-house AI event orchestration engine has doubled the frequency of modular in-app campaigns for our flagship products, including Yalla Ludo, driving the leap in operational efficiency. Together, these technological breakthroughs have elevated user experience and boosted in-app purchases, serving as a powerful driver for revenue growth.

此外，我們自主研發的 AI 事件編排引擎使我們旗艦產品（包括 Yalla Ludo）的模組化應用內行銷活動的頻率提高了一倍，從而推動了營運效率的飛躍。這些技術突破共同提升了用戶體驗，促進了應用程式內購買，成為推動收入成長的強大動力。

Next, an update on our USD150 million shareholder return program, which we continue to execute sales with this plan. As of November 7, 2025, the company has repurchased a total of more than 7.7 million ADS or Class A ordinary shares totaling USD51.9 million, achieving our full year 2025 repurchase commitment of USD30 million, well ahead of schedule. As we mentioned on our last call, we will cancel all shares repurchased in 2025, and we have canceled a total of more than 6.2 million shares that as of August 11, the aggregate valued that remained available for purchase under the current share repurchase program with USD48.6 million as of November 10.

接下來，我們將更新我們的 1.5 億美元股東回報計劃，我們將繼續按照該計劃執行銷售。截至 2025 年 11 月 7 日，公司已回購超過 770 萬股 A​​DS 或 A 類普通股，總額達 5,190 萬美元，提前完成了 2025 年全年 3,000 萬美元的回購承諾。正如我們在上次電話會議中提到的，我們將取消 2025 年回購的所有股份，截至 8 月 11 日，我們已取消了超過 620 萬股股份，截至 11 月 10 日，根據目前的股份回購計劃仍可供購買的股份總價值為 4860 萬美元。

For next year, we expect to maintain a similar level of share repurchases as in 2025. We are on track to complete our current USD150 million share repurchase program within the next year, at which point, we plan to launch a new program.

我們預計明年將維持與 2025 年類似的股票回購水準。我們目前1.5億美元的股票回購計畫正在按計畫進行，預計明年完成。屆時，我們計劃啟動一項新的計劃。

As always, I want to emphasize that we will continue to play shareholder interest as the core of our capital allocation decisions and optimize our shareholder return strategy to generate long-term value for our shareholders.

一如既往，我想強調，我們將繼續以股東利益作為資本配置決策的核心，優化股東回報策略，為股東創造長期價值。

Last but not least, I'm happy to share that Yalla Group celebrated the fifth anniversary of its public listing at the end of September, capped by a bell-ringing ceremony at NYSE. This past five years have been an incredible journey, one of growth, learning, persistence, and achievement. Yalla is now the largest MENA-based online social networking and a gaming company. We are proud of the leading position we've established in this dynamic market. But our journey is far from over.

最後，我很高興地告訴大家，雅拉集團在9月底慶祝了上市五週年，並在紐約證券交易所舉行了敲鐘儀式。過去的五年是一段不可思議的旅程，一段充滿成長、學習、堅持和成就的旅程。Yalla 現在是中東和北非地區最大的線上社交網路和遊戲公司。我們為在這個充滿活力的市場中確立的領先地位感到自豪。但我們的旅程遠未結束。

Looking ahead, we will remain dedicated to maximizing the synergy between our social and gaming ecosystem and enhancing our AI-fueled technological edge, bringing us ever closer to our vision of becoming a lot in the most popular platform, for online social networking and entertainment activities in MENA.

展望未來，我們將繼續致力於最大限度地發揮社交和遊戲生態系統之間的協同效應，並增強我們人工智慧驅動的技術優勢，使我們離成為中東和北非地區最受歡迎的線上社交網路和娛樂平台這一願景越來越近。

Now, I will turn this call over to our President, Saifi Ismail, for a closer look at our recent development.

現在，我將把電話交給我們的總裁賽義夫·伊斯梅爾，讓他更詳細地介紹一下我們最近的發展。

Hello, everyone. Thanks for joining us today. Let's take a closer look at our third-quarter operations and our product performance. First, I would like to share our operational highlights in the third quarter. We increased average MAUs by 8.1% year over year to 43.4 million. Following last quarter's user acquisition channel optimization, our user growth delivered us again as expected, supported by AI-powered upgrades and innovation across our product portfolio.

大家好。感謝您今天收看我們的節目。讓我們仔細看看我們第三季的營運情況和產品表現。首先，我想和大家分享我們第三季的營運亮點。我們的平均每月活躍用戶數年增 8.1%，達到 4,340 萬人。繼上一季用戶獲取通路優化之後，我們的用戶成長再次如預期般實現，這得益於人工智慧驅動的升級和我們產品組合的創新。

Our flagship products saw a fresh wave of momentum with the introduction of new gaming modules, users can now play a variety of popular mini games directly within the Yalla platform, significantly boosting engagement and user stickiness. These innovative initiatives also served as a springboard for integrating more interactive entertainment features into our core products going forward.

隨著新遊戲模組的推出，我們的旗艦產品迎來了一波新的發展勢頭，用戶現在可以在 Yalla 平台內直接玩各種熱門小遊戲，顯著提高了用戶參與度和黏性。這些創新措施也為我們今後將更多互動娛樂功能融入核心產品奠定了基礎。

This quarter was also backed with engaging and precisely targeted online activities. A key operational strength for Yalla that demonstrates our keen user insights and content creativity. For example, our original event series, Yalla Ludo Carnival just completed its third-consecutive quarterly run with record-high revenue. Its thoughtfully crafted gameplay paired with stunning visuals, drove strong growth in in-game purchases and gifting activities.

本季也開展了互動性強、目標明確的線上活動。Yalla 的一項關鍵營運優勢體現了我們對使用者的敏銳洞察和內容創造力。例如，我們原創的系列活動“Yalla Ludo Carnival”剛剛連續第三個季度舉辦，並創下了收入新高。其精心設計的玩法和驚人的視覺效果，推動了遊戲內購和贈送活動的強勁增長。

On Saudi National Day, Yalla launched the Yalla Season campaign, creating a richly immersive atmosphere online to resonate with the Riyadh Season, a major national festival developed under Saudi Arabia's Vision 2030. Meanwhile, thanks to a diverse lineup of in-game and chatroom events.

在沙烏地阿拉伯國慶日當天，Yalla 發起了 Yalla Season 活動，在線上營造了豐富的沉浸式氛圍，以配合利雅德季（沙烏地阿拉伯 2030 願景下發展的一個重要的國家節日）。同時，得益於豐富多彩的遊戲內活動和聊天室活動。

101 Okey Yalla delivered its highest quarterly revenue ever in the third quarter. Yalla innovation reach continues to extend well beyond our business. In honor of our contribution to the local tech industries development, we recently received our third award in the audio tech, media, and entertainment category at Asian Business Review Magazine Middle East Technology Excellence Award 2025. These prestigious awards judged by a panel of esteemed regional industry leaders, recognized companies that drive innovation through transformative products.

101 Okey Yalla 在第三季實現了有史以來最高的季度收入。Yalla的創新影響力持續擴展到我們業務之外。為了表彰我們對當地科技產業發展的貢獻，我們最近在 2025 年亞洲商業評論雜誌中東科技卓越獎中獲得了音頻技術、媒體和娛樂類別的第三個獎項。這些由德高望重的區域產業領袖組成的評審團評選出的享有盛譽的獎項，旨在表彰透過變革性產品推動創新的公司。

To sum up, I would reiterate what our CEO said. We are immensely proud of Yalla Group's achievements over the past years. Our deep cultural resonance with users in the MENA region and the resonance products innovation are the cornerstones of our sustained growth moving forward. We will remain committed to those values, honoring the trust our users and stakeholders place in us while fostering a driving mutually beneficial ecosystem.

總而言之，我同意我們執行長的說法。我們為雅拉集團過去幾年所取得的成就感到無比自豪。我們與中東和北非地區用戶之間深厚的文化共鳴以及共鳴產品的創新是我們持續成長的基石。我們將繼續秉持這些價值觀，不辜負用戶和利害關係人對我們的信任，同時創造一個互惠互利的生態系統。

With that, I will now turn the call over to our CFO, Karen, who will discuss our key financial and operational results.

接下來，我將把電話轉交給我們的財務長凱倫，她將討論我們的主要財務和營運表現。

Thank you, Saifi, and hello, everyone. Thank you for joining us today. In the third quarter, we continued to pursue high-quality growth and profitability enhancement. Through our excellent execution of ongoing cost management and efficiency improvement initiatives, including AI development and application, our net income grew by 3.9% year over year to USD40.7 million. And our net margin increased by 1.4 percentage points, supported by the solid performance and the fundamentals. We have strengthened our efforts to return value to stakeholders.

謝謝你，賽菲，大家好。感謝您今天蒞臨。第三季度，我們繼續追求高品質的成長和獲利能力的提升。透過我們出色地執行持續的成本管理和效率提升計劃，包括人工智慧的開發和應用，我們的淨收入年增 3.9%，達到 4,070 萬美元。由於穩健的業績和基本面，我們的淨利潤率提高了 1.4 個百分點。我們已加大力度，為利害關係人創造價值。

As of November 7, we have returned a total of USD51.9 million in 2025 to our shareholders through our share repurchase program. We will deepen our commitment to shareholder returns going forward, delivering sustainable long-term value to all stakeholders.

截至 11 月 7 日，我們已透過股票回購計畫在 2025 年向股東返還了總計 5,190 萬美元。我們將繼續深化對股東回報的承諾，為所有利害關係人創造可持續的長期價值。

Let's move on to our detailed financials for the third quarter of 2025. Our revenues were USD89.6 million in the third quarter of 2025, a 0.8% increase from USD88.9 million in the same period last year. The increase was primarily driven by our broadening user base and enhanced monetization capability.

接下來，我們來看看2025年第三季的詳細財務數據。2025年第三季度，我們的營收為8,960萬美元，比去年同期的8,890萬美元成長了0.8%。用戶成長主要得益於用戶群擴大和獲利能力增強。

Turning to our costs and expenses. Our total cost and expenses were USD55.9 million in the third quarter of 2025, a 1% decrease from USD56.4 million in the same period last year. Our cost of revenue was USD28.4 million in the third quarter of 2025, a 10.7% decrease from USD31.8 million in the same period last year, primarily due to lower commission fees paid to third-party payment platform as a result of diversified payment channels and lower share-based compensation expenses recognized in the third quarter of 2025. Cost of revenues as a percentage of total revenue decreased to 31.7% in the third quarter of 2025 from 35.8% in the same period last year.

接下來談談我們的成本和費用。2025 年第三季度，我們的總成本和費用為 5,590 萬美元，比去年同期的 5,640 萬美元減少了 1%。2025 年第三季度，我們的營業成本為 2,840 萬美元，比去年同期的 3,180 萬美元下降了 10.7%，這主要是由於支付管道多元化導致支付給第三方支付平台的佣金減少，以及 2025 年第三季度確認的股權激勵費用減少。2025 年第三季度，收入成本佔總收入的百分比從去年同期的 35.8% 下降至 31.7%。

Our selling and marketing expenses were USD9.6 million in the third quarter of '25, a 30.3% increase from USD7.4 million in the same period last year, primarily due to higher advertising and marketing promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of total revenue increased to 10.7% in the third quarter of 2025 to 8.3% in the same period last year.

2025 年第三季度，我們的銷售和行銷費用為 960 萬美元，比去年同期的 740 萬美元增長了 30.3%，這主要是由於我們持續的用戶獲取努力和不斷擴大的產品組合導致廣告和行銷推廣費用增加。2025 年第三季度，銷售和行銷費用佔總收入的比例增至 10.7%，而去年同期為 8.3%。

Our general and administrative expenses were USD9.2 million in the third quarter of 2025, a 9% decrease from USD10.1 million in the same period last year, primarily due to a decrease in incentive compensation and professional service fees. G&A expenses as a percentage of total revenue decreased to 10.3% in the third quarter of 2025 from 11.4% in the same period last year.

2025 年第三季度，我們的一般及行政費用為 920 萬美元，比去年同期的 1,010 萬美元減少了 9%，主要原因是激勵性薪酬和專業服務費的減少。2025 年第三季度，一般及行政費用佔總收入的比例從去年同期的 11.4% 下降至 10.3%。

Our technology and product development expenses were USD8.6 million in the third quarter of 2025, a 21.4% increase from USD7.1 million in the same period last year, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in the headcount to support the development of new businesses and expansion of our portfolio. R&D development expenses as a percentage of total revenues increased to 9.6% in the third quarter of 2025 from 8% in the same period last year. As such, our operating income was USD33.8 million in the third quarter of 2025, a 3.9% increase from USD32.5 million in the same period last year.

2025 年第三季度，我們的技術和產品開發支出為 860 萬美元，比去年同期的 710 萬美元增長了 21.4%，這主要是由於技術和產品開發人員的工資和福利增加，而這又是由於人員增加以支持新業務的發展和產品組合的擴展。2025 年第三季度，研發支出佔總收入的比例從去年同期的 8% 增至 9.6%。因此，我們2025年第三季的營業收入為3,380萬美元，比去年同期的3,250萬美元成長了3.9%。

Interest income was USD6.3 million in the third quarter of 2025 compared with USD7.8 million in the same period last year. Investment income was USD2.2 million in the third quarter of 2025 compared with USD0.1 million in the same period last year, primarily due to increase in investments in wealth management products. Income tax expense was USD1.6 million in the third quarter of 2025 compared with USD1.3 million in the same period last year. As a result of foregoing, our net income was USD40.7 million in the third quarter of 2025, a 3.9% increase from USD39.2 million in the same period last year. And our non-GAAP net income in the third quarter of 2025 was USD43.1 million, a 1.2% increase from USD42.6 million in the same period last year.

2025年第三季利息收入為630萬美元，去年同期為780萬美元。2025 年第三季投資收益為 220 萬美元，而去年同期為 10 萬美元，主要是由於財富管理產品投資的增加。2025 年第三季所得稅支出為 160 萬美元，去年同期為 130 萬美元。綜上所述，我們2025年第三季的淨收入為4,070萬美元，比去年同期的3,920萬美元成長了3.9%。2025 年第三季度，我們的非 GAAP 淨收入為 4,310 萬美元，比去年同期的 4,260 萬美元成長了 1.2%。

Moving to our liquidity and capital resources. Our cash position remains solid and healthy. As of September 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of USD739.5 million compared with USD656.3 million as of December 31, 2024. We continue to retain value through our share repurchase program as of November 7, 2025. The company had cumulatively completed cash repurchases in the open market of 15,021,621 ADS represents Class A ordinary shares for an aggregate amount of approximately USD101.4 million, since the inception of the current share repurchase program. The aggregate value that remained available for purchase under the current share repurchase program was USD48.6 million as of November 7, 2025. In addition, the company decides to cancel all share repurchase in 2025. As of August 11, 2025, the company has canceled 6,230,299 ADS Class A ordinary shares.

接下來談談我們的流動性和資本資源。我們的現金狀況依然穩健良好。截至 2025 年 9 月 30 日，我們的現金及現金等價物、受限現金、定期存款和短期投資為 7.395 億美元，而截至 2024 年 12 月 31 日為 6.563 億美元。截至 2025 年 11 月 7 日，我們將繼續透過股票回購計畫保持價值。自從目前股票回購計畫啟動以來，該公司已累計在公開市場以現金回購了 15,021,621 股 ADS（代表 A 類普通股），總金額約為 1.014 億美元。截至 2025 年 11 月 7 日，根據現行股票回購計劃，可供購買的總價值為 4,860 萬美元。此外，該公司決定取消2025年的所有股票回購計畫。截至 2025 年 8 月 11 日，該公司已註銷 6,230,299 股 A 類普通股。

Moving to our outlook. For the fourth quarter of 2025, we expect our revenue to be between USD78 million and USD85 million. The above outlook is based on the current market conditions and reflects the company management's current and preliminary estimates of the market and operating conditions and customer demand, which are all subject to change. In the interest of time, please refer to our earnings press release for the further details on our third quarter 2025 financial results.

接下來談談我們的展望。我們預計 2025 年第四季的營收將在 7,800 萬美元至 8,500 萬美元之間。以上展望是基於當前市場狀況，反映了公司管理層對市場和經營狀況以及客戶需求的當前初步估計，但這些估計均可能發生變化。為了節省時間，請參閱我們的獲利新聞稿，以了解有關我們 2025 年第三季財務業績的更多詳情。

This concludes our prepared remarks for today. Operator, we are now ready to take questions.

我們今天的演講到此結束。操作員，我們現在可以開始接受提問了。

(Operator Instructions) Xueqing Zhang, CICC.

（操作說明）張雪晴，中金公司。

Thanks for taking my questions, and congratulations on another strong quarter. My question in regards on your game business. Can management brief us on the advancements in mid-core and hardcore games.

感謝您回答我的問題，並祝賀您又一個季度取得了優異的業績。我的問題是關於你們遊戲業務的。管理階層能否簡單介紹一下中核和硬核遊戲的最新進展？

Thank you for your question, Xueqing. During the quarter, we soft launched two match-3 titles as planned, marking a significant step forward in our mid- and hard-core gaming portfolio. Turbo Match stood out in multi-region test worldwide with the unique blend of car modification and simulation operations gameplay, achieving retention rates that met our criteria for product expansion.

謝謝你的提問，雪晴。本季度，我們按計劃試運營了兩款三消遊戲，這標誌著我們在中硬核遊戲產品組合方面邁出了重要一步。Turbo Match憑藉其獨特的汽車改裝和模擬操作遊戲玩法，在全球多區域測試中脫穎而出，其用戶留存率達到了我們產品擴展的標準。

As a result, we decided to invest more resources to focus on Turbo Match in the next stage. Based on the test data, we're adding levels and diversifying size gameplay options, set stage for the next wave of large-scale using acquisition.

因此，我們決定在下一階段投入更多資源，專注於Turbo Match。根據測試數據，我們正在增加關卡並豐富遊戲規模選項，為下一波大規模獲取做好準備。

Meanwhile, our localized product is expected to launch officially bigger this month or next. We have also recently completed a round of testing for our collaborative project, SLG. Given our high expectation for this title, we are working closely with the content provider to refine its gameplay, visuals and other details. We expect to launch it by the end of this year. It will take some time for this new product to generate meaningful revenue.

同時，我們的在地化產品預計將於本月或下個月正式大規模上市。我們最近也完成了合作專案 SLG 的一輪測試。鑑於我們對這款遊戲寄予厚望，我們正在與內容提供者緊密合作，以完善其遊戲玩法、視覺效果和其他細節。我們預計將於今年年底前推出。這款新產品需要一段時間才能產生可觀的收益。

For those expecting notable revenue impact from these new games, we see the second quarter of 2026 as a key inflection point.

對於那些期待這些新遊戲帶來顯著收入影響的人來說，我們認為 2026 年第二季是一個關鍵的轉捩點。

Chloe Wei, CICC.

Chloe Wei，CICC。

This is Chloe Wei from CICC. So I have a follow-up question about game. So how should we think about the strategic role of our match game? And can we think of it as an indicator for your push into the new regions? That's it.

這是來自中金公司的魏克洛。所以我還有一個關於遊戲的後續問題。那我們該如何看待比賽的戰略作用呢？我們能否將其視為您進軍新地區的訊號？就是這樣。

I'll take -- to answer this question. Match-3 games do have a broad global user base, making an ideal entry point for us to explore diversified regional markets. Our recent testing has shown that Match-3 titles are particularly well received in markets like Europe and North America. Given this positive user feedback, we certainly plan to increase marketing budgets for markets where performance is strong. Looking back at our growth journey, Yalla Parchis has been steadily performing for years in South America, providing us with valuable cross market experience.

我將用——來回答這個問題。三消遊戲擁有廣泛的全球使用者群體，是我們探索多元化區域市場的理想切入點。我們最近的測試表明，三消遊戲在歐洲和北美等市場特別受歡迎。鑑於用戶給予的正面回饋，我們計劃增加在表現強勁的市場的行銷預算。回顧我們的發展歷程，Yalla Parchis 多年來在南美洲市場表現穩定，為我們提供了寶貴的跨市場經驗。

Additionally, the Yalla Ludo support eight languages, reaching diverse countries worldwide. We are open to expanding our market boundaries as we explore product net MENA users may be interested. In that side, I want to emphasize that the Middle East remains our key strategic region. We will continue to deepen our engagement in key markets across MENA, while selectively expanding into new ones.

此外，Yalla Ludo 支援八種語言，涵蓋全球多個國家。我們樂於拓展市場邊界，探索中東和北非地區用戶可能感興趣的產品。在這方面，我想強調的是，中東仍然是我們的關鍵戰略地區。我們將持續深化在中東和北非主要市場的參與，同時有選擇地拓展到新的市場。

Lincoln Kong, Goldman Sachs.

林肯·孔，高盛。

Thank you for taking my questions. I also like to follow up on the gaming business. So could management share our company's upcoming gaming strategy, including one of the choices around the content and the market?

謝謝您回答我的問題。我也喜歡關注遊戲產業的發展。那麼，管理階層能否分享我們公司即將推出的遊戲策略，包括圍繞內容和市場所做的選擇？

Hi, Lincoln. Thanks for your in-depth question. The company has identified gaming as one important inner for our strategic priorities for future growth and established a clear dual-track strategy featuring self-developed titles and game distribution.

你好，林肯。感謝您提出的詳細問題。公司已將遊戲視為未來成長策略重點之一，並制定了明確的雙軌策略，包括自主開發遊戲和遊戲發行。

For self-developed games, we are focusing on casual and mid-core gaming segments, such as Match-3 and board games. Our team has built substantial experience in the Match-3 category over the past two years. If our Match-3 titles show positive results in the coming months, we look forward to consistently deepen our presence in this segment.

對於自主開發的遊戲，我們專注於休閒和中度核心遊戲領域，例如三消遊戲和棋盤遊戲。過去兩年，我們的團隊在三消遊戲中累積了豐富的經驗。如果我們的三消遊戲在未來幾個月取得積極成果，我們期待不斷深化我們在該領域的市場份額。

On the game distribution side, we're building a strategic partnership with leading global developers, leverage our strengths in product localization, user acquisition and local operations to bring more high-quality gaming content for the Middle East.

在遊戲發行方面，我們正在與全球領先的開發商建立策略合作夥伴關係，利用我們在產品在地化、用戶獲取和本地營運方面的優勢，為中東帶來更多高品質的遊戲內容。

We continue to explore game distribution opportunities to further enrich and accelerate our product pipeline. We believe that the dual track strategy will enable us to quickly build a competitive edge for mid- and hardcore games.

我們將繼續探索遊戲發行管道，以進一步豐富和加速我們的產品線。我們相信，雙軌制策略將使我們能夠迅速在中硬核遊戲中建立競爭優勢。

Sarah Hu, Haitong International.

Sarah Hu，海通國際。

Thank you for taking my questions. So can you please get management's view on the quarter performance of our flagship products, Yalla and Yalla Ludo, as well as they're also going forward?

謝謝您回答我的問題。那麼，能否請您介紹一下管理層對我們旗艦產品 Yalla 和 Yalla Ludo 本季業績的看法，以及它們未來的發展前景？

Thank you, Sarah Hu. During this quarter, both flagship titles achieved significant breakthroughs in product innovation and operational activities. For example, Yalla added an in-app minigame modules to enrich users' entertainment experience.

謝謝你，Sarah Hu。本季度，兩款旗艦產品在產品創新和營運活動方面均取得了重大突破。例如，Yalla 新增了應用程式內小遊戲模組，以豐富用戶的娛樂體驗。

Meanwhile, Yalla Ludo 1 versus 1 mode, quickly become a hit with users, driving overall community engagement to a new high. Operationally, Yalla Ludo tournaments and Yalla's Riyad Season theme initiatives amplify the connection between our products and off-line entertainment scenarios in the Middle East.

同時，Yalla Ludo 1 對 1 模式迅速受到用戶的歡迎，將整體社區參與度推向了新的高度。在營運方面，Yalla Ludo 錦標賽和 Yalla 的利雅德賽季主題活動加強了我們的產品與中東線下娛樂場景之間的聯繫。

Looking ahead, we expect both mature products to remain stable in terms of business scale, and we will continue to pursue incremental growth by introducing new features and strengthening operational activities and initiatives.

展望未來，我們預計兩款成熟產品在業務規模方面將保持穩定，我們將繼續透過推出新功能和加強營運活動及舉措來追求漸進式成長。

[Tianhao Liu], CITIC.

[劉天浩]，中信。

I have two questions on your future plan. So firstly, I think Yalla has completed a sizable share repurchase this year. So could management outline the plans for future shareholder returns? And I have a quick follow-up question.

關於你的未來計劃，我有兩個問題。首先，我認為Yalla今年已經完成了一筆相當可觀的股票回購。那麼管理階層能否概述一下未來股東回報的計畫？我還有一個後續問題。

Okay. Thanks, Tianhao Liu. This is Karen. I will take this question. As we just discussed, we successfully completed the previously announced minimum full year 2025 repurchase commitment of USD50 million. As of November 7, 2025, the company had repurchased over 7.7 million ADS for an aggregate amount of USD51.9 million. Among that, over 6.2 million ordinary shares previous repurchases was canceled. And we will notify everyone once the remaining issues have been fully canceled.

好的。謝謝劉天豪。這是凱倫。我將回答這個問題。正如我們剛才討論的那樣，我們已成功完成先前宣布的 2025 年全年最低 5000 萬美元的回購承諾。截至 2025 年 11 月 7 日，該公司已回購超過 770 萬份 ADS，總金額達 5,190 萬美元。其中，超過 620 萬股先前回購的普通股被取消。剩餘的問題全部解決後，我們會通知大家。

With this year's repurchase commitment achieved, the company continues to execute its share repurchase program based on market conditions. For next year, we expected to maintain a similar level of share repurchase as in 2025. We are on track to complete our USD150 million share repurchase plan within the year of 2026 before we launch the new plan. The company remains committed to prioritizing shareholder interest in all capital allocation decisions, maximizing shareholder value through a consistently optimized return strategy.

今年回購目標已達成，公司將繼續根據市場情況執行股票回購計畫。我們預計明年將維持與 2025 年類似的股票回購水準。我們正按計劃推進，將在 2026 年內完成 1.5 億美元的股票回購計劃，之後才會推出新計劃。公司始終致力於在所有資本配置決策中優先考慮股東利益，透過持續優化的回報策略來實現股東價值最大化。

That's very helpful. And could also -- the management also share your revenue and the profitability outlook for Q4 and 2026.

那很有幫助。此外，管理層還可以分享第四季和 2026 年的收入和獲利前景。

Okay. Given the revenue from new initiatives is expected to have a limited contribution in the fourth quarter and based on current business trends, we maintain our guidance that full year 2025 revenue will be broadly in line with 2024, or with low-single-digit growth. We expect revenue from our new business initiatives to become more visible over the next one to two quarters.

好的。鑑於新措施帶來的收入預計在第四季度貢獻有限，並且根據目前的業務趨勢，我們維持先前的預期，即 2025 年全年收入將與 2024 年大致持平，或實現個位數低成長。我們預計，未來一到兩個季度內，新業務措施帶來的收入將更加明顯。

Regarding profitability, we expect our full-year 2025 net margin to reach about 40%. Looking ahead to 2026, we expect R&D spending to follow a similar trend as in 2025, assuming broadly similar business conditions. On the market side, we will dynamically adjust our investments based on the performance of our new products. While maintaining a healthy financial position, we will continue to invest in innovative business initiatives to view the company's long-term growth and ensure stable profitability through refined operations. I hope I answer your questions. Thank you.

關於獲利能力，我們預計 2025 年全年淨利潤率將達到 40% 左右。展望 2026 年，我們預期研發支出將遵循與 2025 年類似的趨勢，假設商業環境大致相同。在市場方面，我們將根據新產品的表現動態調整投資。在維持穩健財務狀況的同時，我們將繼續投資於創新業務舉措，著眼於公司的長期發展，並透過優化營運確保穩定的獲利能力。希望我的回答能幫助您。謝謝。

As there are no further questions now, I'd like to turn the call back over to management for closing remarks.

現在沒有其他問題了，我想把電話交還給管理階層，請他們做總結發言。

Thank you once again for joining us today. We look forward to speaking with you in the next quarter. If you have further questions, please feel free to contact Yalla's Investor Relations of Financial Communications. Both parties contact information is available in today's press release as well as on our company website. Thank you.

再次感謝您今天蒞臨。我們期待在下個季度與您交流。如有任何疑問，請隨時聯繫 Yalla 的投資者關係或財務溝通部門。雙方的聯絡方式均可在今天的新聞稿以及我們公司網站上找到。謝謝。

This concludes the conference call. You may now disconnect your lines. Thank you.

電話會議到此結束。現在您可以斷開線路了。謝謝。