Yalla : 2024 Environmental, Social and Governance Report-EN
YALA
2024
www.yalla.com
ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT
YALLA GROUP LIMITED (NYSE: YALA)
CONTENTS
2
About this Report
4
About Yalla Group
8
Letter from Our CEO
9
Letter from Our President
2024 Environmental,
Social and Governance Report
10 Responsible Governance
26 Environment
34 Trust
36 Information Security
52 Our Community
54 Yalla Community
57 Appendix
2
2024 Environmental,
About this Report
About Yalla Group
Social and Governance Report
ABOUT THIS REPORT
Yalla Group Limited ("Yalla", the "Company" or "we") is proud to present our fourth Environmental, Social and Governance Report (the "Report") for the year 2024 to highlight our corporate vision beyond financial achievements.
This report aims to offer stakeholders a clear, transparent, and comprehensive review of our sustainability performance. The content of the Report has been defined through a meticulous materiality process involving all stakeholders, which is explained in detail in the body of the Report.
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
3
For any comments or suggestions related to the Report, please contact us via email at [email protected]. We look forward to receiving your valuable input.
YEAR
The Report covers our environmental, social, and governance performance for the year 2024. We have published the Report on a yearly basis since 2021.
COMPARABLE DATA
Some disclosures showcase performance across the years 2024 and 2023, highlighting significant developments.
ALIGNMENTS
The Report also aligns with the United Nations Sustainable Development Goals (SDGs) and Task Force on Climate-Related Financial Disclosures (TCFD) framework.
MONETARY VALUES
Unless otherwise stated, all monetary values in the Report are expressed in U.S. dollars.
GRI ACCORDANCE
CONTACT POINT
The Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards.
Readers and all stakeholders can find the English and Arabic versions of the Report at our official website (https://www.yalla.com/).
4
2024 Environmental,
About this Report
About Yalla Group
Social and Governance Report
ABOUT YALLA GROUP
Mission
Provide localized online social
networking and entertainment
activities
Build the largest destination
Vision
for online social networking
and entertainment activities in
MENA1
Values
Multicultural Understanding,
User First, Simple, and Target
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
5
Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022.
We operate two flagship mobile applications, Yalla, a voice-centric group chat platform, and Yalla Ludo, a casual gaming application featuring online versions of board games, popular in MENA, with in-game voice chat and localized Majlis functionality.
Building on the success of Yalla and Yalla Ludo, we continue to add engaging new content, creating a regionally focused, integrated ecosystem dedicated to fulfilling MENA users' evolving online social networking and gaming needs.
Through its holding subsidiary, Yalla Game Limited, we have expanded our capabilities in mid-core and hard-core games in the MENA region, leveraging our local expertise to bring innovative gaming content to users.
In addition, our growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. We are also exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets.
Our mobile applications deliver a seamless experience that fosters a sense of loyalty and belonging, establishing highly devoted and engaged user communities through close attention to detail and localized appeal that profoundly resonates with users.
1 MENA refers to the Middle East and North Africa region, including Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Malta, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, Western Sahara, Yemen and others, in total 21 countries. Data source: The World Bank & Wikipedia.
6
2024 Environmental,
About this Report
About Yalla Group
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
7
Social and Governance Report
Our Integrated Ecosystem
Social
Yalla
Voice-centric group chatting
YallaChat
IM product tailored for Arabic users
WeMuslim
Supports Muslim users in observing their customs
Merge Kingdoms
More to come
SLG hard-core game
More to come
Mid-Hard
Core Games
Casual Games
Yalla Ludo
MENA casual games + social networking
Yalla Baloot & Hand
Saudi Arabian card game
101 Okey Yalla
Turkish board game
Yalla Parchis
South American Ludo
exploring opportunities overseas
8
2024 Environmental,
About this Report
About Yalla Group
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
9
Social and Governance Report
LETTER FROM OUR CEO
LETTER FROM OUR PRESIDENT
Welcome to Yalla Group's 2024 Environmental, Social, and Governance
I am pleased to present Yalla Group's 2024 ESG Report, which underscores our
(ESG) Report.
unwavering commitment to sustainability, innovation, and responsible growth.
It is my honor to share our progress and
our environmental impact. In areas such as
This report encapsulates our dedication to creating
robust information security management system,
achievements over the past year as we continue to
intelligent customer service, product development,
long-term value for our stakeholders while
supported by a dedicated team of experts. Advanced
uphold our commitment to sustainability, innovation,
and testing, AI technologies have significantly
addressing the pressing environmental, social, and
technologies, including encryption, firewalls, and AI-
and social responsibility. This report reflects our
enhanced our productivity and streamlined
governance challenges of our era. As the leading
driven tools, fortify our defenses against evolving
unwavering dedication to creating value not only for
operations. By automating repetitive tasks and
online social networking and gaming company in the
threats. We place the highest priority on user privacy
our shareholders but also for the communities we
optimizing resource allocation, we are minimizing
Middle East and North Africa region, we are acutely
throughout every stage of data collection, storage,
serve and the planet we share.
energy consumption and reducing waste across our
aware of the profound impact our operations have
and processing, ensuring a secure platform for
processes. This integration of AI not only improves
on society and the environment.
social and gaming experiences. Our commitment to
2024 marked a significant milestone for Yalla
our operational efficiency but also aligns with our
building trust and fostering a safer digital ecosystem
Group. In the face of a rapidly changing global
commitment to sustainability, demonstrating how
Cultural respect and community engagement
remains steadfast.
landscape, the company remained steadfast in its
innovation can contribute to a greener future while
remain central to our mission. This year, we
mission to connect people and enrich lives through
delivering exceptional value to our users.
innovative platforms. With steady advancement, the
celebrated the rich traditions of the MENA region
Governance continues to be a cornerstone of
company achieved excellent growth across its social
Our commitment to diversity and inclusion remains
by hosting activities during Ramadan and Eid al-
our strategy. We have strengthened our risk
ecosystems and gaming platforms.
stronger than ever. With employees from over 13
Fitr, fostering a deep sense of belonging among our
management frameworks and elevated our ethical
countries, we celebrate the unique perspectives
users. Additionally, we organized offline gaming
standards, ensuring transparency and accountability
Sustainability remains a cornerstone of our
and talents that each individual brings to our team.
tournaments across multiple countries and cities,
across all operations. By engaging closely with
strategy. This year, we took bold steps to reduce our
This diversity fuels our creativity and enables us
bringing people together and promoting equal
stakeholders, we have refined our strategies
environmental footprint by implementing energy-
to better serve our global user base. In the past
access to digital entertainment. These initiatives not
to better address emerging challenges and
efficient technologies across our operations. We
year, we introduced new policies to ensure equal
only strengthened our ties with local communities
opportunities, solidifying our position as a trusted
are proud to share that a significant portion of our
opportunities for career growth and development,
but also contributed to the growth of the internet
and responsible corporate citizen.
energy consumption now comes from renewable
further solidifying our position as an employer of
industry in underserved areas.
sources, marking meaningful progress in our journey
choice in the region.
Looking ahead, we remain focused on leveraging
toward carbon neutrality.
On the environmental front, we have made
technology to create a more inclusive and
Looking ahead, we are excited about the
significant strides in reducing our ecological
sustainable future. The MENA region's ongoing digital
In addition to these efforts, we have actively
opportunities that 2024 holds. We will continue to
promoted paperless office practices and transitioned
innovate, collaborate, and lead with purpose, guided
footprint. By adopting energy-efficient technologies
transformation presents immense opportunities,
more approval processes to digital platforms,
by our core values and our vision for a sustainable
and promoting sustainable practices, we are steadily
and we are determined to lead by example, setting
significantly reducing paper waste and improving
future. We invite all our stakeholders - employees,
progressing toward our goal of carbon neutrality.
new benchmarks for responsible business practices
operational efficiency. Furthermore, we have
users, partners, and investors - to join us on this
Equally important is our commitment to fostering
in our industry.
fostered a culture of resource conservation among
journey as we work together to create a positive and
a workplace culture that prioritizes employee well-
our employees by launching internal campaigns to
lasting impact.
being, work-life balance, and equal opportunities
Thank you to our stakeholders for your continued
raise awareness about environmental protection.
for growth. Initiatives such as mental health support
trust and support. Together, we can build a brighter,
Through workshops and initiatives, we are
Thank you for your trust and support. Together, we
programs and flexible work arrangements ensure
more equitable future for all.
empowering our team to adopt sustainable habits
can build a brighter tomorrow.
that our team remains motivated, empowered, and
both at work and in their daily lives, ensuring that
equipped to drive innovation.
Best regards,
environmental responsibility becomes a shared
Best regards,
value across the organization.
In 2024, we reinforced our dedication to
Saifi ISMAIL
Tao YANG,
cybersecurity and user data protection. Adhering
Director and President
At Yalla Group, we are harnessing the power of
Founder, Chairman, and Chief Executive Officer
artificial intelligence to drive efficiency and reduce
to MENA regulations, we have established a
RESPONSIBLE GOVERNANCE
Yalla Group is committed to maintaining the highest ethical standards and ensuring full compliance with all applicable laws and regulations. We prioritize ESG management, integrating these principles into the Company's strategic objectives and daily operations. In addition, we are dedicated to continuously refining our ESG governance framework, aiming to create a sustainable
and mutually beneficial balance between the Company's growth, society, and the environment.
12
2024 Environmental,
About this Report
About Yalla Group
Social and Governance Report
GOVERNANCE MECHANISM
BOARD AND BOARD COMMITTEES
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
13
The functions and powers of our board of directors include, among others:
We are a Cayman Islands holding company and conduct
Yalla strives to build an open, transparent and efficient
our operations mainly through operating subsidiaries in
corporate governance system. In 2024, more than
the United Arab Emirates and China. We strictly abide
50% of the Board members are independent directors
by the applicable laws and regulations of the countries
(among the current 7 directors, 4 are independent
formulating and overseeing the
establishing appropriate
implementation of the group's
risk management policies
goals, mission, strategies,
to prevent, address, and
policies, and business plan;
respond to risks;
formulating annual financial
supervising the process of
budget and monitoring the
nominating and electing
operational and financial
board members;
performance;
providing timely and
creating and sanctioning
policies related to corporate
accurate disclosure and
social responsibility and
communication to all
corporate governance
relevant stakeholders;
measures;
implementing strong
accounting and financial
reporting systems, as well as adequate internal controls;
appointing senior
executives;
monitoring the effectiveness of the compensation structure and ensuring that employees' interests are properly coordinated.
Board Changes in 2024
The board of directors remained unchanged during 2024. The stability of the board ensures the effectiveness of corporate governance.
Board Committees
Our board of directors has established the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee to supervise the Company's specific affairs and provide professional advice and guidance for the board's decision-making.
Below is a summary of our Committee and Membership structure.
Compensation
Nominating and
Audit Committee
Corporate Governance
Committee
Committee
Tao Yang
Saifi Ismail
Jianfeng Xu
Saeed Al Hamli
Independent Director
Mohamed Al Ghanim
Independent Director
David Cui
Independent Director
Lili Xu
Independent Director
Chair Member
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2024 Environmental,
About this Report
About Yalla Group
Social and Governance Report
Audit Committee
Our audit committee consists of Mr. David Cui, Ms. Lili Xu and Mr. Saeed Al Hamli. Mr. David Cui is the chairperson of our audit committee. Mr. David Cui satisfies the criteria of an audit committee financial expert as set forth under the applicable rules of the SEC. Each of Mr. David Cui, Ms. Lili Xu and Mr. Saeed Al Hamli satisfies the requirements for an "independent director" within the meaning of Section 303A of the NYSE Listed Company Manual and will meet the criteria for independence set forth in Rule 10A-3 of the United States Securities Exchange Act of 1934, as amended, or the Exchange Act.
The audit committee oversees our accounting and financial reporting processes and the audits of our financial statements. Our audit committee is responsible for, among other things:
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
15
Compensation Committee
Our compensation committee consists of Mr. Tao Yang, Mr. Jianfeng Xu and Mr. David Cui. Mr. Tao Yang is the chairperson of our compensation committee. Mr. David Cui satisfies the requirements for an "independent director" within the meaning of Section 303A of the NYSE Listed Company Manual.
Our compensation committee is responsible for, among other things:
reviewing, evaluating and, if necessary,
setting performance targets for our senior
revising our overall compensation policies;
officers with respect to our incentive -
reviewing and evaluating the performance
compensation plan and equity-based
compensation plans;
of our directors and senior officers and
selecting the independent auditor;
pre-approving auditing and non-auditing services permitted to be performed by the independent auditor;
annually reviewing the independent auditor's report describing the auditing firm's internal quality control procedures, any material issues raised by the most recent internal quality control review,
or peer review, of the independent auditors and all relationships between the independent auditor and our company;
setting clear hiring policies for employees and former employees of the independent auditors;
reviewing with the independent auditor any audit problems or difficulties and management's response;
reviewing and, if material, approving all related party transactions on an ongoing basis;
reviewing and discussing the annual audited financial statements with management and the independent auditor;
reviewing and discussing with management and the independent auditors major issues regarding accounting principles and financial statement presentations;
reviewing reports prepared by management or the independent auditors relating to significant financial reporting issues and judgments;
discussing earnings press releases with management, as well as financial information and earnings guidance provided to analysts and rating agencies;
reviewing with management and the independent auditors the effect of regulatory and accounting initiatives, as well as off- balance sheet structures, on our financial statements;
discussing policies with respect to risk assessment and risk management with management, internal auditors and the independent auditor;
timely reviewing reports from the independent auditor regarding all critical accounting policies and practices to be used by our company, all alternative treatments of financial information within U.S. GAAP that have been discussed with management and all other material written communications between the independent auditor and management;
establishing procedures for the receipt, retention and treatment of complaints received from our employees regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by our employees of concerns regarding questionable accounting or auditing matters;
annually reviewing and reassessing the adequacy of our audit committee charter;
such other matters that are specifically delegated to our audit committee by our board of directors from time to time;
meeting separately, periodically, with management, internal auditors and the independent auditor; and
reporting regularly to the full board of directors.
determining the compensation of our senior
administering our equity-based compensation
officers;
plans in accordance with the terms thereof;
reviewing and approving our senior officers'
and such other matters that are specifically
employment agreements with us;
delegated to the remuneration committee by
our board of directors from time to time.
Nominating and Corporate Governance Committee
Our nominating and corporate governance committee consists of Mr. Tao Yang, Mr. Saifi Ismail and Mr. Osman Sultan. Mr. Tao Yang is the chairperson of our nominating and corporate governance committee. Mr. Osman Sultan satisfies the requirements for an "independent director" within the meaning of Section 303A of the NYSE Listed Company Manual. The nominating and corporate governance committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees.
The nominating and corporate governance committee will be responsible for, among other things:
selecting and recommending to the board
making recommendations on the
nominees for election by the shareholders
frequency and structure of board meetings
or appointment by the board;
and monitoring the functioning of the
reviewing annually with the board
committees of the board; and
the current composition of the board
advising the board periodically with regards
with regards to characteristics such as
to significant developments in the law and
independence, knowledge, skills, experience
practice of corporate governance as well
and diversity;
as our compliance with applicable laws and
regulations, and making recommendations
to the board on all matters of corporate
governance and on any remedial action to
be taken.
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2024 Environmental,
About this Report
About Yalla Group
Social and Governance Report
RISK MANAGEMENT
Effective risk management and robust internal monitoring systems play a crucial role in realizing our strategic goals. We have implemented a risk management and internal control framework, overseen and directed by the board of directors, to ensure our company thoroughly comprehends and adeptly handles its business risks.
Risk Management System
The board of directors holds ultimate
At Yalla, the Internal Audit and Compliance
accountability for risk management and
team is tasked with detecting and assessing
internal control.
both internal and external risks related to
the Company and its diverse departments.
The Audit Committee offers oversight and
Concurrently, the management team
direction in developing and executing the
concentrates on strengthening risk control
internal audit system.
measures to enhance the Company's overall
risk management proficiency.
Risk Assessment Process
The Internal Audit and Compliance team conducts thorough risk assessments to identify potential risks and discuss corresponding control measures with relevant departments. Based on the findings from these assessments, the team drafts the scope and contents of the annual work plan and then approved by the Audit Committee.
Furthermore, the team is responsible for preparing annual work report, reporting to both the Audit Committee and Senior Management. These plans and reports outline the key areas that need to be concerned about and provide insights into the overall findings and recommendations.
Responsible Governance
Environment
Trust
Our People
Our Community
Appendix
17
CODE OF BUSINESS CONDUCT AND ETHICS
We prioritize adherence to all legal standards and foster a culture rooted in integrity and self-discipline, which serves as the foundation of our business. We aim to embed ethical principles into every facet of our operations, internally and externally, to create a transparent and honorable business environment.
Our Code applies to all employees across every level of Yalla Group, including directors, officers, and subsidiaries. Consultants, contractors, and others acting on behalf of Yalla Group are also expected to align their conduct with the principles outlined in this Code. It establishes standards for professional and ethical behavior, detailing both acceptable and unacceptable conduct and practices in internal and external interactions, including:
Compliance with laws, regulations and policies
Company records
Conflicts of interest
Accuracy of financial reports and other
public communications
Corporate opportunities
Prohibition of insider trading
Corporate assets and confidential information
Public communications and prevention of
Competition and fair dealing
selective disclosure
Gifts and entertainment
Environment
Harassment and discrimination
For Yalla Group's Code of Business Conduct and Ethics, please visit: https://ir.yalla.com/Corporate-Governance
Implementation and enforcement of the Code
To ensure employees comprehend and implement the Code in their everyday responsibilities, we regularly hold the Ethics and Compliance Training Program. Ongoing training and oversight help maintain staff awareness and adherence to the Code.
We are dedicated to upholding the Code and fostering an ethical culture by maintaining a safe and supportive environment for employees to voice ethical concerns. We have implemented monitoring and reporting systems, including a third-party reporting platform, which ensure confidentiality, offer anonymous reporting options, and protect against retaliation. These measures create secure communication channels that safeguard the anonymity of employees raising issues.
Disclaimer
Yalla Group Ltd. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 09:59 UTC.