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    Yalla Group Limited Announces Unaudited Second Quarter 2025 Financial Results

    8/11/25 5:00:00 PM ET
    $YALA
    Computer Software: Programming Data Processing
    Technology
    Get the next $YALA alert in real time by email

    DUBAI, UAE, Aug. 11, 2025 /PRNewswire/ -- Yalla Group Limited ("Yalla" or the "Company") (NYSE:YALA), the largest Middle East and North Africa (MENA)-based online social networking and gaming company, today announced its unaudited financial results for the second quarter ended June 30, 2025.

    Second Quarter 2025 Financial and Operating Highlights

    • Revenues were US$84.6 million in the second quarter of 2025, representing an increase of 4.1% from the second quarter of 2024.
      • Revenues generated from chatting services in the second quarter of 2025 were US$53.6 million.
      • Revenues generated from games services in the second quarter of 2025 were US$30.7 million.
    • Net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024. Net margin[1] was 43.2% in the second quarter of 2025.
    • Non-GAAP net income[2] was US$39.4 million in the second quarter of 2025, an 11.7% increase from US$35.2 million in the second quarter of 2024. Non-GAAP net margin[3] was 46.5% in the second quarter of 2025.
    • Average MAUs[4] increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.
    • The number of paying users[5] on our platform decreased by 7.0% to 11.2 million in the second quarter of 2025 from 12.0 million in the second quarter of 2024.

    Key Operating Data

    For the three months ended





    June 30, 2024





    June 30, 2025















    Average MAUs (in thousands)



    38,999







    42,421















    Paying users (in thousands)



    12,023







    11,186



















    [1] Net margin is net income as a percentage of revenues.

    [2] Non-GAAP net income represents net income excluding share-based compensation. Non-GAAP net income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

    [3] Non-GAAP net margin is non-GAAP net income as a percentage of revenues.

    [4] "Average MAUs" refers to the average monthly active users in a given period calculated by dividing (i) the sum of active users for each month of such period, by (ii) the number of months in such period. "Active users" refers to registered users who accessed any of our main mobile applications at least once during a given period. Yalla, Yalla Ludo, Yalla Parchis, YallaChat, 101 Okey Yalla, WeMuslim and Ludo Royal were our main mobile applications for the periods presented herein; and Yalla Jackaroo has been our main mobile application since the second quarter of 2025.

    [5] "Paying users" refers to registered users who played a game or purchased our virtual items or upgrade services using virtual currencies on our main mobile applications at least once in a given period, except for users who received all of their virtual currencies directly or indirectly from us for free; YallaChat does not involve the usage of virtual currencies, and the metrics of "paying users" and "ARPPU" do not reflect user activities on YallaChat. "Registered users" refers to users who have registered accounts on our main mobile applications as of a given time; a registered user is not necessarily a unique user, as an individual may register multiple accounts on our main mobile applications.

    "We delivered another robust performance in the second quarter," said Mr. Yang Tao, Founder, Chairman and CEO of Yalla. "Our revenues reached US$84.6 million, beating the upper end of our guidance. Improvements in our internal processes boosted operational efficiency, bringing our net margin to 43.2%, a year-over-year expansion of 4.6 percentage points. Meanwhile, our continued efforts to enrich our product portfolio and maintain a highly-engaged community drove an 8.8% year-over-year increase in average MAUs to 42.4 million.

    "Building on these strong fundamentals, we continued to upgrade our flagship applications and broaden our product portfolio, expanding into new verticals to tap into MENA's thriving digital transformation. We have two exciting Match-3 titles scheduled for release in the third quarter and a roguelike game set to debut in the fourth quarter this year. Additionally, our game distribution services segment is preparing for the distribution of a hard-core title. Going forward, Yalla Group will continue to enrich users' digital lives with a diverse lineup of gaming products while working alongside partners to foster a sustainable digital ecosystem in MENA, compounding our advantages in this compelling market and unlocking its value for all of our stakeholders," Mr. Yang concluded.

    Ms. Karen Hu, CFO of Yalla, commented, "Strong execution across our operations fueled this quarter's strong results, highlighted by better-than-expected revenues and enhanced profitability. Our disciplined cost management and improved efficiency resulted in a 16.4% year-over-year increase in our net income to US$36.5 million. Bolstered by this success, we continued to accelerate our expanded share buyback program, with 6,230,299 shares totaling US$41.0 million repurchased this year through June 30, 2025. We are open to further scaling this program, reflecting our deep confidence in the Company's future growth potential and dedication to elevating shareholder value. Looking ahead, we remain committed to product innovation and operational excellence as we advance toward our vision of becoming the most popular platform for online social networking and entertainment activities in MENA."

    Second Quarter 2025 Financial Results

    Revenues

    Our revenues were US$84.6 million in the second quarter of 2025, a 4.1% increase from US$81.2 million in the second quarter of 2024. The increase was primarily driven by our broadening user base and enhanced monetization capability. Our average MAUs increased by 8.8% to 42.4 million in the second quarter of 2025 from 39.0 million in the second quarter of 2024.

    In the second quarter of 2025, revenues generated from chatting services were US$53.6 million, and revenues from games services were US$30.7 million.

    Costs and expenses

    Our total costs and expenses were US$53.9 million in the second quarter of 2025, a 4.6% increase from US$51.6 million in the second quarter of 2024.

    Our cost of revenues was US$27.9 million in the second quarter of 2025, a 3.7% decrease from US$29.0 million in the second quarter of 2024, primarily due to lower commission fees paid to third-party payment platforms as a result of diversified payment channels and lower share-based compensation expenses recognized in the second quarter of 2025. Cost of revenues as a percentage of our total revenues decreased to 33.0% in the second quarter of 2025 from 35.7% in the second quarter of 2024.

    Our selling and marketing expenses were US$8.7 million in the second quarter of 2025, a 2.0% increase from US$8.5 million in the second quarter of 2024, primarily due to higher advertising and market promotion expenses attributable to our continued user acquisition efforts and expanding product portfolio. Selling and marketing expenses as a percentage of our total revenues decreased to 10.2% in the second quarter of 2025 from 10.5% in the second quarter of 2024.

    Our general and administrative expenses were US$9.0 million in the second quarter of 2025, an 18.8% increase from US$7.6 million in the second quarter of 2024, primarily due to increases in incentive compensation and foreign exchange loss. General and administrative expenses as a percentage of our total revenues increased to 10.6% in the second quarter of 2025 from 9.3% in the second quarter of 2024.

    Our technology and product development expenses were US$8.3 million in the second quarter of 2025, a 28.6% increase from US$6.5 million in the second quarter of 2024, primarily due to an increase in salaries and benefits for our technology and product development staff, driven by an increase in their headcount to support the development of new businesses and expansion of our product portfolio. Technology and product development expenses as a percentage of our total revenues increased to 9.9% in the second quarter of 2025 from 8.0% in the second quarter of 2024.

    Operating income

    Operating income was US$30.6 million in the second quarter of 2025, a 3.4% increase from US$29.6 million in the second quarter of 2024.

    Non-GAAP operating income[6]

    Non-GAAP operating income in the second quarter of 2025 was flat at US$33.5 million compared with that of the second quarter of 2024.

    Interest income

    Interest income was US$6.8 million in the second quarter of 2025, compared with US$7.1 million in the second quarter of 2024.

    Income tax expense

    Income tax expense was US$1.5 million in the second quarter of 2025, compared with US$5.8 million in the second quarter of 2024, primarily due to a decrease in UAE corporate tax.

    Net income

    As a result of the foregoing, our net income was US$36.5 million in the second quarter of 2025, a 16.4% increase from US$31.4 million in the second quarter of 2024.

    Non-GAAP net income

    Non-GAAP net income in the second quarter of 2025 was US$39.4 million, an 11.7% increase from US$35.2 million in the second quarter of 2024.

    Earnings per ordinary share

    Basic and diluted earnings per ordinary share were US$0.24 and US$0.20, respectively, in the second quarter of 2025, while basic and diluted earnings per ordinary share were US$0.20 and US$0.17, respectively, in the second quarter of 2024.

    Non-GAAP earnings per ordinary share[7]

    Non-GAAP basic and diluted earnings per ordinary share were US$0.25 and US$0.22, respectively, in the second quarter of 2025, compared with US$0.22 and US$0.19, respectively, in the second quarter of 2024.

    Cash and cash equivalents, restricted cash, term deposits and short-term investments 

    As of June 30, 2025, we had cash and cash equivalents, restricted cash, term deposits and short-term investments of US$704.1 million, compared with US$656.3 million as of December 31, 2024.

    Share repurchase program

    Pursuant to the Company's share repurchase program beginning on May 21, 2021, with an extended expiration date of May 21, 2026, from January 1 through June 30, 2025, the Company repurchased 6,230,299 American depositary shares ("ADSs"), representing 6,230,299 Class A ordinary shares, from the open market with cash for an aggregate amount of approximately US$41.0 million, including US$5.4 million in the first quarter of 2025 and US$35.6 million in the second quarter of 2025. As of June 30, 2025, the Company had cumulatively completed cash repurchases in the open market of 13,535,437 ADSs, representing 13,535,437 Class A ordinary shares, for an aggregate amount of approximately US$90.4 million, since the inception of the current share repurchase program. The aggregate value of ADSs and/or Class A ordinary shares that remain available for purchase under the current share repurchase program was US$59.6 million as of June 30, 2025. In addition, the Company has decided to cancel all shares repurchased in 2025. As of August 11, 2025, the Company had cancelled 6,230,299 ADSs, representing 6,230,299 Class A ordinary shares.

    Outlook

    For the third quarter of 2025, Yalla currently expects revenues to be between US$78.0 million and US$85.0 million.

    The above outlook is based on current market conditions and reflects the Company management's current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

    [6] Non-GAAP operating income represents operating income excluding share-based compensation. Non-GAAP operating income is a non-GAAP financial measure. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

    [7] Non-GAAP earnings per ordinary share is non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by weighted average number of basic and diluted shares outstanding. Non-GAAP net income attributable to Yalla Group Limited's shareholders represents net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. Non-GAAP earnings per ordinary share and non-GAAP net income attributable to Yalla Group Limited's shareholders are non-GAAP financial measures. See the sections entitled "Non-GAAP Financial Measures" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this press release.

    Conference Call

    The Company's management will host an earnings conference call on Monday, August 11, 2025, at 8:00 PM U.S. Eastern Time, which is Tuesday, August 12, 2025, at 4:00 AM Dubai Time, or Tuesday, August 12, 2025, at 8:00 AM Beijing/Hong Kong time.

    Dial-in details for the earnings conference call are as follows:

    United States Toll Free:

    +1-888-317-6003

    International:

    +1-412-317-6061

    United Arab Emirates Toll Free:

    80-003-570-3598

    Mainland China Toll Free:

    400-120-6115

    Hong Kong, China Toll Free:

    800-963-976

    Access Code:

    5144068

    Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.yalla.com.

    A replay of the conference call will be accessible until August 18, 2025, by dialing the following telephone numbers:

    United States Toll Free:

    +1-877-344-7529

    International:

    +1-412-317-0088

    Access Code:

    1658736

    Non-GAAP Financial Measures

    To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP financial measures, namely non-GAAP operating income, non-GAAP net income, non-GAAP net margin and non-GAAP basic and diluted earnings per ordinary share, as supplemental measures to review and assess the Company's operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define non-GAAP operating income as operating income excluding share-based compensation. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net margin as non-GAAP net income as a percentage of revenues. We define non-GAAP net income attributable to Yalla Group Limited's shareholders as net income attributable to Yalla Group Limited's shareholders, excluding share-based compensation. We define non-GAAP earnings per ordinary share as non-GAAP net income attributable to Yalla Group Limited's shareholders, divided by the weighted average number of basic and diluted shares outstanding.

    By excluding the impact of share-based compensation expenses, which are non-cash charges, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company's past performance and future prospects. Investors can better understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess its core operating results, as they exclude share-based compensation expenses, which are not expected to result in cash payments. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

    The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measures is that they do not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in the Company's business and is not reflected in the presentation of non-GAAP financial measures. Further, the non-GAAP financial measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

    The Company compensates for these limitations by providing the relevant disclosure of its non-GAAP financial measures in the reconciliations to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

    Reconciliations of GAAP and non-GAAP results are set forth at the end of this press release.

    About Yalla Group Limited

    Yalla Group Limited is the largest MENA-based online social networking and gaming company, in terms of revenues in 2022. The Company operates 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, the Company continues 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, the Company has expanded its capabilities in mid-core and hard-core games in the MENA region, leveraging its local expertise to bring innovative gaming content to its users. In addition, the growing Yalla ecosystem includes YallaChat, an IM product tailored for Arabic users, WeMuslim, a product that supports Arabic users in observing their customs, and casual games such as Yalla Baloot and 101 Okey Yalla, developed to sustain vibrant local gaming communities in MENA. Yalla is also actively exploring outside of MENA with Yalla Parchis, a Ludo game designed for the South American markets. Yalla's 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.

    For more information, please visit: https://ir.yalla.com.

    Safe Harbor Statement

    This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Statements that are not historical facts, including statements about Yalla Group Limited's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Yalla Group Limited's filings with the SEC. All information provided in this press release is as of the date of this press release, and Yalla Group Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For investor and media inquiries, please contact:

    Yalla Group Limited

    Investor Relations

    Kerry Gao - IR Director

    Tel: +86-571-8980-7962

    Email: [email protected] 

    Piacente Financial Communications

    Jenny Cai

    Tel: +86-10-6508-0677

    Email: [email protected] 

    In the United States:

    Piacente Financial Communications

    Brandi Piacente

    Tel: +1-212-481-2050

    Email: [email protected] 

     

    YALLA GROUP LIMITED

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS







    As of







    December 31,

    2024





    June 30,

    2025







    US$





    US$



    ASSETS













    Current assets













    Cash and cash equivalents





    488,379,894







    342,981,483



    Restricted cash





    1,975,616







    1,593,343



    Term deposits





    94,983,813







    157,826,639



    Short-term investments





    70,932,713







    201,710,485



    Prepayments and other current assets





    35,429,988







    31,377,720



    Total current assets





    691,702,024







    735,489,670



    Non-current assets













    Property and equipment, net





    13,962,393







    14,203,523



    Intangible asset, net





    896,005







    786,429



    Operating lease right-of-use assets





    1,370,914







    1,379,873



    Long-term investments





    93,698,924







    81,061,625



    Total non-current assets





    109,928,236







    97,431,450



    Total assets





    801,630,260







    832,921,120

















    LIABILITIES













    Current liabilities













    Accounts payable





    957,717







    723,355



    Deferred revenue, current





    58,081,649







    57,994,279



    Operating lease liabilities, current





    1,012,481







    755,974



    Amounts due to a related party





    87,156







    54,887



    Income taxes payable





    9,117,261







    10,429,556



    Accrued expenses and other current liabilities





    32,404,872







    21,941,503



    Total current liabilities





    101,661,136







    91,899,554



    Non-current liabilities













    Deferred revenue, non-current





    —







    2,019,314



    Operating lease liabilities, non-current





    13,495







    308,246



    Deferred tax liabilities





    2,148,022







    2,593,131



    Total non-current liabilities





    2,161,517







    4,920,691



    Total liabilities





    103,822,653







    96,820,245

















    EQUITY













    Shareholders' equity of Yalla Group Limited













    Class A Ordinary Shares





    14,064







    14,064



    Class B Ordinary Shares





    2,473







    2,473



    Additional paid-in capital





    328,883,061







    334,478,211



    Treasury stock





    (49,438,661)







    (78,061,004)



    Accumulated other comprehensive loss





    (3,016,579)







    (2,707,083)



    Retained earnings





    427,907,766







    489,899,413



    Total shareholders' equity of Yalla Group Limited





    704,352,124







    743,626,074



    Non-controlling interests





    (6,544,517)







    (7,525,199)



    Total equity





    697,807,607







    736,100,875



    Total liabilities and equity





    801,630,260







    832,921,120



     

    YALLA GROUP LIMITED

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

    OF OPERATIONS







    Three Months Ended





    Six Months Ended







    June 30,

    2024





    March 31,

    2025





    June 30,

    2025





    June 30,

    2024





    June 30,

    2025







    US$





    US$





    US$





    US$





    US$



    Revenues





    81,197,482







    83,876,767







    84,564,086







    159,926,060







    168,440,853



    Costs and expenses































    Cost of revenues





    (29,025,673)







    (29,200,423)







    (27,944,596)







    (57,596,934)







    (57,145,019)



    Selling and marketing expenses





    (8,491,520)







    (6,943,268)







    (8,661,573)







    (16,591,456)







    (15,604,841)



    General and administrative expenses





    (7,576,904)







    (8,695,308)







    (9,002,347)







    (14,224,796)







    (17,697,655)



    Technology and product development expenses





    (6,481,616)







    (7,828,137)







    (8,338,195)







    (12,743,870)







    (16,166,332)



    Total costs and expenses





    (51,575,713)







    (52,667,136)







    (53,946,711)







    (101,157,056)







    (106,613,847)



    Operating income





    29,621,769







    31,209,631







    30,617,375







    58,769,004







    61,827,006



    Interest income





    7,097,975







    6,561,180







    6,791,492







    13,742,859







    13,352,672



    Government grants





    365,031







    63,433







    603,115







    432,363







    666,548



    Investment income (loss)





    60,233







    (17,702)







    21,758







    (1,227,894)







    4,056



    Income before income taxes





    37,145,008







    37,816,542







    38,033,740







    71,716,332







    75,850,282



    Income tax expense





    (5,793,582)







    (1,437,077)







    (1,531,310)







    (9,276,790)







    (2,968,387)



    Net income





    31,351,426







    36,379,465







    36,502,430







    62,439,542







    72,881,895



    Net loss attributable to non-controlling interests





    292,428







    711,935







    269,782







    798,415







    981,717



    Net income attributable to Yalla Group

       Limited's shareholders





    31,643,854







    37,091,400







    36,772,212







    63,237,957







    73,863,612



    Earnings per ordinary share































    ——Basic





    0.20







    0.23







    0.24







    0.39







    0.47



    ——Diluted





    0.17







    0.20







    0.20







    0.34







    0.41



    Weighted average number of shares

       outstanding used in computing earnings

       per ordinary share































    ——Basic





    160,721,827







    159,186,659







    155,958,658







    160,550,641







    157,604,992



    ——Diluted





    183,535,654







    182,187,686







    180,765,359







    183,397,911







    181,508,856













































    Share-based compensation was allocated in cost of revenues, selling and marketing expenses, general and administrative expenses and technology and

    product development expenses as follows:















































    Three Months Ended





    Six Months Ended







    June 30,

    2024





    March 31,

    2025





    June 30,

    2025





    June 30,

    2024





    June 30,

    2025







    US$





    US$





    US$





    US$





    US$



    Cost of revenues





    1,867,863







    1,326,085







    1,328,152







    3,770,580







    2,654,237



    Selling and marketing expenses





    681,035







    171,028







    170,304







    1,381,150







    341,332



    General and administrative expenses





    1,321,200







    1,130,507







    1,328,931







    2,654,514







    2,459,438



    Technology and product development expenses





    19,198







    119,474







    20,670







    281,929







    140,144



    Total share-based compensation expenses





    3,889,296







    2,747,094







    2,848,057







    8,088,173







    5,595,151



     

    YALLA GROUP LIMITED

    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS 







    Three Months Ended





    Six Months Ended







    June 30,

    2024





    March 31,

    2025





    June 30,

    2025





    June 30,

    2024





    June 30,

    2025







    US$





    US$





    US$





    US$





    US$



    Operating income





    29,621,769







    31,209,631







    30,617,375







    58,769,004







    61,827,006



    Share-based compensation expenses





    3,889,296







    2,747,094







    2,848,057







    8,088,173







    5,595,151



    Non-GAAP operating income





    33,511,065







    33,956,725







    33,465,432







    66,857,177







    67,422,157



































    Net income





    31,351,426







    36,379,465







    36,502,430







    62,439,542







    72,881,895



    Share-based compensation expenses,

       net of tax effect of nil





    3,889,296







    2,747,094







    2,848,057







    8,088,173







    5,595,151



    Non-GAAP net income





    35,240,722







    39,126,559







    39,350,487







    70,527,715







    78,477,046



































    Net income attributable to Yalla

       Group Limited's shareholders





    31,643,854







    37,091,400







    36,772,212







    63,237,957







    73,863,612



    Share-based compensation expenses,

       net of tax effect of nil





    3,889,296







    2,747,094







    2,848,057







    8,088,173







    5,595,151



    Non-GAAP net income attributable to

       Yalla Group Limited's shareholders





    35,533,150







    39,838,494







    39,620,269







    71,326,130







    79,458,763



































    Non-GAAP earnings per ordinary share































    ——Basic





    0.22







    0.25







    0.25







    0.44







    0.50



    ——Diluted





    0.19







    0.22







    0.22







    0.39







    0.44



    Weighted average number of shares

       outstanding used in computing earnings

       per ordinary share































    ——Basic





    160,721,827







    159,186,659







    155,958,658







    160,550,641







    157,604,992



    ——Diluted





    183,535,654







    182,187,686







    180,765,359







    183,397,911







    181,508,856



     

    Cision View original content:https://www.prnewswire.com/news-releases/yalla-group-limited-announces-unaudited-second-quarter-2025-financial-results-302526373.html

    SOURCE Yalla Group Limited

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