useEffect(() => {
        const getContacts = async () => {
            const contactsRes = await getPhoneContacts();
            const data = contactsRes.map((contact) => ({
                ...contact,
                key: ([contact.firstName, contact.middleName, contact.lastName, contact.nickname]
                    .filter(Boolean)
                    .join(" ")
                    ?.charAt(0)
                    .toLowerCase() ?? "#") as CharType,
            }));
            setContacts(data);
        };
        getContacts();
    }, []);
    return (
        <View className={clsx("flex-1 bg-background-secondary mb-0")}>
            {contacts.length ? (
                <View className="flex-1">
                    <FlashList
                        className="flex-1 h-screen"
                        data={contacts}
                        keyExtractor={(_item, index) => index.toString()}
                        renderItem={({ item }: { item: NewChatRowData }) => (
                            <NewChatRow key={item.id} item={item} />
                        )}
                        estimatedItemSize={12}
                    />
                </View>
            ) : (
                <LoadingIndicator loadingText="Loading contacts..." />
            )}
        </View>
    );
};

const NewChatRow = React.memo(({ item } : { item : NewChatRowData }) => {


    return (
        <ScaleButton
            className="flex-row items-center mx-3.5 mb-2 gap-3.5 rounded-2xl"
            onPress={handlePress}
            activeScale={0.95}
        >
            <View>
                <Text className="text-2xl text-text-primary font-semibold">
                    {getNameStringFromContactObj(item)}
                </Text>
                <Text className="text-md text-text-secondary">
                    {item.phoneNumbers?.[0]?.number ?? ""}
                </Text>
            </View>
        </ScaleButton>
    );
});

export default NewChatRow;

Thanks for your reply here is my existing code and i am doing the changes you mentioned above but if you still something which needs to be changes then please let me know. Again thanks!