uCloudlink Group Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to UCloudLink Group, Inc., fourth quarter and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. After prepared remarks by the management team, 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 your host today, Mr. Bob Shen, Deputy Investor Relations Director of the company. Please go ahead.

Thanks, everyone, for joining us on our fourth quarter and four-year 2020 earnings call today. The earnings release is now available on our IR website at ir.ucloudlink.com as well as via Newswire Services. Here, I give a brief introduction to our uCloud Link team. Zhi Ping Peng is our co-founder and chairman of a board of directors. Chao Hui Chen is our co-founder, director, and chief executive officer. Zhi Gang Du is our director and chief operating officer. Yi Men Shi is our chief financial officer. Xin Quan Xu is our chief sales officer. Our CEO will begin with an overview of our company and business highlights, which will cover section one of the earnings presentation posted on our IR website. And then our CFO, Yi-Meng Shi, will discuss our operation highlights and financial results in section two and section three. Before we proceed, please note that this call may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control. which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors, and the details of the company's findings with the SEC. the company does not assume any obligation to revise or update any forward-looking statements as a result of new information, future events, changes in market conditions, or otherwise, except as required by law. Please also note that your CloudLinks earning plus release and this conference call include discussions of unaudited gap financial information as well as unaudited non-gap financial measures. uCloudLinks press release contains a reconciliation of the unaudited non-gap measures to the unaudited most directly comparable gap measures. I will now turn the call over to our co-founder and CEO, Mr. Chao-Hui Chen. Please go ahead.

Okay, so I'm Jeff. There are similar contents as the earning presentation of the third quarter of year 2020. I will focus on page 6, page 9, page 11, page 12, and page 13. Let's move to the page 6, which shows navigation plus electronic toll path concept applied to the data connectivity service market. The white coverage circle on the left-hand side chart are reliable data connection areas, and the shadow areas are reliable data connections. To solve such network connection concerns, it is not enough to just construct hardware of network because network coverage requires time, resource, and investment. There are always shadow areas with poor network coverage, even if mobile network operators invest in increasing infrastructure such as space stations. The right-hand side chart shows our solution for such problems, while our clouding technology through our path and start platform, we can help change unreliable data connection to more reliable data connection, like installing navigation plus electronic toll path for traffic. Navigation can automatically identify congestion and actively choose the better route And the electronic toll path allows users to avoid long when switching among the mobile networks. An intelligent tray elevate data connectivity user experience. For example, if one operator has bottleneck of coverage during peak time or less connection signal for a certain location, we can use our navigation to improve the coverage by intelligently switching to another operator network and provide better service coverage to users. Our business enables users and business partners to select and connect to a high-quality mobile network regardless of location. Our PaaS and SaaS platform also works like an electronic toll pass. that enables faster and efficient operation management and the speed connection. By changing unreliable connection areas to more reliable connection areas, we can help elevate users' mobile data connectivity experience and improve our network efficiency, which also improves carrier return on return on investment, ROI. There are great potential of applications in areas such as mobile network operators, data connection service, education, industry games, remote working, industrial automation, and autonomous driving, et cetera, which require better network connection. Please turn to page nine. So let's take a look at our innovative cloud thing technology. So the second and first is the same like before. I just come from our new concept for hyper-connectivity facilitate data traffic marketplace for this part. The definition of hyper-connectivity basically includes level one, which is the evaluation of the connection quality of various wireless access networks. Level two, which is network selection and optimization based on the CloudSync technology. And level three, which is optimizing and acceleration of application routing. Such hyper-connectivity solution will make users' applications get better connection experience, which helps realize navigation plus electronic toll path. Our hyper-connectivity solution would redefine the mobile network user experience and facilitate data traffic marketplace. Data connectivity user experience is affected by various factors such as signal, interference, and routine, bandwidth and delay, and server location. We innovatively applied navigation plus electronic toll path concepts over the mobile network to our users and business partners in mobile data connectivity market, while our hyper-connectivity technology through PaaS and SaaS platform, we focus on establishing a stable, reliable, safe network connection with security for our business partner and users. uCloud Link's hyper-connectivity will aim to connect across all networks and technical systems, across various themes form factors, thin form factors, such as e-thin and soft thin, across various physical media, such as Wi-Fi and various radio technology, et cetera, by countries and by regions. We will achieve the goal by identification, monitoring, and optimization to further elevate user experience in the data connectivity market. Our cloud thin technology facilitates a valuable service to both users and carriers. As of December 31, 2020, we have 74 patents approved and 79 patents pending for approval globally. Let's move to page 11, which shows that our cloud-themed technologies through PaaS and SaaS platform could help mobile network operator, MMO, decrease their chain link. The quality of mobile data connectivity is the major factor which influence users switching mobile network operators. For example, according to China Academy of Information and Communication Technology, CAIST research, According to search, main reason for China users' mobile number possibility switch network operators are seeking better coverage, cheaper pricing, and better data package. According to the public information, certain mobile network operators in mainland China had net lost over 10 million mobile network subscribers during year 2020. As mentioned above, it always has shadow areas of unreliable connection and it cannot be fully solved by mobile network operators. We can elevate users' experience such as operators' unreliable connection and no connection area to more reliable connection service level, which help avoid the loss of such mobile network subscribers. With the CloudSync technology through our PaaS and SaaS platform, such as the recent launch of our smart multi-network reselection technology could facilitate mobile network operators improving network coverage and efficiency. elevate their service to users, which would help reduce trend late, bringing add-on value to carriers to meet users' requirements for better mobile data connection. By alliance with the mobile network operators and the cooperation with mobile handset manufacturers globally, we expect high growth potential in the data connectivity service market. Let's move to page 12, which is the most important page. It shows the progress of the fourth quarter of the year 2020 and updates the changes we've made. Despite 2020 being a challenging year, we demonstrate resilience and agility amidst uncertainty during the COVID-19 pandemic. accumulating the enforced quarter revenue of US$70 million, in line with our quarterly budget. In the Chinese market, the establishment of a strategic partnership with Shenzhen branch of China Unicom was an important development for our local business, which we expect will help us broaden our user base more quickly and efficiently. We further invest in Beijing Huaxiang Lianxin Technology CoLTD, which is one of the licensed mobile virtual network operators in China. As we look to proactively expand and enhance our PaaS and SaaS platform ecosystem, and join new industrial business partners in various aspects of IoT applications. We signed a milestone strategy cooperation framework agreement with the China Vehicle Interconnected Transport Capacity Technology, COLTD . In the Japanese market, we cooperate with numerous partners and mobile network operators such as NTT. to further develop local mobile broadband service and strengthen our existing relationships, which contribute to continuous growth momentum. In the U.S. and Europe market, we optimized our website to enhance our glaucoma brand e-commercial efforts as a part of our global expansion strategy. The recent launch of three global meat products represents our effort to offer more wide-ranging solutions in order to connect users worldwide. In the U.S., our global meat brand has a 100% uptake in its traffic to its local e-commercial sites. and set a new record high of man-resistant users in its APP during the first quarter of year 2020. We expect that the widespread vaccination will help cross-border activities and international tourism recover, creating more new growth opportunities in year 2021 with, for example, our uCloud Link 2.0 local business. Looking ahead, we continue to focus on our experience and one way we are developing it is through our navigation plus electronic toll pass service. Our mobile network via our hyper-connectivity technology through PaaS and SaaS platforms. We are also looking to capture additional business opportunities such as mobile network operators, mobile broadband, improving network coverage for carriers, and also elevating user experience. we are targeting opportunities related to network management, such as remote working and education and 5G opportunity for product and service. Our cloud-themed technology, such as multi-network reselection technology, will reduce the network closing time to milliseconds. It is an accelerator of 5G cloud application and ready for commercial use. We believe our technology is highly compatible with various application scenarios where high-quality connection is necessary. For example, Internet of Vehicle, autonomous driving, AR, VR, cargo and logistics, and cloud computing. With hyper-connectivity, we are dedicated to closing and connecting with all local networks and technical systems, improving the user experience by optimization of all layers including assess, routing, and application layers. We expect all other opportunities will further expand our PaaS and SaaS ecosystem. We continue to form alliance and strengthen cooperation with mobile network operators and mobile virtual operators and business partners globally to establish leading technology position of our PaaS and SaaS platform during the 5G cloud era. So let's turn to page 13. Recently, we announced recent low change for senior management through our pay our Chief R&D Officer assumed the role of the Chief R&D Officer and the Chief Supply Officer, replacing Zhong Qi Kuan in the latter role. These changes take effect on January 27, year 2021. The move to the restructure management roles was designed to better align senior leadership positions with the strategy development of our business as we continue to improve operational efficiency. It elevates supply chain management and delivering sustainable growth. I will now turn it over to our CFO, Yimeng Shi, who will go through the business of financial highlights section.