uCloudlink Group Inc.

Hello and welcome to the uCloud Inc. Group, Inc. Second Quarter 2022 Earnings Conference Call. All participants will be on the send-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw your question, please press star, then two. Please note, today's event is being recorded. And now I would like to turn the conference over to Jalene Zhang, Investor Relations. Ms. Zhang, please go ahead.

Thanks, everyone, for joining us on our 17th quarter 2022 earnings call today. The earnings release is now available on our IR website at ir.uclulink.com, as well as our news web service. I will give a brief introduction to our UCLULINK management team. Zhi Ping Peng is our co-founder and the chairman of the board of the directors. Chao Hui Chen is our co-founder, director, and chief executive officer. Yimeng Xu is our chief financial officer. Zhu Tan is our vice president of the marketing and sales. Our CEO will begin with an overview of our company and business highlights. which will cover Section 1 of the earnings presentation posted on our IR website. Our CFO, Yimeng Xu, will then discuss our operation highlights and financial results as presented in Sections 2 and 3. Before we proceed, please note that this quorum contains forward-looking statements made pursuant to the safe harbor provisions of the Private Security Mitigation Refund Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve the 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 expressly qualify in their entity by the cautionary statement, risk factors, and details of the company's findings with the FDC. The company does not assume any obligation to revise or update forward-looking statements as a result of new information, future events, changes in the market conditions, or otherwise, effects as required by law. Please also note that UCLogLink's earnings press release and this conference call include discussions of the non-negotiated gap financial information as well as non-negotiated non-gap financial measures. EuclidLink's press release contains a reconciliation of the non-audited, non-GAAP measures to the non-audited, most directly comparable GAAP measures. I will now turn the call over to our co-founder and CEO. Mr. Cha-Hui Chen, please go ahead.

Yes, thank you, Julian. Page 4 to page 12 are similar contents as the earning presentation of the first quarter We still encourage you to review in the second quarter of year 2022 earnings presentation upload to our investor relationship website with some latest updates. Hence, I will now elaborate on the path similar with the fourth quarter of year 2022 earnings release. instead focus on our most recent developments in the second quarter. Let's move to page 13. uClouding 1.0 is our international data connectivity services business, which has had a strong trade record of high growth margins and profitability with ongoing growth potential. During the second quarter of year 2022, our 1.0 business revenues have increased by 40.1% compared to the same period in year 2021. As international travel restrictions around the world continue to abate over time, the number of average daily active terminals for the 1.0 business has increased during the second quarter of year 2022. Compared to the second quarter of the year 2021, average daily device terminal has increased by 23.6%. A testament to the faster recovery of our 1.0 business, which indicates that more and more customers are using our products and services. With our innovative global We hope to strengthen our leading technology position in providing reliable, high-quality international data connectivity services in more than 140 countries, powered by our PaaS and SaaS platform, enabling single operator entry points to access more than 300 global mobile network operators, a web network We remain positive about the ongoing recovery and growth of global tourism demand and expect revenue from 1.0 business to steadily close and exceed pre-COVID-19 level in the future. Let's move to page 14. uClouding 2.0 is our local data connectivity services business. and has become a new drive of revenue growth since the year 2020. Its growth is built upon our efforts in exploring market opportunities such as the post-pandemic new normal lifestyle that people are getting more and more used to. The development of 5G applications and in the IoT area, our ability to improve network conversions, data connections, cooperation with intelligent hardware manufacturers to implement , et cetera. In the past quarters, we have continued to strengthen our presence in our existing market, including Japan, North America, Southeast Asia, where we help operator and business partners improve their data connectivity services and soft data connection problems through our platform based on our patent technologies, including Cloud Theme and Hypercom technology solution. We adapt our step to the evolving market by introducing and upgrading innovative products to address various 2.0 business application scenarios. During the second quarter of the year 2022, our various IoT solutions, such as industry Wi-Fi loader, IP camera, has gained increasing recognition in various markets, actively extending our footprint into more industries, including power, emergency services, autopilot, et cetera. This is reflected by a 52.6% increase in the 2.0 revenue during the second quarter of year 2022 compared to the same period in the pre-op years. Our customers were able to realize reduced operating costs and improved data connectivity experience through these cutting-edge IoT solutions, and we continue to focus on exploring new business prospects to serve a broader spectrum of partners with IoT needs. We expect our 2.0 business to grow with the support of our innovative cloud theme and the HyperCon technology as we continue to introduce our solutions, services, and products to the market and strengthen our collaborations with local partners. Let's move to page 15. Based on our innovative cloud theme and HyperCon technology solution, we continue to develop and broaden our portfolio of offering with new products and services, such as our self-developed terminals and third-party devices. In the second quarter of year 2022, we continue to promote our existing portfolio of innovative 5G products in countries and regions such as the US, Japan, and Europe. We are now one of the few companies that could provide 5G products with a global radio band. In terms of the IoT side, the IP camera, which was applied with our GMI solution that we launched commercially in the fourth quarter of the year 2022, has now been promoted in the international market and receive global recognition with the innovative technologies that ensure a reliable, high-quality, and innovative mobile data connection for the devices. Going forward, we plan to launch and provide more of these types of innovative products and services. UCloud is positioned as the pioneer technology solution provider in the data connectivity market. Based on a mature 1.0 business, and newer 2.0 business, we promote the long-term development of our PaaS and SaaS ecosystem, which has been recognized by various business partners. We remain confident in our business development teams to empower the building of our PaaS and SaaS ecosystem, and in our research and development teams to address diversified needs our customers pose to us. In the coming quarters, we expect past and present revenues to grow into a more significant drive of our business and continue to enlarge its marginal effect and improve margin profiles. We are more than pleased to announce that our total revenue reached U.S. dollar 18 million. during the second quarter of the year 2002, which has slightly above our previous projection range due to a faster than expected recovery of international data connectivity services and development of local data connectivity services. We successfully achieved a positive operating cash flow for the first quarter since the second quarter of year 2020 during the COVID-19 pandemic. We are confident in our financial and operation position to feel a better result in the future. We believe that from connected to better connection, uCloud is a significant driving force in the transformation of the increasing advance information. We are committed to building a more connected future for more customers and users. We have tried to make a positive impact in the serving a global user community. I will now turn it over to our staff of Yimeng Shi, who will go through the business and financial highlights.