uCloudlink Group Inc.

Hello and welcome to the UCloudLink Group, Inc. Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jillian Zhang, investor relations of the company. Please go ahead.

Thanks, everyone, for joining us on our third quarter 2022 earnings call today. The earliest release is now available on our IR website at ir.euclolink.com as well as our Newswire service. I will give a brief introduction to our Euclolink management team. Zhi Ping Peng is our co-founder and chairman of the board of directors. Chao Hui Chen is our co-founder, director, and chief executive officer. Yimeng Shi is our chief financial officer. Zhu Tan is our then President of 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 in our IR website. Our CFO, Yi Mengshu, will then discuss our operation highlights and financial results as presented in Sections 2 and 3. Before we proceed, please note that this court may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Security Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown ways. 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 entity by the cautionary risk factors, and details of the company's filings 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 EuclidLink's earnings press release and this conference call includes discussions of the non-audited GAAP financial information as well as the non-audited non-GAAP 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. Chao-Hui Chen. Please go ahead.

Thank you, Julian. Page 4 to page 12 are similar contents as the earning presentation of the second quarter of year 2022. We here encourage you to review in the third quarter of year 2022 earning presentation uploading to our investor relationship website with some latest updates. Hence, I will focus on our most recent developments in the third quarter. Let's move to page 13. Euclid 1.0 is our international data connectivity services business, which has had a strong track record of high growth margins and profitability with ongoing growth potential. During the third quarter of the year 2022, our 1.0 business revenues increased by 30.1% compared to the same period of year 2021. The revenue of our 1.0 business in our Japan and Southeast Asia market increased significantly and in mainland China market recovery slightly during the third quarter of year 2022, year over year. International travel restrictions around the world continue to abate over time across our major international market, with North America openly followed up by Europe and later Southeast Asia. One of our key markets, Japan, has also recently announced the lifting of restrictions for foreign travelers effective this October. Consequently, the number of average daily active terminal for the 1.0 business has increased during the third quarter of year 2022. Compare the third quarter of year 2021. Average daily activity terminal for the one point of business has increased by 25%, showcasing the accelerated recovery of the demand of the uCloud's high-quality international data products and services. Currently, we are providing reliable and high-quality international data connectivity services in more than 140 countries, powered by our PaaS and SaaS platform. enabling single operator entry point to assess more than 300 global mobile network operators available network. Going forward, I will remain positive that our one point of business will continue to be the key growth driver of our revenues as well as bottom line results. Let's move to page 14. uClouding 2.0 is our local data connectivity services business and has become a new driver 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 convergence and data connections, the cooperation with intelligent hardware manufacturers to implement glaucoma insight, et cetera. In the past quarter, we have continued to strengthen our presence in our existing markets, including Japan, North America, South Asia, where We help operators and business partners improve their data connectivity services and solve data connection problems through our PaaS and SaaS platforms based on our patent technologies, including the Cloud Theme and the Hypercom technology solution. As we shared in our last quarter, we take pride in our ability to adapt ourselves to the evolving market by introducing and upgrading innovative products to address various 2.0 business applications scenarios. Our 2.0 business revenue report a 38.7% increase during the third quarter of year 2022 compared to the same period in prior years. Our customers are able to realize reduced operating costs and improve data connectivity experiences 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. For example, uCloud is cooperating with a global leading cloud platform provide better connectivity services for this smart ramping. During the third quarter, we have extended efforts into upgrading our current portfolio of offerings to provide a better connecting experience for IoT customers and prepare these products and solutions for more diverse application scenarios. We expect our 2.0 business to grow with the support of our innovative cloud theme and hypercom technology as we continue to introduce our solutions, services, and products to the market and strengthen our collaborations with the local partners. Let's move to page 15. New clouding positions itself as a pioneer technology solution provider in the data connectivity market. Based on the 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 and empower the building of our path and south ecosystem and in our research and development team to address diversified needs to our customers post to us. We are more than pleased to announce that we maintain a positive operating cash flow for the second consecutive quarter during the third quarter of year 2022. And we successfully achieved a positive adjust net income, non-GAAP, for the first time since the global outbreak of the COVID-19 pandemic in the second quarter of year 2020. Our total revenue reached US dollar, 18.2 million US dollar, during the third quarter of the year 2022. And for the first quarter of year 2022, we expect we would further improve our total revenue to be between U.S. dollar 19 million and U.S. dollar 22 million, representing an increase of 8 percent to 25 percent compared to the same period of year 2021. We expect this improvement will allow us to build a more solid financial and operational position to fuel better results in the future. We believe that connected to better connection, uClouding is a significant driving force in the transformation of increasingly advanced information elements. We are committed to build a more connected future for more customers and users, and we strive to make a positive impact in serving the global user community. I will now turn it over to our staff of Yimen Shi, who will go through business and financial highlights.