uCloudlink Group Inc.

Good day and welcome to the uCloud Link first quarter 2023 earnings conference call. All participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the start key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Jillian Zhang, Investor Relations for uCloud Link. Please go ahead.

Thanks everyone for joining us on our first quarter 2023 earnings call today. The earnings release is now available on our IR website at ir.uclolink.com and via newsletter service. I will give a brief introduction to our UCLolink management team. Mr. Zhi Ping Peng is our co-founder and chairman of board of directors. Mr. Chao-Hui Chen is our co-founder, director, and chief executive officer. Mr. Yi-Meng Shi is our chief financial officer. Mr. Chao-Hui Chen, our co-founder and CEO, will begin with an overview of the company's recent business highlights, which will cover the earnings presentation posted on our IR website. Mr. Yi-Meng Shi, our CFO, will then discuss the company's operational operational highlights, and financial results. Before we proceed, please note that this call 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 teams' current expectations and observations that involve known and unknown risks on certain 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 contrary statements, 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 your callings and this press release and this conference call include discussions of the non-audited gap financial information. and the non-audited non-GAAP financial measures. Euclid Link'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.

Thank you, Jillian. And good morning, everyone. Thank you for joining us on our first quarter of year 2023, Earnings Court Day. We appreciate everyone's time. We are pleased to start off 2023 with strong first quarter results, which is the first time that we achieved both positive net income and the positive cash flow generated from operations with growth in revenue since the outbreak of the COVID-19 pandemic. The average daily active terminals continue to be in an upward trend and reach a historic height of over 300,000 in this quarter, as we continue to expand our global path and SaaS ecosystem, reflecting the accelerated market demand for uCloud Link services across the global market. New Clouding 1.0 is our international data connectivity services business, which tends to be a higher margin land of business and has historically been one of our key growth drivers. During the first quarter of year 2023, New Clouding 1.0 business revenues increased 38.5% year-over-year to US dollar 7.8 We are delighted that our uClouding 1.0 business demonstrates significant growth as a result of accelerated international travel recovery across our major markets, particularly in Japan. We also have observed increased demand from our 1.0 low-maintenance business in mainland China and Southeast Asia, are historically strong markets with wide coverage of non-mainstream brands. Average daily active terminals for uClouding 1.0 business increased by 55.3%, compared with the same period of year 2022, which indicates the significant growth of our business. We remain optimistic in our ability to further grow our uClouding 1.0 business, thereby solidifying our leading global position in the international data non-means solutions market. And we look forward to serving our users globally as the market continues to pick up. uClouding 2.0 is our local data connectivity services business. which focuses on local residents and solves challenges among the carriers. This business line took off during the pandemic as we see the opportunities in the local market by offering reliable local data connection services. Over the past two years, we continue to strengthen our present in local markets, including Japan and North America, where we have operator and business partner improve their data connectivity services and resolve data connection problems through our PaaS and SaaS platform, based on our patent technologies, including Cloud Theme and Hypercom technology solutions. Our uClouding 2.0 business reported US dollar 2.2 million in revenues, up by 37 percent in the first quarter of year 2023, as compared to U.S. dollar 1.6 million in the same period of year 2022. We received recognition from business partners in established markets like Japan and North America, and continue our efforts in expanding our PaaS and SaaS platform ecosystem. We expect our high-quality, reliable data connectivity services based on our innovative Hypercom technology will receive more industry recognitions and applications, especially in the mobile and fixed broadband industry. We expect to launch more innovative Hypercom products catering to the needs of a diverse set of mobile virtual operators, business partners, and individual customers in the near future. On the Internet of Things IoT side of our business, we have shared updates on multi-application scenarios supported by our IoT module. including Wi-Fi loader, IP cameras, et cetera, which have been welcomed by our customers in various markets for their competitive advantages. In Japan, we are actively working with our business partners to explore and expand application scenarios for the IoT business to further improve the data connectivity experience for their customers. At the same time, Our team continues to leverage existing resources in the research and development to develop new Cloudy 3.0 business. The one-stop mobile data traffic sharing marketplace application is planned to launch the fourth version in the near future, which leverages our efforts in building scalable users based through our new CloudLink 1.0 and 2.0 models. This marketplace enables and uses devices to connect to available networks anytime, anywhere, utilizing the global Meet app new version. We remain confident in the market conditions ahead for the month of year 2023. and we're prepared to take advantage of the peak season of international travel during the summer. We believe our track record of delivering reliable and high-quality data connectivity experience and our historic of introducing innovative products and solutions enable us to maintain a leading position in the international data connectivity services industry. We are always committed to continuous development of innovative solutions and plan to expand our cloud theme and high-tech technology solutions to more application scenarios. Our business aims to deliver value-added services to our customers by continuously improving their mobile data connectivity experience, and we will continue to execute our growth strategies with our expanding portfolio of offerings. I will now turn the call over to our CFO, Mr. Yimeng Shi.