uCloudlink Group Inc.

Good day, and welcome to the UCloud Link Group, Inc. second quarter 2023 earnings conference call. All participants will be in listen-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 touchtone phone. 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. Please go ahead.

Thanks, everyone, for joining us on our second quarter 2023 earning call today. The earnings release is now available on our IR website at ir.uclaulink.com and via new web services. I will give a brief introduction to our UCLOLINK management team. Mr. Ji Pingpeng is our co-founder and chairman of the board of directors. Mr. Chao-Hui Chen is our co-founder, director, and chief executive officer. Mr. Yi-Meng Xu 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 IHAR website. Mr. Yi Mengshi, our CFO, will then discuss companies' operational highlights and financial results. Before we proceed, please note that this quorum contains 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 achievement of the company to be materially different from the results, performance, or expectations implied by this forward-looking statement. All forward-looking statements are expressly qualified in their entity by the contrary with the factors and details of the company's filings with the SEC. The company does not assume any obligation or 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 earning price release and this conference call include discussions of the non-audited gap financial information and the non-audited non-gap financial measures. Eucolink's press release contains a reconciliation of the non-audited non-gap measures to the non-audited most directly comparable gap measures. I will now turn the call over to our co-founder and CEO, Mr. Cha-Hui Chen. Please go ahead.

Thank you, Julien. And good morning, everyone. Thank you for joining us on our second quarter year 2023 earnings call today. We appreciate everyone's time. We were pleased to have achieved positive cash flow from operations for a fifth consecutive quarter. During the quarter, we reported strong top-line growth with total revenues of U.S. dollar 22 million at 21.9% increase from the prior year period and the average daily active terminals continues to increase and once again reached a record high over 310,000. During the second quarter of the year 2023, Revenues from uClouding 1.0 international data connectivity services business, we call uClouding 1.0 business, increased by 32.5% year-over-year to U.S. dollar 9 million. And the average daily active terminals from uClouding 1.0 business increased by 57.7. percent year-over-year, primarily as a result of the recovery in international travel. While our bound travel from China remains somewhat limited in the first half of the year 2023, Chinese tourists utilizing Longming Membrane services still have contributed an increasingly considerable amount to our international data connectivity services. Our unique 5G portable Wi-Fi terminals and the various data traffic packages from 4G to 5G are widely recognized by the market for the ability to elevate the user's experience across a broad audience. which will enable us to maintain our leading positions in the global long mean market. I'm pleased to share a few recent developments in our 1.0 business. In July, year 2023, we launched the Glocomi SIM card. This SIM card is backed by our patent cloud SIM technology, which allows our customers to freely purchase and use multiple global data plans as needed. As of lunch, this global meeting covers 10 major destination countries, including Japan, the United States, Australia, and we expect to gradually expand its availability to additional countries and regions. In addition, we are launching a pilot sales of GPS tracking enabled roaming portable Wi-Fi terminals that we believe will be the smallest one in the world. The innovative product range covers portable Wi-Fi, GPS tracking enabled roaming terminals, and the local SIM card. expanding U-Clouding 1.0 business portfolio of offerings, through which we help global users achieve a leading zero-loaning experience in various application scenarios to satisfy their cross-border data demands, driving competitive advantages that enhance our business performance. optimistic about the prospects of uClouding 1.0 business and believe that this higher margin business will continue to serve as a key growth drive into the future. uClouding 2.0 local connectivity services business, we call uClouding 2.0 business, maintains continuous development which report U.S. 2.2 million in revenues, up by 23.1 percent from U.S. dollar 1.8 million in the second quarter of the year 2002. During this quarter, our upgraded customer premise equipment, CPE, was tested commercially. This product enabled a seamless transition between fixed and mobile networks. serving as a substitute for traditional fixed-line broadband, suitable for home and office internet connection use. We are confident that the upgraded CPE will allow us to further gain the market share in the fixed broadband we call FDB market. What I discussed just now outlines our data connectivity services business. I would like to highlight uCloud Link's PaaS and SaaS solutions, which is a line of business where we see great potential. On the IoT side, uCloud Link's IoT module will begin to be commercially embedded into the devices of major mobile network operators in Japan. within years 2023, making a significant expansion into IoT application scenarios. Adding to the Embed IoT module, the GPS tracking enabled roaming portable Wi-Fi terminals and upgraded CPE. This offering will generate recurring pass and start services revenues apart from data connectivity services revenue and set of products. We look forward to applying our PaaS and SaaS solution to provide additional services, including customer management services, emergency and security communication services, and GPS tracking services. Among the others, expanding our user base and application scenario, and contributing to the growth of our revenues. During the quarter, we continue to prepare for the full initial. initiation of our one-stop comprehensive marketplace APP, a centralized platform application that allows users to assess our full portfolio of services. We believe that we are approaching the launch of one-step marketplace APP, which will enable us to attract more users and customers beyond their users beyond the users of portable Wi-Fi step by step. We remained confident in our team's capabilities to launch the APP in the near term. In conclusion, we were pleased with the progress we have made in our growth initiatives, as well as the improved financial results we have achieved in the first half of the year. We are pleased to be at the forefront of the innovation and expect to continue expanding our portfolio of offerings based on our innovative cloud-themed technology and the HypoCon solutions, which demonstrates our strong research and development capability, laying a solid foundation for future growth. For the third quarter of year 2023, Ukraine expects total revenues to be between U.S. dollar 23.5 million to U.S. dollar 24.5 million, representing an increase of 29.1% to 34.6%, compared to the same period of year 2022. we will continue playing a significant part in integrating high-quality data connectivity experience into various life scenarios. And we believe that our solutions truly enable our customers and users to live a more convenient and intelligent life, from connected to be better connected. I will now turn the call over to our CFO, Mr. Yim Chi.