uCloudlink Group Inc.

Hello and welcome to the uCloud Link third 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 touch-tone phone. Please note, this event is being recorded. I would like now to turn the conference over to Jillian Xiong. Please go ahead.

Hello, everyone, and thank you for joining us on EuclidLink's third quarter 2023 earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.euclidlink.com. Joining me on today's call are Mr. Zhi-Ping Peng, our co-founder and chairman of Board of Directors, Mr. Chao-Hui Chen, our co-founder, director, and chief executive officer, and Mr. Yimeng Shi, our Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the third quarter of 2023. They will all be available to take your questions in the Q&A session that follows. 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'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 expressly qualify 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. filter events, chance in market conditions, or otherwise, except as required by law. Please also note that Eucolink's earnings press release and this conference call include discussions of non-audited gap financial information and non-audited non-gap financial measures. Eucolink's press release contains a reconciliation of the non-audited non-gap measures to the most directly comparable non-negative gap measures. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Jillian, and good morning, everyone. Thank you for joining us today. We appreciate everyone taking time. We delivered another strong set of results during the quarter, highlighted by a 31% year-on-year increase. in total revenues to U.S. dollar, 20.9 million U.S. dollar, and a six consecutive quarter of positive cash flow from operations. Average daily active terminals, our key operational metric, increased once again to a new all-time high of over 320,000. This was a well-run performance across our entire business. During the quarter, we continued to consolidate and develop our uClouding 1.0 international data connectivity services, driving an excellent performance in this segment. Total revenues from uClouding 1.0 international business increased 42.7 percent year-on-year to U.S. dollar 11.4 million. The recovery of the international travel is creating significant tailwinds for this business, with growth from Japan and mainland China as significant growth drivers during the quarter, while Chinese outbound travel remains soft. Chinese international travelers during the peak summer holiday season increasingly chose to use our Longming Man brand services and are accounting for a growing share of our international data connectivity services. Because of that, revenues from mainland China increased to 7.2% of our total revenues during the quarter. as compared to 2.4 percent during the same period last year. This strong performance was enabled by the continuous development of our technology, products and services offerings, and value-add services. During the quarter, we consolidated our leading position as a 5G long-mean solution provider cover our 5G portable Wi-Fi terminals, 5G terminal packages, and parallel user experience they provide. One of our most popular mobile Wi-Fi devices is now equipped with an artificial intelligence services system, especially provided for Chinese cross-border travelers. means that our products are not just data traffic connectivity terminals, but also intelligent travel assistance. We launched a Glocomy SIM card, which currently offers coverage across 10 high-demand travel destinations, and a GPS tracker-enabled portable Wi-Fi terminal that we believe is currently the smallest of its kind in the world. In addition, we pilot an eSIM solution in October year 2023, which will enable us to satisfy a wider range of data connectivity needs from our customer side. Taken together, we believe our high-margin uClouding 1.0 business will remain a key driver of our business as a long-term recovery of international travel continues. We are confident that our expanding and upgraded portfolio of products and services will help us and our business partners achieve further market share gains and enhance our leadership in the international data looming business. We are working on expanding from data connection to more daily life application scenarios by enriching our portfolio offerings. Our Internet of Things IoT solutions are a key part of this strategy, and during the quarter, third-party devices utilizing uCloud's cloud-themed technology powered by IoT solutions went to the market in Japan. Besides embedding our IoT module in the third-party devices, we also expect to cooperate with major IoT module manufacturers on integrated cloud-themed technology. We also continue to conduct commercial testing of our high-performance 5G customer-premise equipment, CPE, which we expect to launch in the near future. The upgraded CPE provides home and office Internet connection that simulates between the fixed and mobile networks, making it a reliable substitute for traditional fixed broadband offerings. We believe this new offering will foster new clouding positions in the fast-growing market for home and office Internet connectivity, helping us expand our user base and gain additional market share in the fixed broadband market. In addition, we launched retail sales of our GPS-enabled portable Wi-Fi terminals in Hong Kong during this quarter, which marks the beginning of our new efforts. to provide more daily life services. We believe these GPS-enabled devices will become an indispensable assistance in consumers' daily lives, offering an easy way to keep track of personal belongings, monitor the location of family members, including elderly relatives, kids, and pets. As I mentioned before, our offerings include CloudSIM products, the Glokomi SIM card, and an eSIM solution, and we plan to launch various hyper-connectivity solutions compatible with CloudSIM, SoftSIM, and eSIM technology in the future. To sum up, we believe our new offerings open up a new range of application scenarios for our solutions and hold significant long-term growth potential. Many of these solutions are designed to generate not just revenue from sales products and data connectivity services, but also past and past revenue that recur on a monthly, quarterly, and annual basis. Our team is working diligently to expand our offering to serve a broader customer base and a wider variety of use cases. We also believe that we are well positioned to create a mobile data traffic sharing marketplace that redefines the mobile data connectivity experience. All of our efforts are geared towards enforcing the competitive advantages that will facilitate the development of this marketplace, our growing user base, our extensive relationship with global mobile network operators, and our innovative technologies. We will continue building out our offerings and working toward our objective of enabling everyone to enjoy a more intelligent and convenient life through reliable and high-quality data connections. For the fourth quarter of year 2003, UCLowling expects total revenues to be between U.S. dollar 22 million and U.S. dollar 26.2 million, representing an increase of 12.2 percent to 33.7% increase compared to the same period of year 2022. I will now turn the call over to Mr. Shi.