uCloudlink Group Inc.

Good day, and welcome to the uCloud Link Group, Inc. fourth quarter and full year 2023 earnings conference call. All participants will be in a 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 a touch-tone 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 Zeng. Please go ahead.

Hello, everyone, and thank you for joining us on UCLawLinks' first quarter and full year 2023 earnings call. The earnings release and our earnings presentation are now available on our IR website, ir.uclawlinks.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. Yi Meng 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 fourth quarter and full year 2023. They will all be able to take your questions in the Q&A section 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 companies 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 statement, risk factors, and details of the company's filings with the SEC. The company does not issue any obligation to revise or update any forward-looking statements as a result of new information. Future events, trends in market conditions, or otherwise, except as required by law. Please also note that EuclidLink's earnings press release and this conference call include discussions of non-audited gap financial information and non-audited non-gap financial measures. EuclidLink's press release contains a reconciliation of the non-audited gap measures to the most directly comparable non-audited gap measures. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Julian. And good morning, everyone. Thank you for joining us. We appreciate everyone taking time out of your busy days. We are very pleased to report another strong set of results in year 2023, highlighted by a 19.8% increase in full-year revenues to U.S. dollar 85.6 million. 2023 was a milestone in the turnaround of our business following the COVID-19 pandemic. With operating cash flow, cash inflow of US dollar 6.5 million and net income of US dollar 2.8 million. Our 1.0 international data connectivity services Business continue to recover in year 2023. In our major markets, China and Japan, we are seeing the early signs of a recovery in all-bound tourism and business travel following the COVID-19 pandemic. With more Chinese tourists begin to use our long-man brand services again, and the recovery in Japan gaining gaining momentum. Our market share in these major markets is growing, which will create significant growth opportunities for us going forward. With one of the most extensive 5G long-mean networks in the world that covers 55 countries and regions, our competitive local full-speed 5G long-mean solutions not only offer extensive coverage but also significantly enhance the user experience, which further expands our user space and cements our leading positions in the long mean market. While working to turn around our business over the past years, we leverage our existing research and development resources and cutting-edge technologies to explore business opportunities beyond portable Wi-Fi terminals and build an expanded array of comprehensive data connectivity solutions to satisfy a wide range of users' needs, in addition to significantly enhance the travel experience by catering to the diverse data connectivity needs of various users, we will also offer more intelligent and convenient live applications, like item tracking, pattern management, and emerging communication. Among others, through our global midlife solution business, we believe that these solutions will expand our market, reach and help us establish a broader market presence. Our Better Connections Empower Better Life mission is leading us to extend our business beyond the travel sectors to various aspects of daily life, thereby generating long-term sustainable growth. To drive this transformation, we plan to reorganize ourselves into four distinct product lines in the year 2024. Glocomi Mobile Fixed Orbit. The first. The second, Glocomi Thin. The third, Internet of Things, IoT. And the final, Glocomi Life Solutions. We believe this business reorganization will allow us to operate in a more agile fashion. take advantage of emerging opportunities and enable us to engage with a broader user base with a robust salute of our products and solutions coming in the future. So please allow me to tell you more about what's happening and what's to come at uCloud Link. Let me go into a little more detail in the new array of product lines we have planned for the future. First, we will continue to strengthen the foundation of our business, Glocomy's mobile and fixed broadband, with an expanding offering of innovation cloud-thin technology, hyper-connectivity solutions, and additional value-added services that improve the user experience. We believe that we are uniquely positioned to expand our share in the long-mean market. In addition, we plan to introduce a commercial-grade dual-band customer-premise equipment, CPE, which supports local fixed networks as well as multiple mobile networks from all major operators. It will be able to maintain connectivity even when fiber optic lines fail or are disrupted. Our 5G CPE will be a large-scale and commercial, and will unlock additional opportunity in a mobile fixed-orbital space. Second, global MISIM solutions, including our over-the-air OTA SIM and eSIM solutions, will evolve into the innovative AllSIM solutions, which will allow us to engage with a broader end user base beyond those in the portable Wi-Fi terminal market. Our pioneer AllSIM solution is promised to break out of cross-carrier restrictions and empower every smartphone. Third, our global midlife solutions This has an exciting slate of our product announcements planned in the future, which will bring seamless connectivity into various high-frequency daily life application scenarios. As I mentioned earlier, such as path management, item tracking, as well as emergent communication. Last but not least, We will also integrate these cloud-thin technology and hyper-con connectivity solutions into our IoT business, leveraging both property and the third-party smart module compatible with mainstream chipset platforms. Our IoT business will empower terminals and third-party devices, allowing them to intelligently select and dynamically switch between multiple local carrier network worldwide. This diversity array of solutions, we believe, will help expand our business beyond portable Wi-Fi terminals and drive growth in the future. Because of the changes we are making, Our customers will enjoy more intelligent and convenient lives through our high-quality data connections for a range of everyday scenarios. Finally, I would like to review our guidance of the fourth quarter and four years of year 2024. We are optimized about our future growth prospects following this business reorganization. However, we also recognize that we are only just beginning this transformative journey, and these initiatives will take time to mature. For the fourth quarter of year 2024, we expected total revenues to be between U.S. dollar 17.5 million and the U.S. 18.5 million, representing a decrease of 2.8% to an increase of 2.8% compared to the same period of year 2023. For year 2024, we expect total revenues to be between U.S. dollar 95 million and the U.S. dollar $112 million, representing an increase of 11 percent to 30 percent from last of the year 2023. I will now turn the call over to Mr. Shi.