uCloudlink Group Inc.

Good day and welcome to the UCLoudLink second quarter 2024 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 your 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 Daniel Gao, Investor Relations Director. Please go ahead.

Okay, thank you. Hello, everyone, and thank you for joining us on Euclid's second quarter 2024 earnings call. The earnings release and our release presentation are now available on our IR website at ir.euclid.com. Joining me on today's call are Mr. Zhi Ping Peng, co-founder and chairman of board of directors, Mr. Chao Hui Chen, co-founder, director, and chief executive officer, and Mr. Yi Meng Shi, 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 quarter. They will both be available 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 personal to the safe harbor privileges of the Privy Secretary's Litigation Reform Act of 1995. These forward-looking statements are based on measurements, current expectations, and observations that involve known and unknown risks, uncertainties, and other factors not under component control, which may cause actual results, performance, or treatments of the component to be massively different from the results, performance, or expectations implied by those forward-looking statements. All forward-looking statements are expressly qualified in their entirety by their contemporary statements, risk factors, and the details of the company's feelings with the SEC. The company does not assume any obligation to review 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 Please also note that Euclid's earnings press release and this conference call include the discussions of outdated GAP financial information and outdated non-GAP financial methods. Euclid's press release contents are of the audited non-GAP methods to the most directly comparable audited GAP methods. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Daniel, and good morning or evening, everyone. Continuing the story that we had early in this year, close momentum carried into the second quarter. with the total revenue reaching U.S. dollar 22.4 million, in line with the guidance. Our financial position is improving, with net income reaching U.S. dollar 2.2 million, and the operating cash flow increasing 38.3% year-over-year to U.S. dollar 4.7 million. In the second quarter of 2024, aside from our Glocomi Mobile 6 broadband business, comprehensive data connection solutions and business lines such as Glocomi Live, Glocomi Theme, and Glocomi IoT have made consistent progress in expanding beyond the travel sector into various aspects of daily life. with an expanded array of comprehensive data connectivity solutions to satisfy a wide range of our needs. Firstly, let me start with the progress we have made in our global mean mobile fixed broadband business line. Our 1.0 international data connectivity services business continue to grow in the second quarter of the year 2024, further consolidating our leading position in the long-mean market and expanding our market share. As the widespread adoption of our full-speed 5G solutions gains momentum, supported by the recovery in international travel, our extensive 5G long-mean solutions now cover 60 countries and regions, and are generating a stable stream of revenue, creating significant growth opportunities for us going forward. According to the Mobile Economic 2024 report from the Global Systems for Mobile Communications Association, or GSMA, The global number of 5G connections is expected to rise to 5.5 billion by 2030, from 1.6 billion at the end of 2023. Second, our glocomelite solution made significant progress in the second quarter of the year 2024. We officially launched three glocomelite solutions in May. at the Viva Technology 2024 in Paris, the lineup of new solutions consisting of key tracker, long plug, Unicorp, has not only showcased our innovative capabilities, but also garnered widespread acclaim in the market, making the beginning of a promising new revenue stream going forward. With the unique multi-network, multi-base station, positioning, and active radar, reach for up to 100 meters, our key tracker is technology ahead of the competition with its six advanced positioning technologies, including GPS, ADPS, LPS, Wi-Fi, Bluetooth, and active radar. The long-mean product is more than just a universal travel adapter. It is an all-in-one device that combines smart charging technology, four charging ports, including three USB-C and one USB-A, and a built-in mobile Wi-Fi module. Unicor is a dual-head USB-C cable with built-in mobile Wi-Fi capabilities. Long plug and the Unicor create a local and global travel companion to charge and connect devices, while also providing reliable Internet connectivity without the need to carry a bucket of hardware. Global Meet Live solutions allow people to stay connected to their loved ones. seamlessly offering connectivity to various high-frequency daily life application scenarios, such as path management, item checking, as well as emerging communications. These solutions are expected to contribute more revenues in the coming quarters as we gradually expand this revenue stream with the recurring subscription and the services revenue. Third, we continue to gradually expand the availability of our global Mi SIM solutions, including over-the-air OTA SIM and eSIM solutions in more countries and regions, paving the way for more powerful all SIM solutions that will allow us to engage with a broader user base. Our all SIM solutions, which consolidate OTA SIM, eSIM, and Cloud SIM, are uniquely positioned to break cross-carrier restrictions, empower various smartphones, and set a new pioneer industry benchmark for mobile connectivity and convenience when they launch in the near future. According to the Mobile Economic 2024 report, from the GSMA, SIEM Commission, excluding licensed cellular IoT, are expected to increase from 8.6 billion in 2023 to 9.8 billion by 2030. In our LocalMe IoT business line, we are leveraging our soft cloud SIEM technology compatible with various chipset platforms to engage with a broader spectrum of partners in the security camera, dashboard camera, and the related sectors to explore additional application scenarios. This will allow us to demonstrate the strengths and the capabilities of our technology to a broader audience. According to the Mobile Economics 2024 report from the GSMA, Licensed cellular IoT connections are expected to grow from 3.5 billion in year 2023 to 5.8 billion by 2030. Finally, as we transition beyond the portable Wi-Fi terminal market, we are scaling up our user base beyond the travel sector into a various comprehensive daily life application scenarios such as every care, pet management, item checking, and daily travel. This transition will diversify our revenue stream from the primary mobile data traffic solutions to a mix of value-add services and mobile data traffic solutions. This will drive ongoing consolidation and development of our Glocomi ecosystem, positioning it as a leading global mobile data traffic sharing marketplace, while creating a long-term sustainable value for our shareholders. We firmly believe that better connection empowers better life. With the graduate commercialization of Glocomi Live, seeing an IoT business lines gaining momentum. We expect to see them contribute more meaningfully to revenue in the coming quarter through various markets and channels. We are confident that we have a right strategy in place to generate sustainable growth in the coming quarters. For the third quarter of year 2024, we expect total revenues to be between U.S. dollar 24.0 million to U.S. dollar 28 million, representing an increasing of 0.4% to 17.2%. Compare the same period of year 2023. I will now turn the call over to Mr. Hsu.