uCloudlink Group Inc.

Hello and welcome to the UCLoudLink Group, Inc. Third Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. 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 of uCloudLink. Please go ahead.

Hello, everyone, and thank you for joining us on Euclid's third quarter 2024 earnings call. The earnings release and our earnings 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 QA section that follows. Before we proceed, please note that this code may contain forward-looking statements made pursuant to the safe harbor provisions of the previous Securities Legislation 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 the component's control, which may cause actual results, performance, and the achievements of the component to be massively different from the results, performance, or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by their quotationary statements, risk factors, and detail of the company's feelings with SEC. The company does not assume any obligation to reverse 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 UCLIN's earnings press release and this conference call include discussions of annotated GAP financial information and annotated non-GAP financial methods. UCLIN's press release counts a recommendation of the annotated non-GAP methods to their most directly comparable annotated GAP methods. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Daniel, and good morning or evening, everyone. We continue to gain growth momentum during the quarter with revenue increasing 5.6% year-over-year to U.S. dollar 25.2 million. In line with our expectations, our financial position remains solid with a net income reaching U.S. dollar 3.4 million and a positive net cash inflow from the operations of U.S. dollar 2.0 million. During the quarter, we actively enhance our market presence. Our global ecosystem continues to thrive, offering comprehensive data connection solutions and diverse business lines. including Glocomy Live, Glocomy Theme, and Glocomy IoT that are driving our expansion beyond the travel sector into various aspects of daily life, supported by the further consolidation of our leading position in the non-main market through Glocomy mobile fixed broadband. This expanding ecosystem is broadening our portfolio of solutions, and allowing us to cater to a wider variety of user needs. First, let me start with the progress we have made in our Glocomi mobile fixed-orbital business line. Our 1.0 international data connectivity services business continues to grow with full-speed 5G network coverage increasing from 75 countries and regions from 50 in the second quarter of the year 2024, fueled by the recovery of international travel and the increasing demand across the key markets. We further consolidate our leading position in the long-wind market and expanding our market share in mainland China and Japan. This growth highlights the strong performance of Chinese travelers from our service during the peak summer travel season, reflecting and expanding segments of our international data connectivity services. Our next-generation portable MiFi product, integrated with HyperCon solutions, will be launched in the near future. According to the Mobile Economics a 2024 report from the Global System for Mobile Communication Association, or the GSMA. The global number of 5G connections is expected to rise to 5.5 billion by year 2030, from 1.6 billion at the end of the year 2023. Second, the first three global midline solutions, which include key tracker, unicorn, and long plug make significant progress during the quarter. We know our extensive market campaigns and actively develop new distribution channels to support their launch. Building what we believe will be a promising new revenue stream going forward. Following the introduction of our Procom in Live products series, at the Weaver Technology in Maine. The serious commercial launch in July in 2024 will further enhance our market exposure by attending other leading global expos such as Trevor Meet Asia, Pet and Vet Exports, and the IFA Berlin 2024, etc. We make breakthroughs in developing retail channels, signing with one of America's largest airport retail channels to make unicorn, long plug, and key track, among other products available at airports across the U.S. We will develop strategy partnerships with other key channel partners across the U.S. and Europe in the coming quarters. With the other solutions already in development, we're looking forward to launching more new products in the coming quarters. The third, within our global missing business, we continue to expand the market presence of the over-the-air thing as more users resubscribe to our data plan service. which is paving the way for our innovative all-seam solution. This solution, which consolidates OTA seam, e-seam, and our pioneer cloud seam technology, is under commercial testing and expected to commercially launch in the near future. Our all-seam solution is uniquely positioned to break cross-carrier restrictions empower various smartphones, and set a new pioneer industry benchmark for mobile connectivity and convenience. Lastly, our Glaucoma IoT business line continues to advance, with several products embedding our technology already in a smaller scale commercial application, demonstrating the strengths and capabilities of our solutions to a broader audience in the IoT of things industry. Leveraging our software cloud scheme technology compatible with various IoT device chipset platform, we are exploring additional application scenarios as we engage with several reading manufacturers in the security IP camera, dashboard camera, and related sectors. We believe that better conditions empower better life. We will continue to leverage Glokomi Live, Glokomi Theme, Glokomi IoT, and their integrated innovative HyperCon and Cloud Theme solutions to expand our global presence through the business partner and channel globally. Over the past 10 years, the Glokomi mobile broadband business has accumulated millions of user bases, with an average daily active terminal, DAT, in the third quarter over 3,200,000. We expect the Glokomi live business will accumulate a broader user base to over 10 million. Furthermore, both of the Glokomi teams and global IoT business have the potential to bring us a user base over 100 million in the future, which will allow us to transition from a provider of mobile data traffic solutions to an integrated and comprehensive marketplace, with each of these business lines fading into this full marketplace. we expect our user base to diversify beyond the travel sector and grow substantially going forward. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarters. For the first quarter of the year 2024, we expect total revenue to be between US dollar 25 million and US dollar 30 million, representing an increasing of 15.2% to 38.2% compared to the same period of year 2023. I will now turn the call over to Mr. Shi.