uCloudlink Group Inc.

Group Inc. first quarter 2025 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 telephone keypad and to withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Daniel Gao, Director of IR for the company. Please go ahead.

Hello, everyone, and thank you for joining us on UCLoudLink's first quarter 2025 earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.ucloudlink.com. Joining me on today's call are Mr. Zhi Ping Peng, Co-Founder and Chairman of the 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 all 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 pursuant to the safe harbor convergence of the previous 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 the component's control, which may cause actual results, performance, or achievements of the component to be materially different from the results, performance, or expectations implied by these forward-looking statements. All forelooking statements are expressly qualified in their entity by their category statements, risk factors, and details of the component's feelings with the SEC. The component does not assume any obligation to reverse or update any forelooking statements as a result of new information, future events, changes in market conditions, or otherwise. except as required by law. Please also note that your CloudLinks earnings press release and this conference call include discussions of unaudited GAAP financial information and unaudited non-GAAP financial measures. Your CloudLinks press release contains a reconciliation of the undaunted non-GAP measures to the most directly comparable unaudited GAP measures. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Daniel, and good morning or evening, everyone. We kick off 2025 with a solid performance as our expanding glaucoma ecosystem continues to gain traction and be momentum. Total revenues during the quarter was US dollar 18.7 million, in line with the guidance, representing an increase of 3.4% year-over-year. Despite significant and increased investments in new product marketing and sales initiatives. We maintain a strong finance position delivering a net income of US$0.4 million and a positive operating cash flow of US$0.2 million. Our 1.0 international data connectivity services business continues its robust growth. with the full-speed 5G network coverage now available in 19 countries and regions. This expansion further strengthened our market share and reinforced our leading position in the long-wind market. A notable highlight this quarter was the showcasing of our newest innovative solutions for PayPal, IoT, TEST, at MWC Barcelona 2025, including the eSIM Trill, CloudSIM Kit, PatFone, New Goal G50 Max, and the G40 Pro. These new and exciting technologies have been integrated into our broader series of Glaucoma and Glaucoma Insight solutions, driving growth and increasing visibility and interest among consumers global operators, enterprise customers, and the business partners. With this strong tailwind, starting from the second quarter of this year, our emerging business line, Glokomi Thin, Glokomi Line, Glokomi IoT, are all projected to achieve active terminal growth. Active terminal growth rate exceeding 100%, significantly contributing to our expansion and growth going forward as we build our global market data traffic sharing marketplace. Also, we expect that our global mobile fixed broadband business line will steadily grow by approximately 10%. Starting in the third quarter, of the year 2025, we will begin regular disclosure of our key metrics, including user account numbers segmented by business lines to provide greater transparency and allow investors to carefully track our progress in user growth. Following our MWC showcase, We are already capitalizing on high-value opportunities by engaging in advanced commercial discussions with multiple major operators worldwide, with several partners expected to be finalized in the coming months. At a recent MVNO World Congress year 2025, the premier exhibition for the MVNO industry Our four latest solutions are unveiled, generating widespread recognition as again changing innovations. These solutions are scheduled for commercial launch in May and June, year 2025, with the scale production expected to begin in the third quarter. we have began deploying AI intelligence to enhance operational efficiency and embedding it into a number of our solutions to improve the user experience and ensure seamless global connectivity. Alongside AI, our proprietary HyperCon top-themed SysTech positioning technologies continue to break barriers in the connectivity, revolutionizing digital experience for IoT people and pets worldwide. At CES 2025, our unicorn was honored with the Best of CES Year 2025 Breakthrough Award by Android Authority. Underscoring our commitment to innovation, additionally, One of our subsidiaries hit a significant milestone as one of the first batch of 13 foreign-invested companies to receive approval from China MII for pilot operations of value-add telecommunication services. Our inclusion in the first batch alongside the affiliates of the renowned multinational such as Deutsche Telekom, Siemens, Airbus, and HSBC, reflects the growing impact we are having in the sector. This will enable us to provide Chinese consumers with a more diverse range of value-added telecom services and solutions to better meet growing digital lifestyle needs. This marks a significant step into expanding our global footprint and delivering cutting-edge connectivity solutions. I will now review highlights for each of our key product lines. I will start with global midlife where we just unveiled our first pet connectivity solution at MWC year 2025, Petform. a revolutionary addition to the digital ecosystem. PetPhone is the world's first smartphone for pets, offering fun AI pet interaction, six-step global positioning for safety, and AI smart guardian health monitoring. PetPhone is receiving exceptional market validation in the pet care market, indicating that it It will attract more users in the future. It enables pet owners to communicate with their pets while a local meetup, allowing them to call, send a voice message, play music, even set up routines like fading times, playing reminders. Pets can even initiate calls. track, exercise, running distance, calorie burning, and activity levels, fostering a healthy lifestyle for pets. Pet owners can also join and create a community globally to engage with others like never before. These innovative groundbreaking devices redefine the bond between pets and their owners. and we enhance MVMO and mobile network operator subscribers acquisition and revenue growth going forward. Alongside headphones, our Unicore Plus long plug solutions provide additional secure and reliable connectivity for daily life, freeing users from comparison devices while ensuring seamless and convenient experience. Turning to the global IoT business, where we introduced the CloudSync Kit, an all-in-one game-changing IoT solution. This revolutionary plug-and-play IoT solution was designed to deliver instant global full-speed 4G and 5G connectivity for IoT and smart devices. This innovative solution can be seamlessly integrated into existing devices with SIM card slots, such as smartphone, CPE, and the other IoT-enabled hardware. It is cost-effective, enterprise-grade, and offer superior network quality, ensuring the best coverage without the need for any hardware or software modifications. The plug-and-play nature of our cloud-themed technologies transform ordinary devices into enhanced connected assets. It offers globally scalable assets with flexible carrier switching, and a competitive economic. Empowering the IoT ecosystem with seamless and reliable connectivity, we have already achieved significant penetration in the automotive environment and camera markets, especially among the mainstream Chinese vehicle brands, which advancing breakthrough In specialized segments like security and dashboard cameras, daily active IoT terminals increased 12-fold year-over-year in year 2005 Q1, with positive user feedback. Our global missing business just unveiled another game-changing revolutionary leap in SIM technology. eSIM Trill, positioned as the best second SIM you can have. It enhances both domestic and international coverage by providing consumers with a single SIM solution for seamless local and global connectivity. It addresses core challenges faced by MVMO and mobile network operators, such as poor network performance and limited international roaming. and empowers Tier 2 and Tier 3 operators and NVMOs that are unable to build independent networks widely to deliver superior services and expand their market reach. eSIMTRIO offers enterprise-grade security, global coverage, and at the best price, eliminates costly international loaning, delivers reliable high-speed connectivity across multiple networks. Lastly, our people-centric local Mi Mobile fix broadband business just unveiled the MioGo G50 Max, a HyperCon 5G mobile Wi-Fi hotspot with AI-driven sky-to-ground connectivity. This device enhances network quality through AI-powered real-time congestion detection ensuring seamless connection regardless of where you are. Our advanced HyperCon technologies deliver a hyper-local global international access, ensuring that users have high-speed connections and reliable network wherever they go without the limitation of traditional roaming and all carrier restrictions. The upgraded G40 model suppose speaks three times faster than the traditional 4G device. It's the world's first enabled in-flight Wi-Fi connectivity and integrating Wi-Fi network across various environments such as homes, airports, offices, and cafes. All four business lines are now market-ready which will be commercially available in Q2, year 2025, and attracting strong interest from partners, including global pet stock chains, signaling significant market expansion potential as we engage in commercial discussions. As we innovative business lines increasingly diversify our revenue streams to a mix of value-add services and mobile data traffic solutions that fit into our marketplace, our user base is gradually diversifying and scaling up. With our expanding product portfolio, depending on partnership and AI integration, we are confident in driven growth through the remainder of the years. As the mature regular disclosures of key metrics that will begin in 2025 Q3, we better reflect the direction our business is heading and provide investors with a clear understanding of the strategic progress we are making in building comprehensive global mobile data traffic sharing marketplace. Year 2025 marks our transformation year, during which our business expanded from a single line product line to four product lines, and the user figures to be released in Q3. will be crucial indicators of this transformation. With the optimism for the future in mind, I will conclude with our guidance for the next quarter. For the second quarter of year 2025, we expect the total revenue will be between U.S. dollar 23 million to U.S. dollar 25 million, representing an increasing of 2.7% to 11.6% compared to the same period of year 2024. I will now turn the call over to Mr. Si.