uCloudlink Group Inc.

Hello and welcome to the uCloud Link Group Inc. Third Quarter 25 Warnings Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing star and 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 and then one on your telephone keypad. To withdraw your question, please press star and then do. Please note that this event is being recorded. I would now like to turn the conference over to Daniel Gao, Investor Relations of UCAO Link. Thank you, and over to you.

Hello, everyone. Thank you for joining us on UCAO Link's third quarter, 2025 Earnings Call. The earnings released and our earnings presentation are now available on our IR website at ir.ucalolink.com. Joining me on today's call are Mr. Chi 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 forelooking statements made pursuant to the safe harbor provisions of the previous Secretary's Legation Reform Act of 1995. These forelooking statements are based on measurements, currents, 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 massively different from the results, performance, or expectations projected or included by these forward-looking statements. All forward-looking statements are expressly qualified in their entity by their cutinary statements, risk factors, and the details of the company's feelings with the SEC. The company does not assume any obligation to reverse or update any forward-looking statements as a result of new information, future events, change in market conditions, or otherwise accept as required by law. Please also notice that UCloudLink's earnings press release and this conference call include discussions of unaudited GAP financial information and unaudited non-GAP financial measures. UCloudLink's press release contents are a reconciliation of the unaudited non-GAP methods to the most directly comparable unaudited GAP methods. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Daniel. Good morning or evening, everyone. Amid a complex microeconomic and trade environment, we remain disciplined in our execution while maintaining operational profitability. This balanced approach allows us to successfully navigate these external challenges and reinforce the resilience of our business while also laying the foundation for long-term value creation. We remain profitable and continue to generate stable margins with total revenue of U.S. dollar 21.1 million and the net income of U.S. dollar 9.3 million during the quarter. Our global mean ecosystem is gaining momentum as it grows in scale and global user adoption. Likewise, our 1.0 international data connectivity services business continues to grow with full-speed 5G network coverage across 91 countries and regions as we continue to gain market shares and reinforce our leadership position in the global low-mean sector. we remain focused on overcoming the world's first three fundamental digital dividers through the transformative connectivity solutions. Firstly, we are eliminating the global connectivity divide by breaking down international long mean barrier and providing seamless network access worldwide. Through our patent CloudSync and HyperCon technologies, we tackle the single multi-network divide by enabling intelligent and optimized connectivity across multiple networks. Lastly, the most innovative way, we are bridging the emotional digital divide with our AI power pack technology. creating entirely new and meaningful connections between humans and their past. Building on this mission, our strategy investment in R&D and marketing to accelerate innovation, enhance user experience, and speed up commercial civilization of our three new growth engines are yielding strong results. Our three new product line, Glaucoma Life, Glaucoma Thin, Glaucoma IoT, saw remarkable year-over-year MAU growth during the quarter, increasing 382.3%, 188.2%, and 593.3% respectively. Feedback has been overwhelmingly positive. reflecting how our solution directly address the market demand and validating our investment strategy. I will now reveal the highlights for each of our key business lines. I will start with our global in life business line. In the third quarter of year 2025, the average monthly active terminal reached 3,903. representing an increase of 408.2% year-over-year. Within our broader Grow Communal Life portfolio, which includes our industry-first Unicor Plus, Unicor Pro, and Long Plug, MAT grows by 369.3%, excluding platform year-over-year. reflecting strong user adoption across these innovative guidelines. Building on this solid foundation of product excellence, I will now highlight the significant progress we made with our flagship product, PetPhone. Designed to bridge the digital divide between humans and their pets, PetPhone is already gaining the momentum after its initial commercial launch in September 2025 in Hong Kong, and across the Middle East, where it has already generated orders for approximately 40,000 units, as we continue to expand our distribution channels and partners. At the IFA year 2025 in Berlin, Headphone was recognized as an all the need in the communications and connectivity catalog of the inaugural IFA Innovation Awards. It also received the best of IFA Year 2025 Distinctions from Young Co-design, Home Cookers, and Mark Dilley's Reviews. Following the showcase of our solutions at the IFA Berlin 2025, we are now in advance discussions with several major retail channels, including one key partners. Furthermore, we successfully entered into a partnership with a leading online retail platform in North America, where initial product shipment has already begun. With the strategy being established across Hong Kong, the Middle East, North America and Europe, we plan to establish a new operational structure and raise additional capital to accelerate the global expansion of our tech business. We also plan to develop tech as a state-of-the-art application that extends beyond smart hardware and build a comprehensive, systematic platform integrating social, entertainment, living stream, and a comprehensive pet ecosystem. The initial version of this new app is expected to launch in the first quarter of year 2025. Our GoKomi IoT business maintains a strong growth strategy trajectory with user adoption and revenue contribution showing substantial year-over-year improvements. In the third quarter, every month active terminals for Glucamine IoT record a year-over-year increase of 583.0%. We secure order for in-car infotainment system, while our initiatives in the Secretary-General sectors are now fully deployed and enter a phase of expansion, supported by broadened partnerships across several high-growth verticals, having established an initial presence in these key sectors. we plan to expand our solution into additional industry in the future. Turning to our glaucoma theme business now, over the past nine months, glaucoma theme has surpassed 400,000 cumulative cars sold, including OTA theme, e-theme, and e-theme trio. a game-changing solution demonstrating clear technology leadership in the industry. The eSIM field was named as a Best of IFA Year 2025 by Mark Ely's reviews, further highlighting its innovation and market recognition. This momentum has fueled our growth. driving at 269.5% year-over-year increase in average month active terminal during the third quarters. The eSIMTree solution has continued to gain strong traction following the widespread distribution of 10,000 trial units under a pilot program. It generates a positive user feedback and at more than 75% in user registration and more than 30% in active engagement, validating both our carrier partnership model and product market fit. Our carrier insurance program has also made significant progress. We have complete pilot negotiations with multiple operators and expect to commence joint testing and pilot initiatives in the coming quarters, laying the groundwork for future large-scale carrier partnerships. Lastly, our Glocomi Mobile 6 broadband business remains stable, with growing order momentum expected to provide a stable foundation of our future growth. The launch of our MioGo G40 Pro and the cutting-edge MioGo G50 Max are expected to serve as growth engines for the coming quarters. The MioGo G40 Pro is a revolutionary upgrade and a milestone product, enabling users to stay connected through one single device and one account. The product began deliveries by the end of the quarter and is the world's first device to support in-flight Wi-Fi and connect seamlessly across several usage scenarios such as home, airports, offices, and cafes. With the Mirgo G40 Pro, we are transforming portable connectivity from an international travel-only solution into a true multi-scenario companion. Powered by our patent AI HyperCon technology, it similarly serves users through one single intelligent device and one account, regardless of where they are. HyperCon, our industry-leading solution, also lays the foundation for larger-scale product iteration and future upgrades. Furthermore, we will launch the Mirgo G50 Max with sky-to-ground 5G satellite integration and AI-driven network switching, further solidifying our innovative leadership in the mobile fixed broadband industry. This device also enhances network quality through AI-powered real-time congestion detection, delivering a faster and more reliable user experience. Looking ahead, We are entering the next phase of expansion, where we will scale our global user base, further diversify our revenue streams, drive innovation across our ecosystem, and sustain a healthy financial performance. The launch of Mirgo G40 Pro and cutting-edge Mirgo G50 Max, combining with the launch of the platform, The strong validation of the ETHIN TRIO pilot, the robust expansion of our IoT solutions provides us with several robust growth engines going forward, laying a solid foundation for future growth. Having successfully navigated external challenges, we are confident in our ability to scale our user base. expand our global partnership and delivery growth in the coming years as we continue to innovate and bridge digital divides for users worldwide. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarter. For the first quarter of the year 2025, we expect total revenues to be between US dollar to US dollar 26.5 million, representing a decrease of 15.4 to an increase of 1.9 compared to the same period of year 2024. For the four years of year 2025, We currently expect revenue to be in the range of U.S. dollar 81.3 to U.S. dollar 85.8 million. The company is revising its guidance in light of the persistent microeconomic challenges and global trend headwinds, which have set and may continue to have a border impact across the industry. I will now turn the call over to Mr. Chen.