uCloudlink Group Inc.

Thank you for standing by and welcome to the uCloud Link second quarter 2026 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Daniel Gao, Company IR. Please go ahead.

Thank you. Hello, everyone, and thank you for joining us on uCloudLink's second quarter, 2026 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. Zhiping Peng, co-founder and the chairman of the board of directors, Mr. Chaohui Chen, co-founder, director, and the chief executive officer, and Mr. Yimeng 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. Please note that this call may contain forward-looking statements made pursuant to the safe harbor provision of the previous Secretary's 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 company to be massively different from the results, performance, or expectations projected or implied by these four looking statements. All four looking statements are expressly qualified in their integrity by the questionnaire statement, risk factors, and detail of the company's feelings with the SEC. The company does not assume any obligation to reverse or update any forward-looking statement as a result of new information, future events, changes in market conditions, or otherwise, except as required by law. Please also note that your colleague's earnings, press release, and this conference call include discussions of unadopted JAP, uncapped financial information, and unadopted non-capped financial methods. Your colleagues' press release contains a reclassification of their unaudited non-GAAP methods to their most directly comparable unaudited GAAP methods. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Daniel. Good morning or good evening, everyone. Total revenues for the quarter were U.S. dollar $18.2 million, reflecting the continued impact of microeconomic headwinds, geopolitical tensions affecting our bound travel from China, and a significant surge in very cheap costs. Our Euclidean 1.0 international data connectivity services remain under pressure from these factors. However, this impact is increasingly being offset by the rapid scaling of our uCloudLink 2.0 local data connectivity business, which delivered strong growth, particularly from our global mean IoT business. We expect our uCloudLink 2.0 and the new business lines to fully offset the continued contraction in our 1.0 international business by the third quarter. as we continue to execute on our strategy priorities. We continue to see strong momentum across our new product portfolio during the second quarter. Glaucoma IoT and Unicorp Pro in particular gained solid traction with revenue contribution steadily increasing as the transition out of the initial market went up phase. each reached key strategy milestones during the quarter, positioning us well for accelerated commercialization going forward. Across our new growth engine, revenues from growth community IoT and SIEM increased by 392.4% and 78% year-over-year, respectively, to drive for early adoption and a few market leadership. We maintain an elevated level of investment in market for the platform and Papago ecosystem during the quarter. I will now review the highlights for each of our key business lines. I will start with the Glokomi IoT, which saw its in-store base expand further with the monthly order now contributing meaningfully to revenue and the business operating profitability on a consistent basis. In the second quarter, revenue from the global community IoT grew 392.4% year-over-year. Our total install base reached 3.34 million units, and the NAU grew 210 year-over-year. User adoption is growing rapidly across key vertical as it further solidifies our position in high growth sectors, including in-car infotainment and security cameras. Moving on to our platform ecosystem, which has undergone a comprehensive upgrade into a dedicated pet AI agent. Building on the AI power plus social model, We pioneered in the fourth quarter. This marked a major step forward in functionality and performance, redefining AI-powered communication between humans and their pets. The agent can precisely sense a pet's condition and emotion state and intelligently support owner at every stage of care from and Yimeng Shi. These powerful agents create enormous opportunities across pet health, veterinary care, pet safety, and the pet data analytics, each of which we see a source of new value creation. As consumer acceptance of AI pet services grows, we expect to build a both valuable data asset and a leading position in pet AI. We are now extending our pet AI capabilities across communication, safety, and health management on the market front. We have made significant progress in branding and promotional efforts, generating substantial external attention. We select content pieces, reach tens of millions of views in major platforms such as TikTok, Instagram, etc. We look forward to achieving even greater breakthrough in the second half of the year. turning to our Glocomi Life and Thin Business line, where our strategy is beginning to generate results. Glocomi Life solutions saw DAU growth explode, increasing by 801.6% year-over-year, reflecting strong market adoption of the new product line. Glocomi Thin continued to steadily expand as well with DAU increasing 132% year-over-year. Our eSIM solution is gaining strong momentum, leading the market in China and building market share stability across East Asia and the wider Asia Pacific region. Together, this result shows two product lines at a different stage of maturity. with Glokomi Live growing rapidly with exceptional triple digit growth and Glokomi themes scaling consistently. Our premium Mirgo G50 Max is the world's pioneering sky-to-ground integrated mobile connectivity hub, delivering seamless connectivity across satellite, flight, and ground networks. It offers the broadest 5G countries' coverage in the industry, spanning nearly 100 countries, and the performance is reliable across a wide range of scenarios, from the urban environment to in-flight travel. Powered by our AI hypercom technology, the G50 Max has built a market-leading position U.S. dollar 500 plus premium MiFi segments and has set a new benchmark for premium mobile connectivity solutions. While our uClouding 1.0 international data connectivity business has been affected by micro-having, this same condition has created new opportunities for the G50 Max and the premium solution. Driving demand from the resilience are all reliable connectivity in critical environments. We also make solid progress and create new and strong revenue with our newly launched 4G and 5G CPE products during the second quarter for local connectivity services. Both have demonstrated stable performance and successfully passed smaller batch market validation, receiving positive market feedback. Several large orders are currently under negotiation, and we expect to accelerate market deployment and drive stronger growth in Q3. We also achieved notable recognition during the quarter, winning the Customer Impact Award and the MVMO Awards in year 2026, and being shortlisted for leading consumer MVMO sub-brand. for validating our technology leadership and market positioning. Looking ahead, we'll remain focused on strengthening operational management and cost discipline with a clear priority on improving cash flow. Together with the ongoing commercial progress of the Petco AI and social platform, the ramp-up of MIRGO G50 Marks and the continued expansion of Glocomi IoT, CPE R50 and R55. We believe these efforts will position us to navigate the current market environment and emerging stronger. We remain committed to bridging the digital divide in cross-border connectivity as well as the emotion and Yimeng Shi. I will now turn the call over to Mr. Shi.