Ucloudlink Group Inc (UCL) 2023 Q3 法說會逐字稿

Hello, and welcome to the uCloudlink Third Quarter 2023 Earnings conference call. All participants will be in listen-only mode. (Operator Instructions)

您好，歡迎參加優克聯2023年第三季財報電話會議。所有參與者將處於僅聽模式。 （操作員說明）

Please note this event is being recorded. I would like now to turn the conference over to Jillian Zeng. Please go ahead.

請注意此事件正在被記錄。現在我想把會議交給曾吉蓮 (Jillian Zeng)。請繼續。

Hello, everyone, and thank you for joining us on uCloudlink's Third Quarter 2023 Earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.ucloudlink.com.

大家好，感謝您參加優克聯 2023 年第三季財報電話會議。收益發布和我們的收益演示現已在我們的投資者關係網站 ir.ucloudlink.com 上發布。

Joining me on today's call are Mr. Zhiping Peng, our Co-Founder and Chairman of Board of Directorsl Mr. Chaohui Chen, our Co-Founder, Director, and Chief Executive Officer; and Mr. Yimeng Shi, our Chief Financial Officer.

參加今天的電話會議的有我們的聯合創始人兼董事會主席彭志平先生，我們的聯合創始人、董事兼首席執行官陳朝輝先生；以及我們的財務長施一猛先生。

Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the third quarter of 2023. They will all be available to take your questions in the Q&A session that follows.

陳先生首先概述了我們近期的業務亮點。隨後，施先生將討論我們 2023 年第三季的財務和營運亮點。他們都將在接下來的問答環節回答您的問題。

Before we proceed, please note that this call may contain forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities 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 materially different from the results, performance, or expectations implied by these forward-looking statements.

在我們繼續之前，請注意，本次電話會議可能包含根據1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述。這些前瞻性陳述基於管理層當前的預期和觀察，涉及已知識和未知的情況。風險、不確定性和其他不受公司控制的因素，可能導致公司的實際結果、業績或成就與這些前瞻性陳述所暗示的結果、業績或預期存在重大差異。

All forward-looking statements are expressly qualified in their entity by the cautionary statements, risk factors, and details of the company's filings with the SEC. The company does not assume any obligation to revise 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.

所有前瞻性陳述在其實體中均受到本公司向 SEC 提交的文件的警示性陳述、風險因素和詳細資訊的明確限制。除法律要求外，本公司不承擔因新資訊、未來事件、市場條件變化或其他原因而修改或更新任何前瞻性聲明的義務。

Please also note that uCloudlink's earnings press release and today's conference call include discussions of unaudited GAAP financial information and an unaudited non-GAAP financial measures. uCloudlink's press release congtains a reconciliation of the unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures.

另請注意，優克聯的收益新聞稿和今天的電話會議包括對未經審計的 GAAP 財務資訊和未經審計的非 GAAP 財務指標的討論。優克聯的新聞稿包含未經審計的非公認會計原則措施與最直接可比較的未經審計的公認會計原則措施的調節。

I will now turn the call back to Mr. Chen. Please go ahead.

我現在將電話轉回給陳先生。請繼續。

Thank you, Jillian, and good morning, everyone. Thank you for joining us today. We appreciate everyone taking time. We've delivered another strong set of results during the quarter, highlighted by a 31% year-on-year increase in total revenues to USD20.9 million and a sixth consecutive quarter of positive cash flow from operations.

謝謝吉莉安，大家早安。感謝您今天加入我們。我們感謝大家抽出時間。我們在本季度取得了另一組強勁的業績，其中總收入同比增長 31%，達到 2,090 萬美元，並且營運現金流連續第六個季度為正。

Average daily active terminals, our key operational metric, increased once again to a new all-time high of over 320,000. This was a well-run performance across our entire business. During the quarter, we continued to consolidate and develop our new uCloudlink 1.0 International Data Connectivity Services, driving an excellent performance in this segment.

我們的關鍵營運指標—日均活躍終端數量再次增加至超過 32 萬個的歷史新高。這是我們整個業務運作良好的表現。本季度，我們繼續鞏固和發展新的uCloudlink 1.0國際數據連接服務，推動了該領域的優異表現。

Total revenues from uCloudlink 1.0 International Business increased 42.7% year-on-year to USD11.4 million. The recovery of international travel is creating significant tailwinds for this business, with growth from Japan and Mainland China as significant growth drivers during the quarter.

優克聯1.0國際業務總營收年增42.7%至1,140萬美元。國際旅行的復甦為該業務帶來了巨大的推動力，其中日本和中國大陸的成長成為本季的重要成長動力。

While Chinese outbound travel remains soft, Chinese international travelers during the peak summer holiday season increasingly chose to use our ROAMING MAN brand services, and they are accounting for a growing share of our information and data connectivity services. Because of that, revenues from mainland China increased to 7.2% of our total revenues during the quarter, as compared to 2.4% during the same period last year. This strong performance was enabled by the continuous development of our technology products and services offerings and value-add services.

儘管中國出境旅遊依然疲軟，但在暑假旺季期間，中國國際遊客越來越多地選擇使用我們的「ROAMING MAN」品牌服務，他們在我們的資訊和數據連接服務中所佔的份額也越來越大。因此，本季來自中國大陸的營收占我們總營收的7.2%，去年同期為2.4%。這種強勁的業績得益於我們技術產品和服務以及增值服務的不斷發展。

During the quarter, we consolidated our leading position as a 5G roaming solution provider as cross border travelers continue to discover our 5G portable Wi-Fi terminals, 5G terminal packages, and the unparalleled user experiences they are providing. One of our most popular mobile WiFi devices is now equipped with an artificial intelligence services assistant, especially provided for Chinese cross-border travelers. Means that our products are not just data traffic connectivity terminals, but also intelligent travel assistants.

本季度，隨著跨境旅客不斷發現我們的 5G 便攜式 Wi-Fi 終端、5G 終端套餐及其提供的無與倫比的用戶體驗，我們鞏固了作為 5G 漫遊解決方案提供商的領先地位。我們最受歡迎的行動WiFi設備之一現在配備了人工智慧服務助手，專門為中國跨境旅客提供。意味著我們的產品不僅是資料流量連接終端，更是智慧出行助理。

We launched a GlocalMe SIM card, which currently offers coverage across 10 high demand travel destinations, and a GPS tracker-enabled portable Wi-Fi terminal. This, we believe, is currently a [small list] of its kind in the world. In addition, we pilot an eSIM solution in October year 2023, which will enable us to satisfy a wider range of data connectivity needs from our customer side.

我們推出了 GlocalMe SIM 卡（目前可覆蓋 10 個高需求旅行目的地）和支援 GPS 追蹤器的便攜式 Wi-Fi 終端。我們相信，目前這只是世界上同類的[一小部分]。此外，我們將於 2023 年 10 月試行 eSIM 解決方案，這將使我們能夠滿足客戶更廣泛的資料連線需求。

Taken together, we believe our high margin uCloudlink 1.0 business will remain a key driver of our business as the long-term recovery of international travel continues. We are confident that our expanded and upgraded portfolio of products and services will have us and our business partners achieve further market share gains, and enhance our leadership in the international data roaming business.

總而言之，我們相信，隨著國際旅行長期復甦的持續，我們的高利潤 uCloudlink 1.0 業務仍將是我們業務的關鍵驅動力。我們相信，產品和服務組合的擴展和升級將使我們和我們的業務合作夥伴進一步擴大市場份額，並增強我們在國際數據漫遊業務中的領導地位。

We are working on expanding from data connection to more daily life application scenario by enriching our portfolio offerings. Our Internet of Things -- IoT solution -- are key part of this strategy. And during the quarter, third party devices utilizing uCloudlink's CloudSIM technology, powered by IoT solution, went to the market in Japan.

我們正致力於透過豐富我們的產品組合，從數據連接擴展到更多的日常生活應用場景。我們的物聯網——物聯網解決方案——是這項策略的關鍵部分。本季度，採用uCloudlink CloudSIM技術並由物聯網解決方案提供支援的第三方設備進入日本市場。

Besides embedding our IoT module in the third party devices, we also expect to cooperate with major IoT module manufacturers on integrated CloudSIM technology. We also continue to conduct commercial testing of our high performance f5G customer premise equipment -- CPE -- which we expect to launch in the near future.

除了將我們的物聯網模組嵌入第三方設備之外，我們還期望與主要物聯網模組製造商合作整合CloudSIM技術。我們也繼續對高效能 f5G 用戶端設備（CPE）進行商業測試，預計在不久的將來推出。

The upgraded CPE provides home and office internet connection lets [perfect] seamless between the fixed and mobile networks, make it a reliable substitute for traditional fixed broadband offerings. We believe this new offering will bolster uCloudlink's positions in the fast-growing market for home and office internet connectivity, helping us have expand our user base, and gain additional market share in the fixed broadband market.

升級後的 CPE 提供家庭和辦公室網路連接，讓固定網路和行動網路之間實現無縫連接，使其成為傳統固定寬頻產品的可靠替代品。我們相信，這項新產品將鞏固優克聯在快速成長的家庭和辦公室網路連線市場的地位，幫助我們擴大用戶群，並在固定寬頻市場獲得更多市場份額。

In addition, we launched retail sales of our GPS-enabled port for WiFi terminals in Hong Kong during this quarter, which marks the beginning of our new efforts to provide more daily life services. We believe these GPS-enabled devices will become an indispensable assistant in consumers' daily lives, offering an easy ways to keep track of personal belongings, monitor the location of family members, including elderly relatives, kids, and pets.

此外，我們於本季在香港推出了支援GPS功能的WiFi終端連接埠的零售，這標誌著我們為提供更多日常生活服務而展開的新努力的開始。我們相信這些支援 GPS 的設備將成為消費者日常生活中不可或缺的助手，提供一種簡單的方法來追蹤個人物品、監控家庭成員（包括老年親戚、孩子和寵物）的位置。

As I mentioned before, our offerings include CloudSIM products, the GlocalMe SIM card, and an eSIM solution, and we plan to launch various types of connectivity solutions compatible with CloudSIM, soft SIM, and eSIM technology in the future.

正如我之前提到的，我們的產品包括CloudSIM產品、GlocalMe SIM卡和eSIM解決方案，未來我們計劃推出相容CloudSIM、軟SIM和eSIM技術的各種類型的連接解決方案。

To sum up, we believe our new offerings opens up a new range of application scenario for our solutions, and holds significant long-term growth potential. Many of these solutions are designed to generate not just revenue from sales product and the data connectivity services, but also PaaS and SaaS revenue that recur on a monthly quarterly annual basis.

綜上所述，我們相信我們的新產品為我們的解決方案開闢了一系列新的應用場景，並擁有巨大的長期成長潛力。其中許多解決方案不僅旨在從銷售產品和數據連接服務中產生收入，而且還可以按月、季度、年度重複產生 PaaS 和 SaaS 收入。

Our team is working diligently to expand our offering to serve a broader customer base, and a wider variety of user use cases. We also believe that we are well-positioned to create a mobile data [traffic sharing] marketplace that will define the mobile data connectivity experience. All of our efforts are geared towards enforcing the competitive advantages that we will facilitate the development of this marketplace, our growing user base, our extensive relationship with global mobile network operators, and our innovative technologies.

我們的團隊正在努力擴展我們的產品，以服務更廣泛的客戶群和更廣泛的用戶使用案例。我們也相信，我們有能力創建一個行動數據[流量共享]市場，該市場將定義行動數據連接體驗。我們所有的努力都是為了增強競爭優勢，促進這個市場的發展、不斷增長的用戶群、與全球行動網路營運商的廣泛關係以及我們的創新技術。

We will continue building out our offerings and working toward our objective of enabling everyone to enjoy a more intelligent and convenient life through reliable and high quality data connections. For the fourth quarter of year 2023, uCloudlink expects total revenues to be between USD22 million and USD 26.2 million, representing an increase of 12.2% to 33.7% increase compared to the same period area of year 2022.

我們將繼續豐富我們的產品，努力實現讓每個人透過可靠、高品質的數據連接享受更智慧、更便利的生活的目標。優克聯預計2023年第四季總營收將在2,200萬美元至2,620萬美元之間，較2022年同期成長12.2%至33.7%。

I will now turn the call over to the Mr. Shi.

我現在把電話轉給石先生。

Thank you, Mr. Chen. Hello, everyone. I will now walk you through our operational and financial highlights for the third quarter of 2023.

謝謝陳先生。大家好。現在，我將向您介紹我們 2023 年第三季的營運和財務亮點。

Average daily active terminal, DAT, measures customer usage trends, and reflects the overall performance of our business in the third quarter of 2023. Average daily active terminal was 325,078, up by 9.3% from the same period of last year, and composed of approximately 12,000 owned by the company, and 313,000 owned by our business partners.

日均活躍終端 DAT 衡量客戶使用趨勢，反映 2023 年第三季我們業務的整體表現。日均活躍終端數為 325,078 個，較去年同期成長 9.3%，由約12,000 歸公司所有，313,000 歸我們的業務合作夥伴所有。

The uCloudlink 1.0 and uCloudlink 2.0 business accounted for around 50.4% and 49.6% of total DAT respectively during the quarter of 2023. Average daily data usage per terminal was 1.56 gigabytes in September 2023.

2023年第一季度，優克聯1.0和優克聯2.0業務分別佔DAT總量的50.4%和49.6%左右。2023年9月，每個終端的日均資料使用量為1.56GB。

Total revenue for the third quarter of 2023 were USD23.9 million, representing an increase of 31% from USD18.2 million in the same period of 2022. Revenue for service were USD16.6 million, an increase of 31.9% from USD12.6 million in the same period of 2022. Revenue from service as a percentage of total revenue was 69.7%, up from 69.2% during the same period of 2022.

2023年第三季總營收為2,390萬美元，較2022年同期的1,820萬美元成長31%。服務營收為1,660萬美元，較2022年同期的12.6美元成長31.9% 2022年同期，服務收入佔總營收的比例為69.7%，高於2022年同期的69.2%。

During the third quarter of 2023, as a percentage of our total revenue, Japan contributed 44.2%. North America contributed 26.3%. Mainland China contributing 17.2%, and other country and regions contributed the remaining 12.3%, as compared to 35.1%, 41.5%, 2.4%, and 21% respectively, in same period of 2022. Revenue from mainland China increased significantly, primarily driven by Chinese travelers using ROAMING MAN brand service by the key increasingly resumed outbound international travel.

2023 年第三季度，日本占我們總營收的百分比為 44.2%。北美地區貢獻了26.3%。中國大陸貢獻了17.2%，其他國家和地區貢獻了剩餘的12.3%，而2022年同期分別為35.1%、41.5%、2.4%和21%。來自中國大陸的收入大幅增長，主要是由於使用ROAMING MAN品牌服務的中國遊客越來越多地恢復出境國際旅行。

Overall gross margin was 51.2% in the third quarter of 2023, as compared to 47.7% in same period of 2022. Gross margins on service was 35.9% in the third quarter of 2023, as compared to 47.9% in the same period of 2022. Excluding share-based compensations, total operating expenses were USD8.7% million (sic - please see press release, "USD9.2 million") or 36% of total revenue in the third quarter of 2023, as compared to USD7.3 million (sic - please see press release, "USD7.9 million") or 40% of total revenue in the same period of 2022. We record net income of USD3.5 million in the third quarter of 2023, as compared to a net loss of USD4.6 million in the third quarter of 2022.

2023年第三季整體毛利率為51.2%，而2022年同期為47.7%。2023年第三季服務毛利率為35.9%，而2022年同期為47.9%。不包括股權激勵，2023 年第三季總營運費用為870 萬美元（原文如此，請參閱新聞稿「920 萬美元」），佔總收入的36%，而同期為730 萬美元（原文如此- 請參閱新聞稿「790 萬美元」）或2022 年同期總營收的40%。我們在2023 年第三季錄得淨利350 萬美元，而淨虧損2022 年第三季銷售額為 460 萬美元。

Adjusted EBITDA, non-GAAP, improved to USD4.1 million during the third quarter of 2023, as compared to USD0.9 million in the same period of 2022. We achieved positive operating cash flow of USD2.8 million during third quarter 2023, as compared to USD1.2 million during the same period of 2022.

2023 年第三季調整後 EBITDA（非 GAAP）增至 410 萬美元，而 2022 年同期為 90 萬美元。我們在 2023 年第三季實現了 280 萬美元的正營運現金流，相比之下， 2022 年同期為120 萬美元。

We successfully achieved positive cash flow from operation for six consecutive quarters. Accumulative operating cash inflow of USD16.7 million through the previous six quarters.

我們成功連續六個季度實現正營運現金流。前六個季度累計營運現金流入 1,670 萬美元。

In sum, our financial performance continued to improve during the third quarter, and we believe that we are well positioned to execute on our strategic growth initiative.

總而言之，我們的財務表現在第三季持續改善，我們相信我們有能力執行我們的策略成長計畫。

With that, operator, let's open up for Q&A.

那麼，接線員，讓我們開始問答吧。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。 （操作員說明）

At this time we will pause momentarily to assemble our roster.

此時我們將暫停片刻以集合我們的名單。

Vivian Zhang, Diamond Equity Research.

Vivian 張，鑽石股票研究。

Hello, this is Vivian Zhang with Diamond Equity Research. Congrats on the strong quarter. Here are my questions. First, could you elaborate on what drove the margin expansion in the quarter, particularly margin on products sold? Was it a price increase or product mix? And is this trend sustainable? Thanks.

大家好，我是 Diamond Equity Research 的 Vivian 張。恭喜季度表現強勁。這是我的問題。首先，您能否詳細說明是什麼推動了本季利潤率的成長，特別是所售產品的利潤率？是價格上漲還是產品組合？這種趨勢是否可持續？謝謝。

Thanks, Vivian. I answer your first question regarding the improvements on gross margins. As you see, the overall service margin improved a lot compared to the same period last year. The major contributions came from the sales of the products -- the mix of the sale products -- so, there's improving on the sale products that contributes overall for this quarter's gross margins.

謝謝，維維安。我回答你關於毛利率改善的第一個問題。正如您所看到的，整體服務利潤率與去年同期相比提高了很多。主要貢獻來自產品的銷售——銷售產品的組合——因此，銷售產品的改善為本季的毛利率做出了整體貢獻。

For service gross margins, there is a similar [level] -- a little bit fluctuations compared with the same period last year. So looking forward, we can expect the recovery in international travel to resume in the following years. So International Connectivity Service gross margin i one of our highest gross margins in our categories. So we expect that this service gross margins will keep this to a similar high level in the fourth quarter of this year.

服務毛利率也有類似的水平——與去年同期相比略有波動。因此，展望未來，我們預計國際旅行將在未來幾年恢復復甦。因此，國際連接服務毛利率是我們類別中毛利率最高的之一。因此，我們預計該服務的毛利率將在今年第四季保持在類似的高水準。

And for sales products, it depends on the mix of products selling to the customers. That's definitely within the sales products. Gross margins will be carried on -- depends to the mix of product sellings. Thank you.

對於銷售產品，這取決於銷售給客戶的產品組合。這絕對是在銷售產品之內。毛利率將繼續保持－取決於產品銷售的組合。謝謝。

Okay, got it. Thank you.

好，知道了。謝謝。

My second question will be about the newly launched products. Can you share with us more information about the portable Wi-Fi terminal, and how you expect these new products to drive the company's growth?

我的第二個問題是關於新推出的產品。您能否與我們分享更多有關便攜式Wi-Fi終端的信息，以及您預計這些新產品將如何推動公司的成長？

Yes. So you know, first, I think is our launch of 5G this year -- the 5G product this year in the last quarter -- in Q2. So quite successfully, this is what's leading faster [towards] 5G global roaming high-performance Wi-Fi. This helped us achieve a good market share, because this is almost the only one portable Wi-Fi available in this market for global roaming. And that's first.

是的。所以你知道，首先，我認為我們今年將在第二季推出 5G——今年最後一季的 5G 產品。非常成功的是，這就是更快實現 5G 全球漫遊高性能 Wi-Fi 的原因。這幫助我們獲得了良好的市場份額，因為這幾乎是該市場上唯一一款可用於全球漫遊的便攜式 Wi-Fi。這是第一名。

And second, we launched a smallest -- like a business card-sized portable Wi-Fi. This portable Wi-Fi can enhance our market position in the international business because we can combine our bigger Wi-Fi and smaller Wi-Fi together, to provide a bit more flexibility similar to meet the various needs of the family package.

其次，我們推出了最小的——例如名片大小的便攜式 Wi-Fi。這種便攜式Wi-Fi可以增強我們在國際業務中的市場地位，因為我們可以將更大的Wi-Fi和更小的Wi-Fi結合在一起，以提供更多的靈活性，類似於滿足家庭套餐的各種需求。

For example, the family -- several family members -- they can use one package for the big device, or you can independently use the smaller device. So that means more choices, and gives users more flexibility. That's the second product we launched in the third quarter.

例如，一個家庭（多個家庭成員）可以為大設備使用一個軟體包，或者您可以獨立使用較小的設備。因此，這意味著更多的選擇，並為用戶提供了更大的靈活性。這是我們在第三季推出的第二個產品。

Another product, for example, we provide artificial intelligence into our Wi-Fi. That means, you know, for a Chinese traveler, they are hard to use. Like ChatGPT in China is difficult, because you need a phone number to register, et cetera. This barrier is there.

例如，我們的另一個產品是在 Wi-Fi 中提供人工智慧。你知道，這意味著對於中國旅行者來說，它們很難使用。像ChatGPT在中國很難，因為你需要一個電話號碼來註冊等等。這個障礙就在那裡。

With our solution, we're working with this service provider, providing artificial AI into our Wi-Fi, and then our user travel from China to outside -- to the world -- making use of ChatGPT. So really, I think that's going to enhance our service ability.

透過我們的解決方案，我們正在與該服務提供商合作，為我們的 Wi-Fi 提供人工智慧，然後我們的用戶利用 ChatGPT 從中國到國外——到世界各地。所以說真的，我認為這將提高我們的服務能力。

By the way, we also provide a SIM card business because I know that even though the portable Wi-Fi can provide the best connection, but some users still want to use a simple solution, not willing to carry an extra device. For this scenario we provide a SIM card business for them, and our SIM card business can download different countries' portfolio, and also combined with our CloudSIM, enable these devices.

順便說一句，我們還提供SIM卡業務，因為我知道儘管便攜式Wi-Fi可以提供最佳的連接，但有些用戶仍然希望使用簡單的解決方案，不願意攜帶額外的設備。針對這個場景我們為他們提供了SIM卡業務，我們的SIM卡業務可以下載不同國家的產品組合，同時也結合我們的CloudSIM，使能這些設備。

Only with a SIM card, they can free roaming in more than 10 countries. I believe in the following quarter, we are providing more countries, and this will meet more customer need for more convenience for people who are not willing to bring an extra device.

只需一張SIM卡，即可在10多個國家免費漫遊。我相信在下個季度，我們將提供更多國家的服務，這將滿足更多客戶的需求，為不願意攜帶額外設備的人提供更多便利。

So I think all -- by the way, also our solution now can integrate more services in the future, like in our [G40] integrate more artificial -- like a car calling. And these kinds of services can help the Chinese and foreigners more easily, more convenience during their travel.

所以我認為所有 - 順便說一句，我們現在的解決方案也可以在未來集成更多服務，就像在我們的 [G40] 中集成更多人工 - 就像汽車呼叫一樣。而這些服務可以幫助中國人和外國人在出遊過程中更輕鬆、更方便。

So all this is a product for our 1.0 business. And also we launched and the 4G and 5G CPE. 4G already won an award -- the first high-reliable CPE. This can help the fixed network become more reliable, no matter the fixed network. How reliable -- there are some periods in the years, yearly, there's some broken [jobs], which you can use the multi mobile network to enhance -- to guarantee -- provide more strong backup, or disaster recovery for fixed network. That's our quite-unique solution for fixed mobile broadband, and this also helps us to consolidate always the better brand, connection, and the services.

所以這一切都是我們1.0業務的產品。我們也推出了 4G 和 5G CPE。 4G已經獲得了一個獎項——第一個高可靠的CPE。這可以幫助固定網路變得更加可靠，無論固定網路如何。多麼可靠——在幾年、每年的某些時期，有一些破損的[工作]，你可以使用多移動網路來增強——保證——為固定網路提供更強大的備份或災難復原。這是我們非常獨特的固定行動寬頻解決方案，這也有助於我們始終鞏固更好的品牌、連接和服務。

And the final one, we also launched our cloudSIM into the IoT service, like in Japan announced, and also some more and more modules, and understand our value for the closed carrier, and also to the global roaming [free].

最後，我們還將我們的cloudSIM引入了物聯網服務，就像在日本宣布的那樣，還有越來越多的模組，並了解我們對封閉運營商以及全球漫遊[免費]的價值。

And this can provide all of the smart device integration and locally get the best reliable connection. That's a basically a need for smart intelligent device. This market share also solutions get more and more attraction for the end users. So all these fine new products and solutions, I believe, not only can enlarge our market share in 1.0 business, you can see we already win the market share compared with before COVID-19.

而這可以提供所有智慧型設備的整合並在本地獲得最佳可靠的連接。這基本上是對智慧型設備的需求。這一市場份額也使解決方案對最終用戶越來越有吸引力。所以所有這些優秀的新產品和解決方案，我相信，不僅可以擴大我們在1.0業務中的市場份額，你可以看到我們已經贏得了與COVID-19之前相比的市場份額。

Our market share for ME5 rental business in China is higher than year 2019. So even though in China, the recovery of international business is soft, it's not as quickly as we expect -- around 30% of recovery so far -- but we still get achieved a big market share. and a good result.

我們在中國的ME5 租賃業務的市佔率高於2019 年。因此，儘管在中國，國際業務的復甦疲軟，也沒有我們預期的那麼快——到目前為止復甦的速度約為30%——但我們仍然獲得很大的市場份額。並取得了良好的結果。

Thank you. That's my answer.

謝謝。這就是我的答案。

Okay, okay. That makes sense. Thank you so much for the detailed information. That's all my questions. That's all.

好吧好吧。這就說得通了。非常感謝您提供詳細資訊。這就是我的所有問題。就這樣。

Theodore O'Neill, Litchfield Hills Research.

西奧多·奧尼爾，利奇菲爾德山研究中心。

Thank you. Thank you very much, and congratulations on the strong quarter. My first question is about the growth rate of terminals versus data. So the terminal growth rate was strong at 9.3% in the quarter, but the total data consumed was less than 1%. Should those two things be related, does that have any meaning that one is much larger than the other?

謝謝。非常感謝，並祝賀季度業績強勁。我的第一個問題是關於終端與資料的成長率。因此該季度終端成長率強勁，達到 9.3%，但消耗的總數據量不到 1%。如果這兩件事相關的話，是否意味著其中一個比另一個大得多？

Hi, thanks Theo for the questions. So let me first explain a bit for this, the two metrics. Yes, you mentioned the metrics is the daily active terminal, right? The daily active terminal, we achieved a new highest of over 320,000. Compared with last year, this figure is increased by about 9.3%. It seems a not a very significant growth, but the revenue generation is quite strong compared with the growth rates in terms, I think, daily active terminal. That means, yes, daily activity is a very important operation metrics.

你好，謝謝西奧的提問。首先讓我解釋一下這兩個指標。是的，您提到的指標是每日活躍終端，對吧？終端日活躍量再創新高，超過32萬。與去年相比，這一數字增加了約9.3%。這似乎不是一個非常顯著的成長，但我認為，與每日活躍終端的成長率相比，創收相當強勁。這意味著，是的，日常活動是一個非常重要的營運指標。

We give out hints whather our user, our partner, used how much of the terminal to generate revenue. So the revenue generation side is quite relied on the usage of our terminals to provide better connections. So that's a strong indication of how revenues generation and growth in the futures. So that figures pay us in the future in this level, so 320,000, that's the daily active terminal, support our generated revenue in a very fast growth pace.

我們給出提示，我們的用戶、我們的合作夥伴使用了多少終端來產生收入。因此，創收方面相當依賴我們終端的使用來提供更好的連接。因此，這有力地顯示了未來收入的產生和成長。所以這個數字在未來會為我們帶來這個水平，所以32萬，也就是每日活躍終端，支持我們產生的收入以非常快的速度成長。

So that's why we develop more new products to satisfy customers' requirements. So more products as described by our CEO, Mr. Chen -- so these new product will be launched to the market, and will support our more active terminal in the market. So our growth will be -- our revenue with service revenue -- will grow as well when the daily active terminals grow.

這就是為什麼我們開發更多新產品來滿足客戶的要求。正如我們的執行長陳先生所描述的那樣，更多的產品將被推向市場，並將支持我們在市場上更活躍的終端。因此，當每日活躍終端成長時，我們的成長——我們的收入和服務收入——也會成長。

Okay, okay -- I understand. The next question is about the IoT, okay, so in your prepared remarks, you talked -- you're talking about the expanding number of third party devices powered by IoT solutions in Japan during the quarter. Is there any particular end-use application for those IoT, or is it broad-based?

好吧，好吧——我明白了。下一個問題是關於物聯網的，好吧，在您準備好的發言中，您談到了本季度日本由物聯網解決方案提供支援的第三方設備數量不斷增加。這些物聯網是否有特定的最終用途應用，或者是否有廣泛的基礎？

And yes, our IoT, as in for Japan's case, is achieved by a partner. They apply this solution for end user. So for the [loader], they try to enhance the reliable of the network connectivity. Potentially, it's big. So I think that that's just for the first phase launch, and we believe that we launch a more bigger scale in the future. And that's for IoT in Japan's case.

是的，我們的物聯網，就像日本的例子一樣，是由合作夥伴實現的。他們為最終用戶應用此解決方案。所以對於[loader]來說，他們試圖增強網路連線的可靠性。潛力很大。所以我認為這只是第一階段的推出，我們相信未來我們會推出更大規模的。這就是日本物聯網的情況。

And also I just mentioned, we embed our solution into a module manufacturer. That means our CloudSIM technology embed into a module manufacturer achieve progress. And I think as more and more module provider embed our GlocalMe inside, So I believe then this smart module know that it was a SIM card placed inside, and we provide them better connection, more network connection and worldwide connection for the smart device and that is become more and more a strong need.

我剛才提到，我們將我們的解決方案嵌入到模組製造商中。這意味著我們的CloudSIM技術嵌入到模組製造商中取得了進展。我認為隨著越來越多的模組提供者將我們的GlocalMe 嵌入其中，所以我相信這個智慧模組知道它是放置在裡面的SIM 卡，並且我們為智慧型裝置提供更好的連接、更多的網絡連接和全球連接，並且已成為越來越強烈的需求。

I understand for this smart device, for example, like a smart car like this smart charger, power battery, smart power battery. They are worldwide -- shipped to the worldwide, but they need to be monitored. They have this factor, and their performance. So I think we provide this best connection, and also it's a competitive condition. And that's why I believe in this part, and in the next year and the following years, we will achieve a big number of connections.

我理解對於這個智慧型設備，比如說像智慧汽車這樣的智慧充電器、動力電池、智慧動力電池。它們遍布全球——運往世界各地，但需要監控。他們有這個因素，也有他們的表現。所以我認為我們提供了最好的連接，這也是一個有競爭力的條件。這就是為什麼我相信這一部分，在明年和接下來的幾年裡，我們將實現大量的連結。

And my last question is about cash balance. You're building a good-sized cash balance here. I wonder if you have plans for acquisitions, or dividend, or similar?

我的最後一個問題是關於現金餘額的。您在這裡建立大量現金餘額。我想知道你們是否有收購、分紅或類似的計劃？

Yes, you see, as we as we announced, we achieved a positive cash flow from operations for our sixth consecutive quarter. And so with cumulative operating cash inflow -- USD16.7 million through the previous six quarters. So our cash balance now is over USD20 million. So yes, what we achieved in terms of the growth rates is quite good. And we expect we will keep this trend to generate more cash flow from operations, to further improve our financial position.

是的，正如我們所宣布的，我們連續第六個季度實現了正營運現金流。前六個季度的累計營運現金流入為 1,670 萬美元。所以我們現在的現金餘額超過2000萬美元。所以，是的，我們在成長率方面取得的成績相當不錯。我們預計我們將保持這一趨勢，從營運中產生更多現金流，進一步改善我們的財務狀況。

We want to have enough cash balance to support the company to grow and expand in the future. So far we don't have a target to allow us to do some acquisitions -- these kind of things. We still have to focus our performance to generate more cash flows to enhance our strength position. That's my answer to your question.

我們希望有足夠的現金餘額來支持公司未來的發展和擴張。到目前為止，我們還沒有目標讓我們進行一些收購——諸如此類的事情。我們仍然需要集中精力創造更多現金流，以增強我們的優勢地位。這就是我對你問題的回答。

Thank you very much.

非常感謝。

Yes, but I think our business 1.0, and also the following new product launch, I believe we will generate more revenue of our cash -- that's a good business. So we are -- first, is try to make the company more stronger, more healthy -- first step. And the second also, we consider any potential opportunity in the future, which are in consideration, but I think the first step is make the company more stronger, more healthy. That's our preferred thinking.

是的，但我認為我們的業務1.0，以及接下來的新產品推出，我相信我們將產生更多的現金收入——這是一項很好的業務。所以我們——首先，是努力讓公司更強大、更健康——第一步。第二，我們考慮了未來任何潛在的機會，這些機會都在考慮之中，但我認為第一步是讓公司更強大、更健康。這是我們的首選想法。

Okay. Thank you very much. That completes my questions.

好的。非常感謝。這完成了我的問題。

(Operator Instructions)

（操作員說明）

This concludes our question-and-answer session. I would like to turn the conference back over to Jillian Zeng for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給曾吉蓮 (Jillian Zeng)，讓其發表閉幕詞。

Well, thank you once again for joining us today. If you have further questions, please feel free to contact uCloudlink's investor relations through the contact information provided on our website, or contact our investor relations firm, Christensen Advisory. We look forward to speaking to you all again on our next quarterly call. Thank you.

好的，再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過我們網站上提供的聯絡資訊聯絡優克聯投資者關係部，或聯絡我們的投資者關係公司Christensen Advisory。我們期待在下一次季度電話會議上再次與大家交談。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。