Exhibit No.

Description

99.1

Unaudited Interim Condensed Consolidated Financial Statements

101.INS

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104

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UCLOUDLINK GROUP INC.

By      

:

/s/ Yimeng Shi

Name

:

Yimeng Shi

Title

:

Chief Financial Officer

Contents

Page

Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the Six Months Ended June 30, 2020 and 2021

(F-2)

Unaudited Interim Condensed Consolidated Balance Sheets as of December 31, 2020 and June 30, 2021

(F-3)

Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2020 and 2021

(F-4)

Unaudited Interim Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2020 and 2021

(F-5)

Notes to Unaudited Interim Condensed Consolidated Financial Statements

(F-6)

Six Months ended June 30,

(Amounts expressed in thousands of US$, except for number of shares and per share data)

Note

2020

2021

Revenues

4

54,547

36,934

Revenues from services

27,298

17,710

Sales of products

27,249

19,224

Cost of revenues

(37,218

)

(26,000

)

Cost of services

(14,858

)

(10,460

)

Cost of products sold

(22,360

)

(15,540

)

Gross profit

17,329

10,934

Research and development expenses

(16,560

)

(6,839

)

Sales and marketing expenses

(18,087

)

(7,216

)

General and administrative expenses

(24,464

)

(17,046

)

Other income/(expense)

5

653

(3,378

)

Loss from operations

(41,129

)

(23,545

)

Interest income

26

9

Interest expenses

(228

)

(89

)

Loss before income tax

(41,331

)

(23,625

)

Income tax (expenses)/credit

6

(37

)

4

Share of profit in equity method investment, net of tax

—

53

Net loss

(41,368

)

(23,568

)

Accretion of Series A Preferred Shares

8

(1,293

)

—

Net loss attributable to ordinary shareholders of the Company

(42,661

)

(23,568

)

Net loss

(41,368

)

(23,568

)

Foreign currency translation adjustment

(152

)

432

Total comprehensive loss

(41,520

)

(23,136

)

Net loss per share attributable to ordinary shareholders

   of the Company

Basic and diluted

10

(0.18

)

(0.08

)

Weighted average number of ordinary shares used

   in computing net loss per share

Basic and diluted

10

237,907,456

283,008,578

As of

December 31,

As of

June 30,

(Amounts expressed in thousands of US$, except

for number of shares and per share data)

Note

2020

2021

Assets

Current assets:

Cash and cash equivalents

11

21,989

18,381

Restricted cash

11

8,237

—

Short-term deposit

11

196

197

Accounts receivable, net

12

6,745

11,719

Inventories

13

5,847

6,369

Prepayments and other assets

14

7,477

7,901

Amounts due from related parties

21

2,264

1,237

Other investments

18

19,185

14,950

Total current assets

71,940

60,754

Non-current assets:

Long-term investments

15

1,306

1,614

Property and equipment, net

16

3,029

2,320

Intangible assets, net

17

1,039

992

Other investments

18

17,824

18,508

Prepayments

14

2,116

1,716

Total non-current assets

25,314

25,150

Total assets

97,254

85,904

Liabilities

Current liabilities:

Short term borrowings

20

3,704

4,782

Accrued expenses and other liabilities (including US$10,733

   thousands and US$11,196 thousands from the consolidated

   VIEs, without recourse to the Company as of

   December 31, 2020 and June 30, 2021, respectively)

19

25,742

25,932

Accounts payables (including US$3,543 thousands and

   US$3,749 thousands from the consolidated VIEs,

   without recourse to the Company as of December 31,

   2020 and June 30, 2021, respectively)

19

8,701

11,338

Amounts due to related parties (including nil and

   US$29 thousands from the consolidated VIEs,

   without recourse to the Company as of December 31,

   2020 and June 30, 2021, respectively)

21

1,503

1,525

Contract liabilities (including US$215 thousands and US$115

   thousands from the consolidated VIEs, without recourse to

   the Company as of December 31, 2020 and June 30, 2021,

   respectively)

889

1,172

Total current liabilities

40,539

44,749

Non-current liabilities:

Other non-current liabilities

321

292

Total non-current liabilities

321

292

Total liabilities

40,860

45,041

Commitments and contingencies

22

Shareholders’ equity

Class A ordinary shares (US$0.00005 par value;

   1,700,000,000 shares authorized; 160,055,640 and

   161,790,700 shares issued and outstanding as of

   December 31, 2020 and June 30, 2021, respectively)

7,9

8

8

Class B ordinary shares (US$0.00005 par value; 200,000,000

   shares authorized; 122,072,980 and 122,072,980 shares

   issued and outstanding as of December 31, 2020 and

   June 30, 2021, respectively)

7,9

6

6

Additional paid-in capital

220,292

227,897

Accumulated other comprehensive (loss) /income

(429

)

3

Accumulated losses

(163,483

)

(187,051

)

Total shareholders’ equity

56,394

40,863

Total liabilities and shareholders’ equity

97,254

85,904

Ordinary shares

Class A ordinary shares

Class B ordinary shares

(Amounts expressed in thousands of US$,

except for number of shares and per

share data)

Shares

Amount

Shares

Amount

Shares

Amount

Additional

paid-in

capital

Cumulative

translation

adjustments

Accumulated

losses

Total

equity

Balance as of January 1, 2020

232,451,900

11

—

—

—

—

118,818

706

(100,068

)

19,467

Foreign currency translation adjustment

—

—

—

—

—

—

—

(152

)

—

(152

)

Net loss for the year

—

—

—

—

—

—

—

—

(41,368

)

(41,368

)

Share-based compensation

—

—

—

—

—

—

36,854

—

—

36,854

Accretion of Series A Preferred Shares

—

—

—

—

—

—

(1,293

)

—

—

(1,293

)

Redesignation of ordinary shares into Class

   A ordinary shares

(110,378,920

)

(5

)

110,378,920

5

—

—

—

—

—

—

Redesignation of ordinary shares into Class

   B ordinary shares

(122,072,980

)

(6

)

—

—

122,072,980

6

—

—

—

—

Issuance of ordinary shares upon Initial

   Public Offering (“IPO”)

—

—

20,100,000

1

—

—

27,604

—

—

27,605

Conversion of Series A Preferred Shares

   upon IPO

—

—

29,000,000

2

—

—

24,268

—

—

24,270

Balance as of June 30, 2020

—

—

159,478,920

8

122,072,980

6

206,251

554

(141,436

)

65,383

Ordinary shares

Class A ordinary shares

Class B ordinary shares

(Amounts expressed in thousands of US$,

except for number of shares and per

share data)

Shares

Amount

Shares

Amount

Shares

Amount

Additional

paid-in

capital

Cumulative

translation

adjustments

Accumulated

losses

Total

equity

Balance as of January 1, 2021

—

—

160,055,640

8

122,072,980

6

220,292

(429

)

(163,483

)

56,394

Foreign currency translation adjustment

—

—

—

—

—

—

—

432

—

432

Net loss for the year

—

—

—

—

—

—

—

—

(23,568

)

(23,568

)

Share-based compensation

—

—

—

—

—

—

6,706

—

6,706

Shares issued upon exercise of employee

   share options

—

—

1,735,060

—

—

—

899

—

899

Balance as of June 30, 2021

—

—

161,790,700

8

122,072,980

6

227,897

3

(187,051

)

40,863

Six Months ended June 30,

(Amounts expressed in thousands of US$ except

   for number of shares and per share data)

2020

2021

Cash flows from operating activities

Net loss

(41,368

)

(23,568

)

Adjustments to reconcile net loss to net cash generated from/

   (used in) operating activities

Provision for bad debts

681

77

Impairment for inventory obsolescence

847

—

Disposal of obsolescent goods

—

(44

)

Depreciation of property and equipment

1,120

1,074

Amortization of intangible assets

42

70

(Losses)/gains on disposals of property and equipment

8

(48

)

Interest expenses

228

89

Share-based compensation

36,854

6,706

Fair value losses on other investments

996

3,551

Share of profit in equity method investments

—

(53)

Foreign currency exchange gains/(losses), net

(50

)

419

Changes in operating assets and liabilities

Accounts receivable

12,212

(5,051

)

Prepayments and other assets

(1,968

)

(1,194

)

Inventories

2,932

(479

)

Accrued expenses, accounts payable and other liabilities

(8,307

)

4,339

Amounts due to related parties

(18

)

22

Amounts due from related parties

23

1,027

Contract liabilities

(311

)

212

Net cash generated from/ (used in) operating activities

3,921

(12,851

)

Cash flows from investing activities

Purchase of property and equipment

(1,198

)

(357

)

Purchase of intangible assets

(24

)

(14

)

Proceeds from disposal of property and equipment

—

140

Cash paid for equity method investment

—

(247

)

Increase in short-term deposit

(3

)

(2

)

Purchase of other investments

(33,126

)

—

Net cash used in investing activities