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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of September 2021

 

Commission File Number: 001-39302

 

 

UCLOUDLINK GROUP INC.

(Registrant’s Name)

 

 

Unit 2214-Rm1, 22/F, Mira Place Tower A

132 Nathan Road, Tsim Sha Tsui

Kowloon, Hong Kong

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F       Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 


 

 

EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1

 

Unaudited Interim Condensed Consolidated Financial Statements

101.INS

 

Inline XBRL Instance Document — this instance document does not appear in the Interactive Data File because its XBRL tags are not embedded within the Inline XBRL document

101.SCH

 

Inline XBRL Taxonomy Extension Scheme Document

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

UCLOUDLINK GROUP INC.

 

 

 

 

 

By      

:

/s/ Yimeng Shi

 

Name

:

Yimeng Shi

 

Title

:

Chief Financial Officer

 

Date: September 29, 2021

 

 

 


 

 

Exhibit 99.1

UCLOUDLINK GROUP INC.

Index to UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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)

 

 

 

F-1


 

 

UCLOUDLINK GROUP INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

 

 

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

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

F-2


 

 

UCLOUDLINK GROUP INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

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

 

 

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-3


 

 

UCLOUDLINK GROUP INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

 

 

 

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

 

 

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

 

F-4


 

 

UCLOUDLINK GROUP INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

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

 

 

(34,351

)

 

 

(480

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Repayments of other borrowings

 

 

(1,086

)

 

 

 

Proceeds from bank borrowings

 

 

594

 

 

 

4,534

 

Repayments of bank borrowings

 

 

(1,949

)