0001564590-21-020207 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2020 shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	UCLOUDLINK GROUP INC.
Entity Central Index Key	0001775898
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	001-39302
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	Room 2119, 21/F, One Pacific Centre
Entity Address, Address Line Two	414 Kwun Tong Road, Kwun Tong
Entity Address, City or Town	Kowloon
Entity Address, Country	HK
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Registration Statement	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	U.S. GAAP
Class A Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	160,055,640
Title of 12(b) Security	Class A ordinary shares, par value US$0.00005 per share
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true
Class B Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	122,072,980
American Depositary Shares
Document Information [Line Items]
Title of 12(b) Security	American depositary shares (one American depositary share representing ten Class A ordinary shares, par value US$0.00005 per share)
Trading Symbol	UCL
Security Exchange Name	NASDAQ
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	Room 2119, 21/F, One Pacific Centre
Entity Address, Address Line Two	414 Kwun Tong Road, Kwun Tong
Entity Address, City or Town	Kowloon
Entity Address, Country	HK
Contact Personnel Name	Yimeng Shi
City Area Code	+852
Local Phone Number	2180-6111
Contact Personnel Email Address	ir@ucloudlink.com

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues	$ 89,569	$ 158,381	$ 126,399
Cost of revenues	(61,264)	(93,463)	(80,244)
Gross profit	28,305	64,918	46,155
Research and development expenses	(26,359)	(15,108)	(20,401)
Sales and marketing expenses	(29,261)	(24,367)	(29,658)
General and administrative expenses	(43,221)	(20,224)	(19,919)
Other income, net	7,554	290	658
(Loss)/income from operations	(62,982)	5,509	(23,165)
Interest income	37	193	435
Interest expenses	(285)	(438)	(3,385)
(Loss)/income before income tax	(63,230)	5,264	(26,115)
Income tax expenses	(185)	(57)
Share of loss in equity method investment, net of tax			(442)
Net (loss)/income	(63,415)	5,207	(26,557)
Accretion of Series A Preferred Shares	(1,293)	(2,540)	(2,209)
Income allocation to participating preferred shareholders		(296)
Net (loss)/income attributable to ordinary shareholders of the Company	(64,708)	2,371	(28,766)
Net (loss)/income	(63,415)	5,207	(26,557)
Foreign currency translation adjustment	(1,135)	32	537
Total comprehensive (loss)/income	$ (64,550)	$ 5,239	$ (26,020)
Net (loss)/income per share attributable to ordinary shareholders of the Company
Basic and diluted	$ (0.25)	$ 0.01	$ (0.16)
Weighted average number of ordinary shares used in computing net (loss)/income per share
Basic and diluted	259,852,204	232,178,037	185,370,982
Revenues from Services
Revenues	$ 46,150	$ 91,110	$ 88,448
Sale of Products
Revenues	43,419	67,271	37,951
Cost of Services
Cost of revenues	(26,392)	(35,594)	(46,074)
Cost of Products Sold
Cost of revenues	$ (34,872)	$ (57,869)	$ (34,170)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 21,989	$ 37,320
Restricted cash	8,237	2,954
Short-term deposit	196	193
Accounts receivable, net	6,745	25,767
Inventories	5,847	10,518
Prepayments and other assets	7,477	7,828
Amounts due from related party	2,264	692
Other investments	19,185
Total current assets	71,940	85,272
Non-current assets:
Long-term investment	1,306	430
Property and equipment, net	3,029	3,793
Intangible assets, net	1,039	602
Other investments	17,824
Prepayments	2,116
Total non-current assets	25,314	4,825
Total assets	97,254	90,097
Current liabilities:
Short term borrowings	3,704	6,659
Accrued expenses and other liabilities (including US$9,552 thousands and US$10,733 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2019 and 2020, respectively)	25,742	21,319
Accounts payables (including US$7,028 thousands and US$3,543 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2019 and 2020, respectively)	8,701	16,728
Amounts due to related party	1,503	1,022
Contract liabilities (including US$837 thousands and US$215 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2019 and 2020, respectively)	889	1,925
Total current liabilities	40,539	47,653
Non-current liabilities:
Other non-current liabilities	321
Total non-current liabilities	321
Total liabilities	40,860	47,653
Commitments and contingencies
Mezzanine equity
Total mezzanine equity		22,977
Shareholders’ equity
Ordinary shares		11
Additional paid-in capital	220,292	118,818
Accumulated other comprehensive income/(loss)	(429)	706
Accumulated losses	(163,483)	(100,068)
Total shareholders’ equity	56,394	19,467
Total liabilities, mezzanine equity and shareholders’ equity	97,254	90,097
Series A Preferred Stock [Member]
Mezzanine equity
Series A redeemable convertible preferred shares (“Series A Preferred Shares”) (US$0.00005 par value; 29,000,000, and nil shares issued and outstanding as of December 31, 2019 and 2020)		22,977
Total mezzanine equity		$ 22,977
Class A Ordinary Shares [Member]
Shareholders’ equity
Ordinary shares	8
Total shareholders’ equity	8
Class B Ordinary Shares [Member]
Shareholders’ equity
Ordinary shares	6
Total shareholders’ equity	$ 6

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued Expenses And Other Current Liabilities	$ 25,742	$ 21,319
Accounts Payable, Current	8,701	16,728
Contract with Customer, Liability, Current	$ 889	$ 1,925
Common Stock, Par or Stated Value Per Share	$ 0.00005	$ 0.00005
Common Stock, Shares Authorized	971,000,000	971,000,000
Common Stock, Shares, Issued		232,451,900
Common Stock, Shares, Outstanding		232,451,900
Series A Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$ 0.00005	$ 0.00005
Preferred Stock, Shares Issued		29,000,000
Preferred Stock, Shares Outstanding		29,000,000
Class A Ordinary Shares [Member]
Common Stock, Par or Stated Value Per Share	$ 0.00005	$ 0.00005
Common Stock, Shares Authorized	1,700,000,000	1,700,000,000
Common Stock, Shares, Issued	160,055,640
Common Stock, Shares, Outstanding	160,055,640
Class B Ordinary Shares [Member]
Common Stock, Par or Stated Value Per Share	$ 0.00005	$ 0.00005
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	122,072,980
Common Stock, Shares, Outstanding	122,072,980
VIEs [Member]
Accrued Expenses And Other Current Liabilities	$ 9,552	$ 10,733
Accounts Payable, Current	7,028	3,543
Contract with Customer, Liability, Current	$ 215	$ 837

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Class A Ordinary Shares [Member]	Class B Ordinary Shares [Member]	Ordinary shares [Member]	Additional Paid-in Capital [Member]	Treasury Shares[Member]	Cumulative Translation Adjustments [Member]	Accumulated Losses [Member]
Beginning Balance at Dec. 31, 2017	$ (28,602)			$ 7	$ 49,972		$ 137	$ (78,718)
Beginning Balance, shares at Dec. 31, 2017				149,318,791		24,315,080
Foreign currency translation adjustment	537						537
Net income (loss) for the year	(26,557)							(26,557)
Issuance of ordinary shares held as treasury shares						31,665,280
Cancellation of treasury shares						(55,980,360)
Vesting of Restricted Shares held by certain senior management	2,282			$ 2	2,280
Vesting of Restricted Shares held by certain senior management, Shares				44,426,667
Conversion of convertible bonds to ordinary shares	71,148			$ 2	71,146
Conversion of convertible bonds to ordinary shares				35,004,220
Accretion of Series A Preferred Shares	(2,209)				(2,209)
Ending Balance at Dec. 31, 2018	16,599			$ 11	121,189		674	(105,275)
Ending Balance, shares at Dec. 31, 2018				228,749,678
Foreign currency translation adjustment	32						32
Net income (loss) for the year	5,207							5,207
Conversion of Series A Preferred Shares upon IPO, shares		29,000,000
Vesting of Restricted Shares held by certain senior management	169				169
Vesting of Restricted Shares held by certain senior management, Shares				3,702,222
Accretion of Series A Preferred Shares	(2,540)				(2,540)
Ending Balance at Dec. 31, 2019	19,467			$ 11	118,818		706	(100,068)
Ending Balance, shares at Dec. 31, 2019				232,451,900
Foreign currency translation adjustment	(1,135)						(1,135)
Net income (loss) for the year	(63,415)							(63,415)
Share-based compensation	50,607				50,607
Redesignation of ordinary shares into Class A ordinary shares		$ 5		$ (5)
Redesignation of ordinary shares into Class A ordinary shares, shares		110,378,920		(110,378,920)
Redesignation of ordinary shares into Class B ordinary shares			$ 6	$ (6)
Redesignation of ordinary shares into Class B ordinary shares, shares			122,072,980	(122,072,980)
Issuance of ordinary shares upon Initial Public Offering (“IPO”)	27,605	$ 1			27,604
Issuance of ordinary shares upon Initial Public Offering (“IPO”), shares		20,100,000
Conversion of Series A Preferred Shares upon IPO	24,270	$ 2			24,268
Conversion of Series A Preferred Shares upon IPO, shares		29,000,000
Shares issued upon exercise of employee share options	288				288
Shares issued upon exercise of employee share options, shares		576,720
Accretion of Series A Preferred Shares	(1,293)				(1,293)
Ending Balance at Dec. 31, 2020	$ 56,394	$ 8	$ 6		$ 220,292		$ (429)	$ (163,483)
Ending Balance, shares at Dec. 31, 2020		160,055,640	122,072,980

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net (loss)/income	$ (63,415)	$ 5,207	$ (26,557)
Adjustments to reconcile net (loss)/income to net cash (used in)/generated from operating activities
Provision for bad debts	2,794	175	114
Impairment for inventory obsolescence	636	528	772
Depreciation of property and equipment	2,174	2,954	5,227
Amortization of intangible assets	94	90	89
Gain on disposals of property and equipment	(375)	(353)	(542)
Loss on disposals of intangible assets			33
Interest expenses	285	438	3,385
Share-based compensation	50,607	169	2,282
Fair value gains on other investments	(4,909)
Share of loss in equity method investments			442
Foreign currency exchange losses, net	182	607	543
Changes in operating assets and liabilities
Accounts receivable	16,228	(9,311)	(3,061)
Prepayments and other assets	690	2,595	(2,317)
Inventories	4,036	974	(7,806)
Accrued expenses, accounts payable and other liabilities	(9,273)	6,343	3,598
Amounts due to related party	481	(1,948)	2,970
Amounts due from related party	(1,572)	(692)
Contract liabilities	(1,036)	(2,015)	1,356
Other non-current liabilities	335
Net cash (used in)/generated from operating activities	(2,038)	5,761	(19,472)
Cash flows from investing activities
Purchase of property and equipment	(1,252)	(2,750)	(4,540)
Purchase of intangible assets	(482)	(84)	(607)
Proceeds from disposal of property and equipment	230	190	1,020
Cash paid for equity investment			(442)
Cash paid for long-term investment	(811)	(430)
Increase in short-term deposit	(3)	(193)
Purchase of other investments	(33,126)
Net cash used in investing activities	(35,444)	(3,267)	(4,569)
Cash flows from financing activities
Proceeds from other borrowings			4,362
Repayments of other borrowings	(1,819)	(2,241)	(273)
Proceeds from bank borrowings	3,674	8,953	6,107
Repayments of bank borrowings	(5,074)	(5,184)	(5,775)
Proceeds from initial public offering, net of issuance costs	29,904
Net cash generated from financing activities	26,685	1,528	4,421
(Decrease)/increase in cash, cash equivalents and restricted cash	(10,797)	4,022	(19,620)
Cash, cash equivalents and restricted cash at beginning of year	40,274	36,627	56,806
Effect of exchange rates on cash, cash equivalents and restricted cash	749	(375)	(559)
Cash, cash equivalents and restricted cash at end of year	30,226	40,274	36,627
Supplemental disclosure of cash flow information
Interest paid	(285)	(438)	(3,225)
Supplemental disclosure on non-cash investing and financing activities:
—Convertible bonds conversion into ordinary shares			71,148
—Acquisition of property and equipment in form of other payables			188
Accretion of Series A Preferred Shares	$ (1,293)	$ (2,540)	$ (2,209)

Organization and Principal Activities

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Principal Activities

1.	Organization and principal activities

(a)	History and organization

UCLOUDLINK GROUP INC. (the “Company”) was incorporated in the Cayman Islands on 25 August 2014 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The Company through its consolidated subsidiaries and consolidated variable interest entities (the “VIE”) (collectively, the “Group”) is principally engaged in the provision of data connectivity services and sales of Wi-Fi terminals and data related products to enable personal and enterprise users to access mobile internet in more than 100 countries and areas. Due to the legal restrictions of the People’s Republic of China (the “PRC”) on foreign ownership and investment in such business, the Company conducts its primary business operations in the PRC through its VIEs.

(b)	Principal subsidiaries and VIEs

As of December 31, 2020, the details of the Company’s principal subsidiaries and VIEs were as follows:

Entity

Place of

incorporation

Date of

incorporation

Relationship

% of

direct

or indirect

economic

ownership

Principal activities

UCLOUDLINK (HK) LIMITED

Hong Kong

2 September 2014

Subsidiary

100

Holding company

HONG KONG UCLOUDLINK

NETWORK TECHNOLOGY

LIMITED

Hong Kong

25 October 2010

Subsidiary

100

Holding company, information technology services and sales of terminals and data related products

Shenzhen Ucloudlink Technology

Limited

PRC

9 July 2015

Subsidiary

100

Technology research

and development

Shenzhen uCloudlink Co.,Ltd.

PRC

7 June 2018

Subsidiary

100

Hardware exportation

Beijing uCloudlink Technology

Co., Ltd. (“Beijing uCloudlink”)

PRC

29 January 2015

Subsidiary

100

Holding company

UCLOUDLINK (SINGAPORE)

PTE.LTD

Singapore

15 May 2017

Subsidiary

100

Sales and marketing

UCLOUDLINK (UK) CO. LTD

13 October 2014

Subsidiary

100

Sales and marketing

Ucloudlink (America), Ltd.

USA

1 August 2016

Subsidiary

100

Sales and marketing

UCLOUDLINK SDN.BHD

Malaysia

24 August 2017

Subsidiary

100

Sales and marketing

uCloudlink Japan Co.,Ltd.

Japan

7 March 2018

Subsidiary

100

Sales and marketing

Shenzhen uCloudlink Network

Technology Co., Ltd.

(“Shenzhen uCloudlink”)

PRC

14 August 2014

Consolidated

VIE

100

Holder of value-added telecommunications services license, information technology services and sales of terminals and data related products

Beijing uCloudlink New

Technology Co.,Ltd.

(“Beijing Technology”)

PRC

15 November 2014

Consolidated

VIE

100

Information technology services and sales of terminals and data related products

PT UCLOUDLINK

TECHNOLOGIES PMA

Indonesia

27 September 2018

Subsidiary

100

Sales and marketing

Refer to Note 2.3 for the consolidated financial information of the Company’s VIEs as of December 31, 2019 and December 31, 2020.

1.	Organization and principal activities (Continued)

(a)	Variable Interest Entities

The Company has entered into certain exclusive technical services agreements with certain PRC domestic companies, which entitle it to receive a majority of their residual returns and make it obligatory for the Company to absorb a majority of the risk of losses from their activities. In addition, the Company has entered into certain agreements with the equity holders of these PRC domestic companies, including loan agreements that require them to contribute registered capital to those PRC domestic companies, exclusive call option agreements to acquire the equity interests in these companies when permitted by the PRC laws, rules and regulations, equity pledge agreements of the equity interests held by those equity holders, and proxy agreements that irrevocably authorize individuals designated by the Company to exercise the equity owner’s rights over these PRC domestic companies.

Details of the typical structure of the Group’s significant VIEs are set forth below:

(i)

VIE agreements amongst Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholders

The following is a summary of the contractual arrangements entered among Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholder:

•

Exclusive Technology Support and Technology Services Agreement

Under the exclusive technology support and technology services agreement between Beijing uCloudlink and Shenzhen uCloudlink, Beijing uCloudlink has the exclusive right to provide to Shenzhen uCloudlink technology support and technology services related to all technologies needed for its business. Beijing uCloudlink owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Shenzhen uCloudlink to Beijing uCloudlink is determined by the revenue of Shenzhen uCloudlink less the expenditures incurred for operation and capital purpose. The term of this agreement will expire only upon the liquidation of Shenzhen uCloudlink.

•

Exclusive Business Operation Agreement

Under the exclusive business operation agreement among Beijing uCloudlink, Shenzhen uCloudlink and Beijing Technology, which is the sole shareholder of Shenzhen uCloudlink, Shenzhen uCloudlink and Beijing Technology undertake that without Beijing uCloudlink’s prior written consent, Shenzhen uCloudlink shall not enter into any transactions that may have a material effect on Shenzhen uCloudlink’s assets, business, personnel, obligations, rights or business operations. Shenzhen uCloudlink and Beijing Technology agree that to the extent permitted by law, they will accept and unconditionally execute instructions from Beijing uCloudlink on business operations. Shenzhen uCloudlink and Beijing Technology also agree to elect directors nominated by Beijing uCloudlink and such directors shall nominate officers designated by Beijing uCloudlink. The business operation agreement will remain effective until the end of the dissolution of Shenzhen uCloudlink and Beijing Technology correspondingly, the term of which will be extended if Beijing uCloudlink’s business term is extended or as required by Beijing uCloudlink.

•

Exclusive Option Agreement

The parties to the exclusive option agreement are Beijing uCloudlink, Shenzhen uCloudlink and the shareholder of Shenzhen uCloudlink. Under the exclusive option agreement, the shareholder of Shenzhen uCloudlink irrevocably granted Beijing uCloudlink or its designated representative(s) an exclusive option to purchase all or part of his or its equity interests in Shenzhen uCloudlink at a consideration of RMB1 or any lower price to the extent permitted under PRC law. Beijing uCloudlink or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing uCloudlink’s prior written consent, Shenzhen uCloudlink’s shareholder shall not sell, transfer, mortgage or otherwise dispose his equity interests in Shenzhen uCloudlink. The term of this agreement will expire only when the total assets of Shenzhen uCloudlink have been acquired by Beijing uCloudlink.

1.	Organization and principal activities (Continued)

(c)	Variable Interest Entities (Continued)

(i)

VIE agreements amongst Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholders (Continued)

•

Powers of Attorney

Pursuant to the irrevocable power of attorney executed by each shareholder of Shenzhen uCloudlink, each such shareholder appointed Beijing uCloudlink as its attorney-in-fact to exercise such shareholders’ rights in Shenzhen uCloudlink, including, without limitation, the power to vote on its behalf on all matters of Shenzhen uCloudlink requiring shareholder approval under PRC laws and regulations and the articles of association of Shenzhen uCloudlink. Each power of attorney will remain in force until the termination of the Exclusive Business Cooperation Agreement.

•

Equity Interest Pledge Agreement

Pursuant to the share pledge agreement among Beijing uCloudlink, Shenzhen uCloudlink and the shareholder of Shenzhen uCloudlink, the shareholder of Shenzhen uCloudlink has pledged all of their equity interests in Shenzhen uCloudlink to Beijing uCloudlink to guarantee the performance by Shenzhen uCloudlink and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement, exclusive technology support and technology services agreement and powers of attorney. If Shenzhen uCloudlink and/or its shareholders breach their contractual obligations under those agreements, Beijing uCloudlink, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests.

(ii)

VIE agreements among Beijing uCloudlink, Beijing Technology and its nominee shareholders

The following is a summary of the contractual arrangements entered among Beijing uCloudlink, Beijing Technology and its nominee shareholders:

•

Exclusive Technology Support and Technology Services Agreement

Under the exclusive technology support and technology services agreement between Beijing uCloudlink and Beijing Technology, Beijing uCloudlink has the exclusive right to provide to Beijing Technology technology support and technology services related to all technologies needed for its business. Beijing uCloudlink owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Beijing Technology to Beijing uCloudlink is determined by the revenue of Beijing Technology generated less the expenditures incurred for operation and capital purpose. The term of this agreement will expire only upon the liquidation of Beijing Technology.

•

Exclusive Business Operation Agreement

Beijing uCloudlink, Beijing Technology and the shareholders of Beijing Technology entered into exclusive business operation agreement under which Beijing Technology engages Beijing uCloudlink as its exclusive provider of technology support, business support and consulting services. Beijing Technology shall pay to Beijing uCloudlink service fees, which is determined by the revenue of Beijing Technology less the expenditures incurred for operation and capital purpose. Beijing uCloudlink shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Beijing Technology shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Beijing uCloudlink. The term of this agreement will expire only upon the liquidation of Beijing Technology or may be cancelled at Beijing uCloudlink’s sole discretion.

1.	Organization and principal activities (Continued)

(c)	Variable Interest Entities (Continued)

(ii)

VIE agreements among Beijing uCloudlink, Beijing Technology and its nominee shareholders (Continued)

•

Exclusive Purchase Option Agreement

Under the exclusive purchase option agreement, the nominee shareholders of Beijing Technology have granted Beijing uCloudlink or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Beijing Technology at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Beijing uCloudlink or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing uCloudlink’s prior written consent, the nominee shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Beijing Technology. The term of this agreement will expire only when the total assets of Beijing Technology have been acquired by Beijing uCloudlink.

•

Power of Attorney

Pursuant to the irrevocable power of attorney, Beijing uCloudlink is authorized by each of the nominee shareholders as its attorney-in-fact to exercise such nominee shareholders’ rights in Beijing Technology , including, without limitation, the power to vote on its behalf on all matters of Beijing Technology requiring nominee shareholder approval under PRC laws and regulations and the articles of association of Beijing Technology and rights to information relating to all business aspects of Beijing Technology . Each power of attorney will remain in force until the termination of the Exclusive Business Cooperation Agreement.

•

Equity Interest Pledge Agreement

Pursuant to the equity pledge agreement, the nominee shareholders of Beijing Technology have pledged all of their equity interests in Beijing Technology to Beijing uCloudlink to guarantee the performance by Beijing Technology and its nominee shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The nominee shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Beijing uCloudlink without Beijing uCloudlink’s written consent. If Beijing Technology and/or its nominee shareholders breach their contractual obligations under those agreements, Beijing uCloudlink, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests.

Through the aforementioned contractual agreements, Shenzhen uCloudlink and Beijing Technology are considered VIEs and Beijing uCloudlink is the primary beneficiary because the Company, through Beijing uCloudlink has the ability to:

•

exercise effective control over Shenzhen uCloudlink and Beijing Technology;

•

receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from these VIEs as if it were their sole shareholder; and

•

have an exclusive option to purchase all of the equity interests in these VIEs.

(iii)

Risks in relation to the VIE structure

In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to approximately US$1.8 million, US$3.8 million and US$3.8 million, as of December 31, 2018, 2019 and 2020, respectively. As the respective VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses in the PRC through the VIEs, the Company may provide additional financial support on a discretionary basis in the future, which could expose the Company to a loss.

There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary.

1.	Organization and principal activities (Continued)

(c)	Variable Interest Entities (Continued)

(iii)

Risks in relation to the VIE structure (Continued)

In the opinion of the Company’s management, the contractual arrangements among its subsidiary, the VIEs and their respective nominee shareholders are in compliance with the current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs in the consolidated financial statements.

In January 2015, the Ministry of Commerce (“MOFCOM”), released for public comment a proposed PRC law, the Draft Foreign Investment Enterprises (“FIE”) Law, that appears to include VIEs within the scope of entities that could be considered to be FIEs, that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control”. If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to include the Company’s contractual arrangements with its VIEs, and as a result, the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of FIEs where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law is silent as to what type of enforcement action might be taken against existing VIEs, that operates in restricted or prohibited industries and is not controlled by entities organized under PRC law or individuals who are PRC citizens. If the restrictions and prohibitions on FIEs included in the Draft FIE Law are enacted and enforced in their current form, the Company’s ability to use the contractual arrangements with its VIEs and the Company’s ability to conduct business through the VIEs could be severely limited.

The Company’s ability to control the VIEs also depends on the power of attorney exercised by Beijing uCloudlink to vote on all matters requiring shareholders’ approvals in the VIEs. As noted above, the Company believes these powers of attorney are legally binding and enforceable but may not be as effective as direct equity ownership. In addition, if the Company’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions:

•

revoke the Company’s business and operating licenses;

•

require the Company to discontinue or restrict its operations;

•

restrict the Company’s right to collect revenues;

•

require the Company to restructure its operations, re-apply for the necessary licenses or relocate the Company’s businesses, staff and assets;

•

impose additional conditions or requirements with which the Company may not be able to comply; or

•

take other regulatory or enforcement actions against the Company that could be harmful to the Group’s business.

The imposition of any of these restrictions or actions may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the financial statements of the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Company’s current ownership structure or the contractual arrangements with its VIEs is remote.

Refer to Note 2.3 for the consolidated financial information of the Company’s VIEs as of December 31, 2018, 2019 and 2020.

1.	Organization and principal activities (Continued)

(d)	Initial Public Offering

On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$27.6 million.

Immediately prior to the completion of the IPO, the Company completed the redesignation on a one-for-one basis of: (i) 122,072,980 ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng into Class B ordinary shares, (ii) all of the remaining ordinary shares into Class A ordinary shares, (iii) the automatic conversion and the redesignation of all of the remaining issued and outstanding preferred shares on a one-for-one basis into Class A ordinary shares.

In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to fifteen votes.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of significant accounting policies

2.1	Basis of presentation

The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.

2.2	Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Significant accounting estimates reflected in the Company’s consolidated financial statements include legal contingencies, share-based compensation and realization of deferred tax assets. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

2.3	Consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprises (“WFOE”) and variable interest entities (“VIEs”) over which the Company is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the consolidated statements of comprehensive (loss)/income from the effective date of acquisition or up to the effective date of disposal, as appropriate.

A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders. A VIE is required to be consolidated by the primary beneficiary of the entity if the equity holders in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.

Due to legal restrictions on foreign ownership and investment in commercial internet content provider or other value-added telecommunication service through certain PRC domestic companies, the equity interests of certain PRC domestic companies are held by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically, the PRC domestic companies that are material to the Group’s businesses are Beijing Technology and Shenzhen uCloudlink.

2.	Summary of significant accounting policies (Continued)

2.3	Consolidation (Continued)

The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs taken as a whole, which were included in the Company’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs:

	As of December 31,
	2019		2020
	(in thousands of US$)
Cash and cash equivalents		4,875		1,734
Accounts receivable, net		5,625		1,450
Amounts due from non-VIE subsidiaries of the Company		9,072		6,663
Property and equipment and intangible assets		2,219		2,311
Others		19,262		9,399
Total assets		41,053		21,557
Short term borrowings		4,659		—
Amounts due to non-VIE subsidiaries of the Company		48,674		42,442
Accrued expenses, account payable and other liabilities		16,580		14,276
Contract liabilities		837		215
Total liabilities		70,750		56,933

	Years ended December 31,
	2018			2019			2020
	(in thousands of US$)
Revenue (note)		89,366			82,054			55,014
Net (loss)/income (note)		(20,102	)		3,160			(3,528	)
Net cash (used in)/provided by operating activities		(8,816	)		2,516			2,739
Net cash provided by/ (used in) investing activities		371			(2,697	)		(1,196	)
Net cash provided by/ (used in) financing activities		4,309			(207	)		(4,684	)

Note:

Revenue and net (loss)/income incurred by the VIEs are primarily from the provision of data connectivity services, as well as sales of Wi-Fi terminals and sales of data related products.

The VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 23 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation.

Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital. As all VIEs are incorporated as limited liability companies under the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities of the VIEs.

Currently there is no contractual arrangement which requires the Company to provide additional financial support to the VIEs. However, as the Company conducts its businesses primarily based on the licenses and approvals held by its VIEs, the Company has provided and will continue to provide financial support to the VIEs considering the business requirements of the VIEs, as well as the Company’s own business objectives in the future.

2.	Summary of significant accounting policies (Continued)

2.3	Consolidation (Continued)

Unrecognized revenue-producing assets held by the VIEs include certain internet value added services provision and other licenses. The internet value added services provision and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the PRC, and therefore are integral to the Group’s operations. The internet content provision licenses require that core PRC trademark registrations and domain names are held by the VIEs that provide the relevant services.

2.4	Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of the executive directors of the Company. The Group has only one operating and reportable segment. The Group’s long-lived assets are substantially all located in the PRC.

2.5	Foreign currency translation

The functional currency of the Company is US$. The Company’s subsidiaries with operations in the PRC, Hong Kong and other jurisdictions generally use their respective local currencies as their functional currencies. The reporting currency of the Company is US$. The financial statements of the Company’s subsidiaries, other than the subsidiaries with the functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity.

In the financial statements of the Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated statements of comprehensive (loss)/income during the period in which they occur.

2.6	Convertible bonds

The Group determines the accounting of its convertible bonds in accordance with the terms in relation to the conversion feature and beneficial conversion feature, as applicable. After considering the impact of such features, the Group may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the respective guidance described under ASC 815 “Derivatives and Hedging” and ASC 470 “Debt”. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense, using the effective interest method, from the issuance date to the earliest conversion date. Interest expenses are recognized in the statement of comprehensive (loss)/income in the period in which they are incurred.

2.7	Mezzanine equity

Mezzanine equity represents the Series A Preferred Shares issued by the Company. The Series A Preferred Shares are redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Group’s control. Therefore, the Group classifies the Series A Preferred Shares as mezzanine equity.

In accordance with ASC 480-10, the mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares will be redeemable at the holder’s option after 5 years from issuance if the Series A Preferred Shares are not converted, either voluntarily or automatically upon a qualified initial public offering (“Qualified IPO”), the Group accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the effective interest method.

2.	Summary of significant accounting policies (Continued)

2.7	Mezzanine equity (Continued)

Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital.

In June 2020, all 29,000,000 issued and outstanding Series A Preferred Shares were converted into Class A ordinary shares upon the completion of the IPO.

2.8	Revenue recognition

Revenue is principally generated by the provision of data connectivity services and the sales of terminals and sales of data related products. Revenue represents the fair value of the consideration received or receivable for the sales of goods and the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method.

The Group conducts its business through various contracts with customers, including:

(i)

Data connectivity services

The Group generates international data connectivity services revenues from (i) data service fees from the use of portable Wi-Fi terminals (under its brand of “Roamingman”), (ii) data service fees generated from sales of data connectivity services to enterprise customers, and (iii) retail sales of data connectivity services.

The Group also generates local data connectivity services revenues from (i) data service fees generated from sales of data connectivity services to enterprise customers, and (ii) retail sales of data connectivity services.

For data connectivity services from the use of portable Wi-Fi terminals, the Group determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Group determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Group further determines that lease component is an operating lease under ASC 840, and that the operating lease component and service component are delivered over the same time and pattern. Therefore, the lease income and service income are recognized as data connectivity services revenue evenly over the service period.

The Group evaluates and determines that it is the principal. For data connectivity services from the use of portable Wi-Fi terminals and retail sales of data connectivity services, the Group views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Group views enterprise customers as its customers. The Group reports data connectivity services revenues on gross basis. Accordingly, the amounts paid for data connectivity services by customers are recorded as revenues and the related commission fees paid to its agents (mainly travel agents and other online distributors) are recorded as cost of revenues. Where the Group is the principal, it controls the data before the data connectivity service is provided to customers. Its control is evidenced by the inventory risk borne by the Group and the Group’s ability to direct the use of the data, and is further supported by the Group being primarily responsible to customers and having the discretion in establishing pricing.

Data connectivity services offered to customers typically provide unlimited data usage during a fixed period of time (“contract period”), where revenue is recognized ratably on a straight-line basis over the contract period. The Group does not have further performance obligations to the customers after the contract period. The Group also offers data connectivity services where customers are charged service fee based on actual data usage, where revenue is recognized as the services are provided to customers.

2.	Summary of significant accounting policies (Continued)

2.8	Revenue recognition (Continued)

In providing data connectivity services to its customers, the Group procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Group’s cloud SIM platform. The Group’s cloud SIM platform manages terminal information and customer accounts and intelligently allocates the SIM cards and data plans and makes them available to customers who purchase the Group’s data connectivity services. Accordingly, the Group takes inventory risk and obtains control of the SIM cards and data plans procured and direct the use of the data on its cloud SIM platform depending on customers’ demand. The Group accounts for the SIM cards and data plans procured as costs of revenue as data is being made available and consumed on its cloud SIM platform.

As the Group’s data connectivity services are provided without right of return and the Group does not provide any other credit and incentive to its customers, therefore, the Group’s provision of data connectivity services does not involve variable consideration.

(ii)

Sales of terminals and data related products

The Group generates revenues from selling tangible products, including GlocalMe portable Wi-Fi terminals, GlocalMe World Phone series and smartphones with GlocalMe Inside (“GMI”) implemented, as well as SIM cards, to enterprise and retail customers and business partners. Sales of terminals and data related products are recognized when control of promised goods is transferred to the customers, which generally occurs upon the acceptance of the goods by the customers.

For sales of Wi-Fi terminals, one gigabyte of free data connectivity service is normally included as a bundle package for the first time purchase of the terminals. There are two separate performance obligations in such bundle sales as the Wi-Fi terminal is a distinct good while the data connectivity service is a distinct service. The Group allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Group then recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue related to the Wi-Fi terminals, revenue is recognized when the control of the Wi-Fi terminals is transferred. For revenue related to the data connectivity service, it is recognized ratably on a straight-line basis over the relevant contract period.

(iii)

Provision of PaaS or SaaS services

Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) mainly consist of fees generated from providing cloud SIM platform as a service to business partners. The Group provides its cloud SIM platform as a service to business partners enabling them to manage their data resources. Business partners using the platform are charged service fees for the use of the cloud SIM platform services. The Group has continuous obligation to ensure the performance of the platform over the service period. Revenue is recognized ratably over the contract period as business partners simultaneously consume and receive benefits from the service. The Group does not provide any other credit and incentive related to the cloud SIM platform services, therefore there is no variable consideration in the arrangement.

(iv)

Contract balance

Contract liabilities represent the cash collected upfront from the customers for purchase of data connectivity services or purchase of Wi-Fi terminals, while the underlying data connectivity services have not yet been rendered or the Wi-Fi terminals have not been delivered to the customers by the Group, which is included in the presentation of contract liabilities.

Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. Where transaction prices for data connectivity services and Wi-Fi terminals are received upfront from the customers, such receipts are recorded as contract liabilities and recognized as revenues over the contract period. The opening balance of contract liabilities from several customers as of January 1, 2018 was US$2,542 thousands. For the year ended December 31, 2018, 2019 and 2020, revenue amounting to US$2,542 thousands, US$3,940 thousands and US$1,925 thousands were included in the contract liabilities balance at the beginning of the respective period.

2.	Summary of significant accounting policies (Continued)

2.9	Cost of revenue

Cost of revenue consists primarily of data connectivity service costs, cost of inventory, logistics costs, depreciation and maintenance costs for equipment, payment processing fees and other related incidental expenses that are directly attributable to the Group’s principal operations.

2.10	Research and development expenses

Research and development expenses primarily consist of salaries and benefits for research and development personnel, share-based compensation, materials, general expenses and depreciation expenses associated with research and development activities.

2.11	Sales and marketing expenses

Sales and marketing expenses consist primarily of online and offline advertising expenses, promotion expenses, share-based compensation, staff costs, sales commissions and other related incidental expenses that are incurred to conduct the Group’s sales and marketing activities.

Advertising and promotional expenses were US$6,589 thousands, US$5,991 thousands and US$2,695 thousands during the years ended December 31, 2018, 2019 and 2020, respectively.

2.12	General and administrative expenses

General and administrative expenses consist primarily of salaries, bonuses, share-based compensation and those not specifically dedicated to research and development or sales and marketing activities, depreciation of property and equipment, amortization of intangible assets, legal and professional services fees, rental and other general corporate related expenses.

2.13	Share-based compensation

Share-based compensation expenses arise from share-based awards, mainly including Restricted Shares held by certain senior management (namely, Mr. Chen Chaohui, Mr. Peng Zhiping and Mr. Gao Wen) and share options awarded to employees and certain senior management in accordance with ASC 718 Stock Compensation. The Group follows ASC 718 to determine whether share option or restricted shares should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees and certain senior management classified as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using an option pricing model. The Group classifies the share-based awards granted to employees and certain senior management as equity award, and has elected to recognize compensation expense on share-based awards with service condition on a graded vesting basis over the requisite service period, which is generally the vesting period.

The Group entered into a share restriction agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in the Group. Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Group held by certain senior management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares were classified as equity awards under ASC 718 and are accounted for as share-based compensation based on the grant date fair value over the vesting period using graded vesting method.

For share options awarded to employees and certain senior management, the Group applies the Binominal option pricing model in determining the fair value of options granted under ASC 718. The Group has elected to account for forfeitures when they occur.

On each measurement date, the Group reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Group, including the fair value of the underlying shares, expected life and expected volatility. The Group is required to consider many factors and makes certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards change significantly in the future, share-based compensation expense may differ materially.

2.	Summary of significant accounting policies (Continued)

2.14	Other employee benefits

The Company’s subsidiaries in the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the local government. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations and the Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the plan are expensed as incurred. During the years ended December 31, 2018, 2019 and 2020, contributions to such plan amounting to US$4,888 thousands, US$3,836 thousands and US$2,077 thousands respectively, were charged to the consolidated statements of comprehensive (loss)/income.

The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC.

2.15	Income taxes

The Group accounts for income taxes using the liability method, under which deferred income taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that the asset will not be realizable in the foreseeable future.

Deferred taxes are also recognized on the undistributed earnings of subsidiaries, which are presumed to be transferred to the parent company and are subject to withholding taxes, unless there is sufficient evidence to show that the subsidiary has invested or will invest the undistributed earnings indefinitely or that the earnings will be remitted in a tax-free manner.

The Group adopts ASC 740 “Income Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures.

The Group did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended December 31, 2018, 2019 and 2020.

2.16	Government grants

For government grants that are non-operating in nature and with no further conditions to be met, the amounts are recognized as income in other income, net. For government grants that contain certain operating conditions, the amounts are recorded as deferred government grant, and are recognized as income in other income, net when the conditions are met.

2.17

Leases

Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments (net of any incentives received from the lessor) are recognized in the consolidated statements of comprehensive (loss)/income on a straight-line basis over the lease terms.

2.18	Comprehensive (loss)/income

Comprehensive (loss)/income is defined to include all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting from investments by shareholders and distributions to shareholders. For the years presented, the Group’s comprehensive (loss)/income includes net (loss)/income and other comprehensive (loss)/income, which mainly consists of the foreign currency translation adjustment that have been excluded from the determination of net (loss)/income.

2.	Summary of significant accounting policies (Continued)

2.19	(Loss)/income per share

Basic (loss)/income per share is computed by dividing net (loss)/income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net (loss)/income is allocated between different classes of ordinary shares based on their participating rights. Diluted (loss)/income per share is calculated by dividing net (loss)/income attributable to ordinary shareholders by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares, redeemable ordinary shares and convertible bonds using the if-converted method and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive.

2.20	Cash, cash equivalents and restricted cash

Cash and cash equivalents represent cash on hand, time deposits and highly-liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. The Group adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) for all years presented. The changes in restricted cash in the consolidated cash flow were US$7,541 thousands and US$2,791 thousands and US$5,283 thousands for the years ended December 31, 2018, 2019 and 2020, respectively, which were no longer presented within investing activities and were retrospectively included in the changes of cash, cash equivalents and restricted cash as required.

Restricted cash represents cash reserved in an escrow account for legal proceedings purpose (Note 24(c)) or pledged as security for certain short-term borrowings, which is reported separately on the face of the consolidated balance sheets.

Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on our consolidated balance sheet as follows:

	December 31,		December 31,
(In thousands)	2019		2020
Cash and cash equivalents		37,320		21,989
Restricted cash		2,954		8,237
Total		40,274		30,226

2.21	Inventories

Inventories mainly consist of products for sales. They are accounted for using the weighted average cost and stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Write downs of US$497 thousands, US$230 thousands and US$948 thousands were recorded in cost of revenues in the consolidated statements of comprehensive (loss)/income for the years ended December 31, 2018, 2019 and 2020 respectively.

2.22	Accounts receivable, net

Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered or products are sold and continuously monitor the recoverability of the accounts receivable.

The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received.

2.	Summary of significant accounting policies (Continued)

2.22	Accounts receivable, net (Continued)

Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are:

(i)

the customer’s past payment history and whether it fails to comply with its payment schedule;

(ii)

whether the customer is in financial difficulty due to economic or legal factors;

(iii)

a significant dispute with the customer has occurred;

(iv)

the objective evidence which indicates non-collectability of the accounts receivable.

2.23	Investment in equity investee

The equity investment represents the Group’s investment in a privately-held entity. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. When the Group’s share of loss in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary.

2.24	Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost.

Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Computers, server & switch and office equipment

5 years

Wi-Fi terminals for data connectivity services

2 years

Leasehold improvement

Over the shorter

of lease term or

3 years

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive (loss)/income.

2.	Summary of significant accounting policies (Continued)

2.25	Intangible assets

Intangible assets mainly consist of trademark, software and licensed copyrights. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. All intangible assets of the Group are finite-lived intangible assets.

Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:

Trademark		10 years
Software		10 years
Licensed copyrights		10 years

2.26	Long-term investment

Long-term investment represents investment of equity interest of 10% of Beijing Huaxianglianxin Technology Company acquired in April 2019 and September 2020. Beijing Huaxianglianxin Technology Company is a licensed mobile virtual network operator and is primarily engaged in telecommunications related business. The Group measures the long-term investment over which the Group does not have significant influence or that do not have readily determinable fair value at cost less impairment prior to January 1, 2018. Effective from January 1, 2018 with the adoption of ASU 2016-01, the Group has elected to use the measurement alternative to account for the equity investment, and therefore carries this investment at cost adjusted for changes from observable transactions for identical or similar investments of the same investee, less impairment. As of December 31, 2020, the carrying amount of this investment was US$1,306 thousands (December 31, 2019: US$430 thousands) and there was no readily determinable fair value and observable price changes in the equity interest. There was no impairment of the investments as of December 31, 2020.

2.27	Deferred offering costs

Deferred offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to anticipated equity offerings, are capitalized and will be offset against proceeds upon the consummation of the offerings within shareholders’ equity. In the event an anticipated offering is terminated, deferred offering costs will be expensed. As of December 31, 2019, there were US$964 thousands of deferred offering costs capitalized and classified in prepayments and other current assets in the consolidated balance sheet. As of December 31, 2020, there were no capitalized deferred offering costs.

2.28	Impairment of long-lived assets

For long-lived assets the Group evaluates for impairment whenever events or changes indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event at the carrying value exceeds the fair value of each reporting unit.

No impairment charge of long-lived assets was recorded for the years ended December 31, 2018, 2019 and 2020.

2.29	Software development costs

The Group incurred costs to research and develop relevant software that is used in its cloud SIM architecture. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of software prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred.

2.	Summary of significant accounting policies (Continued)

2.30	Fair value of financial instruments

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Group’s financial instruments consist principally of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities.

As of December 31, 2018, 2019 and 2020, the carrying values of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term nature of these instruments.

2.31	Other investments

The Group’s other investments consist of debt securities and equity securities, which are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded through the consolidated statements of comprehensive (loss)/income.

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2020

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

3.	Recent accounting pronouncements

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. If a leasee makes this election, it should recognize lease expenses for such lease generally on a straight-line basis over the lease term. The ASU is effective for reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and allows the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In November 2019, the FASB issued ASU No. 2019-10, “Leases (Topic 842): Effective Dates”, to finalize the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the leases standards. The ASU is effective for reporting periods beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. The Group will adopt this new guidance for the fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Most of leases will continue to be operating leases. Upon the adoption, the Group expects its consolidated balance sheet to include a right of use asset and liability related to substantially all of its lease arrangements. The Group expects the adoption of the standard will not have a significant impact on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For available for sale debt securities, credit losses will be presented as an allowance rather than as a write-down. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities. In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates”, to finalize the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the CECL standards. The ASU is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Group is currently assessing the impact of adopting this standard on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of operations as the costs related to the hosting fees. This standard is effective for annual reporting periods beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. The Group expects the adoption of the standard will not have a significant impact on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” to remove specific exceptions to the general principles in Topic 740 and to simplify accounting for income taxes. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company has finalized its analysis and does not expect this ASU to have a material impact on the consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815”, which clarifies the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard and does not expect this ASU to have a material impact on the consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Concentration and Risks

12 Months Ended

Dec. 31, 2020

Risks And Uncertainties [Abstract]

Concentration and Risks

4.	Concentration and Risks

(d)	Foreign exchange risk

The revenues and expenses of the Group’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies.

(e)	Credit risk

Financial instruments that potentially expose the Group to credit risk consist primarily of cash and cash equivalents, short-term deposit and accounts receivable. The Group places its cash and cash equivalents and short-term deposit with financial institutions with high credit ratings and quality.

The Group conducts credit evaluations of third-party customers and related parties, and generally does not require collateral or other security from its third-party customers and related parties. The Group establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific third-party customers and related parties.

Revenues

12 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenues

	Years ended December 31,
(In thousands)	2018		2019		2020
Revenues from services
—Data connectivity services		82,543		80,537		39,956
International data connectivity services		82,032		77,974		30,798
Local data connectivity services		511		2,563		9,158
—PaaS and SaaS services		5,047		9,135		5,717
—Others		858		1,438		477
		88,448		91,110		46,150
Sales of products
—Sales of terminals		25,595		54,880		32,597
—Sales of data related products		12,148		11,955		10,194
—Others		208		436		628
		37,951		67,271		43,419
Total		126,399		158,381		89,569

(a)	Disaggregation of revenue

In the following table, revenue is geographically disaggregated according to the locations of the customers.

	Years ended December 31,
(In thousands)	2018		2019		2020
China		62,104		50,862		9,631
Japan		24,316		57,695		47,565
Hong Kong		12,211		14,664		2,771
Taiwan		7,119		5,153		635
North America		6,901		15,254		23,513
Southeast Asia		6,289		8,442		2,495
Europe		3,499		3,972		1,706
Others		3,960		2,339		1,253
Total		126,399		158,381		89,569

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Other Income, Net

12 Months Ended

Dec. 31, 2020

Other Income And Expenses [Abstract]

Other Income, Net

6.	Other income, net

	Years ended December 31,
(In thousands)	2018			2019			2020
Foreign exchange losses, net		(543	)		(1,893	)		(153	)
Government grants (note)		701			1,662			2,283
Gains on disposal of property and equipment, net		542			339			375
Fair value gains on other investments		—			—			4,909
Others		(42	)		182			140
Total		658			290			7,554

Note:

Government grants mainly represent amounts received from central and local governments in connection with the Group’s investments in local business districts and contributions to technology development.

Taxation

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Taxation

(a)	Income taxes

(i)	Cayman Islands

The Company was incorporated in the Cayman Islands and conducts most of its business through its subsidiaries and VIEs located in the PRC and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed.

(ii)

PRC

The PRC enterprise income tax is calculated based on the taxable income determined under the PRC laws and accounting standards. Under the Corporate Income Tax (“CIT”) Law, which became effective on January 1, 2008, foreign invested enterprises and domestic enterprises are subject to a unified CIT rate of 25%. In accordance with the implementation rules of the CIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15% with valid period of three years.

Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink are qualified as HNTE, which are eligible to a preferential tax rate of 15% for the three-year period from 2017 to 2019 as long as they fulfill the HNTE criteria. In 2020, the preferential tax rate of 15% for Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink was extended for three years from 2020 to 2022.

The Group’s (loss)/income before income taxes consisted of:

	Years ended December 31,
(In thousands)	2018			2019			2020
Non-PRC		(4,388	)		(416	)		(54,627	)
PRC		(21,727	)		5,680			(8,603	)
Total		(26,115	)		5,264			(63,230	)

(iii)

Hong Kong

The Company’s subsidiaries incorporated in Hong Kong are subject to profits tax rate of 16.5% on taxable income.

7.	Taxation (Continued)

(a)	Income taxes (Continued)

The reconciliations of the income tax expenses for the years ended December 31, 2018, 2019 and 2020 were as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
(Loss)/income before income tax		(26,115	)		5,264			(63,230	)
Income tax computed at statutory PRC income tax rate (25%)⁽ⁱ⁾		(6,529	)		1,316			(15,808	)
Differential income tax rates applicable to certain entities comprising the Group		1,601			120			13,121
Effect of tax holiday		1,945			(569	)		824
Permanent differences⁽ⁱⁱ⁾		3,417			136			451
Change in valuation allowance		1,116			322			2,735
Accelerated deductions on research and development expenses⁽ⁱⁱⁱ⁾		(1,550	)		(1,268	)		(1,138	)
Income tax expenses		—			57			185

(i)

The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC.

(ii)

Permanent differences primarily represent non-deductible expenses.

(iii)

This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred.

The per share effect of the tax holidays are as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
Effect of tax holiday		1,945			(569	)		824
Per share effect – basic and diluted		(0.01	)		0.00			(0.00	)

(b)	Deferred tax assets

Deferred income tax expense reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets are as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
Deferred tax assets
Net operating loss carryforwards		6,666			6,991			9,416
Accrued expenses and others		107			104			414
Less: valuation allowance		(6,773	)		(7,095	)		(9,830	)
Net deferred tax assets		—			—			—

7.	Taxation (Continued)

(b)	Deferred tax assets (Continued)

Movement of valuation allowance

	Years ended December 31,
(In thousands)	2018		2019		2020
Balance at beginning of the year		5,657		6,773		7,095
Change of valuation allowance		1,116		322		2,735
Balance at end of the year		6,773		7,095		9,830

Valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided a full valuation allowance for the deferred tax assets as of December 31, 2018, 2019 and 2020, as management is not able to conclude that the future realization of those net operating loss carry forwards and other deferred tax assets are more likely than not. The statutory rate of 15% to 25%, depending on which entity, was applied when calculating deferred tax assets.

As of December 31, 2018, 2019 and 2020, the Group had net operating loss carryforwards of approximately US$44,015 thousands and US$45,712 thousands and US$61,257 thousands respectively, which arose from the subsidiaries and VIE established in Hong Kong and PRC. As of December 31, 2018, 2019 and 2020, the Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets is more likely than not to be realized. Consequently, the Group has provided full valuation allowance on the related deferred tax assets.

According to the Circular of relevant governmental regulatory authorities of Taxation on Extending the Loss Carry-over Period of High-tech Enterprises and High-tech SMEs (Cai Shui [2018] No. 76), from January 1, 2018, the enterprises that have the qualifications of high-tech enterprises or high-tech SMEs will be able to make up for the losses that have not been completed in the previous five years before the qualification year. The longest carry-over period is extended from 5 years to 10 years. As of December 31, 2020, the net operating loss carry forwards arose from Shenzhen uCloudlink Technology Limited and Shenzhen uCloudlink will expire during the period from 2025 to 2029, if unused.

(c)	Uncertain tax position

The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2018, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. The Group does not anticipate any significant increase to our liability for unrecognized tax benefit within the next 12 months. Interest and penalties related to income tax matters, if any, is included in income tax expense.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Ordinary Shares

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Ordinary Shares

8.	Ordinary shares

(i)

Prior to May 19, 2019, the authorized share of the Company was US$50,000 divided into 50,000,000 shares of par value US$0.001.

On May 19, 2019, the Board of Directors of the Company passed the resolution that all of the Company’s ordinary shares and preferred shares were subdivided into 20 shares with a par value of US$0.00005 each. The par value of ordinary shares and preferred shares and related disclosure have been recast to reflect the US$0.00005 par value for all periods presented in the consolidated financial statements. As of December 31, 2018, 2019 and 2020, the Company has 228,749,678 ordinary shares (including 162,897,778 vested restricted shares), 232,451,900 shares (including 162,897,778 vested restricted shares) and nil shares (including nil vested restricted shares) outstanding, respectively.

(ii)

On January 28, 2015, the Company entered into a share purchase agreement (“Series A SPA”) with certain investors under which the Company issued 8,400,000 ordinary shares at a total consideration of US$4,056,206 and 25,000,000 Series A Preferred Shares to certain investors at a total consideration of US$9,788,652 (Note 9). Also as a closing condition to the Series A SPA, the Company entered into a share restriction agreement with certain senior management and their respective wholly owned subsidiaries, which directly hold the equity interest on the Company. Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Company held by certain senior management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares shall vest over a period of 5 years from the closing of the Series A SPA (which was shortened to 4 years on September 22, 2016). Vesting of all Restricted Shares will be accelerated upon the completion of a qualified IPO or trade sale. In the event that certain senior management voluntarily and unilaterally terminates his employment/service contract with the Group or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Series A SPA, the related senior management shall sell to the Company, and the Company shall repurchase from certain senior management, all of the unvested shares at a price of US$0.00005 per share. Such restricted shares were treated as deemed contribution by those senior management to the Company and the fair value of which were recognized as share-based compensation expense over the vesting period. Ordinary shares of 44,426,667 and 44,426,667 were vested and presented as an increase of the numbers of issued ordinary shares during the year ended December 31, 2017 and December 31, 2018, respectively. At any time prior to a qualified IPO, the shares held by certain senior management shall not be transferred directly or indirectly without the prior written consent of the Series A Preferred Shares holders, except for those to be transferred to the employees of the Company pursuant to an Stock Option Plan approved by the board.

(iii)

On November 25, 2015, the Company entered into a share purchase agreement (“A-1 SPA”) with certain investors under which the Company issued 26,575,220 ordinary shares at a total consideration of US$21,555,470. There were liquidation preference and a redemption right attached to certain of these ordinary shares with 10% annual compounded interest based on original purchase price which expired on December 31, 2016.

(iv)

On January 1, 2016, 4,000,000 ordinary shares of certain senior management were transferred to Series A Preferred Shares at the then fair value of US$0.88 per share.

(v)

On September 22, 2016, the Company entered into a share purchase agreement (“A-2 SPA”) with certain investors under which the Company issued 8,502,600 ordinary shares at a total consideration of US$10,000,000. There is a redemption right attached to the ordinary shares with 12% annual compounded interest based on original purchase price. Such redemption right expired on December 31, 2017.

(vi)

On June 19, 2017, the Company repurchased 8,630,140 of its ordinary shares from an investor at a price of US$0.96 per share amounting to US$8,297,880. The repurchased ordinary shares were cancelled immediately and the additional paid in capital of the Company was reduced by US$8,298,236.

(vii)

On August 28, 2018, upon the occurrence of the event of automatic conversion of convertible bonds, in which that the Group attained cumulative revenue over RMB500 million during the year ended December 31, 2017, all the convertible bonds were converted into 35,004,220 ordinary shares of the Company.

8.	Ordinary shares (Continued)

(viii)

On November 25, 2015, June 19, 2017 and March 22, 2018, the Company issued 20,000,000, 4,315,080 and 31,665,280 ordinary shares, respectively, and had them held by a limited liability company owned by one of certain senior management. These ordinary shares were held on behalf of the Company and are to be awarded to employees under future equity incentive plan based on the discretion of the board of directors of the Company. The ordinary shares issued above were accounted for as treasury shares of the Group. None of these shares has been exercised nor issued from treasury shares as of December 31, 2017 and December 31, 2018, respectively. On December 31, 2018, all of the treasury shares were cancelled under the decision of the board of directors of the Company.

(ix)

On December 31, 2018, the board of directors of the Company adopted the 2018 Stock Option Scheme under which the Company may grant options to purchase its ordinary shares to selected employees of the Group. The board of directors of the Company reserved 55,980,360 shares on December 31, 2018 of the Company’s ordinary shares for future issuance under the plan.

(x)

In July 2019, two written resolutions were passed and approved by the board of directors of the Company and its shareholders:

(a)The Group will adopt a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, which will become effective immediately prior to the completion of the Company’s IPO.

Immediately prior to the completion of the IPO, (i) the conversion and re-designation of all of the then currently issued and outstanding preferred shares into ordinary shares on a one-to-one basis; (ii) 122,072,980 of ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng will be redesignated into Class B ordinary shares on a one-for-one basis (iii) all of the remaining ordinary shares (including ordinary shares resulting from the conversion and re-designation of preferred shares) will be re-designated into Class A ordinary shares on a one-to-one basis. In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares will be entitled to one vote per share, while holders of Class B ordinary shares will be entitled to fifteen votes per share.

(b)Immediately prior to the completion of the IPO, the authorized share capital will be increased from US$50,000 divided into 1,000,000,000 shares of par value of US$0.00005 each, to US$100,000 divided into 2,000,000,000 shares of par value of US$0.00005 each.

(xi)

On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. The outstanding shares consist of 159,478,920 Class A ordinary shares and 122,072,980 Class B ordinary shares, of which (i) 61,346,560 Class B ordinary shares ultimately held by the Company’s founder, director and chief executive officer Chaohui Chen; (ii) 60,726,420 Class B ordinary shares ultimately held by the Company’s founder and chairman of board of directors Zhiping Peng and (iii) 110,378,920 ordinary shares were converted into Class A ordinary shares. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. Upon the completion of the IPO, all 29,000,000 issued and outstanding preferred shares were converted into Class A ordinary shares immediately as of the same date.

(xii)

During year ended December 31, 2020, 576,720 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options under the Group’s share-based incentive plans (Note 10).

Redeemable and Convertible Shares

12 Months Ended

Dec. 31, 2020

Temporary Equity Disclosure [Abstract]

Redeemable and Convertible Shares

9.	Redeemable and convertible shares

As of December 31, 2019, the Company had 29,000,000 Series A Preferred Shares outstanding Upon the completion of the IPO, all 29,000,000 issued and outstanding preferred shares were converted into Class A ordinary shares immediately as of the same date.

The significant terms of the Series A Preferred Shares issued by the Company are as follows:

(I) Liquidation preference

In a liquidation event, all proceeds resulted from the liquidation event will be first distributed to the Series A Preferred Shares holder based on 100% of the preferred shares purchase price, plus an annual compounded return of 10%, plus any declared but unpaid dividend. Any remaining proceeds will be paid to all shareholders ratably.

(II) Dividend rights

The Series A Preferred Shares are entitled to dividends.

(III) Voting rights

The Series A Preferred Shares are entitled to voting rights on an as-if converted basis.

(IV) Conversion feature

Each Series A Preferred Share is convertible at the option of the holder at any time after the date of issuance, into one ordinary share.

In addition, each Series A Preferred Share shall automatically be converted into one ordinary share at the time immediately prior to the closing of the qualified IPO. In the event the Company shall at any time after the issuance of Series A Preferred Shares issue new shares, without consideration or for a consideration per share less than the share purchase prior to such issue, then the conversion price shall be reduced, concurrently with such issue, to as of the date of such issue an amount equal to the per-share price of such new shares.

(V) Redemption feature

The Series A Preferred Shares will become redeemable at the option of the holder at any time after the fifth anniversary of the date of issuance, if the Series A Preferred Shares have not been converted into ordinary shares yet.

The redemption price per preferred share shall be equal to the higher of:

(a)

100% of the preferred share purchase price plus any declared but unpaid dividends, or

(b)

100% of the preferred share purchase price plus 15% annual compounded return.

The Group determined that the conversion feature and redemption feature do not meet the criteria for bifurcation. Further, there were no beneficial conversion feature identified.

9.	Redeemable and convertible shares (Continued)

The activities of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2019 and 2020 are as follows:

(In thousands)	Series A Preferred Shares
Balance as of December 31, 2018		20,437
Accretion		2,540
Balance as of December 31, 2019		22,977
Accretion		1,293
Conversion and redesignation of Preferred Shares		(24,270	)
Balance as of December 31, 2020		—

Share-based Awards

12 Months Ended

Dec. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Awards

10.	Share-based awards

Compensation expense recognized for share-based awards was as follow:

	Years ended December 31,
Share-based compensation expenses (In thousands)	2018		2019		2020
—Restricted Shares owned by certain senior management^(a)		2,282		169		—
—Share options^(b)		—		—		50,607
Total		2,282		169		50,607

(a)	Restricted Shares

As described in note 8(ii), all ordinary shares of the Company held by certain senior management were subject to a vesting period of 5 years from January 2015 (which was shortened to 4 years on September 22, 2016).

The fair value of each restricted share granted with service conditions is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant.

A summary of the Restricted Shares activity for the years ended December 31, 2018, 2019 and 2020 is presented below:

(Number of shares)	Restricted Shares held by certain senior management
Outstanding as of January 1, 2018		48,128,889
Vested		(44,426,667	)
Outstanding as of December 31, 2018		3,702,222
Vested		(3,702,222	)
Outstanding as of December 31, 2019		—
Vested		—
Outstanding as of December 31, 2020		—

(b)	Share options

In December 2018, the Company adopted a share incentive plan, which is referred to as the 2018 Stock Option Scheme (“the 2018 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Company’s business and by providing such individuals with an incentive to reward their performance. Under the 2018 Plan, the maximum number of shares in respect of which options, restricted shares, or restricted share units may be granted is 55,980,360 shares.

10.	Share-based awards (Continued)

(b)	Share options (Continued)

In July 2019, the Group adopted the Amended and Restated 2018 Stock Option Scheme (“Revised 2018 Plan”), which amends the previously adopted 2018 Stock Option Scheme, pursuant to which the Group may grant awards to directors, officers and employees. The maximum aggregate number of ordinary shares that may be issued under Revised 2018 Plan was 40,147,720 ordinary shares.

In July 2019, the shareholders and board of directors of the Company also approved the 2019 Share Incentive Plan (“the 2019 Plan”). Under the 2019 Plan, which will be increased by a number equal to 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year on the first day of each fiscal year, commencing with the fiscal year ended December 31, 2020, if determined and approved by the board of directors for the relevant fiscal year.

On December 31, 2018 and August 12, 2019, the Company granted 12,187,420 and 5,414,300 share options to employees and certain senior management pursuant to the 2018 Plan and the Revised 2018 Plan respectively.

On April 27, 2020, August 3, 2020 and November 27, 2020, the Company granted 4,963,017, 1,000,000 and 200,000 share options to employees, directors and officers respectively pursuant to the Revised 2018 Plan.

These options were granted with exercise prices denominated in US$. The grantees can exercise vested options after the commencement date of exercise and before the end of its contractual term (i.e. 6 years after the commencement date of exercise). The commencement date of exercise is 6 months after the completion of the IPO.

All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized by graded vesting method.

A summary of the changes in the share options granted by the Company during the year ended December 31, 2018, 2019 and 2020 is as follows:

	Number of share options			Weighted average exercise price		Aggregate intrinsic value
Outstanding as of January 1, 2018		—			—		—
Granted		12,187,420		$	0.51	$	37,604,315
Outstanding as of December 31, 2018		12,187,420		$	0.51	$	37,604,315
Exercisable as of December 31, 2018		—			—		—
Granted		5,414,300		$	0.54	$	15,919,687
Forfeited		(205,980	)	$	0.50	$	(572,154	)
Outstanding as of December 31, 2019		17,395,740		$	0.52	$	52,951,848
Exercisable as of December 31, 2019		—			—		—
Granted		6,163,017		$	0.55	$	7,668,544
Forfeited		(683,280	)	$	0.67	$	(1,733,224	)
Exercised		(576,720	)	$	0.50	$	(1,804,198	)
Outstanding as of December 31, 2020		22,298,757		$	0.54	$	57,082,970

10.	Share-based awards (Continued)

(b)	Share options (Continued)

The Group calculated the estimated fair value of an options on the grant date using the binomial option pricing model with assistance from an independent valuation firm. Assumptions used to determine the fair value of share options granted during the year ended December 31, 2018, 2019 and 2020 is summarized in the following table:

	Years ended December 31,
(In thousands)	2018		2019		2020
Risk-free interest rate⁽ⁱ⁾		2.60%		1.53%	0.33%-0.88%
Expected dividend yield⁽ⁱⁱ⁾		0.00%		0.00%		0.00%
Expected volatility⁽ⁱⁱⁱ⁾		34.88%		36.88%	37.94%-40.07%
Grant date fair value		$3.64		$3.48	$0.98-$1.93

(i)

Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant.

(ii)

Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares.

(iii)

Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant.

As of December 31, 2020, there were US$8,891 thousands of unrecognized share-based compensation expenses related to share options granted by Company.

(Loss)/Income Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

(Loss)/Income Per Share

11.	(Loss)/income per share

Basic and diluted net (loss)/income per share for each of the year presented were calculated as follows:

	Years ended December 31,
(In thousands of US$ except share data and per share data)	2018			2019			2020
Numerator:
Net (loss)/income		(26,557	)		5,207			(63,415	)
Add: Accretion of Series A Preferred shares		(2,209	)		(2,540	)		(1,293	)
Income allocation to participating preferred shareholders		—			(296	)		—
Net (loss)/income attributable to ordinary shareholders of the Company for computing basic and diluted net (loss)/income per share	(28,766)				2,371			(64,708	)
Denominator:
Weighted average number of ordinary shares outstanding used in calculating basic and diluted net (loss)/income per share		185,370,982			232,178,037			259,852,204
Basic and diluted net (loss)/income per ordinary share		(0.16	)		0.01			(0.25	)

Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive:

	Years ended December 31,
	2018		2019		2020
Convertible Redeemable Preferred Shares		29,000,000		29,000,000		—
Restricted Shares		3,702,222		—		—
Share options awards		12,187,420		17,395,740		22,298,757
Total		44,889,642		46,395,740		22,298,757

Cash and Cash Equivalents and Short-term Deposit

12 Months Ended

Dec. 31, 2020

Investments Debt And Equity Securities [Abstract]

Cash and Cash Equivalents and Short-term Deposit

12.	Cash and cash equivalents and short-term deposit

Cash and cash equivalents represent cash on hand, cash held at bank, and term deposits placed with banks or other financial institutions, which have original maturities of three months or less.

Short-term deposit represents term deposit placed with bank with original maturity more than three months but less than one year. The Group had US$196 thousands of short-term deposit as of December 31, 2020, with an original maturity of 12 months denominated in HKD.

Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2019 and 2020 primarily consist of the following currencies:

	December 31, 2019				December 31, 2020
(In thousands)	Original currency		US$ equivalent		Original currency		US$ equivalent
US$		11,795		11,795		4,259		4,259
RMB		96,749		13,791		59,912		9,182
HKD		5,829		748		8,236		1,062
Others				11,179				7,682
Total				37,513				22,185

Restricted Cash

12 Months Ended

Dec. 31, 2020

Restricted Cash And Cash Equivalents [Abstract]

Restricted Cash

13.	Restricted cash

(In thousands)	December 31, 2019		December 31, 2020
US$ denominated		2,867		8,237
RMB denominated		87		—
Total		2,954		8,237

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2020

Accounts Receivable Net Current [Abstract]

Accounts Receivable, Net

14.	Accounts receivable, net

(In thousands)	December 31, 2019			December 31, 2020
Accounts receivable		26,262			10,034
Less: Allowance for doubtful accounts		(495	)		(3,289	)
Accounts receivable, net		25,767			6,745

The following table presents movement in the allowance for doubtful accounts:

(In thousands)	December 31, 2019			December 31, 2020
Balance at beginning of the year		473			495
Additions		74			2,785
Reversal		(30	)		—
Write-off		(20	)		—
Exchange difference		(2	)		9
Balance at end of the year		495			3,289

Inventories

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

15.	Inventories

(In thousands)	December 31, 2019			December 31, 2020
Raw materials		7,279			4,342
Finished goods		3,767			2,141
Less: write-down of obsolete inventories		(528	)		(636	)
Total inventories		10,518			5,847

Prepayments and Other Assets

12 Months Ended

Dec. 31, 2020

Prepaid Expense And Other Assets [Abstract]

Prepayments and Other Assets

16.	Prepayments and other assets

(In thousands)	December 31, 2019		December 31, 2020
Prepayments		1,663		5,119
Deposits		2,323		2,344
Export tax receivable		1,457		507
VAT recoverable		320		118
Deferred offering cost		964		—
Others		1,101		1,505
Total of prepayments and other assets		7,828		9,593

(In thousands)	December 31, 2019		December 31, 2020
Current		7,828		7,477
Non-current		—		2,116
Total of prepayments and other assets		7,828		9,593

Investment in Equity Investee

12 Months Ended

Dec. 31, 2020

Equity Method Investments And Joint Ventures [Abstract]

Investment in Equity Investee

17.	Investment in equity investee

In October 2018, the Company made an equity investment in a privately-held company, Maya System, Inc. (the “Maya”), which provides cloud SIM related services in Japan, including sale of products and maintenance. The Company acquired 49.00% equity interest of Maya with total consideration of JPY49,000,000. The Group classified Maya as an equity method investment as it has significant influence over Maya. The consideration was mainly attributed to trademark, customer relationship and goodwill. As of December 2019 and 2020, the share of loss from Maya exceeded the total investment cost. As the Company is not required to fund losses, the balance was written down to zero.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Property and Equipment, Net

18.	Property and equipment, net

Property and equipment consist of the following:

(In thousands)	December 31, 2019			December 31, 2020
Computers		830			850
Server & switch		1,176			1,276
Office equipment		1,332			1,442
Wi-Fi terminals for data connectivity services		10,971			11,863
Leasehold improvement		548			555
Total original costs		14,857			15,986
Less: accumulated depreciation		(11,064	)		(12,957	)
Net book value		3,793			3,029

Depreciation expenses recognized for the years ended December 31, 2018, 2019 and 2020 were US$5,227 thousands, US$2,954 thousands and US$2,174 thousands, respectively.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

19.	Intangible assets, net

(In thousands)	Carrying amount		Accumulated amortization			Net carrying amount
December 31, 2019
Purchased software		554		(126	)		428
Trademarks		115		(47	)		68
Licensed copyrights		170		(64	)		106
Intangible assets		839		(237	)		602

19.	Intangible assets, net (Continued)

(In thousands)	Carrying amount		Accumulated amortization			Net carrying amount
December 31, 2020
Purchased software		1,089		(203	)		886
Trademarks		121		(62	)		59
Licensed copyrights		179		(85	)		94
Intangible assets		1,389		(350	)		1,039

Amortization expenses recognized for the years ended December 31, 2018, 2019 and 2020 were US$89 thousands, US$90 thousands and US$94 thousands, respectively.

The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows:

Year	(In thousands)
2021		139
2022		139
2023		139
2024		139
2025		139
Thereafter		344
Total		1,039

Other Investments

12 Months Ended

Dec. 31, 2020

Investments All Other Investments [Abstract]

Other Investments

20.	Other investments

(In thousands)	December 31, 2019		December 31, 2020
Current⁽ⁱ⁾		—		19,185
Non-current⁽ⁱⁱ⁾		—		17,824
Total		—		37,009

Note:

(i)

In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month notice. There was a fair value gain of US$4,185 thousands for the year ended December 31, 2020.

(ii)

In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$724 thousands for the year ended December 31, 2020.

Accounts Payable, Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2020

Payables And Accruals [Abstract]

Accounts Payable, Accrued Expenses and Other Liabilities

21.	Accounts payable, accrued expenses and other liabilities

(In thousands)	December 31, 2019		December 31, 2020
Accounts payable to suppliers		16,728		8,701
Accrued bonus and staff costs		14,712		18,272
Other deposits		2,487		1,788
Other taxes payable (note)		771		934
Deferred government grant		86		—
Accrued professional fees		2,183		3,169
Accrued marketing expenses		199		342
Others		881		1,237
Total		38,047		34,443

Note:

Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Group.

Short-term Borrowings

12 Months Ended

Dec. 31, 2020

Short Term Borrowings [Abstract]

Short-term Borrowings

22.	Short-term borrowings

(In thousands)	December 31, 2019		December 31, 2020
Current
Bank borrowings⁽ⁱ⁾		4,867		3,704
Other borrowing⁽ⁱⁱ⁾		1,792		—
Total		6,659		3,704

Note:

(i)

The Group’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 1.90% ~ 5.22% (2019:5.65% ~ 6.50%) per annum, with a weighted average interest rate of 4.58% (2019: 6.24%) per annum. No restricted cash was held in a restricted bank account as required by a loan agreement as of December 31, 2020 (as of December 31, 2019: US$2,867 thousands).

(ii)

In November 2018, the Company entered into a 2-year financing agreement with an independent third-party finance lease company amounting to US$4,362 thousands with equivalent accounts receivable of the Group pledged. The interest rate is 9% per annum. As of December 31, 2020, the Group had no outstanding borrowing balance under this arrangement.

Related Party Transactions

12 Months Ended

Dec. 31, 2020

Related Party Transactions

23.	Related party transactions

(a)	Related parties

As at December 31, 2020, the name and relationship with material related parties are as follows:

Related Party

Relationship with the Company

Maya

Equity method investee of the Company

(b)	During the years ended December 31, 2018, 2019 and 2020, other than disclosed elsewhere, the Company had the following material related party transactions:

	Years ended December 31,
(In thousands)	2018		2019		2020
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products:
Maya		3,597		4,419		8,010
Purchase of data connectivity service:
Maya		—		—		47

(c)	The Company had the following related party balances as December 31, 2019 and December 31, 2020:

(In thousands)	December 31, 2019		December 31, 2020
Deposits received from related party:
Maya		1,022		1,498
Amounts payable to related party:
Maya		—		5
Amounts receivable from related party:
Maya		692		2,264

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

24.	Commitments and contingencies

(a)	Operating lease commitments

The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights.

Year	(In thousands)
2021		1,298
2022		981
2023		182
2024		—
2025		—
Total		2,461

For the years ended December 31, 2018 2019 and 2020, the Group incurred rental expenses under operating leases US$3,662 thousands, US$3,276 thousands and US$1,687 thousands, respectively.

24.	Commitments and contingencies (Continued)

(b)	Purchase commitment for purchase of data

As at December 31, 2020, the Group has future minimum purchase commitment related to the purchase of data of US$808 thousands and US$134 thousands within the remainder of 2021 and 2022, respectively.

(c)	Contingencies

In June 2018, HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED and Ucloudlink (America), Ltd., two wholly-owned subsidiaries of the Company, were named as defendants in a complaint filed by SIMO Holding Inc. (“SIMO”) in the United States District Court for the Southern District of New York (the “New York Court”), alleging patent infringements. The trial judge of the New York Court delivered a judgement in June 2019 approving total compensatory and enhanced damages of US$2.8 million. Subsequently, the plaintiff and the Company filed post-trial motions in connection with which the plaintiff filed motions for supplemental damages to increase the damages to US$8.5 million. On August 28, 2019, the New York Court resolved in an order which denied the Company’s motions for judgment as a matter of law and for a new trial as well as plaintiff’s motion for request for attorney’s fees. The New York Court granted plaintiff’s motion for permanent injunction, effective on September 1, 2019, to enjoin the Company from selling, offering to sell, importing, or enabling the use of three models of portable Wi-Fi terminals and one model of GlocalMe World Phone that the New York Court believes infringed upon SIMO’s patent in the United States. In October 2019, the New York Court amended the total damages to US$8.2 million to include pre-judgment interest on the awards and supplemental damages for certain sales occurring between January 1, 2019 and August 1, 2019, and certain sales occurring overseas for devices that had previously been sold within the United States between August 13, 2018 and August 31, 2019. The Group upgraded the allegedly infringing products by pushing a redesigned software update to the devices, which the New York Court concluded that the upgraded devices are no longer infringing and lifted the injunction against the upgraded devices on December 9, 2019. On May 1, 2020, the Group filed a declaratory judgment lawsuit in the New York Court against SIMO to obtain a declaration that its redesigned products are no longer infringing and SIMO filed counterclaims. The purpose of the new case is to have the New York Court re-issue the previous conclusion as a declaratory judgment so that it is enforceable to block SIMO from accusing its redesigned products of infringing in the future. On December 9, 2019, the New York Court lifted the injunction against the upgraded devices and concluded that they were not infringing. In the meantime, the Group has appealed against the New York Court’s original ruling in the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) and has put a sum equal to the above-mentioned damages amount in an escrow account (Note 2.20). On January 5, 2021, the Federal Circuit reversed the decision by the New York Court and held that the Group were entitled to summary judgement of noninfringement. On 4 February 2021, SIMO filed a petition for panel rehearing and it was denied by the Federal Circuit on March 11, 2021. On March 29, 2021, the escrowed funds of US$8.2 million have been fully released and refunded to the Company. On April 8, 2021, the above-mentioned permanent injunction against the Group’s products was dissolved by the New York Court.

In January 2020, the Group became aware that SIMO is alleging patent infringement and trade secret misappropriation against the Group in the United States District Court for the Eastern District of Texas (“Texas Court”). The patent infringement claim was based on patent No. 9,736,689, which was the same patent the Federal Circuit addressed in its decision reversing a judgment of infringement from the New York Court. The trade secret allegations were the same as allegations SIMO previously made in a case between the parties in the United States District Court for the Northern District of California. Those allegations were dismissed from case in California with prejudice. The Group moved to transfer the patent infringement claim to the New York Court and to dismiss or transfer the claims for trade secret misappropriation to the United States for the Norther District of California. On November 24, 2020, the Texas Court denied both motions. Subsequently, SIMO dropped their patent infringement claim at the Texas Court on April 6, 2021. In response to the Texas Court’s ruling denying transfer of trade secret claims, the Group appealed to the United States Court of Appeals for the Fifth Circuit on April 16, 2021.

In August 2018, two affiliates of SIMO, namely Shenzhen Sibowei’ersi Technology Co., Ltd. and Shenzhen Skyroam Technology Co., Ltd., jointly filed a complaint against Shenzhen uCloudlink Network Technology Co., Ltd. in Guangzhou Intellectual Property Court in the PRC alleging patent infringements and claimed damages up to RMB10.5 million (equivalent to US$1.6 million). The Group has filed an invalidation petition against their alleged patent in Patent Reexamination Board of National Intellectual Property Administration in the PRC. On July 16, 2019, the Patent Reexamination Board of National Intellectual Property Administration issued a reexamination decision which invalidated the plaintiffs’ alleged patent in its entirety with respect to the patent infringement allegation. The first hearing of this lawsuit was held on May 13, 2019. The plaintiffs applied to withdraw the lawsuit, which has been approved on August 14, 2019. In October 2019, Shenzhen Sibowei’ersi Technology Co., Ltd. filed a complaint against the National Intellectual Property Administration in Beijing Intellectual Property Court in PRC petitioning the withdrawal of the foregoing reexamination decision of invalidity and reach of a new reexamination decision. In December 2020, the Beijing Intellectual Property Court entered its judgment which upheld National Intellectual Property Administration’s invalidation decision. Sibowei’ersi Technology Co., Ltd. has appealed against such judgment and the Group is awaiting for the court’s further notice.

24.	Commitments and contingencies (Continued)

(c)	Contingencies (Continued)

In June 2019, Shenzhen Skyroam Technology Co., Ltd. filed a complaint against one of the Group’s employees, one of the Group’s officers, Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink Network Technology Co., Ltd. in the Intermediate People’s Court of Shenzhen alleging trade secret misappropriation and claimed damage of approximately US$14 million and cessation of misappropriation. The Court denied the Group’s motion to transfer the lawsuit from the Intermediate People’s Court of Shenzhen to the Higher People’s Court of Guangdong and the Group has appealed for jurisdiction objection on September 17, 2019. On May 8, 2020, the Supreme People’s Court ruled against the Group’s appeal and such lawsuit will be heard by the Intermediate People’s Court of Shenzhen. Also, in June 2019, Shenzhen Skyroam Technology Co., Ltd. filed a complaint against the Shenzhen Ucloudlink Technology Limited in the Intermediate People’s Court of Shenzhen regarding a patent ownership dispute. The plaintiff claimed damages of approximately US$21,000. The exchange of evidence was held in August 2019 and the Group has applied to suspend the lawsuit on October 15, 2019. The Group further received the court’s summons on November 7, 2019 and the evidentiary hearing of this lawsuit was held on January 6, 2020. In July 2019, Shenzhen Skyroam Technology Co., Ltd. filed another complaint in the Intermediate People’s Court of Shenzhen against the Shenzhen Ucloudlink Technology Limited relating to patent ownership and the plaintiff claimed damages of approximately US$21,000. The Group objected on jurisdictional ground in October 2019 and the court ruled against the Group. The Group’s appeal for jurisdiction objection has been denied and the Group is now awaiting for the court’s further notice for the first hearing.

The Group believes the aforementioned allegations are without merit and will defend vigorously. The Group considers that the likelihood of an unfavorable outcome is not probable or is unable to estimate the amount or the range of the possible loss. Therefore, no accrual has been recorded by the Group as of December 31, 2020 in respect of these proceedings.

Restricted Net Assets

12 Months Ended

Dec. 31, 2020

Restricted Net Assets [Abstract]

Restricted Net Assets

25.	Restricted net assets

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries and the VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries and the VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries and the VIEs.

In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve fund until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the years ended December 31, 2018, 2019 and 2020, WFOE did not have after-tax profit and therefore no statutory reserves have been allocated.

Foreign exchange and other regulations in the PRC may further restrict the Company’s VIEs from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital, additional paid-in capital, and the statutory reserves of the Company’s PRC subsidiaries, affiliates and VIEs. As of December 31, 2020, total restricted net assets were US$49,219 thousands.

The Company performed a test on the restricted net assets of subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets exceeded 25% of the consolidated net assets of the Company as of December 31, 2020 and the condensed financial information of the Company are required to be presented (See Note 28).

Impact of COVID-19

12 Months Ended

Dec. 31, 2020

Extraordinary And Unusual Items [Abstract]

Impact of COVID-19

26.	Impact of COVID-19

In early 2020, there was an outbreak of novel coronavirus, later named COVID-19 in China. Following the COVID-19 outbreak, a series of precautionary and control measures have been implemented by the Chinese government, including but not limited to extending the Chinese New Year holiday, quarantine measures and travel restrictions. These measures have resulted in drop in outbound travelers from China and mainly impacted the Group’s Roamingman business.

In mid-March 2020, the World Health Organization declared COVID-19 a pandemic. Since then, the COVID-19 pandemic has led governments and other authorities around the world to impose measures intended to control its spread, including restrictions on freedom of movement, gatherings of large numbers of people, and business operations such as travel bans, border closings, business closures, quarantines, shelter-in-place orders and social distancing measures. These measures have caused a severe decline in the level of business and leisure travel around the globe. As a result, demands for the Group’s international data connectivity services, including the demands for Roamingman and from its business partners, have been significantly reduced. Such decline also caused a decrease in revenues from sales of terminals and provision of PaaS and SaaS services to the Group’s business partners.

The net cash used in operating activities of the Group was US$2,038 thousands for the year ended December 31, 2020. The Group anticipates that a reduction in revenue will result in reduction in cash flow generated from operations. The Group will evaluate its financial and cash flow positions from time to time and intend to mitigate liquidity risk by implementing operational measures such as costs cutting and reducing investment in capital expenditures. The extent of the impact of the COVID-19 on the Group’s operational and financial performance in the longer term will depend on future developments, including the duration of the outbreak and related travel advisories and restrictions and the impact of the COVID-19 on overall demand for travel, all of which are highly uncertain and beyond the control of the Group.

Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

27.	Subsequent Events

(a)	Issuance of new restricted share units

In January and February 2021, the Company granted 2,717,500 and 3,304,000 restricted share units respectively to its employees, directors, and other consultants, under the 2019 Plan and executives with an exercise price of US$0 per share, with the vesting period 5 years.

(b)	Acquisitions of equity interests of iQsim S.A.

In January 2021, the Company acquired 31.25% of the equity interests of iQsim S.A., which is a provider of open virtual SIM (“VSIM”) platform and VSIM-enabled mobile devices based in France, with total consideration of EUR200 thousands (equivalent to US$243 thousands).

Additional Information: Condensed Financial Statements of the Company

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Additional Information: Condensed Financial Statements of the Company

28.	Additional information: condensed financial statements of the Company

Regulation S-X require condensed financial information as to financial position, statement of cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.

The Company records its investment in its subsidiaries, VIE and VIE’s subsidiaries under the equity method of accounting.

Such investments are presented on the separate condensed balance sheets of the Company as “Long-term investments”.

The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures represent supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company.

28.	Additional information: condensed financial statements of the Company (Continued)

The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2020.

Condensed statements of comprehensive (loss)/income of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2018			2019			2020
General and administrative expenses		(2,688	)		(1,299	)		(22,914	)
Sales and marketing expenses		—			—			(14,029	)
Research and development expenses		—			—			(13,695	)
Other income, net		343			(9	)		(271	)
Loss from operations		(2,345	)		(1,308	)		(50,909	)
Interest income		399			145			1
Interest expenses		(3,138	)		(332	)		(17	)
Loss before income tax		(5,084	)		(1,495	)		(50,925	)
Income tax expenses		—			—			—
(Loss)/income from subsidiaries and VIEs		(21,473	)		6,702			(12,490	)
Net (loss)/income		(26,557	)		5,207			(63,415	)
Accretion of Series A Preferred Shares		(2,209	)		(2,540	)		(1,293	)
Income allocation to participating preferred shareholders		—			(296	)		—
Net (loss)/income attributable to ordinary shareholders of the Company		(28,766	)		2,371			(64,708	)
Net (loss)/income		(26,557	)		5,207			(63,415	)
Foreign currency translation adjustment		537			32			(1,135	)
Total comprehensive (loss)/income of the Company		(26,020	)		5,239			(64,550	)

28.	Additional information: condensed financial statements of the Company (Continued)

Condensed balance sheets of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2019			2020
Assets
Current assets:
Cash and cash equivalents		10,673			3,332
Restricted cash		2,867			—
Prepayments and other current assets		—			358
Due from the entities within the Group		95,517			123,337
Total current assets		109,057			127,027
Total assets		109,057			127,027
Liabilities
Current liabilities:
Due to the entities within the Group		14,351			3,888
Accrued expenses and other liabilities		539			1,078
Deficit in subsidiaries		51,723			65,346
Total current liabilities		66,613			70,312
Non-current liabilities:
Other non-current liabilities		—			321
Total non-current liabilities		—			321
Total liabilities		66,613			70,633
Mezzanine equity
Series A redeemable convertible preferred shares		22,977			—
Total mezzanine equity		22,977			—
Shareholders’ equity
Ordinary shares		11			14
Additional paid-in capital		118,818			220,292
Accumulated other comprehensive income		706			(429	)
Accumulated losses		(100,068	)		(163,483	)
Total shareholders’ equity		19,467			56,394
Total liabilities, mezzanine equity and shareholders’ equity		109,057			127,027

Condensed statement of cash flows of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2018			2019			2020
Cash flows from operating activities
Net cash used in operating activities		(24,877	)		(5,284	)		(40,112	)
Cash flows from financing activities
Net cash generated from financing activities		—			—			29,904
Decrease in cash, cash equivalents and restricted cash		(24,877	)		(5,284	)		(10,208	)
Cash, cash equivalents and restricted cash at beginning of year		43,701			18,824			13,540
Cash, cash equivalents and restricted cash at end of year		18,824			13,540			3,332

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of presentation

2.1	Basis of presentation

Use of estimates

2.2	Use of estimates

Consolidation

2.3	Consolidation

2.	Summary of significant accounting policies (Continued)

2.3	Consolidation (Continued)

	As of December 31,
	2019		2020
	(in thousands of US$)
Cash and cash equivalents		4,875		1,734
Accounts receivable, net		5,625		1,450
Amounts due from non-VIE subsidiaries of the Company		9,072		6,663
Property and equipment and intangible assets		2,219		2,311
Others		19,262		9,399
Total assets		41,053		21,557
Short term borrowings		4,659		—
Amounts due to non-VIE subsidiaries of the Company		48,674		42,442
Accrued expenses, account payable and other liabilities		16,580		14,276
Contract liabilities		837		215
Total liabilities		70,750		56,933

	Years ended December 31,
	2018			2019			2020
	(in thousands of US$)
Revenue (note)		89,366			82,054			55,014
Net (loss)/income (note)		(20,102	)		3,160			(3,528	)
Net cash (used in)/provided by operating activities		(8,816	)		2,516			2,739
Net cash provided by/ (used in) investing activities		371			(2,697	)		(1,196	)
Net cash provided by/ (used in) financing activities		4,309			(207	)		(4,684	)

Note:

Revenue and net (loss)/income incurred by the VIEs are primarily from the provision of data connectivity services, as well as sales of Wi-Fi terminals and sales of data related products.

2.	Summary of significant accounting policies (Continued)

2.3	Consolidation (Continued)

Segment reporting

2.4	Segment reporting

Foreign currency transaction

2.5	Foreign currency translation

Convertible bonds

2.6	Convertible bonds

Mezzanine equity

2.7	Mezzanine equity

2.	Summary of significant accounting policies (Continued)

2.7	Mezzanine equity (Continued)

Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital.

In June 2020, all 29,000,000 issued and outstanding Series A Preferred Shares were converted into Class A ordinary shares upon the completion of the IPO.

Revenue recognition

2.8	Revenue recognition

The Group conducts its business through various contracts with customers, including:

(i)

Data connectivity services

2.	Summary of significant accounting policies (Continued)

2.8	Revenue recognition (Continued)

(ii)

Sales of terminals and data related products

(iii)

Provision of PaaS or SaaS services

(iv)

Contract balance

Cost of revenue

2.9	Cost of revenue

Research and development expenses

2.10	Research and development expenses

Sales and marketing expenses

2.11	Sales and marketing expenses

Advertising and promotional expenses were US$6,589 thousands, US$5,991 thousands and US$2,695 thousands during the years ended December 31, 2018, 2019 and 2020, respectively.

General and administrative expenses

2.12	General and administrative expenses

Share-based compensation

2.13	Share-based compensation

Other employee benefits

2.14	Other employee benefits

The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC.

Income taxes

2.15	Income taxes

Government grants

2.16	Government grants

Leases

2.17

Leases

Comprehensive (loss)/income

2.18	Comprehensive (loss)/income

(Loss)/income per share

2.19	(Loss)/income per share

Cash, cash equivalents and restricted cash

2.20	Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on our consolidated balance sheet as follows:

	December 31,		December 31,
(In thousands)	2019		2020
Cash and cash equivalents		37,320		21,989
Restricted cash		2,954		8,237
Total		40,274		30,226

Inventories

2.21	Inventories

Accounts receivable, net

2.22	Accounts receivable, net

2.	Summary of significant accounting policies (Continued)

2.22	Accounts receivable, net (Continued)

Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are:

(i)

the customer’s past payment history and whether it fails to comply with its payment schedule;

(ii)

whether the customer is in financial difficulty due to economic or legal factors;

(iii)

a significant dispute with the customer has occurred;

(iv)

the objective evidence which indicates non-collectability of the accounts receivable.

Investment in equity investee

2.23	Investment in equity investee

Property and equipment

2.24	Property and equipment

Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Computers, server & switch and office equipment

5 years

Wi-Fi terminals for data connectivity services

2 years

Leasehold improvement

Over the shorter

of lease term or

3 years

Intangible assets

2.25	Intangible assets

Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:

Trademark		10 years
Software		10 years
Licensed copyrights		10 years

Long-term investment

2.26	Long-term investment

Deferred offering costs

2.27	Deferred offering costs

Impairment of long-lived assets

2.28	Impairment of long-lived assets

No impairment charge of long-lived assets was recorded for the years ended December 31, 2018, 2019 and 2020.

Software development costs

2.29	Software development costs

Fair value of financial instruments

2.30	Fair value of financial instruments

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Group’s financial instruments consist principally of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities.

Other investments

2.31	Other investments

Organization and Principal Activities (Tables)

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Subsidiaries and Variable Interest Entities

As of December 31, 2020, the details of the Company’s principal subsidiaries and VIEs were as follows:

Entity

Place of

incorporation

Date of

incorporation

Relationship

% of

direct

or indirect

economic

ownership

Principal activities

UCLOUDLINK (HK) LIMITED

Hong Kong

2 September 2014

Subsidiary

100

Holding company

HONG KONG UCLOUDLINK

NETWORK TECHNOLOGY

LIMITED

Hong Kong

25 October 2010

Subsidiary

100

Holding company, information technology services and sales of terminals and data related products

Shenzhen Ucloudlink Technology

Limited

PRC

9 July 2015

Subsidiary

100

Technology research

and development

Shenzhen uCloudlink Co.,Ltd.

PRC

7 June 2018

Subsidiary

100

Hardware exportation

Beijing uCloudlink Technology

Co., Ltd. (“Beijing uCloudlink”)

PRC

29 January 2015

Subsidiary

100

Holding company

UCLOUDLINK (SINGAPORE)

PTE.LTD

Singapore

15 May 2017

Subsidiary

100

Sales and marketing

UCLOUDLINK (UK) CO. LTD

13 October 2014

Subsidiary

100

Sales and marketing

Ucloudlink (America), Ltd.

USA

1 August 2016

Subsidiary

100

Sales and marketing

UCLOUDLINK SDN.BHD

Malaysia

24 August 2017

Subsidiary

100

Sales and marketing

uCloudlink Japan Co.,Ltd.

Japan

7 March 2018

Subsidiary

100

Sales and marketing

Shenzhen uCloudlink Network

Technology Co., Ltd.

(“Shenzhen uCloudlink”)

PRC

14 August 2014

Consolidated

VIE

100

Holder of value-added telecommunications services license, information technology services and sales of terminals and data related products

Beijing uCloudlink New

Technology Co.,Ltd.

(“Beijing Technology”)

PRC

15 November 2014

Consolidated

VIE

100

Information technology services and sales of terminals and data related products

PT UCLOUDLINK

TECHNOLOGIES PMA

Indonesia

27 September 2018

Subsidiary

100

Sales and marketing

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents

	As of December 31,
	2019		2020
	(in thousands of US$)
Cash and cash equivalents		4,875		1,734
Accounts receivable, net		5,625		1,450
Amounts due from non-VIE subsidiaries of the Company		9,072		6,663
Property and equipment and intangible assets		2,219		2,311
Others		19,262		9,399
Total assets		41,053		21,557
Short term borrowings		4,659		—
Amounts due to non-VIE subsidiaries of the Company		48,674		42,442
Accrued expenses, account payable and other liabilities		16,580		14,276
Contract liabilities		837		215
Total liabilities		70,750		56,933

	Years ended December 31,
	2018			2019			2020
	(in thousands of US$)
Revenue (note)		89,366			82,054			55,014
Net (loss)/income (note)		(20,102	)		3,160			(3,528	)
Net cash (used in)/provided by operating activities		(8,816	)		2,516			2,739
Net cash provided by/ (used in) investing activities		371			(2,697	)		(1,196	)
Net cash provided by/ (used in) financing activities		4,309			(207	)		(4,684	)

Schedule of Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on our consolidated balance sheet as follows:

	December 31,		December 31,
(In thousands)	2019		2020
Cash and cash equivalents		37,320		21,989
Restricted cash		2,954		8,237
Total		40,274		30,226

Schedule of Depreciation Using Straight-Line Method to Allocate Their Cost to Their Residual Values Over Their Estimated Useful Lives

Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Computers, server & switch and office equipment

5 years

Wi-Fi terminals for data connectivity services

2 years

Leasehold improvement

Over the shorter

of lease term or

3 years

Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives

Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows:

Trademark		10 years
Software		10 years
Licensed copyrights		10 years

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Revenues (Tables)

12 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Disaggregation of Revenue

	Years ended December 31,
(In thousands)	2018		2019		2020
Revenues from services
—Data connectivity services		82,543		80,537		39,956
International data connectivity services		82,032		77,974		30,798
Local data connectivity services		511		2,563		9,158
—PaaS and SaaS services		5,047		9,135		5,717
—Others		858		1,438		477
		88,448		91,110		46,150
Sales of products
—Sales of terminals		25,595		54,880		32,597
—Sales of data related products		12,148		11,955		10,194
—Others		208		436		628
		37,951		67,271		43,419
Total		126,399		158,381		89,569

(a)	Disaggregation of revenue

In the following table, revenue is geographically disaggregated according to the locations of the customers.

	Years ended December 31,
(In thousands)	2018		2019		2020
China		62,104		50,862		9,631
Japan		24,316		57,695		47,565
Hong Kong		12,211		14,664		2,771
Taiwan		7,119		5,153		635
North America		6,901		15,254		23,513
Southeast Asia		6,289		8,442		2,495
Europe		3,499		3,972		1,706
Others		3,960		2,339		1,253
Total		126,399		158,381		89,569

Other Income, Net (Tables)

12 Months Ended

Dec. 31, 2020

Other Income And Expenses [Abstract]

Schedule of Other Income, Net

	Years ended December 31,
(In thousands)	2018			2019			2020
Foreign exchange losses, net		(543	)		(1,893	)		(153	)
Government grants (note)		701			1,662			2,283
Gains on disposal of property and equipment, net		542			339			375
Fair value gains on other investments		—			—			4,909
Others		(42	)		182			140
Total		658			290			7,554

Note:

Taxation (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of (Loss)/Income Before Income Taxes

The Group’s (loss)/income before income taxes consisted of:

	Years ended December 31,
(In thousands)	2018			2019			2020
Non-PRC		(4,388	)		(416	)		(54,627	)
PRC		(21,727	)		5,680			(8,603	)
Total		(26,115	)		5,264			(63,230	)

Schedule of Reconciliation of Income Tax Expenses

The reconciliations of the income tax expenses for the years ended December 31, 2018, 2019 and 2020 were as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
(Loss)/income before income tax		(26,115	)		5,264			(63,230	)
Income tax computed at statutory PRC income tax rate (25%)⁽ⁱ⁾		(6,529	)		1,316			(15,808	)
Differential income tax rates applicable to certain entities comprising the Group		1,601			120			13,121
Effect of tax holiday		1,945			(569	)		824
Permanent differences⁽ⁱⁱ⁾		3,417			136			451
Change in valuation allowance		1,116			322			2,735
Accelerated deductions on research and development expenses⁽ⁱⁱⁱ⁾		(1,550	)		(1,268	)		(1,138	)
Income tax expenses		—			57			185

(i)

The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC.

(ii)

Permanent differences primarily represent non-deductible expenses.

(iii)

Summary of Per Share Effect of Tax Holidays

The per share effect of the tax holidays are as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
Effect of tax holiday		1,945			(569	)		824
Per share effect – basic and diluted		(0.01	)		0.00			(0.00	)

Schedule of Components of Deferred Tax Assets

The components of the deferred tax assets are as follows:

	Years ended December 31,
(In thousands)	2018			2019			2020
Deferred tax assets
Net operating loss carryforwards		6,666			6,991			9,416
Accrued expenses and others		107			104			414
Less: valuation allowance		(6,773	)		(7,095	)		(9,830	)
Net deferred tax assets		—			—			—

Summary of Movement of Valuation Allowance

Movement of valuation allowance

	Years ended December 31,
(In thousands)	2018		2019		2020
Balance at beginning of the year		5,657		6,773		7,095
Change of valuation allowance		1,116		322		2,735
Balance at end of the year		6,773		7,095		9,830

Redeemable and Convertible Shares (Tables)

12 Months Ended

Dec. 31, 2020

Temporary Equity Disclosure [Abstract]

Schedule of Mezzanine Equity Activities

The activities of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2019 and 2020 are as follows:

(In thousands)	Series A Preferred Shares
Balance as of December 31, 2018		20,437
Accretion		2,540
Balance as of December 31, 2019		22,977
Accretion		1,293
Conversion and redesignation of Preferred Shares		(24,270	)
Balance as of December 31, 2020		—

Share-based Awards (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Compensation Expense Recognized for Share-based Awards

Compensation expense recognized for share-based awards was as follow:

	Years ended December 31,
Share-based compensation expenses (In thousands)	2018		2019		2020
—Restricted Shares owned by certain senior management^(a)		2,282		169		—
—Share options^(b)		—		—		50,607
Total		2,282		169		50,607

Summary of Restricted Shares Activity

A summary of the Restricted Shares activity for the years ended December 31, 2018, 2019 and 2020 is presented below:

(Number of shares)	Restricted Shares held by certain senior management
Outstanding as of January 1, 2018		48,128,889
Vested		(44,426,667	)
Outstanding as of December 31, 2018		3,702,222
Vested		(3,702,222	)
Outstanding as of December 31, 2019		—
Vested		—
Outstanding as of December 31, 2020		—

Summary of Changes in Share Options Granted by the Company

A summary of the changes in the share options granted by the Company during the year ended December 31, 2018, 2019 and 2020 is as follows:

	Number of share options			Weighted average exercise price		Aggregate intrinsic value
Outstanding as of January 1, 2018		—			—		—
Granted		12,187,420		$	0.51	$	37,604,315
Outstanding as of December 31, 2018		12,187,420		$	0.51	$	37,604,315
Exercisable as of December 31, 2018		—			—		—
Granted		5,414,300		$	0.54	$	15,919,687
Forfeited		(205,980	)	$	0.50	$	(572,154	)
Outstanding as of December 31, 2019		17,395,740		$	0.52	$	52,951,848
Exercisable as of December 31, 2019		—			—		—
Granted		6,163,017		$	0.55	$	7,668,544
Forfeited		(683,280	)	$	0.67	$	(1,733,224	)
Exercised		(576,720	)	$	0.50	$	(1,804,198	)
Outstanding as of December 31, 2020		22,298,757		$	0.54	$	57,082,970

Assumptions used to Determine Fair Value of Share Options Granted

	Years ended December 31,
(In thousands)	2018		2019		2020
Risk-free interest rate⁽ⁱ⁾		2.60%		1.53%	0.33%-0.88%
Expected dividend yield⁽ⁱⁱ⁾		0.00%		0.00%		0.00%
Expected volatility⁽ⁱⁱⁱ⁾		34.88%		36.88%	37.94%-40.07%
Grant date fair value		$3.64		$3.48	$0.98-$1.93

(i)

Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant.

(ii)

Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares.

(iii)

Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant.

(Loss)/Income Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net (Loss)/Income Per Share

Basic and diluted net (loss)/income per share for each of the year presented were calculated as follows:

	Years ended December 31,
(In thousands of US$ except share data and per share data)	2018			2019			2020
Numerator:
Net (loss)/income		(26,557	)		5,207			(63,415	)
Add: Accretion of Series A Preferred shares		(2,209	)		(2,540	)		(1,293	)
Income allocation to participating preferred shareholders		—			(296	)		—
Net (loss)/income attributable to ordinary shareholders of the Company for computing basic and diluted net (loss)/income per share	(28,766)				2,371			(64,708	)
Denominator:
Weighted average number of ordinary shares outstanding used in calculating basic and diluted net (loss)/income per share		185,370,982			232,178,037			259,852,204
Basic and diluted net (loss)/income per ordinary share		(0.16	)		0.01			(0.25	)

Schedule of Antidilutive Securities Excluded from Inclusion in Calculation of Diluted Earnings Per Share

Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive:

	Years ended December 31,
	2018		2019		2020
Convertible Redeemable Preferred Shares		29,000,000		29,000,000		—
Restricted Shares		3,702,222		—		—
Share options awards		12,187,420		17,395,740		22,298,757
Total		44,889,642		46,395,740		22,298,757

Cash and Cash Equivalents and Short-term Deposit (Tables)

12 Months Ended

Dec. 31, 2020

Investments Debt And Equity Securities [Abstract]

Schedule of Cash on Hand and Cash Held at Bank Balance and Short-term Deposit

Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2019 and 2020 primarily consist of the following currencies:

	December 31, 2019				December 31, 2020
(In thousands)	Original currency		US$ equivalent		Original currency		US$ equivalent
US$		11,795		11,795		4,259		4,259
RMB		96,749		13,791		59,912		9,182
HKD		5,829		748		8,236		1,062
Others				11,179				7,682
Total				37,513				22,185

Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2020

Restricted Cash And Cash Equivalents [Abstract]

Schedule of Restricted Cash

(In thousands)	December 31, 2019		December 31, 2020
US$ denominated		2,867		8,237
RMB denominated		87		—
Total		2,954		8,237

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2020

Accounts Receivable Net Current [Abstract]

Schedule of Accounts Receivable Net

(In thousands)	December 31, 2019			December 31, 2020
Accounts receivable		26,262			10,034
Less: Allowance for doubtful accounts		(495	)		(3,289	)
Accounts receivable, net		25,767			6,745

Schedule of Movement in Allowance for Doubtful Accounts

The following table presents movement in the allowance for doubtful accounts:

(In thousands)	December 31, 2019			December 31, 2020
Balance at beginning of the year		473			495
Additions		74			2,785
Reversal		(30	)		—
Write-off		(20	)		—
Exchange difference		(2	)		9
Balance at end of the year		495			3,289

Inventories (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Summary of Inventories

(In thousands)	December 31, 2019			December 31, 2020
Raw materials		7,279			4,342
Finished goods		3,767			2,141
Less: write-down of obsolete inventories		(528	)		(636	)
Total inventories		10,518			5,847

Prepayments and Other Assets (Tables)

12 Months Ended

Dec. 31, 2020

Prepaid Expense And Other Assets [Abstract]

Schedule of Prepayments and Other Current Assets

(In thousands)	December 31, 2019		December 31, 2020
Prepayments		1,663		5,119
Deposits		2,323		2,344
Export tax receivable		1,457		507
VAT recoverable		320		118
Deferred offering cost		964		—
Others		1,101		1,505
Total of prepayments and other assets		7,828		9,593

Schedule of Prepayments and Other Assets

(In thousands)	December 31, 2019		December 31, 2020
Current		7,828		7,477
Non-current		—		2,116
Total of prepayments and other assets		7,828		9,593

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consist of the following:

(In thousands)	December 31, 2019			December 31, 2020
Computers		830			850
Server & switch		1,176			1,276
Office equipment		1,332			1,442
Wi-Fi terminals for data connectivity services		10,971			11,863
Leasehold improvement		548			555
Total original costs		14,857			15,986
Less: accumulated depreciation		(11,064	)		(12,957	)
Net book value		3,793			3,029

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Intangible Asset, Net

(In thousands)	Carrying amount		Accumulated amortization			Net carrying amount
December 31, 2019
Purchased software		554		(126	)		428
Trademarks		115		(47	)		68
Licensed copyrights		170		(64	)		106
Intangible assets		839		(237	)		602

19.	Intangible assets, net (Continued)

(In thousands)	Carrying amount		Accumulated amortization			Net carrying amount
December 31, 2020
Purchased software		1,089		(203	)		886
Trademarks		121		(62	)		59
Licensed copyrights		179		(85	)		94
Intangible assets		1,389		(350	)		1,039

Schedule of Estimated Aggregate Amortization Expenses

The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows:

Year	(In thousands)
2021		139
2022		139
2023		139
2024		139
2025		139
Thereafter		344
Total		1,039

Other Investments (Tables)

12 Months Ended

Dec. 31, 2020

Investments All Other Investments [Abstract]

Schedule of Other Investments

(In thousands)	December 31, 2019		December 31, 2020
Current⁽ⁱ⁾		—		19,185
Non-current⁽ⁱⁱ⁾		—		17,824
Total		—		37,009

Note:

(i)

(ii)

Accounts Payable, Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Payables And Accruals [Abstract]

Schedule of Accounts Payable, Accrued Expenses and Other Liabilities

(In thousands)	December 31, 2019		December 31, 2020
Accounts payable to suppliers		16,728		8,701
Accrued bonus and staff costs		14,712		18,272
Other deposits		2,487		1,788
Other taxes payable (note)		771		934
Deferred government grant		86		—
Accrued professional fees		2,183		3,169
Accrued marketing expenses		199		342
Others		881		1,237
Total		38,047		34,443

Note:

Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Group.

Short-term Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

Short Term Borrowings [Abstract]

Schedule of Short-term Borrowings

(In thousands)	December 31, 2019		December 31, 2020
Current
Bank borrowings⁽ⁱ⁾		4,867		3,704
Other borrowing⁽ⁱⁱ⁾		1,792		—
Total		6,659		3,704

Note:

(i)

(ii)

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Related Party Transactions

(b)	During the years ended December 31, 2018, 2019 and 2020, other than disclosed elsewhere, the Company had the following material related party transactions:

	Years ended December 31,
(In thousands)	2018		2019		2020
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products:
Maya		3,597		4,419		8,010
Purchase of data connectivity service:
Maya		—		—		47

(c)	The Company had the following related party balances as December 31, 2019 and December 31, 2020:

(In thousands)	December 31, 2019		December 31, 2020
Deposits received from related party:
Maya		1,022		1,498
Amounts payable to related party:
Maya		—		5
Amounts receivable from related party:
Maya		692		2,264

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Summary of Non Cancellable Operating Lease Agreements

The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights.

Year	(In thousands)
2021		1,298
2022		981
2023		182
2024		—
2025		—
Total		2,461

Additional Information: Condensed Financial Statements of the Company (Tables)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Statements of Comprehensive (Loss)/Income of the Parent Company

Condensed statements of comprehensive (loss)/income of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2018			2019			2020
General and administrative expenses		(2,688	)		(1,299	)		(22,914	)
Sales and marketing expenses		—			—			(14,029	)
Research and development expenses		—			—			(13,695	)
Other income, net		343			(9	)		(271	)
Loss from operations		(2,345	)		(1,308	)		(50,909	)
Interest income		399			145			1
Interest expenses		(3,138	)		(332	)		(17	)
Loss before income tax		(5,084	)		(1,495	)		(50,925	)
Income tax expenses		—			—			—
(Loss)/income from subsidiaries and VIEs		(21,473	)		6,702			(12,490	)
Net (loss)/income		(26,557	)		5,207			(63,415	)
Accretion of Series A Preferred Shares		(2,209	)		(2,540	)		(1,293	)
Income allocation to participating preferred shareholders		—			(296	)		—
Net (loss)/income attributable to ordinary shareholders of the Company		(28,766	)		2,371			(64,708	)
Net (loss)/income		(26,557	)		5,207			(63,415	)
Foreign currency translation adjustment		537			32			(1,135	)
Total comprehensive (loss)/income of the Company		(26,020	)		5,239			(64,550	)

Condensed Balance Sheets of the Parent Company

Condensed balance sheets of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2019			2020
Assets
Current assets:
Cash and cash equivalents		10,673			3,332
Restricted cash		2,867			—
Prepayments and other current assets		—			358
Due from the entities within the Group		95,517			123,337
Total current assets		109,057			127,027
Total assets		109,057			127,027
Liabilities
Current liabilities:
Due to the entities within the Group		14,351			3,888
Accrued expenses and other liabilities		539			1,078
Deficit in subsidiaries		51,723			65,346
Total current liabilities		66,613			70,312
Non-current liabilities:
Other non-current liabilities		—			321
Total non-current liabilities		—			321
Total liabilities		66,613			70,633
Mezzanine equity
Series A redeemable convertible preferred shares		22,977			—
Total mezzanine equity		22,977			—
Shareholders’ equity
Ordinary shares		11			14
Additional paid-in capital		118,818			220,292
Accumulated other comprehensive income		706			(429	)
Accumulated losses		(100,068	)		(163,483	)
Total shareholders’ equity		19,467			56,394
Total liabilities, mezzanine equity and shareholders’ equity		109,057			127,027

Condensed Statement of Cash Flows of the Parent Company

Condensed statement of cash flows of the parent company

	Years ended December 31,
(Amounts expressed in thousands of US$ except for number of shares and per share data)	2018			2019			2020
Cash flows from operating activities
Net cash used in operating activities		(24,877	)		(5,284	)		(40,112	)
Cash flows from financing activities
Net cash generated from financing activities		—			—			29,904
Decrease in cash, cash equivalents and restricted cash		(24,877	)		(5,284	)		(10,208	)
Cash, cash equivalents and restricted cash at beginning of year		43,701			18,824			13,540
Cash, cash equivalents and restricted cash at end of year		18,824			13,540			3,332

Organization and Principal Activities - Schedule of Principal Subsidiaries and VIEs (Details)	12 Months Ended
	Dec. 31, 2020
Organization And Principal Activities [Line Items]
% of direct or indirect economic ownership	50.00%
UCLOUDLINK (HK) LIMITED
Organization And Principal Activities [Line Items]
Place of incorporation	Hong Kong
Date of incorporation	Sep. 02, 2014
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Holding company
HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED
Organization And Principal Activities [Line Items]
Place of incorporation	Hong Kong
Date of incorporation	Oct. 25, 2010
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Holding company, information technology services and sales of terminals and data related products
Shenzhen Ucloudlink Technology Limited
Organization And Principal Activities [Line Items]
Place of incorporation	PRC
Date of incorporation	Jul. 09, 2015
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Technology research and development
Shenzhen uCloudlink Co.,Ltd.
Organization And Principal Activities [Line Items]
Place of incorporation	PRC
Date of incorporation	Jun. 07, 2018
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Hardware exportation
Beijing uCloudlink Technology Co., Ltd.
Organization And Principal Activities [Line Items]
Place of incorporation	PRC
Date of incorporation	Jan. 29, 2015
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Holding company
UCLOUDLINK (SINGAPORE) PTE.LTD
Organization And Principal Activities [Line Items]
Place of incorporation	Singapore
Date of incorporation	May 15, 2017
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing
UCLOUDLINK (UK) CO. LTD
Organization And Principal Activities [Line Items]
Place of incorporation	UK
Date of incorporation	Oct. 13, 2014
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing
Ucloudlink (America), Limited
Organization And Principal Activities [Line Items]
Place of incorporation	USA
Date of incorporation	Aug. 01, 2016
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing
UCLOUDLINK SDN.BHD
Organization And Principal Activities [Line Items]
Place of incorporation	Malaysia
Date of incorporation	Aug. 24, 2017
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing
uCloudlink Japan Co.,Limited
Organization And Principal Activities [Line Items]
Place of incorporation	Japan
Date of incorporation	Mar. 07, 2018
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing
Shenzhen uCloudlink Network Technology Co., Ltd.
Organization And Principal Activities [Line Items]
Place of incorporation	PRC
Date of incorporation	Aug. 14, 2014
Relationship	Consolidated VIE
% of direct or indirect economic ownership	100.00%
Principal activities	Holder of value-added telecommunications services license, information technology services and sales of terminals and data related products
Beijing uCloudlink New Technology Co.,Limited
Organization And Principal Activities [Line Items]
Place of incorporation	PRC
Date of incorporation	Nov. 15, 2014
Relationship	Consolidated VIE
% of direct or indirect economic ownership	100.00%
Principal activities	Information technology services and sales of terminals and data related products
PT UCLOUDLINK TECHNOLOGIES PMA
Organization And Principal Activities [Line Items]
Place of incorporation	Indonesia
Date of incorporation	Sep. 27, 2018
Relationship	Subsidiary
% of direct or indirect economic ownership	100.00%
Principal activities	Sales and marketing

Organization and Principal Activities - Additional Information (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jun. 10, 2020 USD ($) $ / shares shares	Jun. 09, 2020 shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) ¥ / shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Organization And Principal Activities [Line Items]
Option exercise price \| $ / shares			$ 0.50
Registered capital \| $			$ 3,800	$ 3,800	$ 3,800	$ 1,800
Proceeds from initial public offering, net of issuance costs \| $			$ 29,904
Mr. Chaohui Chen and Mr. Zhiping Peng
Organization And Principal Activities [Line Items]
Redesignation of ordinary shares into class B ordinary shares		122,072,980
Class A Ordinary Shares [Member]
Organization And Principal Activities [Line Items]
Ordinary shares issued			20,100,000
Ordinary shares voting rights per shares	one
Class B Ordinary Shares [Member]
Organization And Principal Activities [Line Items]
Ordinary shares voting rights per shares	fifteen
IPO \| ADS
Organization And Principal Activities [Line Items]
Sale of stock, shares issued	2,010,000
Ordinary shares issued	2,010,000
Sale of stock, price per share \| $ / shares	$ 18
IPO \| Class A Ordinary Shares [Member]
Organization And Principal Activities [Line Items]
Ordinary shares issued	20,100,000
Sale of stock, price per share \| $ / shares	$ 18
Proceeds from initial public offering, net of issuance costs \| $	$ 27,600
Beijing uCloudlink
Organization And Principal Activities [Line Items]
Option exercise price \| ¥ / shares				$ 1

Summary of Significant Accounting Policies - Additional Information (Details)	1 Months Ended	12 Months Ended
	Jun. 30, 2020 shares	Dec. 31, 2020 USD ($) Segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2020	Dec. 31, 2017 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percentage of voting power		50.00%
Assets		$ 97,254,000	$ 90,097,000
Number of operating segments \| Segment		1
Number of reportable segments \| Segment		1
Redeemable preferred shares, conversion conditions, term		5 years
Contract liability						$ 2,542,000
Revenue included in contract liability		$ 1,925,000	3,940,000	$ 2,542,000
Advertising and promotional expenses		2,695,000	5,991,000	6,589,000
Contributions by employer to plan		2,077,000	3,836,000	4,888,000
Changes in restricted cash		(10,797,000)	4,022,000	(19,620,000)
Inventory write-downs		948,000	230,000	497,000
Deferred offering costs capitalized		0	964,000
Impairment charge of long-lived assets		0	0	0
Beijing Huaxianglianxin Technology Company
Summary Of Significant Accounting Policies [Line Items]
Equity interest percentage					10.00%
Investment carrying amount		1,306,000	430,000
Impairment of investments		0
ASU 2016-18
Summary Of Significant Accounting Policies [Line Items]
Changes in restricted cash		5,283,000	2,791,000	$ 7,541,000
Class A Ordinary Shares [Member]
Summary Of Significant Accounting Policies [Line Items]
Conversion of series A preferred shares into class A ordinary shares upon completion of IPO \| shares	29,000,000
VIEs [Member]
Summary Of Significant Accounting Policies [Line Items]
Assets		21,557,000	$ 41,053,000
VIEs [Member] \| Contractual Arrangements
Summary Of Significant Accounting Policies [Line Items]
Assets		$ 0

Summary of Significant Accounting Policies - Assets, and Liabilities,of VIEs (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Cash and cash equivalents	$ 21,989	$ 37,320
Accounts receivable, net	6,745	25,767
Amounts due from non-VIE subsidiaries of the Company	2,264	692
Total assets	97,254	90,097
Short term borrowings	3,704	6,659
Amounts due to non-VIE subsidiaries of the Company	1,503	1,022
Contract liabilities	889	1,925
Total liabilities	40,860	47,653
VIEs [Member]
Variable Interest Entity [Line Items]
Cash and cash equivalents	1,734	4,875
Accounts receivable, net	1,450	5,625
Amounts due from non-VIE subsidiaries of the Company	6,663	9,072
Property and equipment and intangible assets	2,311	2,219
Others	9,399	19,262
Total assets	21,557	41,053
Short term borrowings		4,659
Amounts due to non-VIE subsidiaries of the Company	42,442	48,674
Accrued expenses, account payable and other liabilities	14,276	16,580
Contract liabilities	215	837
Total liabilities	$ 56,933	$ 70,750

Summary of Significant Accounting Policies - Schedule of Results of Operations and Changes in Cash and Cash Equivalents of VIEs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Revenues	$ 89,569	$ 158,381	$ 126,399
Net (loss)/income	(63,415)	5,207	(26,557)
Net cash (used in)/provided by operating activities	(2,038)	5,761	(19,472)
Net cash provided by/ (used in) investing activities	(35,444)	(3,267)	(4,569)
Net cash provided by/ (used in) financing activities	26,685	1,528	4,421
VIEs [Member]
Variable Interest Entity [Line Items]
Revenues	55,014	82,054	89,366
Net (loss)/income	(3,528)	3,160	(20,102)
Net cash (used in)/provided by operating activities	2,739	2,516	(8,816)
Net cash provided by/ (used in) investing activities	(1,196)	(2,697)	371
Net cash provided by/ (used in) financing activities	$ (4,684)	$ (207)	$ 4,309

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Summary of Significant Accounting Policies - Additional Information (Details 1)	Dec. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Summary Of Significant Accounting Policies [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year

Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 21,989	$ 37,320
Restricted cash	8,237	2,954
Total	$ 30,226	$ 40,274	$ 36,627	$ 56,806

Summary of Significant Accounting Policies - Schedule of Depreciation Using Straight-Line Method to Allocate Their Cost to Their Residual Values Over Their Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2020
Computers, Server & Switch and Office Equipment
Summary Of Significant Accounting Policies [Line Items]
Property and equipment	5 years
Wi-Fi Terminals for Data Connectivity Services
Summary Of Significant Accounting Policies [Line Items]
Property and equipment	2 years
Leasehold Improvement
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful lives	Over the shorter of lease term or 3 years

Summary of Significant Accounting Policies - Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2020
Trademark
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, estimated useful lives	10 years
Software
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, estimated useful lives	10 years
Licensed Copyrights
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible assets, estimated useful lives	10 years

Revenues - Schedule of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 89,569	$ 158,381	$ 126,399
Revenues from Services
Disaggregation Of Revenue [Line Items]
Total Revenue	46,150	91,110	88,448
Revenues from Services \| Data Connectivity Services
Disaggregation Of Revenue [Line Items]
Total Revenue	39,956	80,537	82,543
Revenues from Services \| International Data Connectivity Services
Disaggregation Of Revenue [Line Items]
Total Revenue	30,798	77,974	82,032
Revenues from Services \| Local Data Connectivity Services
Disaggregation Of Revenue [Line Items]
Total Revenue	9,158	2,563	511
Revenues from Services \| PaaS and SaaS Services
Disaggregation Of Revenue [Line Items]
Total Revenue	5,717	9,135	5,047
Revenues from Services \| Others
Disaggregation Of Revenue [Line Items]
Total Revenue	477	1,438	858
Sale of Products
Disaggregation Of Revenue [Line Items]
Total Revenue	43,419	67,271	37,951
Sale of Products \| Terminals
Disaggregation Of Revenue [Line Items]
Total Revenue	32,597	54,880	25,595
Sale of Products \| Data Related Products
Disaggregation Of Revenue [Line Items]
Total Revenue	10,194	11,955	12,148
Sale of Products \| Others
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 628	$ 436	$ 208

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 89,569	$ 158,381	$ 126,399
China
Disaggregation Of Revenue [Line Items]
Total Revenue	9,631	50,862	62,104
Japan
Disaggregation Of Revenue [Line Items]
Total Revenue	47,565	57,695	24,316
Hong Kong
Disaggregation Of Revenue [Line Items]
Total Revenue	2,771	14,664	12,211
Taiwan
Disaggregation Of Revenue [Line Items]
Total Revenue	635	5,153	7,119
North America
Disaggregation Of Revenue [Line Items]
Total Revenue	23,513	15,254	6,901
Southeast Asia
Disaggregation Of Revenue [Line Items]
Total Revenue	2,495	8,442	6,289
Europe
Disaggregation Of Revenue [Line Items]
Total Revenue	1,706	3,972	3,499
Others
Disaggregation Of Revenue [Line Items]
Total Revenue	$ 1,253	$ 2,339	$ 3,960

Other Income, Net - Schedule of Other Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Income And Expenses [Abstract]
Foreign exchange losses, net	$ (153)	$ (1,893)	$ (543)
Government grants	2,283	1,662	701
Gains on disposal of property and equipment, net	375	339	542
Fair value gains on other investments	4,909
Others	140	182	(42)
Total	$ 7,554	$ 290	$ 658

Taxation - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2008	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax [Line Items]
Unified corporate income tax rate	25.00%
Preferential tax rate		15.00%
Preferential tax rate extension period		3 years
Statutory income tax rate		25.00%	25.00%	25.00%
Net operating loss carryforwards		$ 61,257	$ 45,712	$ 44,015
Minimum
Income Tax [Line Items]
Statutory income tax rate		15.00%
Net operating loss carryforwards expiration year		2025
Maximum
Income Tax [Line Items]
Statutory income tax rate		25.00%
Net operating loss carryforwards expiration year		2029
Hong Kong
Income Tax [Line Items]
Statutory income tax rate		16.50%
Shenzhen Ucloudlink Technology Limited
Income Tax [Line Items]
Preferential tax rate		15.00%	15.00%
Preferential tax rate extension period		3 years	3 years

Taxation - Summary of (Loss)/Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
(Loss)/Income before income taxes - Non-PRC	$ (54,627)	$ (416)	$ (4,388)
(Loss)/Income before income taxes - PRC	(8,603)	5,680	(21,727)
(Loss)/income before income tax	$ (63,230)	$ 5,264	$ (26,115)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Taxation - Schedule of Reconciliation of Income Tax Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
(Loss)/income before income tax	$ (63,230)	$ 5,264	$ (26,115)
Income tax computed at statutory PRC income tax rate (25%)	(15,808)	1,316	(6,529)
Differential income tax rates applicable to certain entities comprising the Group	13,121	120	1,601
Effect of tax holiday	824	(569)	1,945
Permanent differences	451	136	3,417
Change in valuation allowance	2,735	322	1,116
Accelerated deductions on research and development expenses	(1,138)	(1,268)	$ (1,550)
Income tax expenses	$ 185	$ 57

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Taxation - Schedule of Reconciliation of Income Tax Expenses (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Statutory income tax rate	25.00%	25.00%	25.00%
Tax incentive subsidiaries to claim tax deduction	75.00%

Taxation - Summary of Per Share Effect of Tax Holidays (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Effect of tax holiday	$ 824	$ (569)	$ 1,945
Per share effect – basic and diluted	$ 0.00	$ 0.00	$ (0.01)

Taxation - Schedule of Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets
Net operating loss carryforwards	$ 9,416	$ 6,991	$ 6,666
Accrued expenses and others	414	104	107
Less: valuation allowance	$ (9,830)	$ (7,095)	$ (6,773)	$ (5,657)

Taxation - Summary of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Balance at beginning of the year	$ 7,095	$ 6,773	$ 5,657
Change in valuation allowance	2,735	322	1,116
Balance at end of the year	$ 9,830	$ 7,095	$ 6,773

Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Millions											12 Months Ended				72 Months Ended
	Jun. 10, 2020 USD ($) $ / shares shares	Jun. 09, 2020 USD ($) Vote $ / shares shares	May 19, 2019 $ / shares shares	Aug. 28, 2018 shares	Mar. 22, 2018 shares	Jun. 19, 2017 USD ($) $ / shares shares	Sep. 22, 2016 USD ($) shares	Jan. 01, 2016 $ / shares shares	Nov. 25, 2015 USD ($) shares	Jan. 28, 2015 USD ($) $ / shares shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares	Dec. 31, 2018 shares	Dec. 31, 2017 CNY (¥) shares	Dec. 31, 2020 $ / shares shares	May 18, 2020 USD ($) $ / shares shares
Class Of Stock [Line Items]
Ordinary shares, authorized amount \| $	$ 100,000	$ 50,000														$ 50,000
Common Stock, Shares Authorized	2,000,000,000	1,000,000,000									971,000,000	971,000,000			971,000,000	50,000,000
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.00005	$ 0.00005	$ 0.00005								$ 0.00005	$ 0.00005			$ 0.00005	$ 0.001
Shares subdivided, number of shares			20
Common Stock, Shares, Outstanding												232,451,900	228,749,678
Vesting period							4 years								5 years
Ordinary shares repurchased price per share \| $ / shares						$ 0.96
Ordinary shares repurchased						8,630,140
Ordinary shares repurchased, amount \| $						$ 8,297,880
Reduction of additional paid in capital for cancellation of repurchased ordinary shares \| $						$ 8,298,236
Cumulative revenue \| ¥														¥ 500
Number of shares issued upon conversion				35,004,220
Treasury shares exercised													0	0
Treasury shares issued													0	0
Conversion of shares, basis		1
Conversion of convertible bonds to ordinary shares		122,072,980
Number of shares issued upon exercise of outstanding stock options											576,720
2018 Stock Option Scheme
Class Of Stock [Line Items]
Conversion of shares, basis													55,980,360
Treasury Shares[Member]
Class Of Stock [Line Items]
Ordinary shares issued					31,665,280	4,315,080			20,000,000
Series A Preferred Stock [Member]
Class Of Stock [Line Items]
Ordinary shares transferred								4,000,000
Ordinary shares transferred fair value per share \| $ / shares								$ 0.88
Class B Ordinary Shares [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized											200,000,000	200,000,000			200,000,000
Common Stock, Par or Stated Value Per Share \| $ / shares											$ 0.00005	$ 0.00005			$ 0.00005
Common Stock, Shares, Outstanding											122,072,980				122,072,980
Conversion of shares, basis		1
Number of votes per ordinary share \| Vote		15
Class B Ordinary Shares [Member] \| IPO
Class Of Stock [Line Items]
Common Stock, Shares, Outstanding	122,072,980
Class B Ordinary Shares [Member] \| IPO \| Chaohui Chen
Class Of Stock [Line Items]
Common Stock, Shares, Outstanding	61,346,560
Class B Ordinary Shares [Member] \| IPO \| Zhiping Peng
Class Of Stock [Line Items]
Common Stock, Shares, Outstanding	60,726,420
Class A Ordinary Shares [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized											1,700,000,000	1,700,000,000			1,700,000,000
Common Stock, Par or Stated Value Per Share \| $ / shares											$ 0.00005	$ 0.00005			$ 0.00005
Common Stock, Shares, Outstanding											160,055,640				160,055,640
Ordinary shares issued											20,100,000
Conversion of shares, basis		1
Number of votes per ordinary share \| Vote		1
Number of shares issued upon exercise of outstanding stock options											576,720
Class A Ordinary Shares [Member] \| IPO
Class Of Stock [Line Items]
Common Stock, Shares, Outstanding	159,478,920
Ordinary shares issued	20,100,000
Ordinary shares converted into Class A ordinary share	110,378,920
Ordinary shares issued and sold price per ADS \| $ / shares	$ 18
Preferred shares converted into ordinary shares	29,000,000
ADS \| IPO
Class Of Stock [Line Items]
Ordinary shares issued	2,010,000
Ordinary shares issued and sold price per ADS \| $ / shares	$ 18
Series A SPA
Class Of Stock [Line Items]
Ordinary shares issued										8,400,000
Ordinary shares issued, total consideration \| $										$ 4,056,206
Series A SPA \| Series A Preferred Stock [Member]
Class Of Stock [Line Items]
Ordinary shares issued										25,000,000
Ordinary shares issued, total consideration \| $										$ 9,788,652
A-1 SPA
Class Of Stock [Line Items]
Ordinary shares issued									26,575,220
Ordinary shares issued, total consideration \| $									$ 21,555,470
Ordinary shares redemption price compounded annual interest rate									1000.00%
A-2 SPA
Class Of Stock [Line Items]
Ordinary shares issued							8,502,600
Ordinary shares issued, total consideration \| $							$ 10,000,000
Ordinary shares redemption price compounded annual interest rate							1200.00%
Restricted Shares
Class Of Stock [Line Items]
Common Stock, Shares, Outstanding												162,897,778	162,897,778
Vesting period							4 years			5 years
Ordinary shares repurchased price per share \| $ / shares										$ 0.00005
Ordinary shares, vested												3,702,222	44,426,667	44,426,667

Redeemable and Convertible Shares - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Preferred shares outstanding		29,000,000
Liquidation preference	In a liquidation event, all proceeds resulted from the liquidation event will be first distributed to the Series A Preferred Shares holder based on 100% of the preferred shares purchase price, plus an annual compounded return of 10%, plus any declared but unpaid dividend.
Liquidation preference percentage for temporary equity	100.00%
Eligible annual compound interest in liquidation event	10.00%
Number of ordinary shares issued upon conversion of convertible securities	1
Number of additional ordinary shares issued for each convertible securities before closing of IPO	1
Maximum redemption percentage on purchase price of preferred shares	100.00%
Maximum redemption percentage of annual compound return on purchase price of preferred shares	15.00%
Class A Ordinary Shares [Member]
Temporary Equity [Line Items]
Conversion of Series A Preferred Shares upon IPO	29,000,000	29,000,000

Redeemable and Convertible Shares - Schedule of Mezzanine Equity Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Temporary Equity [Line Items]
Balance	$ 22,977
Balance		$ 22,977
Series A Preferred Stock [Member]
Temporary Equity [Line Items]
Balance	22,977	20,437
Accretion	1,293	2,540
Conversion and redesignation of Preferred Shares	$ (24,270)
Balance		$ 22,977

Share-based Awards - Compensation Expense Recognized for Share-based Awards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total compensation expense recognized	$ 50,607	$ 169	$ 2,282
Restricted Shares
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total compensation expense recognized		$ 169	$ 2,282
Share Options
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total compensation expense recognized	$ 50,607

Share-based Awards - Additional Information (Details) - USD ($) $ in Thousands						1 Months Ended		12 Months Ended			72 Months Ended
	Nov. 27, 2020	Aug. 03, 2020	Apr. 27, 2020	Aug. 12, 2019	Sep. 22, 2016	Jul. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Ordinary shares vesting period					4 years						5 years
Number of shares granted								6,163,017	5,414,300	12,187,420
Vesting period to exercise option after commencement date								6 years
Commencement date of exercise								6 months
Share Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation expense related to share options								$ 8,891			$ 8,891
2018 Stock Option Scheme
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted							12,187,420
2018 Stock Option Scheme \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted							55,980,360
Revised 2018 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares granted	200,000	1,000,000	4,963,017	5,414,300
Revised 2018 Plan \| Maximum \| Directors, Officers and Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate number of ordinary shares issued						40,147,720
2019 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage increase in number of shares issued and outstanding						1.00%

Share-based Awards - Summary of Restricted Shares Activity (Details) - Restricted Shares Held by Certain Senior Management - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding, Beginning balance	3,702,222	48,128,889
Vested	(3,702,222)	(44,426,667)	(44,426,667)
Outstanding, Ending balance		3,702,222	48,128,889

Share-based Awards - Summary of Changes in Share Options Granted by the Company (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of share options
Outstanding, Beginning balance	17,395,740	12,187,420
Granted	6,163,017	5,414,300	12,187,420
Forfeited	(683,280)	(205,980)
Exercised	(576,720)
Outstanding, Ending Balance	22,298,757	17,395,740	12,187,420
Weighted average exercise price
Outstanding, Beginning balance	$ 0.52	$ 0.51
Granted	0.55	0.54	$ 0.51
Forfeited	0.67	0.50
Option exercise price	0.50
Outstanding, Ending balance	$ 0.54	$ 0.52	$ 0.51
Aggregate intrinsic value
Outstanding, Beginning balance	$ 52,951,848	$ 37,604,315
Granted	7,668,544	15,919,687	$ 37,604,315
Forfeited	(1,733,224)	(572,154)
Exercised	(1,804,198)
Outstanding, Ending balance	$ 57,082,970	$ 52,951,848	$ 37,604,315

Share-based Awards - Assumptions used to Determine Fair Value of Share Options Granted (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rate		1.53%	2.60%
Risk-free interest rate, minimum	0.33%
Risk-free interest rate, maximum	0.88%
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility		36.88%	34.88%
Expected volatility, minimum	37.94%
Expected volatility, maximum	40.07%
Grant date fair value		$ 3.48	$ 3.64
Grant date fair value, minimum	$ 0.98
Grant date fair value, maximum	$ 1.93

(Loss)/Income Per Share - Schedule of Basic and Diluted Net (Loss)/Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net (loss)/income	$ (63,415)	$ 5,207	$ (26,557)
Add: Accretion of Series A Preferred shares	(1,293)	(2,540)	(2,209)
Income allocation to participating preferred shareholders		(296)
Net (loss)/income attributable to ordinary shareholders of the Company	$ (64,708)	$ 2,371	$ (28,766)
Denominator:
Weighted average number of ordinary shares outstanding used in calculating basic and diluted net (loss)/income per share	259,852,204	232,178,037	185,370,982
Basic and diluted net (loss)/income per ordinary share	$ (0.25)	$ 0.01	$ (0.16)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

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+ Details

(Loss)/Income Per Share - Schedule of Antidilutive Securities Excluded from Inclusion in Calculation of Diluted Earnings Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share	22,298,757	46,395,740	44,889,642
Convertible Redeemable Preferred Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share		29,000,000	29,000,000
Restricted Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share			3,702,222
Share Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share	22,298,757	17,395,740	12,187,420

Cash and Cash Equivalents and Short-term Deposit - Additional Information (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Investments Debt And Equity Securities [Abstract]
Short-term deposits	$ 196

Cash and Cash Equivalents and Short-term Deposit - Schedule of Cash on Hand and Cash Held at Bank Balance and Short-term Deposit (Details) ¥ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 HKD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2019 HKD ($)
US$ equivalent
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	$ 22,185			$ 37,513
US$ \| Original currency
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	4,259			11,795
US$ \| US$ equivalent
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	4,259			11,795
RMB \| Original currency
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit \| ¥		¥ 59,912			¥ 96,749
RMB \| US$ equivalent
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	9,182			13,791
HKD \| Original currency
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit			$ 8,236			$ 5,829
HKD \| US$ equivalent
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	1,062			748
Others \| US$ equivalent
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Cash on hand and cash held at bank balance and short-term deposit	$ 7,682			$ 11,179

Restricted Cash - Summary of Restricted Cash (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)
Restricted cash	$ 8,237	$ 2,954
US$
Restricted cash	$ 8,237	$ 2,867
RMB
Restricted cash \| ¥			¥ 87

Accounts Receivable, Net - Schedule of Accounts receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 10,034	$ 26,262
Less: Allowance for doubtful accounts	(3,289)	(495)	$ (473)
Accounts receivable, net	$ 6,745	$ 25,767

Accounts Receivable, Net - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounts Receivable Net Current [Abstract]
Balance at beginning of the year	$ 495	$ 473
Additions	2,785	74
Reversal		(30)
Write-off		(20)
Exchange difference	9	(2)
Balance at end of the year	$ 3,289	$ 495

Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 4,342	$ 7,279
Finished goods	2,141	3,767
Less: write-down of obsolete inventories	(636)	(528)
Total inventories	$ 5,847	$ 10,518

Prepayments and Other Assets - Schedule of Prepayments and Other Current Assets (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets Current [Abstract]
Prepayments	$ 5,119,000	$ 1,663,000
Deposits	2,344,000	2,323,000
Export tax receivable	507,000	1,457,000
VAT recoverable	118,000	320,000
Deferred offering cost	0	964,000
Others	1,505,000	1,101,000
Total of prepayments and other assets	$ 9,593,000	$ 7,828,000

Prepayments and Other Assets - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets [Abstract]
Current	$ 7,477	$ 7,828
Non-current	2,116
Total of prepayments and other assets	$ 9,593	$ 7,828

Investment in Equity Investee - Additional Information (Details) - Maya System, Inc.	1 Months Ended
	Oct. 31, 2018 JPY (¥)	Dec. 31, 2020 USD ($)
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	49.00%
Consideration to acquire equity interest \| ¥	¥ 49,000,000
Equity method investment written down value \| $		$ 0

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Total original costs	$ 15,986	$ 14,857
Less: accumulated depreciation	(12,957)	(11,064)
Net book value	3,029	3,793
Computers
Property Plant And Equipment [Line Items]
Total original costs	850	830
Server & Switch
Property Plant And Equipment [Line Items]
Total original costs	1,276	1,176
Office Equipment
Property Plant And Equipment [Line Items]
Total original costs	1,442	1,332
Wi-Fi Terminals for Data Connectivity Services
Property Plant And Equipment [Line Items]
Total original costs	11,863	10,971
Leasehold Improvement
Property Plant And Equipment [Line Items]
Total original costs	$ 555	$ 548

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property Plant And Equipment [Abstract]
Depreciation of property and equipment	$ 2,174	$ 2,954	$ 5,227

Intangible Assets, Net - Schedule of Intangible Asset, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]
Carrying amount	$ 1,389	$ 839
Accumulated amortization	(350)	(237)
Net carrying amount	1,039	602
Purchased Software
Finite Lived Intangible Assets [Line Items]
Carrying amount	1,089	554
Accumulated amortization	(203)	(126)
Net carrying amount	886	428
Trademark
Finite Lived Intangible Assets [Line Items]
Carrying amount	121	115
Accumulated amortization	(62)	(47)
Net carrying amount	59	68
Licensed Copyrights
Finite Lived Intangible Assets [Line Items]
Carrying amount	179	170
Accumulated amortization	(85)	(64)
Net carrying amount	$ 94	$ 106

Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 94	$ 90	$ 89

Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
2021	$ 139
2022	139
2023	139
2024	139
2025	139
Thereafter	344
Net carrying amount	$ 1,039	$ 602

Other Investments - Schedule of Other Investments (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Investments All Other Investments [Abstract]
Other investment - current	$ 19,185
Other investment - non-current	17,824
Total	$ 37,009

Other Investments - Schedule of Other Investments (Parenthetical) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2020
Schedule Of Equity Method Investments [Line Items]
Investment cash consideration		$ 33,126
Fair value gain from investment		4,909
Investment Fund One
Schedule Of Equity Method Investments [Line Items]
Investment cash consideration	$ 15,000
Fair value gain from investment		4,185
Investment fund redemption notice period	1 month
Investment Fund Two
Schedule Of Equity Method Investments [Line Items]
Investment cash consideration	$ 17,100
Fair value gain from investment		$ 724
Investment fund redemption period	3 years

Accounts Payable, Accrued Expenses and Other Liabilities - Schedule of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables And Accruals [Abstract]
Accounts Payable, Current	$ 8,701	$ 16,728
Accrued bonus and staff costs	18,272	14,712
Other deposits	1,788	2,487
Other taxes payable (note)	934	771
Deferred government grant		86
Accrued professional fees	3,169	2,183
Accrued marketing expenses	342	199
Others	1,237	881
Total	$ 34,443	$ 38,047

Short-term Borrowings - Schedule of Short-term Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Short Term Borrowings [Abstract]
Bank borrowings	$ 3,704	$ 4,867
Other borrowing		1,792
Total	$ 3,704	$ 6,659

Short-term Borrowings - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2018	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Short Term Debt [Line Items]
Restricted cash held in restricted bank account			$ 8,237,000	$ 2,954,000
Other borrowing				1,792,000
Proceeds from other borrowing		$ 4,362,000
Bank Borrowings
Short Term Debt [Line Items]
Restricted cash held in restricted bank account			0	$ 2,867,000
Other Borrowing
Short Term Debt [Line Items]
Short-term borrowings bearing interest rate	9.00%
Other borrowing			$ 0
Proceeds from other borrowing	$ 4,362,000
Minimum \| Bank Borrowings
Short Term Debt [Line Items]
Short-term borrowings bearing interest rate			1.90%	5.65%
Maximum \| Bank Borrowings
Short Term Debt [Line Items]
Short-term borrowings bearing interest rate			5.22%	6.50%
Weighted Average \| Bank Borrowings
Short Term Debt [Line Items]
Short-term borrowings bearing interest rate			4.58%	6.24%

Related Party Transactions - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Total Revenue	$ 89,569	$ 158,381	$ 126,399
Purchase of data connectivity service	61,264	93,463	80,244
Maya
Related Party Transaction [Line Items]
Total Revenue	8,010	$ 4,419	$ 3,597
Purchase of data connectivity service	$ 47

- Definition

+ References

+ Details

Related Party Transactions - Summary of Related Party Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Amounts payable to related party	$ 1,503	$ 1,022
Amounts receivable from related party	2,264	692
Maya
Related Party Transaction [Line Items]
Deposits received from related party	1,498	1,022
Amounts payable to related party	5
Amounts receivable from related party	$ 2,264	$ 692

Commitments and contingencies - Summary of Non Cancellable Operating Lease Agreements (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2021	$ 1,298
2022	981
2023	182
Total	$ 2,461

Commitments and contingencies - Additional Information (Details)		1 Months Ended			12 Months Ended
	Jul. 02, 2019 USD ($)	Oct. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 29, 2021 USD ($)
Loss Contingencies [Line Items]
Operating leases rental expense					$ 1,687,000		$ 3,276,000	$ 3,662,000
Future minimum purchase commitment ,2021					808,000
Future minimum purchase commitment ,2022					134,000
Total compensatory and enhanced damages		$ 8,200,000	$ 2,800,000
Claimed damage	$ 8,500,000		$ 21,000	$ 21,000
Group's Employees [Member]
Loss Contingencies [Line Items]
Claimed damage				$ 14,000,000
Maximum
Loss Contingencies [Line Items]
Claimed damage					$ 1,600,000	¥ 10,500,000
Subsequent Event [Member]
Loss Contingencies [Line Items]
Escrowed funds released and refunded									$ 8,200,000

Restricted Net Assets - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restricted Net Assets [Line Items]
Percentage of general reserve fund of registered capital	50.00%
After tax profit	$ (63,415,000)	$ 5,207,000	$ (26,557,000)
Restricted net assets	$ 49,219,000
Restricted net assets exceeded percentage	25.00%
WFOE
Restricted Net Assets [Line Items]
After tax profit	$ 0	0	0
Statutory reserves	$ 0	$ 0	$ 0
Minimum
Restricted Net Assets [Line Items]
Percentage of income after tax to reserve	10.00%

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Impact of COVID-19 - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Extraordinary And Unusual Items [Abstract]
Net cash used in operating activities	$ 2,038	$ (5,761)	$ 19,472

Subsequent Events - Additional Information (Details) $ / shares in Units, € in Thousands, $ in Thousands		1 Months Ended			12 Months Ended	72 Months Ended
	Sep. 22, 2016	Feb. 28, 2021 shares	Jan. 31, 2021 USD ($) shares	Jan. 31, 2021 EUR (€) shares	Dec. 31, 2020 $ / shares	Dec. 31, 2020
Subsequent Event [Line Items]
Vesting period	4 years					5 years
Subsequent Event [Member] \| iQsim S.A.
Subsequent Event [Line Items]
Equity method investment, ownership percentage			31.25%	31.25%
Consideration to acquire equity interest			$ 243	€ 200
Restricted Share Units \| 2019 Plan
Subsequent Event [Line Items]
Exercise price per share \| $ / shares					$ 0
Vesting period					5 years
Restricted Share Units \| 2019 Plan \| Subsequent Event [Member]
Subsequent Event [Line Items]
Number of share granted \| shares		3,304,000	2,717,500	2,717,500

Additional Information: Condensed Financial Statements of the Company - Condensed Statements of Comprehensive (Loss)/Income of the Parent Company (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statement Of Income Captions [Line Items]
General and administrative expenses	$ (43,221)	$ (20,224)	$ (19,919)
Sales and marketing expenses	(29,261)	(24,367)	(29,658)
Research and development expenses	(26,359)	(15,108)	(20,401)
(Loss)/income from operations	(62,982)	5,509	(23,165)
Interest expenses	(285)	(438)	(3,385)
Income tax expenses	185	57
(Loss)/income from subsidiaries and VIEs			(442)
Net (loss)/income	(63,415)	5,207	(26,557)
Accretion of Series A Preferred Shares	(1,293)	(2,540)	(2,209)
Income allocation to participating preferred shareholders		(296)
Net (loss)/income attributable to ordinary shareholders of the Company	(64,708)	2,371	(28,766)
Net (loss)/income	(63,415)	5,207	(26,557)
Foreign currency translation adjustment	(1,135)	32	537
Total comprehensive (loss)/income	(64,550)	5,239	(26,020)
Parent
Condensed Statement Of Income Captions [Line Items]
General and administrative expenses	(22,914)	(1,299)	(2,688)
Sales and marketing expenses	(14,029)
Research and development expenses	(13,695)
Other income, net	(271)	(9)	343
(Loss)/income from operations	(50,909)	(1,308)	(2,345)
Interest income	1	145	399
Interest expenses	(17)	(332)	(3,138)
Loss before income tax	(50,925)	(1,495)	(5,084)
(Loss)/income from subsidiaries and VIEs	(12,490)	6,702	(21,473)
Net (loss)/income	(63,415)	5,207	(26,557)
Accretion of Series A Preferred Shares	(1,293)	(2,540)	(2,209)
Income allocation to participating preferred shareholders		(296)
Net (loss)/income attributable to ordinary shareholders of the Company	(64,708)	2,371	(28,766)
Net (loss)/income	(63,415)	5,207	(26,557)
Foreign currency translation adjustment	(1,135)	32	537
Total comprehensive (loss)/income	$ (64,550)	$ 5,239	$ (26,020)

Additional Information: Condensed Financial Statements of the Company - Condensed Balance Sheets of the Parent Company (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 21,989	$ 37,320
Restricted cash	8,237	2,954
Prepayments and other assets	7,477	7,828
Amounts due from related party	2,264	692
Total current assets	71,940	85,272
Total assets	97,254	90,097
Current liabilities:
Amounts payable to related party	1,503	1,022
Accrued expenses and other liabilities	25,742	21,319
Total current liabilities	40,539	47,653
Non-current liabilities:
Other non-current liabilities	321
Total non-current liabilities	321
Total liabilities	40,860	47,653
Mezzanine equity
Total mezzanine equity		22,977
Shareholders’ equity
Ordinary shares		11
Additional paid-in capital	220,292	118,818
Accumulated other comprehensive income	(429)	706
Accumulated losses	(163,483)	(100,068)
Total shareholders’ equity	56,394	19,467	$ 16,599	$ (28,602)
Total liabilities, mezzanine equity and shareholders’ equity	97,254	90,097
Series A Preferred Stock [Member]
Mezzanine equity
Series A redeemable convertible preferred shares (“Series A Preferred Shares”) (US$0.00005 par value; 29,000,000, and nil shares issued and outstanding as of December 31, 2019 and 2020)		22,977
Total mezzanine equity		22,977	$ 20,437
Parent
Current assets:
Cash and cash equivalents	3,332	10,673
Restricted cash		2,867
Prepayments and other assets	358
Amounts due from related party	123,337	95,517
Total current assets	127,027	109,057
Total assets	127,027	109,057
Current liabilities:
Amounts payable to related party	3,888	14,351
Accrued expenses and other liabilities	1,078	539
Deficit in subsidiaries	65,346	51,723
Total current liabilities	70,312	66,613
Non-current liabilities:
Other non-current liabilities	321
Total non-current liabilities	321
Total liabilities	70,633	66,613
Mezzanine equity
Total mezzanine equity		22,977
Shareholders’ equity
Ordinary shares	14	11
Additional paid-in capital	220,292	118,818
Accumulated other comprehensive income	(429)	706
Accumulated losses	(163,483)	(100,068)
Total shareholders’ equity	56,394	19,467
Total liabilities, mezzanine equity and shareholders’ equity	$ 127,027	109,057
Parent \| Series A Preferred Stock [Member]
Mezzanine equity
Series A redeemable convertible preferred shares (“Series A Preferred Shares”) (US$0.00005 par value; 29,000,000, and nil shares issued and outstanding as of December 31, 2019 and 2020)		$ 22,977

Additional Information: Condensed Financial Statements of the Company - Condensed Statement of Cash Flows of the Parent Company (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net cash used in operating activities	$ (2,038)	$ 5,761	$ (19,472)
Cash flows from financing activities
Net cash generated from financing activities	26,685	1,528	4,421
Changes in restricted cash	(10,797)	4,022	(19,620)
Cash, cash equivalents and restricted cash at beginning of year	40,274	36,627	56,806
Cash, cash equivalents and restricted cash at end of year	30,226	40,274	36,627
Parent
Cash flows from operating activities
Net cash used in operating activities	(40,112)	(5,284)	(24,877)
Cash flows from financing activities
Net cash generated from financing activities	29,904
Changes in restricted cash	(10,208)	(5,284)	(24,877)
Cash, cash equivalents and restricted cash at beginning of year	13,540	18,824	43,701
Cash, cash equivalents and restricted cash at end of year	$ 3,332	$ 13,540	$ 18,824