Financial Performance - For the year ended December 31, 2023, the company generated net sales of RMB 510.5 million, a significant increase of 78.4% compared to RMB 286.3 million in 2022[225]. - The livestreaming ecommerce business accounted for 98.1% of total revenue, generating RMB 503.4 million in 2023, up 83.8% from RMB 273.7 million in 2022[219][229]. - The company reported a net loss of RMB 14.5 million for the year, an improvement from a net loss of RMB 53.6 million in 2022[225]. - Revenue from livestreaming ecommerce increased to RMB 503.4 million (US$ 71.1 million) in 2023, up 84% from RMB 273.7 million (US$ 40.7 million) in 2022, driven by a growing client base of over 70 clients[235]. - Net loss attributable to equity holders decreased to RMB 14.3 million (US$ 2.0 million) in 2023 from RMB 57.9 million (US$ 8.1 million) in 2022, largely due to a gain on disposal of discontinued operations[247]. Expenses and Costs - The cost of goods sold increased to RMB 457.5 million in 2023, representing a 77.0% increase from RMB 258.4 million in 2022[225]. - Administrative expenses surged to RMB 89.0 million in 2023, compared to RMB 22.8 million in 2022, reflecting increased operational costs[225]. - Selling and distribution expenses surged to RMB 52.4 million (US$ 7.4 million) in 2023, an increase of 220% from RMB 16.4 million (US$ 2.4 million) in 2022, primarily due to higher advertising and promotion costs[242]. - Administrative expenses rose to RMB 89.0 million (US$ 12.6 million) in 2023, up 291% from RMB 22.8 million (US$ 3.4 million) in 2022, driven by increased stock compensation and professional fees[243]. - The company incurred a loss before taxation of RMB 86.8 million in 2023, compared to a loss of RMB 5.4 million in 2022[225]. Revenue Declines - Revenue from tile products decreased significantly to RMB 2.7 million (US$ 0.4 million) in 2023, down 92.8% from RMB 37.7 million (US$ 5.6 million) in 2022, due to the slowdown in the real estate sector[236]. - Revenue from business management and consulting services fell to RMB 7.1 million (US$ 1.0 million) in 2023, a decrease of 44% from RMB 12.7 million (US$ 1.9 million) in 2022, attributed to intense market competition[237]. Business Strategy and Development - The company expects to further develop its SaaS platform to enhance value-added services for livestreaming ecommerce customers[219]. - The company aims to leverage its network in the e-commerce industry to provide cost-efficient promotion services through Douyin's DOU+ advertising option[218]. - The company plans to enhance liquidity through potential equity sales or credit facilities, which may dilute existing shareholders or impose operational restrictions[270]. Cash Flow and Financing - For the year ended December 31, 2023, net cash used in operating activities was RMB 60.3 million (US$ 8.5 million), a significant increase from a cash inflow of RMB 15.5 million in 2022[277]. - Net cash generated from financing activities was RMB 42.8 million (US$ 6.0 million) for 2023, a substantial increase from RMB 2.3 million in 2022, primarily due to increased share capital issuance[281]. - The Company sold 1,625,000 ordinary shares at $0.80 per share, generating gross proceeds of $1.3 million for the expansion of its social ecommerce business[271]. - A subsequent offering of 1,234,568 ordinary shares at $0.81 per share raised approximately $1 million, also aimed at expanding the social ecommerce business[272]. - On March 30, 2023, the Company sold 5,681,820 Class A ordinary shares at $0.88 per share, resulting in gross proceeds of approximately $5 million for general corporate purposes[273]. Asset Management and Liabilities - As of December 31, 2023, the Company had total outstanding bank loan amounts of nil, indicating a strong liquidity position[284]. - The total outstanding loans for the continuing operations amounted to RMB nil as of December 31, 2023, indicating no exposure to material risks due to changes in market interest rates[467]. - The average trade payables' turnover for the livestreaming ecommerce segment was 1 day in 2023, down from 3 days in 2022[286]. Research and Development - Research and development efforts are focused on the innovative Kylin-Cloud service platform, with costs expensed as incurred unless they meet specific recognition criteria[298]. - Internally generated intangible assets are recognized at the sum of expenditures incurred once recognition criteria are met, otherwise, development expenditures are expensed[299]. Financial Reporting and Compliance - Financial assets are classified and measured based on their business model and cash flow characteristics, with specific criteria for amortized cost and fair value through profit or loss[307]. - Expected credit losses (ECL) are recognized based on the credit risk of financial assets, with a general approach for measurement based on the increase in credit risk since initial recognition[311]. - Impairment losses are assessed at each reporting period, with specific criteria for determining when a financial asset is considered impaired[319]. - The company derecognizes financial assets when contractual rights to cash flows expire or when it transfers the asset and substantially all risks and rewards of ownership[324]. Currency and Market Risks - The company's operations are primarily conducted in the PRC, with nearly all monetary assets and liabilities denominated in RMB, minimizing exposure to foreign currency risk[297]. - Limited hedging transactions are available in China to mitigate exposure to exchange rate fluctuations, and the company currently has no intention to enter into such transactions[470]. - The People's Bank of China intervened in the foreign exchange market to maintain an exchange rate of approximately 8.3 RMB per US dollar until July 2005, after which modest appreciation was allowed[469].

Financial Performance - For the fiscal year 2023, revenue reached RMB 510.5 million (US$ 72.1 million), marking a 78.3% increase from RMB 286.3 million (US$ 42.6 million) in 2022 [2][8] - Gross profit for the same period was RMB 53.1 million (US$ 7.5 million), a 90.0% increase compared to RMB 27.9 million (US$ 4.1 million) in 2022 [2][8] - The net loss for fiscal year 2023 was RMB 14.5 million (US$ 2.0 million), significantly reduced from a net loss of RMB 53.6 million (US$ 8.0 million) in 2022, which included a gain from the sale of its ceramic tile business of RMB 73.8 million (US$ 10.4 million) [2][8] Operational Highlights - The number of registered hosts and influencers on the KylinCloud platform increased from approximately 300,000 in 2023 to over 800,000 in 2024 [2] - Revenue for the six months ended December 31, 2023, was RMB 201.3 million (US$ 27.5 million), a 19.7% increase from RMB 168.1 million (US$ 24.1 million) for the same period in 2022 [4][8] - KylinCloud's livestreaming ecommerce business accounted for 99% of the total revenue in the second half of 2023 [4] Cost and Expenses - Gross profit for the six months ended December 31, 2023, was RMB 5.9 million (US$ 0.7 million), down from RMB 26.0 million (US$ 3.7 million) in the same period of 2022, primarily due to a 37.5% increase in the cost of sales [4][5] - Administrative expenses for the six months ended December 31, 2023, rose to RMB 50.3 million (US$ 7.0 million) from RMB 21.6 million (US$ 3.1 million) in the same period of 2022 [5][6] Business Outlook - The company plans to launch an energy supply business through its subsidiary, AEHL US LLC, with operations expected to start in the third quarter of 2024 [12] - The livestreaming ecommerce business is viewed as sustainable, providing a new distribution channel and enhancing consumer engagement compared to traditional shopping methods [11]

Company Overview - Antelope Enterprise Holdings Limited operates KylinCloud, a livestreaming ecommerce business in China, with access to over 800,000 hosts and influencers [1][3] - The company holds a 51% ownership position in Hainan Kylin Cloud Services Technology Co., Ltd [3] Financial Results Announcement - The company will conduct a conference call on May 10, 2024, at 8:00 am Eastern Time to discuss its second half and full year financial results for the fiscal year ended December 31, 2023 [1] - The earnings press release will be available prior to the conference call [1] New Business Initiative - Antelope Enterprise has recently announced the launch of an energy supply business to be operated via its wholly-owned subsidiary, AEHL US LLC [3]

Core Viewpoint - Antelope Enterprise Holdings Limited is expanding into the energy transmission business through its subsidiary AEHL US, with operations expected to commence in Q3 2024, aiming to leverage cost-effective electricity for data centers and cryptocurrency mining [1][2][3]. Company Developments - The company appointed Mr. Huoyou Zhang as Executive Director and Mr. Di Wu as Director and President of AEHL US to lead the new energy transmission initiative, effective April 26, 2024 [1][2][4]. - Mr. Qiguo Wang resigned from the Board for personal reasons, effective April 26, 2024 [5][6]. Business Strategy - AEHL US is in the early stages of developing its energy transmission business, including sourcing natural gas from Texas and procuring electricity generators [2]. - The company plans to supply power to a data center in Midland, Texas, and generate revenue by securing hosting sites for cryptocurrency mining operators [2][3]. Leadership Background - Mr. Huoyou Zhang has extensive experience in finance and investment, having previously founded Shanghai KKM Asset Management Co. Ltd. and engaged in quantitative trading [4]. - Mr. Di Wu has a background in mobile charging energy storage and cloud business operations, previously serving as Deputy General Manager at Shanghai Kunjing Cloud Co., Ltd. [5].

Financial Data and Key Metrics Changes - Revenue for the first half of 2023 was RMB309.3 million (US$44.6 million), a 161.5% increase from RMB118.2 million (US$18.3 million) in the same period of 2022 [7] - Gross profit for the first half of 2023 was RMB47.2 million (US$6.8 million), compared to RMB1.9 million (US$0.3 million) for the same period in 2022, marking a significant increase [8] - Loss per basic and fully diluted share from continuing operations for the first half of 2023 was RMB23.44 (US$3.40), compared to a loss of RMB5.14 (US$0.79) for the same period in 2022 [10] Business Line Data and Key Metrics Changes - Livestreaming ecommerce business generated RMB305.9 million (US$44.2 million) in revenue, a 172.5% increase from RMB112.3 million (US$17.3 million) in the same period of 2022, constituting 99% of total revenue [7][12] - Gross profit from the livestreaming ecommerce business was RMB52 million (US$7.5 million), a 1,591.4% increase from RMB3.1 million (US$0.5 million) in the same period of 2022, with a gross profit margin of 17% compared to 2.7% in 2022 [8][12] Market Data and Key Metrics Changes - The company operates in the rapidly growing livestreaming ecommerce market in China, which is expected to continue expanding due to a young demographic and high mobile device usage [14] - Kylin Cloud's unique approach in utilizing advanced analytics to match hosts and influencers with consumer brand products is anticipated to drive higher conversion rates compared to traditional ecommerce [14] Company Strategy and Development Direction - The company has pivoted towards high-growth technology areas, focusing on livestreaming ecommerce through its Kylin Cloud subsidiary, which is expected to redefine the ecommerce livestreaming landscape [6][11] - The strategic plan includes enhancing the SaaS+ system platform to improve consumer engagement and brand loyalty through rich content and online interaction [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity ahead, believing that Kylin Cloud's approach will continue to drive growth in the livestreaming ecommerce sector [6][14] - The business outlook reflects preliminary views based on current information, subject to risks and uncertainties [15] Other Important Information - The company completed the divestiture of its legacy ceramic tile building materials business in April 2023, allowing it to focus on its livestreaming ecommerce operations [11] Q&A Session Summary Question: Number of shares outstanding at quarter-end - The company has about 2.5 million shares outstanding after a recent reverse split [18] Question: Metrics for revenue from influencers - The company does not have a specific metric for revenue per influencer but believes that more influencers will contribute to increased revenue [22][24] Question: Expectations for gross margin improvement - The company expects gross margins to improve in the coming periods, although it is difficult to estimate a specific target at this early stage [26][28]

Financial Data and Key Metrics - Revenue for the 6 months ended December 31, 2022, was RMB 168.1 million (USD 24.1 million), a 164.3% increase from RMB 63.6 million (USD 9.9 million) in the same period of 2021 [11] - Gross profit for the 6 months ended December 31, 2022, was RMB 26 million (USD 3.7 million), compared to RMB 1 million (USD 0.1 million) in the same period of 2021 [11] - Gross profit margin for the livestreaming e-commerce business was 15.5% in the second half of 2022, up from 5.1% in the second half of 2021 [12] - Net loss from continuing operations for the 6 months ended December 31, 2022, was RMB 6.1 million (USD 0.9 million), compared to RMB 17.7 million (USD 2.8 million) in the same period of 2021 [13] - Loss per basic and fully diluted share from continuing operations was RMB 0.73 (USD 0.1) for the 6 months ended December 31, 2022, compared to RMB 3.44 (USD 0.53) in the same period of 2021 [14] - Cash and bank balances as of December 31, 2022, were RMB 3.9 million (USD 0.6 million), down from RMB 27.9 million (USD 4.4 million) as of December 31, 2021 [14] Business Line Data and Key Metrics - KylinCloud livestreaming business generated 96% of total revenue in the second half of 2022, with revenue of RMB 161.4 million (USD 23.1 million) [11] - Registered investors and hosts on the KylinCloud platform increased 8 times to 316,696 in 2022 from 39,624 in 2021 [7] - The company divested its legacy ceramic tile building materials business on April 28, 2023, as part of its strategic pivot towards high-growth technology areas [15] Market Data and Key Metrics - The company believes that livestreaming e-commerce will comprise an ever-increasing percentage of China's e-commerce sales, driven by a young demographic and high mobile device usage [17] - China's livestreaming e-commerce sector is expected to experience high double-digit growth for many years to come [17] Company Strategy and Industry Competition - The company has pivoted towards high-growth technology areas, including the acquisition of the livestreaming e-commerce business [15] - KylinCloud provides turnkey livestreaming marketing and broadcasting services, strategically matching hosts and influencers with consumer brand companies to increase sales and profitability [8] - The company believes it has a core competency to increase market share and be highly competitive in the livestreaming e-commerce sector [8] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about its unique business model and execution capabilities, with a strong team culture and financial resources to achieve long-term growth [9] - Management expects significant revenue growth in 2023, with the potential to reach breakeven this year [21][28] Other Important Information - The company completed the divestiture of its legacy ceramic tile manufacturing business in exchange for a 5% unsecured promissory note with a principal amount of USD 8.3 million - USD 8.5 million, maturing in four years [15] Q&A Session Question: How is the first half of 2023 tracking? - The company does not disclose forecasts or guidance at this point but has seen significant growth in the first few months of 2023 [21] Question: Will the company start issuing guidance? - The company will announce results in the second half and year-end reporting, with the next update expected in September 2023 [22] Question: Who are the major owners of the company? - The company has announced management ownership details in its annual report, which is publicly available [24] Question: How big is the market for KylinCloud? - The market is very large, but the company currently holds a small market share with significant room for growth [25] Question: Are there other public companies to compare with? - There is no strict comparison, but a similar company is listed in Hong Kong with the ticker 2291 [26] Question: When does the company expect to reach profitability? - The company believes it can achieve breakeven in 2023 and expects significant growth in the near future [28]

Financial Performance - For the fiscal year 2022, the company reported net sales of RMB 286,347,000, a significant increase from RMB 71,527,000 in 2021[219]. - The gross profit for 2022 was RMB 27,916,000, compared to RMB 6,034,000 in 2021, indicating improved profitability[219]. - The company experienced a net loss of RMB 53,644,000 for the year ended December 31, 2022, an improvement from a net loss of RMB 90,058,000 in 2021[219]. - Total revenues for the year ended December 31, 2022, were RMB 324.0 million, an increase of 50.0% compared to RMB 216.3 million in 2021[1]. - Revenue from livestreaming ecommerce reached RMB 273.7 million in 2022, representing a significant increase of 368% from RMB 58.5 million in 2021[2]. - Revenue from sales of tile products decreased by 74.0% to RMB 37.7 million in 2022, down from RMB 144.7 million in 2021, primarily due to a 78.5% decrease in sales volume[3]. - Gross loss for the year ended December 31, 2022, was RMB 3.5 million (US$ 0.5 million), a decrease from a gross profit of RMB 61.3 million (US$ 9.5 million) in 2021, representing an increase in loss of RMB 64.9 million[236]. Revenue Sources - Hainan Kylin accounted for 84.5% of the company's total revenue in 2022, highlighting its dominance in the business operations[210]. - The ceramic tile business generated over 96.9% of its revenue from porcelain tiles in 2022, emphasizing the product's popularity[212]. - The consulting income decreased significantly due to the impact of the COVID-19 pandemic, contrasting with the growth in the livestreaming ecommerce segment[216]. Cost and Expenses - Cost of revenues for livestreaming ecommerce was RMB 245.6 million in 2022, compared to RMB 55.5 million in 2021, reflecting the rapid growth of this business[4]. - Cost of revenues for tile products decreased by 50.6% to RMB 41.3 million in 2022 from RMB 83.4 million in 2021, driven by reduced sales and production[5]. - Selling and distribution expenses increased to RMB 16.4 million (US$ 2.4 million) for the year ended December 31, 2022, compared to RMB 24,000 (US$ 4,000) in 2021, primarily due to increased advertising and commission expenses[238]. - Administrative expenses rose to RMB 22.8 million (US$ 3.4 million) for the year ended December 31, 2022, an increase of RMB 6.8 million, or 42.5%, compared to RMB 16.0 million (US$ 2.5 million) in 2021[239]. Cash Flow and Financial Position - Net cash used in operating activities was RMB 15.5 million (US$ 2.3 million) for the year ended December 31, 2022, an increase of RMB 7.3 million compared to RMB 8.1 million for 2021[269]. - The company reported cash and bank balances of RMB 3.936 million as of December 31, 2022, down from RMB 27.880 million in 2021[291]. - As of December 31, 2022, total contractual obligations were RMB 9.27 million, including operating lease obligations of RMB 495,000 and a promissory note of RMB 8.775 million[286]. Research and Development - The company focuses on developing the Kylin-Cloud service platform as part of its research and development efforts[295]. - The company owns eighteen utility model patents, focusing on innovative and environmentally friendly product development[214]. Taxation and Compliance - The PRC Enterprise Income Tax rate for the company’s subsidiaries is 25% for most and 5% for others, applicable for the years ended December 31, 2022, and 2021[10]. - The company has exposure to income taxes in the PRC, requiring significant judgment in determining the provision for income taxes[345]. Impairment and Credit Losses - The Company assesses impairment for financial assets at each reporting date, considering factors like financial difficulty or default[311]. - Expected credit losses (ECL) are recognized based on the difference between contractual cash flows and expected cash flows discounted at the original effective interest rate[306]. - The company applies the IFRS 9 simplified approach to measure expected credit loss (ECL) for all trade receivables, assessing ECL individually for significant debtors and collectively for others[347]. Market and Economic Factors - The general annual inflation rate in China was approximately 2.0% in 2022, which may impact the company's profitability due to rising costs[288]. - Nearly all monetary assets and liabilities were denominated in RMB as of December 31, 2021, with some bank balances and borrowings in US dollars, indicating potential foreign currency risk as the company expands into overseas markets[474].

Antelope Enterprise Holdings Limited (NASDAQ:AEHL) Q2 2022 Earnings Conference Call September 29, 2022 8:00 AM ET Company Participants David Rudnick - IR Meishuang Huang - CEO Edmund Hen - CFO Conference Call Participants Operator Good day, and welcome to the Antelope Enterprise Holdings First Half 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to David Rudnick wi ...

Key Points Company and Industry 1. **Company Overview**: Antelope Enterprise Holdings Limited (NASDAQ: AEHL) is a company that experienced challenging market conditions in 2021 due to the slowdown of the real estate sector in China and the impact of the COVID-19 pandemic. The company has diversified its business by incorporating new technology sector subsidiaries. [4] 2. **Industry**: The company operates in the ceramic tile industry, which has been affected by the slowdown in the real estate sector in China. [4] 3. **New Business Segments**: Antelope Enterprise has entered new markets in China, including business management, information system consulting, and social media, online social commerce, and live streaming. [5] Financial Results 4. **Revenue**: Revenue for the six months ended December 31, 2021, was RMB 166.2 million or US$25.8 million, a 15% increase from the same period in 2020. [8] 5. **Gross Profit**: Gross profit for the six months ended December 31, 2021, was RMB 73.8 million or US$11.5 million, compared to a gross loss of RMB 26.9 million or US$4.0 million in 2020. [9] 6. **Net Loss**: Net loss for the six months ended December 31, 2021, was RMB 19.3 million or US$3 million, compared to a net loss of RMB 81.6 million or US$12 million in 2020. [11] 7. **Earnings Per Share**: Loss per basic and fully diluted share for the six months ended December 31, 2021, were RMB 3.75 or US$0.58, compared to loss per basic and fully diluted share of RMB 24.85 or US$3.67 for the same period in 2020. [12] Business Outlook 8. **Ceramic Tiles**: The company expects demand for ceramic tile products to come from Tier 3 and lower-tier cities as well as coastal cities over the next few years. [17] 9. **New Technology Business**: Antelope Enterprise plans to continue diversifying its operations with new technology sector operations. [18] Other Important Information 10. **Lease Agreement**: The company entered into a five-year lease agreement to lease out the entire Hengdali facility. [6] 11. **Capital Expenditures**: The company anticipates a modest level of capital expenditure for 2022. [15]