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Antelope Enterprise Holdings(AEHL) - 2024 Q2 - Quarterly Report
AEHLAntelope Enterprise Holdings(AEHL)2024-09-30 20:30
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Financial Performance - Net sales for the six months ended June 30, 2024, were USD 43,462,000, a decrease of 2.6% compared to USD 44,636,000 in the same period of 2023[4] - Gross profit decreased to USD 3,493,000 for the six months ended June 30, 2024, down 48.7% from USD 6,812,000 in 2023[4] - The net loss for the period from continuing operations was USD 6,527,000, compared to a net income of USD 4,992,000 in the same period of 2023[4] - The company reported a total comprehensive loss of USD 7,440,000 for the six months ended June 30, 2024, compared to a total comprehensive income of USD 4,394,000 in 2023[4] - The equity holders of the company experienced a net loss of USD 6,635,000 from continuing operations for the six months ended June 30, 2024[4] - Total revenues for the six months ended June 30, 2024, were 43,462,000,adecreaseof3.143,462,000, a decrease of 3.1% from 45,026,000 in the same period of 2023[26] - Livestreaming ecommerce revenue for the six months ended June 30, 2024, was 43,462,000,comparedto43,462,000, compared to 44,159,000 in 2023, reflecting a decline of 1.6%[31] - Loss from operations for the six months ended June 30, 2024, was 6,525,000,comparedtoalossof6,525,000, compared to a loss of 5,667,000 in 2023, indicating a worsening of 15.1%[31] - Net loss from continuing operations for the six months ended June 30, 2024, was 6,635,000,comparedtoalossof6,635,000, compared to a loss of 5,462,000 in 2023[39] Assets and Liabilities - Total assets increased to USD 28,164,000 as of June 30, 2024, up from USD 17,114,000 as of December 31, 2023, representing a growth of 64.5%[2] - Total liabilities increased to USD 10,130,000 as of June 30, 2024, from USD 2,713,000 as of December 31, 2023, marking a rise of 272.5%[2] - Cash and bank balances rose to USD 2,322,000 as of June 30, 2024, compared to USD 536,000 at the end of 2023, an increase of 333.3%[2] - Trade payables amounted to 639,000asofJune30,2024,allexpectedtobesettledwithinoneyear[43]−Accruedliabilitiesincreasedsignificantlyfrom639,000 as of June 30, 2024, all expected to be settled within one year[43] - Accrued liabilities increased significantly from 216,000 as of December 31, 2023, to 1,077,000asofJune30,2024,primarilyduetoaccruedinterestandotherexpenses[44]ShareholderActivities−ThecompanyissuednewsharesforequityfinancingamountingtoUSD4,297,000duringtheperiod[8]−TheCompanycompletedaone−for−tenreversestocksplitonSeptember18,2023,toenhanceitsstockprice[11]−TheweightedaveragenumberofordinarysharesoutstandingusedincomputingbasicearningspershareforthesixmonthsendedJune30,2024,was6,923,985,significantlyhigherthan1,614,471in2023duetoaone−for−tenreversesplit[39]−TheCompanyissued3,238,067newsharesforequityfinancing,increasingthetotaloutstandingsharesto11,647,303asofJune30,2024[62]−TheCompanysold913,875commonsharesatapriceof1,077,000 as of June 30, 2024, primarily due to accrued interest and other expenses[44] Shareholder Activities - The company issued new shares for equity financing amounting to USD 4,297,000 during the period[8] - The Company completed a one-for-ten reverse stock split on September 18, 2023, to enhance its stock price[11] - The weighted average number of ordinary shares outstanding used in computing basic earnings per share for the six months ended June 30, 2024, was 6,923,985, significantly higher than 1,614,471 in 2023 due to a one-for-ten reverse split[39] - The Company issued 3,238,067 new shares for equity financing, increasing the total outstanding shares to 11,647,303 as of June 30, 2024[62] - The Company sold 913,875 common shares at a price of 3.48, yielding gross proceeds of 3,180,285beforeexpenses[65]−Inasubsequentoffering,theCompanysold1,666,667commonsharesat3,180,285 before expenses[65] - In a subsequent offering, the Company sold 1,666,667 common shares at 0.60, generating approximately 1,000,000ingrossproceeds[67]−TheCompanyenteredintoasecuritiespurchaseagreementtosell1,300,000ClassAordinarysharesat1,000,000 in gross proceeds[67] - The Company entered into a securities purchase agreement to sell 1,300,000 Class A ordinary shares at 1.00, with gross proceeds of approximately 1.30million[70]−TheCompanyissued1,625,000ordinarysharesat1.30 million[70] - The Company issued 1,625,000 ordinary shares at 0.80, resulting in gross proceeds of 1.3million[72]OtherIncomeandExpenses−Thecompanyreportedinterestincomeof1.3 million[72] Other Income and Expenses - The company reported interest income of 213,000 for the six months ended June 30, 2024, up from 77,000in2023,representingagrowthof176.677,000 in 2023, representing a growth of 176.6%[26] - Total other income for the six months ended June 30, 2024, was 651,000, a decrease of 47.3% from 1,234,000in2023[26]−TheCompanyrecordedaninterestexpenseof1,234,000 in 2023[26] - The Company recorded an interest expense of 314,840 on the unsecured promissory note issued in January 2024, with an outstanding principal balance of 4,630,000asofJune30,2024[59]−TheoutstandingprincipalbalanceoftheunsecuredpromissorynotefromDecember2022was4,630,000 as of June 30, 2024[59] - The outstanding principal balance of the unsecured promissory note from December 2022 was 494,180 as of June 30, 2024, down from 1,069,999attheendof2023[52]−TheCompanyamortized1,069,999 at the end of 2023[52] - The Company amortized 9,543 of original issue discount (OID) on the unsecured promissory note issued in July 2023, with an outstanding principal balance of 1,120,535asofJune30,2024[54]DiscontinuedOperations−Thecompanyreportedanetlossof1,120,535 as of June 30, 2024[54] Discontinued Operations - The company reported a net loss of 10,459,000 from discontinued operations for the same period[92] - Gain on disposal of discontinued operations amounted to 10,659,000[92]−Netcashgeneratedfromoperatingactivitiesfromdiscontinuedoperationswas10,659,000[92] - Net cash generated from operating activities from discontinued operations was 2,038,000[92] - The Company completed the sale of Stand Best Creation Limited for a total of USD 8,500,000,withanannualinterestrateof58,500,000, with an annual interest rate of 5% on the note receivable[42] - As of June 30, 2024, the total balance of note receivable was 5,490,000, with interest income recorded at $213,000 for the six months ended June 30, 2024[42] Future Plans and Use of Proceeds - The Company plans to use net proceeds from the February 2024 offering for business expansion in the U.S. and general corporate purposes[70] - The net proceeds from the offering will be used for general working capital purposes[93]