Antelope Enterprise Holdings(AEHL) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company reported net sales of $98.773 million, a 37$72.102 million in 2023[273]. - Total revenues for the year ended December 31, 2024 were $98.773 million, up from$72.483 million in 2023, marking a 36% increase[274]. - The livestreaming ecommerce business generated approximately $98.609 million in revenue for the year ended December 31, 2024, compared to$71.093 million in 2023, reflecting a 39% growth[275]. - Revenue from livestreaming ecommerce increased to $98.6 million in 2024, up by$27.5 million or 38.7% from $71.1 million in 2023[285]. - DOU+ revenue surged to$25.3 million in 2024 from $5.4 million in 2023, reflecting a significant growth in customized application sales[285]. Profitability and Loss - The company recorded a gross loss of$126,000 for the year ended December 31, 2024, compared to a gross profit of $7.493 million in 2023[273]. - The company reported a net loss of$10.587 million for the year ended December 31, 2024, compared to a net loss of $2.042 million in 2023[273]. - Gross loss for livestreaming ecommerce was$0.1 million in 2024, compared to a gross profit of $8.4 million in 2023, attributed to competitive pricing strategies[293]. - Net loss attributable to equity holders was$10.5 million in 2024, compared to a loss of $2.0 million in 2023, reflecting the challenges faced in the livestreaming segment[303]. Expenses - The cost of revenues for the livestreaming ecommerce business was$98.710 million for the year ended December 31, 2024, compared to $62.651 million in 2023, indicating a 57$0.5 million in 2024, down by $6.9 million or 92.6$7.4 million in 2023, mainly due to reduced advertising expenses[298]. - Administrative expenses decreased to $10.8 million in 2024, down by$1.8 million or 14.5% from $12.6 million in 2023, due to lower professional and stock compensation expenses[299]. - Finance costs increased significantly to$1.2 million in 2024, up by $1.1 million or 798.6$0.1 million in 2023, driven by higher interest expenses[300]. Consulting and Other Income - The consulting income from business management and information system consulting services decreased to $0.164 million in 2024 from$1.009 million in 2023[277]. - Other income rose to $2.1 million in 2024, compared to$0.5 million in 2023, primarily from interest income and government grants[296]. Cash Flow and Liquidity - Net cash used in operating activities was $8.5 million for the year ended December 31, 2023, an increase of$6.2 million from $2.3 million in 2022, mainly due to higher cash outflows on loan receivables[335]. - Net cash generated from investing activities was$2.6 million for the year ended December 31, 2023, compared to a cash outflow of $1.6 million in 2022, attributed to decreased restricted cash and increased cash inflow on notes receivable[338]. - Net cash generated from financing activities was$6.0 million for the year ended December 31, 2023, up from $0.3 million in 2022, primarily due to increased issuance of share capital[340]. - Cash and cash equivalents at the end of the year were$1.0 million as of December 31, 2024, compared to $0.5 million at the end of 2023[341]. - The company may seek additional equity or credit facilities to enhance liquidity for future acquisitions and capital expenditures[345]. Business Operations - The company did not generate any revenue from the natural gas power generation business as of the report date[271]. - The ceramic tile business was divested in April 2023, resulting in no revenue from this segment in 2024[268]. - The company plans to further develop its SaaS platform to provide value-added services to its livestreaming ecommerce customers[264]. - The company engaged with over 256 clients in 2024, an increase of nearly 140 clients compared to 2023, with the top five clients generating$53.1 million in revenue[285]. Assets and Capital Expenditures - As of December 31, 2024, total outstanding note payable amounts were $5.2 million[342]. - Capital expenditures for the year ended December 31, 2024, were$4.2 million, significantly higher than $71,000 in 2023 and$3,000 in 2022[346]. - As of December 31, 2024, the net carrying amount of property, plant and equipment was approximately $4,138,000, significantly up from$161,000 in 2023, with no impairment loss recognized for both years[367]. Risk Management - The liquidity risk exposure arises primarily from mismatches in the maturities of financial assets and liabilities, with total liabilities of $8,034,000 as of December 31, 2024[356]. - The company has not entered into any off-balance sheet arrangements, ensuring transparency in financial reporting[348]. - The company has no intention to enter into currency hedging transactions in the future, which may expose it to foreign currency risk[518]. - The company applies the IFRS 9 simplified approach to measure expected credit loss (ECL) for trade receivables, assessing ECL individually for significant debtors[373]. Economic Environment - The general annual inflation rate in China was approximately 3.2% in 2024, compared to 2.1% in 2023, which may impact the company's profitability due to rising costs[349].