Antelope Enterprise Holdings(AEHL) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for the first half of 2024 was $43.5 million, a decrease of$1.1 million or 2.6% from $44.6 million in the same period of 2023 [9] - Gross profit for the first half of 2024 was$3.5 million, a decrease of $3.3 million or 46.7$6.8 million for the same period in 2023 [10] - Loss from continuing operations before taxation for the first half of 2024 was $6.5 million, an increase of$1.1 million or 19.3% from a loss of $5.5 million in the same period of 2023 [11] - Cash and cash equivalents as of June 30, 2024, were$2.3 million, an increase of $1.8 million or 333.2$0.6 million as of December 31, 2023 [13] - Shareholders' equity as of June 30, 2024, was $18 million, an increase of$3.6 million or 25.2% from $14.4 million as of December 31, 2023 [13] Business Line Data and Key Metrics Changes - Revenue from the livestreaming e-commerce business segment was$43.4 million for the first half of 2024, slightly lower than $44.6 million in the same period of 2023 [6] - The number of clients engaged in the livestreaming business increased to over 70 in the first half of 2024, up by nearly 20 clients compared to the same period in 2023 [6][9] Company Strategy and Development Direction - The company plans to enter the energy field in the third quarter of 2024, launching this business in Texas to meet the growing needs of the computing power industry [7][16] - The new energy supply business aims to provide a cost-effective and stable electricity supply to data centers, which are expected to see a significant increase in energy demand [19][20] Management Comments on Operating Environment and Future Outlook - Management highlighted that electricity demand in the U.S. is projected to reach record highs in 2024 and 2025, driven by large-scale computing facilities [19] - The company believes it is entering the energy market at the right time to provide a stable and cost-effective electricity supply to data centers [19] Other Important Information - The company modified its business strategy to focus on securing a larger number of mid-tier clients to mitigate risks associated with over-concentration on major clients [15] - The livestreaming e-commerce sector is expected to continue growing in China, supported by a young demographic and high mobile device usage [14] Q&A Session Summary Question: How did the company decide to enter the energy supply field? - Management noted that the U.S. Energy Information Administration projects a significant increase in electricity demand, particularly from data centers, which are energy-intensive [19] Question: Can you provide details about the business model for energy supply? - The company is located near natural gas production sites, minimizing transportation costs and ensuring a cost-effective supply of electricity to customers [20]