Antelope Enterprise Holdings(AEHL) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for the first half of 2023 was RMB309.3 million (US$44.6 million), a 161.5$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$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$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]