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]
Antelope Enterprise Holdings(AEHL) - 2022 Q3 - Earnings Call Transcript