Antelope Enterprise Holdings Ltd (AEHL) 2022 Q4 法說會逐字稿

Good day and welcome to the Antelope Enterprise Holdings' second-half and FY 2022 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to David Rudnick. Please go ahead.

美好的一天，歡迎來到 Antelope Enterprise Holdings 下半年和 2022 財年收益電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給 David Rudnick。請繼續。

Thank you, Marliese. Good morning, ladies and gentlemen. Good evening to those of you who are joining us from China. Welcome to Antelope Enterprise Holdings' second half of fiscal year-end 2022 earnings conference Call. With us today are Antelope Enterprise's Chief Executive Officer. Mr. Will Zhang; and Chief Financial Officer, Mr. Edmund Hen.

謝謝你，瑪麗絲。早上好，女士們，先生們。晚上好，來自中國的各位。歡迎來到 Antelope Enterprise Holdings 的 2022 財年下半年財報電話會議。今天和我們在一起的是 Antelope Enterprise 的首席執行官。張偉先生；首席財務官 Edmund Hen 先生。

Before I turn the call over to Mr. Zhang, I would like to address forward-looking statements that may be discussed on the call. Forward-looking statements involve risks and uncertainties and include, among others, those regarding revenue, operating expenses, other income and expense, taxes, and future business outlook. Actual future performance, outcomes, and results may differ materially from those expressed in forward-looking statements.

在我將電話轉給張先生之前，我想談談可能在電話中討論的前瞻性陳述。前瞻性陳述涉及風險和不確定性，其中包括與收入、運營支出、其他收入和支出、稅收和未來業務前景有關的風險和不確定性。實際的未來表現、成果和結果可能與前瞻性陳述中表達的內容存在重大差異。

The company claims the Safe Harbor protections for such forward-looking statements as contemplated under the Private Securities Litigation Reform Act of 1995. Please refer to the documents filed by the company with the SEC, specifically, the most recent reports on Forms 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. We assume no obligation to update any forward-looking statements or information which speak as of their respective dates.

公司要求根據 1995 年《私人證券訴訟改革法案》對此類前瞻性陳述進行安全港保護。請參閱公司向美國證券交易委員會提交的文件，特別是關於 20-F 表格和6-K，它確定了可能導致實際結果與前瞻性陳述中包含的結果不同的重要風險因素。我們沒有義務更新截至各自日期的任何前瞻性陳述或信息。

And now, it's my pleasure to turn the call over to Antelope Enterprise's CEO, Mr. Will Zhang; and Antelope Enterprise's CFO, Mr. Edmund Hen. Charlie Jay will be translating for CEO, Will Zhang. Mr. Zhang, you may proceed.

現在，我很高興將電話轉給 Antelope Enterprise 的首席執行官 Will Zhang 先生； Antelope Enterprise 的首席財務官 Edmund Hen 先生。 Charlie Jay 將為 CEO Will Zhang 擔任翻譯。張先生，您可以繼續了。

(interpreted) Thank you, David. On behalf of the company, I would like to welcome everyone to our second-half and fiscal year-end 2022 earnings conference call.

（翻譯）謝謝你，大衛。我謹代表公司歡迎大家參加我們下半年和 2022 財年末的收益電話會議。

I'm extremely proud of achievements of our team in 2022 and pleased with our results as we successfully executed on our strategic plan to enter a high-growth livestreaming e-commerce sector. Our KylinCloud livestreaming business generating 96% of our total revenue for the second half of 2022 as we pivoted away from the legacy ceramic tile building materials business, which was divested on April 28, 2023.

我為我們團隊在 2022 年取得的成就感到非常自豪，並對我們成功執行進入高增長直播電子商務領域的戰略計劃的結果感到滿意。我們的 KylinCloud 直播業務產生了 2022 年下半年總收入的 96%，因為我們擺脫了於 2023 年 4 月 28 日剝離的傳統瓷磚建材業務。

[Our] revenue for our [livestreaming e-commerce] business came in $40.7 million for the full-year 2022, modestly ahead of our pre-announcement, and the registered users and hosts on our KylinCloud platform increased 8 times to 316,696 in 2022 from 39,624 in 2021.

[我們的]我們 [直播電子商務] 業務的收入在 2022 年全年達到 4070 萬美元，略高於我們的預先公告，我們的 KylinCloud 平台上的註冊用戶和主機在 2022 年增長了 8 倍，達到 316,696 人2021 年 39,624 人。

As a first mover in the livestreaming e-commerce space, KylinCloud provides turnkey livestreaming marketing and broadcasting services to consumer brand companies by matching companies' brand characteristics and products with host and influencers.

作為直播電商領域的先行者，麒麟云通過將企業的品牌特徵和產品與主播和網紅進行匹配，為消費品牌企業提供一站式直播營銷和直播服務。

This results in livestreaming sales presentations that can generate increased sales and profitability for these companies. We believe that KylinCloud has the core competency to increase its market share and be highly competitive in this key sales channel as a pure play in this sector.

這導致了直播銷售演示，可以為這些公司帶來更高的銷售額和盈利能力。我們相信麒麟云作為該領域的純粹參與者，具有增加其市場份額並在這一關鍵銷售渠道中具有高度競爭力的核心競爭力。

I believe that we have tremendous market opportunities ahead of us and have the financial resources, operating infrastructure, and the vibrant team culture [to achieve] long-term growth. I'm genuinely excited about our unique business model and execution capabilities, and I'm confident that we will create value for our shareholders.

我相信我們面前有巨大的市場機會，並擁有財務資源、運營基礎設施和充滿活力的團隊文化 [以實現] 長期增長。我對我們獨特的商業模式和執行能力感到由衷的興奮，我相信我們將為股東創造價值。

With that, I would like to turn over the call to the company's Chief Financial Officer, Mr. Edmund Hen, who will discuss the company's second-half and fiscal year-end 2022 earnings results in more detail. Thank you.

鑑於此，我想將電話轉給公司的首席財務官 Edmund Hen 先生，他將更詳細地討論公司下半年和 2022 財年末的收益結果。謝謝。

Thank you, Mr. Zhang. I will now move to a more detailed discussion of our financial results for the six months ending December 31, 2022. Revenue for the six months ended December 31, 2022, was RMB168.1 million or USD24.1 million, a 164.3% increase from RMB63.6 million or USD9.9 million for the same period of 2021.

謝謝你，張先生。我現在將更詳細地討論我們截至 2022 年 12 月 31 日的六個月的財務業績。截至 2022 年 12 月 31 日的六個月的收入為人民幣 1.681 億元或 2410 萬美元，比上年增長 164.3% 2021年同期為6360萬元人民幣或990萬美元。

The increase in revenue was due to RMB161.4 million or USD23.1 million in revenue generated from KylinCloud, the company's livestreaming e-commerce business, in the second half of 2022, which constitutes 96% of second half of 2022 of the total company revenue.

收入增加是由於 2022 年下半年公司直播電商麒麟雲產生的收入為 1.614 億元人民幣或 2310 萬美元，占公司 2022 年下半年總收入的 96%收入。

Gross profit for the six months ended December 31, 2022, was RMB26.0 million or USD3.7 million as compared to RMB1 million or USD0.1 million for the same period of 2021. The increase in gross profit was due to RMB25 million or USD3.6 million in gross profit generated by the company's livestreaming e-commerce business.

截至 2022 年 12 月 31 日止六個月的毛利為人民幣 2600 萬元或 370 萬美元，而 2021 年同期為人民幣 100 萬元或 10 萬美元。毛利增加是由於人民幣 2500 萬元或公司直播電商業務毛利360萬美元。

For the second half of 2022 our gross profit margin was 15.5% for the livestreaming e-commerce business as compared to a gross profit margin of 5.1% for the second half of 2021.

2022 年下半年，我們直播電子商務業務的毛利率為 15.5%，而 2021 年下半年的毛利率為 5.1%。

Other income for the six months ended December 31, 2022, was our RMB1.3 million or USD0.2 million as compared to RMB24,000 or USD4,000 for the comparable period of 2021.

截至 2022 年 12 月 31 日止六個月的其他收入為人民幣 130 萬元或 20 萬美元，而 2021 年同期為人民幣 24,000 元或 4,000 美元。

Selling and distribution expenses for the six months ended December 31, 2022, were RMB14.5 million or USD2.1 million as compared to RMB24,000 or USD4,000 for the comparable period of 2021. The increase was due to an increase in commission expenses and advertising expenses that were attributable to KylinCloud.

截至 2022 年 12 月 31 日止六個月的銷售和分銷費用為人民幣 1,450 萬元或 210 萬美元，而 2021 年同期為人民幣 24,000 元或 4,000 美元。增加的原因是佣金增加歸屬於麒麟雲的費用和廣告費用。

Administrative expenses for the six months ended December 31, 2022, were RMB21.6 million or USD3.1 million as compared to RMB8.3 million or USD1.3 million for the same period of 2021. The increase in administrative expenses was mainly due to the increase in professional fees, compensation fees, insurance expenses, R&D, payroll expenses, and promotional expenses, primarily attributable to KylinCloud.

截至 2022 年 12 月 31 日止六個月的行政費用為人民幣 2,160 萬元或 310 萬美元，而 2021 年同期為人民幣 830 萬元或 130 萬美元。行政費用的增加主要是由於專業費用、薪酬費用、保險費用、研發費用、工資費用和推廣費用的增加，主要歸因於麒麟雲。

Net loss from continuing operations for the six months ended December 31, 2022, was RMB6.1 million or USD0.9 million as compared to RMB17.7 million or USD2.8 million for the same period of 2021. In terms of our livestreaming e-commerce business, net income was RMB0.7 million or USD0.1 million for second half of 2022, and a net loss of RMB1.4 million or USD0.2 million for the second half of 2021.

截至 2022 年 12 月 31 日止六個月的持續經營業務淨虧損為 610 萬元人民幣或 90 萬美元，而 2021 年同期為 1770 萬元人民幣或 280 萬美元。就我們的直播業務而言-商業業務，2022年下半年淨收入為70萬元人民幣或10萬美元，2021年下半年淨虧損為140萬元人民幣或20萬美元。

The decrease in the company's total net loss from continuing operations was mainly due to the increase in gross profit attributable to our livestreaming e-commerce business, and the reversal of bad debt expense that occurred in the second half of 2022 as compared to the same period of 2021.

公司持續經營淨虧損總額減少主要是由於直播電商業務毛利增加，以及2022年下半年發生的壞賬費用同比轉回2021 年。

Loss per basic share and fully diluted share from continuing operations for the six months ended December 31, 2022, were RMB0.73 or USD0.1 as compared to loss per basic and fully diluted share of RMB3.44 USD0.53 for the same period of 2021.

截至 2022 年 12 月 31 日止六個月，來自持續經營業務的基本股每股虧損和全麵攤薄股份虧損為 0.73 元人民幣或 0.1 美元，而同期基本和全麵攤薄股份每股虧損為 3.44 元人民幣 0.53 美元2021 年。

Turning to our balance sheet, as of December 2022, we had cash and bank balances for our RMB3.9 million or USD0.6 million as of December 31, 2022, compared with RMB27.9 million or USD4.4 million as of December 31, 2021.

關於我們的資產負債表，截至 2022 年 12 月，截至 2022 年 12 月 31 日，我們的現金和銀行結餘為 390 萬元人民幣或 60 萬美元，而截至 12 月 31 日為 2790 萬元人民幣或 440 萬美元, 2021.

Trade receivables turnover was zero on December 31, 2022, due to no outstanding trade receivables at December 31, 2022, as compared with 11 days as of December 31, 2021.

2022 年 12 月 31 日的貿易應收賬款周轉率為零，原因是截至 2022 年 12 月 31 日沒有未償還的貿易應收賬款，而截至 2021 年 12 月 31 日為 11 天。

Trade payables turnover of our social and livestreaming e-commerce business was three days as of December 31, 2022, as compared with seven days as of December 31, 2021.

截至 2022 年 12 月 31 日，我們的社交和直播電子商務業務的貿易應付賬款周轉率為三天，而截至 2021 年 12 月 31 日為七天。

As has been publicly announced, over the past two years, the company enacted a corporate transformation to pivot towards high-growth technology areas, which included acquisition of a social and livestreaming e-commerce business.

正如公開宣布的那樣，在過去兩年中，該公司實施了企業轉型，以轉向高增長技術領域，其中包括收購社交和直播電子商務業務。

In December 2022, the company's Board of Directors unanimously agreed to divest of its legacy ceramic tile building material business.

2022年12月，公司董事會一致同意剝離其遺留的瓷磚建材業務。

On December 30, 2022, the company entered into a share purchase agreement, pursuant where it agreed to sell the company's legacy ceramic tile manufacturing business to New Stonehenge Limited in exchange of a 5% unsecured promissory note with a principal amount of USD8.5 million. The note will mature in four years, and a 5% increase in the principal amount on the note has to be paid in four annual installments.

2022 年 12 月 30 日，公司簽訂股份購買協議，同意將公司遺留的瓷磚製造業務出售給 New Stonehenge Limited，以換取本金為 850 萬美元的 5% 無抵押本票.該票據將在四年後到期，票據本金增加 5% 必須分四期支付。

On February 21, 2023, the company's shareholders approved the sale of this business. And on April 28, the transaction closed, and the company completed the divestiture of the business.

2023年2月21日，公司股東批准出售該業務。並於4月28日完成交易，公司完成業務剝離。

Moving to our outlook, the company operates a livestreaming e-commerce business through its KylinCloud subsidiary, which comprises virtually all of the Antelope Enterprise's ongoing business operation. KylinCloud's platform strategy matches appropriate hosts and influencers to the products of consumer brand companies, which results in the increased sales for consumer brand companies.

轉向我們的展望，該公司通過其麒麟雲子公司運營直播電子商務業務，該業務幾乎包括羚羊企業的所有持續業務運營。麒麟雲的平台策略為消費品牌公司的產品匹配合適的主播和影響者，從而增加了消費品牌公司的銷售額。

For the six -- for the second six months and the full-year 2022, KylinCloud generated 96% and 84.5% of the company's total revenue, respectively. The company believes that livestreaming product marketing is an important growth engine for consumer brand companies since the heightens consumers' engagement and can build brand loyalty through rich content and online interaction.

在這六年中——2022 年的後六個月和全年，麒麟雲分別產生了公司總收入的 96% 和 84.5%。該公司認為，直播產品營銷是消費品牌公司的重要增長引擎，因為它可以提高消費者的參與度，並可以通過豐富的內容和在線互動建立品牌忠誠度。

The company expects that the livestreaming e-commerce will comprise an ever-increasing percentage of China's e-commerce sales in the years ahead, spurred by a consumer ecosystem that included a young demographic and higher -- and their high usage rate of mobile devices.

該公司預計，在包括年輕及更高人口在內的消費者生態系統及其移動設備的高使用率的推動下，直播電子商務在未來幾年將佔中國電子商務銷售額的比例不斷增加。

AEHL also believes that China's livestreaming e-commerce sector will experience high double-digit growth for many years to come, and the company is encouraged by the strong contribution to revenue of its KylinCloud subsidiary to date.

AEHL 還認為，中國的直播電商行業在未來許多年都將實現兩位數的高增長，該公司對其子公司麒麟雲迄今對收入的強勁貢獻感到鼓舞。

This business outlook reflects the company's current and preliminary views and is based on the information currently available to us, which are subject to change and subject to risks and uncertainties as well as risks and uncertainties identified in the company's public filings.

本業務展望反映了公司當前和初步的觀點，並基於我們目前可獲得的信息，這些信息可能會發生變化，並受風險和不確定性以及公司公開文件中確定的風險和不確定性的影響。

At this point, we would like to open up the call to any questions pertaining to our second-half and FY 2022 financial results. Operator, please.

在這一點上，我們想公開回答有關我們下半年和 2022 財年財務業績的任何問題。接線員，請說。

Thank you. We will now begin the question-and-answer session. (Operation Instructions) Darren Evans, PLC Capital.

謝謝。我們現在開始問答環節。 （操作說明）Darren Evans，PLC Capital。

Great. Good work on the [condition] -- [on the results], guys. Three questions. First is, how is the first half of 2023 tracking?

偉大的。伙計們，在[條件]-[結果]方面做得很好。三個問題。首先是，2023 年上半年的跟踪情況如何？

How is the 2023 or 20 -- may I have your question again?

2023 年或 20 年怎麼樣——我可以再問你一個問題嗎？

So how is the first half of this next fiscal year tracking?

那麼下一個財政年度上半年的情況如何？

We do not disclose the forecast for our guidance at this point. We have a significant growth from our data for the first few months. So we believe that we will have a very promising revenue from [this year].

我們目前不披露我們的指導預測。前幾個月我們的數據有了顯著增長。因此，我們相信我們 [今年] 的收入將非常可觀。

At some point in time, will you guys start to issue guidance?

在某個時間點，你們會開始發布指南嗎？

As you may notice, we will announce our results in the second-half reporting and also the year-end reporting, so -- which will believe somewhere in September, we will announce our second-half reporting. So you will know the results for our first-half results. But whenever we have some good news to the market, we will let the investors know our good news to them.

正如您可能注意到的那樣，我們將在下半年報告和年終報告中公佈我們的結果，所以 - 相信在 9 月的某個時候，我們將公佈我們的下半年報告。所以你會知道我們上半年的結果。但是每當我們對市場有一些好消息時，我們會讓投資者知道我們給他們的好消息。

Okay, great. And how about the ownership of the [management team] and the major stakeholders who are the major owners of the company?

好的，太好了。 [管理團隊]的所有權和作為公司主要所有者的主要利益相關者又如何？

We just have announced our -- this 20-F, so you may refer to our annual report just announced today -- public today. We have some basic management ownership on this [right here].

我們剛剛宣布了我們的 - 這個 20-F，所以你可以參考我們今天剛剛公佈的年度報告 - 今天公開。我們對此有一些基本的管理所有權 [就在這裡]。

Okay, great. That's all my questions. Thank you. Good work, guys.

好的，太好了。這就是我所有的問題。謝謝。幹得好，伙計們。

Thank you very much.

非常感謝。

(Operator Instructions) Jeff Cohn, private investor.

（操作員說明）Jeff Cohn，私人投資者。

Yes. How big of a market is this for your KylinCloud?

是的。你的麒麟云有多大的市場？

This is a very big market, but we do not have official statistics on this. And we believe that we are only -- we only have a very small market share at this moment. And we believe that we still have a lot -- a huge room to grow in our sector, and --

這是一個非常大的市場，但我們沒有這方面的官方統計數據。我們相信我們只是 - 我們目前只有非常小的市場份額。我們相信我們仍然有很多 - 我們行業的巨大增長空間，並且 -

Okay. Are there other --

好的。還有其他——

Yes?

是的？

Yes. Are there other public companies that we should compare you to?

是的。我們應該將您與其他上市公司進行比較嗎？

There is no strict comparison for the public company because we are in a very niche and new sector. And we are doing very differently from the market. But there is one -- there is some similarity with our business which are listed in Hong Kong. The ticker is 2291, I think -- I remember, so you may check on that.

對於上市公司沒有嚴格的比較，因為我們處於一個非常利基和新的領域。我們的做法與市場截然不同。但是有一個 - 與我們在香港上市的業務有一些相似之處。代碼是 2291，我想——我記得，所以你可以檢查一下。

Okay. And then, if I'm reading this right, you're not profitable yet. But when do you expect to reach profitability?

好的。然後，如果我沒看錯的話，你還沒有盈利。但是您預計什麼時候可以盈利？

We are still in the very beginning of our business right now. We believe that this year, we can have our breakeven, and from -- we believe that we will have a breakeven from this year. So in terms of future, I cannot promise anything at this moment, but we will -- we think that we will have a very significant [profitability] very soon.

我們現在還處於業務的起步階段。我們相信今年我們可以實現收支平衡，而且我們相信我們將從今年開始實現收支平衡。所以就未來而言，我現在不能承諾任何事情，但我們會——我們認為我們很快就會有非常可觀的[盈利能力]。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

Thank you. (Operator Instructions) If no more questions are placed at this moment, I would like to turn the conference back over to David Rudnick for any closing remarks. Thank you.

謝謝。 （操作員說明）如果此時沒有其他問題，我想將會議轉回給 David Rudnick 作閉幕詞。謝謝。

Thank you, Marliese. On behalf of the entire Antelope Enterprise management team, we want to thank all of you for your interest and participation on this call. This concludes Antelope Enterprise's second-half and FY 2022 earnings call. Thank you all very much.

謝謝你，瑪麗絲。我們代表整個 Antelope Enterprise 管理團隊感謝大家對本次電話會議的關注和參與。 Antelope Enterprise 的下半年和 2022 財年財報電話會議到此結束。非常感謝大家。

Thank you for attending today's presentation. You may now disconnect.

感謝您參加今天的演講。您現在可以斷開連接。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

該筆錄中標記（解釋）的部分是由現場通話中的口譯員說出的。翻譯由贊助本次活動的公司提供。