Antelope Enterprise Holdings Ltd (AEHL) 2024 Q2 法說會逐字稿

Good morning and good day. Welcome to the Antelope Enterprise Holdings First Half 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to David Rudnick of Precept Investor Relations. Please go ahead.

早安，美好的一天。歡迎參加羚羊企業控股2024年上半年收益電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給 Precept 投資者關係部的 David Rudnick。請繼續。

Thank you, Drew. Good morning ladies and gentlemen and good evening to those of you who are joining us from China. Welcome to Antelope Enterprise Holdings first half 2024 earnings conference call. With us today are Antelope Enterprise's Chairman and Chief Executive Officer, Mr. Will Zhang; and his Chief Financial Officer, Mr. Edmund Hen.

謝謝你，德魯。女士們、先生們早安，從中國來參加我們會議的各位晚上好。歡迎參加羚羊企業控股公司 2024 年上半年收益電話會議。今天與我們在一起的有羚羊企業董事長兼執行長張偉先生；以及他的財務長 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.

在將電話轉給張先生之前，我想談談電話中可能討論的前瞻性陳述。前瞻性陳述涉及風險和不確定性，其中包括有關收入、營運費用、其他收入和費用、稅收和未來業務前景的風險和不確定性。

Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements. 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 with 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.

未來的實際業績、結果和結果可能與前瞻性陳述中表達的內容有重大差異。該公司聲稱，根據 1995 年《私人證券訴訟改革法案》，此類前瞻性聲明受到安全港保護。請參閱公司向 SEC 提交的文件。具體來說，是關於表格 20-F 和 6-K 的最新報告，其中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。我們不承擔更新任何前瞻性陳述或資訊的義務，這些陳述或資訊截至其各自日期。

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

現在我很高興將電話轉給羚羊企業董事長兼執行長張威爾先生。以及Antelope Enterprise 的財務長Edmund Hen 先生。Antelope Enterprise 的 Sabrina Xu 將為執行長 Will Zhang 擔任翻譯。張先生，您可以繼續了。

(interpreted) All right. Thank you David. On behalf of the company, I would like to welcome everyone to our first half 2024 earnings conference call.

（解釋）好吧。謝謝大衛。我謹代表公司歡迎大家參加我們 2024 年的上半年收益電話會議。

Revenue for the livestreaming e-commerce business segment came in at $43.4 million for the six months, modestly lower than the $44.6 million in revenue recorded for the six months of 2023. This slight decline was due to a loss of a few major clients and a change in business strategy to secure a larger number of mid-tier clients to help to mitigate the risk of retaining major clients. We had engagements with more than 70 clients in the first half of 2024, represents an increase of nearly 20 clients compared to the same period in 2023.

直播電商業務部門這六個月的收入為 4,340 萬美元，略低於 2023 年六個月的 4,460 萬美元收入。這一小幅下降是由於一些主要客戶的流失以及業務策略的改變，以確保更多的中層客戶，以幫助降低保留主要客戶的風險。2024 年上半年，我們與超過 70 位客戶進行了合作，與 2023 年同期相比增加了近 20 位客戶。

Our majority owned KylinCloud subsidiary provides turnkey livestreaming marketing and broadcasting services to consumer brand companies by matching consumer brand products with the appropriate the hosts and influencers. We have a tremendous market opportunity ahead of us and believe that we have the resources, infrastructure and team culture to achieve sustained growth in the B2C ecosystem.

我們控股的麒麟雲端子公司透過將消費品牌產品與合適的主持人和影響者相匹配，為消費品牌公司提供交鑰匙直播行銷和廣播服務。我們面臨著巨大的市場機遇，並相信我們擁有實現 B2C 生態系統持續成長的資源、基礎設施和團隊文化。

And an important strategic development for the company, we recently announced that we're planning to enter the energy field in the third quarter of 2024 and are going to launch this business in Texas to meet the rapidly growing needs of the computing power industry. We believe that our new positioning in the energy supply sector is extremely timely to meet the high expected demand for energy due to the growth of the sectors.

作為公司的重要策略發展，我們最近宣布計劃在2024年第三季進入能源領域，並將在德州推出這項業務，以滿足算力產業快速成長的需求。我們相信，我們在能源供應行業的新定位非常及時，可以滿足該行業成長帶來的對能源的高預期需求。

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 first half earnings results in more detail. Thank you so much.

接下來，我想將電話轉給公司財務長 Edmund Hen 先生，他將更詳細地討論公司上半年的獲利結果。太感謝了。

Thank you, Mr. Zhang. I’ll now move on to a more detailed discussion of our financial results for the six months ending June 30, 2024. Revenue for the six months ended June 30, 2024, was USD43.5 million, a decrease of USD1.1 million or 2.6% from USD44.6 million for the same period of 2023. The decrease in revenue was due to the loss of a few of the livestreaming business major clients in the current period. The propelled a change in business strategy to focus on securing a larger number of mid-tier clients to mitigate the risk associated with an over concentration of major clients.

謝謝你，張先生。現在，我將更詳細地討論截至 2024 年 6 月 30 日的六個月的財務表現。截至2024年6月30日止六個月的收入為4,350萬美元，較2023年同期的4,460萬美元減少110萬美元，即2.6%。收入下降是由於本期直播業務部分主要客戶流失所致。這推動了業務策略的轉變，專注於獲得更多中階的客戶，以減輕與大客戶過度集中相關的風險。

In the first half of 2024, we had business engagements with more than 70 clients which represented an increase of nearly 20 clients compared to the same period of 2023. Gross profit for the six months ended June 30, 2024, was USD3.5 million, a decrease of USD3.3 million or 46.7% (sic – see press release, "48.7%") as compared to USD6.8 million for the same period of 2023.

2024年上半年，我們與超過70家客戶進行了業務往來，較2023年同期增加了近20家客戶。截至 2024 年 6 月 30 日止六個月的毛利為 350 萬美元，較去年同期的 680 萬美元減少了 330 萬美元或 46.7%（原文如此 — 參見新聞稿，“48.7%”） 2023 年同期。

The decrease in gross profit was due to the decrease in revenue and an increase in the cost of goods sold in the current period. For the first half of 2024, gross profit margin was 8% for the livestreaming ecommerce business as compared to a gross profit margin of 15.3% for the first half of 2023.

毛利減少是由於本期收入減少及銷售成本增加所致。2024年上半年，直播電商業務的毛利率為8%，而2023年上半年的毛利率為15.3%。

Selling and distribution expenses for the six months ended June 30, 2024, were USD3.1 million, a decrease of USD4 million or 55.9% as compared to USD7.1 million for the same period of 2023. The increase in selling and distribution expenses was due to decreased advertising and promotion expenses of USD3.5 million and decreased commission expenses of USD0.5 million.

截至2024年6月30日止六個月的銷售及分銷費用為310萬美元，較2023年同期的710萬美元減少400萬美元，即55.9%。銷售和分銷費用的增加是由於廣告和促銷費用減少了 350 萬美元，佣​​金費用減少了 50 萬美元。

Administrative expenses for the six months ended June 30, 2024, were $6.9 million, an increase of $1.3 million or 22.3 -- 22.8% as compared to $5.6 million for the same period of 2023. The increase in administrative expenses was due to an increase in stock compensation expense of $0.8 million. The $0.5 million increase in professional service expenses.

截至 2024 年 6 月 30 日止六個月的管理費用為 690 萬美元，與 2023 年同期的 560 萬美元相比，增加了 130 萬美元，即 22.3% 至 22.8%。管理費用的增加是由於股票補償費用增加了 80 萬美元。專業服務費用增加 50 萬美元。

Loss from continuing operations before taxation for the six months ended June 30, 2024, was $6.5 million, an increase of $1.1 million or 19.3% as compared to a loss from continuing operations before taxation of $5.5 million or the same period of 2023.

截至 2024 年 6 月 30 日止六個月的稅前持續經營虧損為 650 萬美元，與 2023 年同期的稅前持續經營虧損 550 萬美元相比，增加了 110 萬美元，即 19.3%。

The increase was due to the decrease in gross profit in the current period as compared to the same period of 2023, as well as an increase in administrative expenses which was partly offset by a decrease in selling and distribution expenses. Loss per basic share and fully diluted share from continuing operations for the six months ended June 30, 2024 were $0.96 as compared to loss per basic and fully diluted share of $3.38 for the same period of 2023.

增加的原因是本期毛利較2023年同期減少，以及管理費用增加，但部分被銷售及分銷費用減少所抵銷。截至 2024 年 6 月 30 日止六個月的持續經營業務每股基本股和完全稀釋股虧損為 0.96 美元，而 2023 年同期基本股和完全稀釋股虧損為 3.38 美元。

Turning to our balance sheet. As of June 30, 2024, we had $2.3 million in cash and cash equivalents, an increase of $1.8 million or 333.2% compared to $0.6 million as of December 31, 2023. As of June 30, 2024, working capital was $5.8 million and the current ratio was 2.6 times. Shareholders' equity as of June 30, 2024, was $18 million, as an increase of $3.6 million or 25.2% as compared to $14.4 million as of December 31, 2023.

轉向我們的資產負債表。截至 2024 年 6 月 30 日，我們擁有 230 萬美元的現金和現金等價物，與截至 2023 年 12 月 31 日的 60 萬美元相比，增加了 180 萬美元，增幅為 333.2%。截至2024年6月30日，營運資金為580萬美元，流動比率為2.6倍。截至 2024 年 6 月 30 日的股東權益為 1,800 萬美元，較截至 2023 年 12 月 31 日的 1,440 萬美元增加了 360 萬美元，即 25.2%。

Moving to our business outlook. We own a majority position of a livestreaming ecommerce business, Hainan Kylin Cloud Services Technology Company Limited, and aim to launch an energy supply business in the third quarter of 2024. Kylin Cloud’s SaaS systems platform strategically matches hosts and influencers to consumer brand products which results in increased sales for those companies.

轉向我們的業務前景。我們擁有直播電商企業海南麒麟雲端服務科技有限公司的多數股權，並計劃於2024年第三季推出能源供應業務。麒麟雲端的 SaaS 系統平台策略性地將主持人和影響者與消費者品牌產品相匹配，從而增加了這些公司的銷售額。

In the last few years, livestreaming ecommerce has comprised an ever-increasing percentage of China's ecommerce sales which we expect to continue in the years ahead, spurred by a consumer ecosystem that includes a young demographic and their high-usage rate of mobile devices. We believe that Kylin Cloud is unique in the livestreaming space, since it utilizes advanced analytics that matches hosts and influencers to consumer brand products which facilitates unique content for higher conversion rates as compared to traditional ecommerce.

在過去幾年中，直播電子商務在中國電子商務銷售中所佔的比例不斷增加，我們預計在未來幾年，這種情況將繼續下去，這受到包括年輕人在內的消費生態系統及其高行動裝置使用率的推動。我們相信，Kylin Cloud 在直播領域是獨一無二的，因為它利用先進的分析技術，將主持人和影響者與消費品牌產品相匹配，從而與傳統電子商務相比，促進獨特的內容獲得更高的轉化率。

In the current period, the business strategy of the livestreaming business was modified to focus on securing a larger number of mid-tier clients to mitigate the risk associated with an over concentration of major clients. Since some of these new clients are still in the beginning stages of collaboration and their business volume has just started to grow, it will take time for the new mid-tier clients to develop and increase their sales volume.

本期直播業務調整經營策略，重點爭取更多中階客戶，降低大客戶過於集中的風險。由於部分新客戶仍處於合作初期，業務量才剛開始成長，新中型客戶的發展和銷售提升還需要一段時間。

In the first half of 2024, the livestreaming business had business engagements with more than 70 clients, which represented an increase of nearly 20 clients compared to the same period in 2023. In an important strategic development for the company, we recently announced plans to enter the energy field through the production of electricity using natural gas generators in Texas. This electricity would then be transmitted directly to rapidly growing computing sectors, who requires high amounts of energy. Compared to conventional methods, this method eliminates intermediary steps like transmission to the power grid and processing by public utilities, which will result in lower energy losses and higher efficiency.

2024年上半年，直播業務已與70餘家客戶開展業務，較2023年同期增加近20家。作為公司的重要策略發展，我們最近宣布計劃透過在德州使用天然氣發電機發電來進入能源領域。然後，這些電力將直接傳輸到快速成長的需要大量能源的計算部門。與傳統方法相比，該方法消除了傳輸到電網和公用事業處理等中間步驟，這將導致更低的能量損失和更高的效率。

Given the strong market demand, the company believes it has a runway for significant growth in the near future. The 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 is subject to risks and uncertainties, as well as risks and uncertainties identified in the company’s public filings.

鑑於強勁的市場需求，該公司相信在不久的將來將實現顯著成長。業務前景反映了公司當前和初步的觀點，並基於我們目前掌握的信息，這些信息可能會發生變化，並受到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 first half 2024 financial results. Operator, please?

在此，我們希望對 2024 年上半年財務業績的任何問題開放電話諮詢。接線員，請說？

At this point, we would like to open up the call to any questions pertaining to our first half 2024 financial results. Operator, please?

在此，我們希望對 2024 年上半年財務業績的任何問題開放電話諮詢。接線員，請說？

We will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Steve Silver, Argus Research.

史蒂夫·西爾弗，阿格斯研究中心。

Thanks operator. And thank you for taking my questions. I was hoping you could provide some color about how the company made the strategic decision to enter the energy supply field.

感謝運營商。感謝您回答我的問題。我希望您能提供一些關於該公司如何做出進入能源供應領域的策略決策的資訊。

All right. Thank you for the questions. (spoken in foreign language)

好的。謝謝你的提問。（用外語說）

(interpreted) Let me begin by saying that the US Energy Information projects that electricity demand in the United States will increase to record highs in 2024 and 2025, largely driven by demand from large scale computing facilities.

（解讀）首先，美國能源資訊公司預計，美國電力需求將在2024年和2025年創歷史新高，這主要是由大型運算設施的需求所推動的。

The IEA, as it is known, also said that global data center electricity demand is on its way to double from 2022 to 2026 with AI playing a major role in that increase. Most of us know that data centers support everything from financial transactions to social media to government operations, it is extremely energy intensive to train AI models. The IEA has predicted that in two years, data centers could consume the same amount of energy as Sweden or Germany.

據了解，IEA 也表示，從 2022 年到 2026 年，全球資料中心電力需求將翻一番，而人工智慧在這一成長中發揮了重要作用。我們大多數人都知道，資料中心支援從金融交易到社群媒體再到政府營運的一切，訓練人工智慧模型非常耗能。國際能源總署預測，兩年內資料中心消耗的能源量可能與瑞典或德國相同。

Data centers need continuous and stable supply of energy to operate. And that's where we come in because we have developed such a model. We think that we are entering this market at exactly the right time to provide a cost-effective and stable means of providing electricity to data centers and those companies in need of computing power.

資料中心需要持續穩定的能源供應才能運作。這就是我們的切入點，因為我們已經開發了這樣的模型。我們認為，我們進入這個市場的時機恰逢其時，為資料中心和需要運算能力的公司提供一種經濟有效且穩定的電力供應方式。

Okay. That’s helpful. Thank you so much. And one follow-up. You've mentioned being cost effective in your model. Is there any detail you can provide about the business model in terms of how it is supposed to be cost-effective and designed to be a stable source of energy for your customers.

好的。這很有幫助。太感謝了。還有一個後續行動。您提到您的模型具有成本效益。您能否提供有關該業務模式的任何詳細信息，說明該業務模式應如何具有成本效益並被設計為為您的客戶提供穩定的能源來源。

All right. Thank you so much. (spoken in foreign language)

好的。太感謝了。（用外語說）

(interpreted) So we're located close to the natural gas production site, which allows us to minimize transportation costs and avoid the cost of compression, transportation and storage. Also, we strategically positioned close to our customers as well to greatly minimize standing transportation costs there as well. Therefore, we can supply electricity to customers in a very cost effective way.

（解釋）所以我們的位置靠近天然氣生產地點，這使我們能夠最大限度地降低運輸成本，避免壓縮、運輸和儲存的成本。此外，我們也策略性地定位在靠近客戶的位置，以大大降低那裡的常備運輸成本。因此，我們可以以非常具有成本效益的方式向客戶提供電力。

We closely monitor the market for natural gas and believe that we have a good model to project the right time to secure natural gas for our business. We currently own four generators that convert natural gas into electricity and plan to launch this business in the fourth quarter of this year.

我們密切關注天然氣市場，並相信我們有一個很好的模型來預測正確的時間，為我們的業務提供天然氣。我們目前擁有四台將天然氣轉化為電力的發電機，並計劃在今年第四季推出這項業務。

Thank you very much.

非常感謝。

Thank you, Steve.

謝謝你，史蒂夫。

(Operator Instructions) This concludes our question and answer session. I would like to turn the conference back over to David Rudnick for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉回給大衛·魯德尼克（David Rudnick）發表閉幕詞。

Thank you, Drew. On behalf of the Antelope Enterprise management team, we'd like to thank all of you for your interest and participation on this call. This concludes Antelope Enterprise's first half 2024 earnings call. Thank you very much.

謝謝你，德魯。我們謹代表 Antelope Enterprise 管理團隊感謝大家對本次電話會議的關注與參與。Antelope Enterprise 的 2024 年上半年財報電話會議到此結束。非常感謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

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.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。