Antelope Business Holdings Limited ( NASDAQ: AEHL) Q2 2023 Incomes Teleconference October 2, 2023 8:00 AM ET
Business Individuals
David Rudnick – Financier Relations, Precept Financier Relations
Will Zhang – Chairman and President
Edmund Hen – Chief Financial Officer
Teleconference Individuals
Howard Flinker – Flinker & & Business
William Gregozeski – Greenridge Global
Operator
Excellent early morning, and welcome to the Antelope Business Holdings First Half 2023 Incomes Teleconference. All individuals will remain in listen-only mode. [Operator Instructions] After today’s discussion, there will be a chance to ask concerns. [Operator Instructions] Please keep in mind, this occasion is being taped.
I would now like to turn the conference over to David Rudnick of Precept Financier Relations. Please proceed.
David Rudnick
Thank you, Drew. Excellent early morning, girls and gentlemen, and excellent night those of you who are joining us from China. Invite to the Antelope Business Holdings’ very first half 2023 profits teleconference.
With us today are Antelope Business’s Chairman and President, Mr. Will Zhang; and Chief Financial Officer, Mr. Edmund Hen.
Prior to I turn the call over to Mr. Zhang, I wish to attend to positive declarations that might be talked about on the call. Positive declarations include threats and unpredictabilities and consist of, to name a few, those concerning income, business expenses, other earnings and expenditure, taxes, and future company outlook. Real future efficiency, results and outcomes might vary materially from those revealed in positive declarations.
The business declares the Safe Harbor defenses for such positive declarations as pondered under the Personal Securities Lawsuits Reform Act of 1995. Please refer the files submitted by the business with the SEC, particularly, the most current reports on Types 20-F and 6-K, which recognize essential threat aspects that might trigger real outcomes to vary from those consisted of in the positive declarations. We presume no responsibility to upgrade any positive declarations or details, which speak since their particular dates.
And now, it’s my enjoyment to turn the call over to Antelope Business’s Chairman and CEO, Mr. Will Zhang, Antelope Business’s CFO, Mr. Edmund Hen. My interactions coworker, [Lynn Burstein] (ph), will be equating for CEO, Will Zhang. Mr. Zhang, you might continue.
Will Zhang
[Foreign Language]
[Interpreted] Thank you, David. On behalf of the business, I wish to invite everybody to our very first half 2023 profits teleconference.
I am incredibly happy with the accomplishments of our Kylin Cloud group as our very first half income is up 172.5% as compared to the exact same duration in 2015. Our income for our livestreaming ecommerce company was available in at $44.2 million for the 6 months, decently greater than our top-line pre-announcement. Even more, if not for particular non-cash costs, we would have taped favorable operating earnings for our livestreaming ecommerce sector for the duration.
As a very first mover in the livestreaming ecommerce area in China, Kylin Cloud offers turnkey livestreaming marketing and broadcasting services to customer brand name business by matching customer brand name items with the suitable hosts and influencers. Our company believe that Kylin Cloud has the core proficiencies to increase its market share in the durations ahead in what our company believe is an evolutionary sales channel and as we continue to engage as a pure play in the sector.
Our company believe that we have a remarkable market chance ahead of us and are positive that Kylin Cloud’s special method will continue to redefine the ecommerce livestreaming landscape. I am really delighted about our worth proposal for our clients, and I’m positive that we will produce worth for our investors also.
With that, I wish to turn over the call to the business’s Chief Financial Officer, Mr. Edmund Hen, who will go over the business’s very first half profits lead to more information. Thank you.
Edmund Hen
Thank you, Mr. Zhang.
I will now carry on to a more in-depth conversation of our monetary outcomes for the 6 month ending June 30, 2023.
Earnings for the 6 month ended June 30, 2023 was RMB309.3 million, or US$ 44.6 million, a 161.5% boost from our RMB118.2 million, or US$ 18.3 million, for the exact same duration of 2022. The boost in income was because of RMB305.9 million, or US$ 44.2 million, in income produced from our livestreaming ecommerce company, a 172.5% boost from RMB112.3 million, or US$ 17.3 million, for the exact same duration of 2022. Our livestreaming ecommerce company make up 99% of very first half 2023 overall income as compared to 83% for the exact same duration of 2022.
Gross revenue for the 6 month ended June 30, 2023 was RMB47.2 million, or US$ 6.8 million, as compared to RMB1.9 million, or US$ 0.3 million, for the exact same duration of 2022. The boost in gross revenue was because of RMB52 million, or US$ 7.5 million, in gross revenue produced from our livestreaming ecommerce company, a 1,591.4% boost from RMB3.1 million, or US$ 0.5 million, for the exact same duration of 2022. For the very first half of 2023, our gross revenue margin was 17% for the livestreaming ecommerce company as compared to gross revenue margin of 2.7% for the very first half of 2022.
Other earnings for the 6 months ended June 30, 2023 was RMB2.8 million, or US$ 0.4 million, as compared to RMB1.7 million, or US$ 0.3 million, for the exact same duration of 2022. For the very first half of 2023, we had RMB0.5 million in interest earnings, earnings of RMB1.2 million attributable to forgiveness of a loan by an affiliate of an investor of the business, a federal government grant of RMB0.3 million and other earnings of RMB0.8 million.
Offering and circulation costs for the 6 months ended June 30, 2023 were RMB49.2 million, or US$ 7.1 million, as compared to RMB1.9 million, or US$ 0.3 million, for the exact same duration of 2022. The boost in sales and circulation costs was mainly due to a boost in travel costs of RMB0.1 million, a boost in commission costs of RMB2.6 million, and a boost in marketing and promo costs of RMB44.6 million.
Administrative costs for the 6 months ended June 30, 2023 were RMB38.7 million, or US$ 5.6 million, as compared to RMB6.4 million, or US$ 1 million, for the exact same duration of 2022.
Loss from continuing operations prior to taxes for the 6 months ended June 30, 2023 for our livestreaming company was RMB73,000 for the very first half of 2023, as compared to an earnings from continuing operations prior to taxes of RMB7.4 million, or US$ 1.1 million, for the very first half of 2022.
Loss per fundamental share and completely watered down share from the continuing operation for the 6 months ended June 30, 2023 were RMB23.44, or US$ 3.40, as compared to loss per fundamental and completely watered down share of RMB5.14, [and] (ph) US$ 0.79, for the exact same duration of 2022.
Relying on our balance sheet. Since June 30, 2023, we had a money and bank balances of RMB3.1 million, or US$ 0.4 million, compared to RMB3.9 million, or US$ 0.6 million, since December 31, 2022. Since June 30, 2023, out overall exceptional bank loan quantities were nil, and we had a note payable of RMB9.3 million, or US$ 1.3 million.
As has actually been appropriately revealed over the last 2 years, we enacted a business improvement to pivot towards high-growth innovation locations, that included the acquisition of livestreaming ecommerce company. In December 2022, our Board of Directors all consented to divest its tradition ceramic tile structure products company. On December 30, 2022, we participated in an arrangement to offer our tradition ceramic in exchange for a 5% unsecured promissory note with a primary quantity of US$ 8.5 million. The note will grow in 4 years and the 5% and primary quantity on the note is to be paid in 4 yearly installations. An unique conference of the business’s investors was hung on February 21, 2023, where the investors authorized for the sale of this company. And on April 28, 2023, the deal closed.
Transferring to our company outlook. We run a livestreaming ecommerce company through our Kylin Cloud subsidiary, which makes up practically all Antelope Business continuous company operations. The SaaS+ system platform tactically matches suitable hosts and influencers to customer brand name items which leads to increased sales for these business. For the 6 months end June 30, 2023, Kylin Cloud produced 99% of the business’s overall income.
Kylin Cloud offers a one-stop option for customer item business to make use of the growing sales channel of livestreaming ecommerce given that it increases customer engagement and can develop brand name commitment through abundant material and online interaction. We see ecommerce livestreaming as specifically essential given that standard ecommerce can be challenged in regards to its capability for brand names to stand apart and develop individual connections with customers. Kylin Cloud’s social networks hosts and influencers develop trust with customers which increase brand name awareness and which drives item sales and increased margins.
In the last couple of years, livestreaming ecommerce has actually consisted of an ever-increasing portion of China’s ecommerce sales which we anticipate to continue in the years ahead, stimulated by a consumer community that consists of a young group and their high use rate of mobile phones. Our company believe that Kylin Cloud is special in the livestreaming area given that its usage of sophisticated analytical– analytics that matches hosts and influencers to customer brand name items which assists in special material for greater conversion rates as compared to standard ecommerce. Our company believe that we will have the ability to capitalize upon this market chance in the durations ahead and will grow at a rate that is greater than ecommerce livestreaming sector.
Business outlook shows the business’s existing and initial views and is based upon details presently readily available to us, which undergo alter, and goes through threats and unpredictabilities, along with threats and unpredictabilities recognized in the business’s public filings.
At this moment, I wish to open the call to any concerns referring to our very first half 2023 monetary outcomes. Operator, please.
Question-and-Answer Session
Operator
We will now start the question-and-answer session. [Operator Instructions] The very first concern originates from Howard Flinker with Flinker & & Business. Please proceed.
Howard Flinker
[Foreign Language] I have one concern. [Foreign Language] At quarter-end, [Foreign Language] the number of shares exceptional?
Edmund Hen
In the half year-end, right?
Howard Flinker
Yes.
Edmund Hen
We have about 2.5 million after this reverse split– current reverse split.
Howard Flinker
2.5 million precisely?
Edmund Hen
Around that number. You might consult the general public filing later on today.
Howard Flinker
Okay. You’ll submit a 10-Q or a 20-F or a 6-F, I do not understand, I forget what it’s called, is that appropriate?
Edmund Hen
6-K.
Howard Flinker
Oh, 6-K. Okay. It sounds as if you’re making development, and it’s been a long battle, and helpful for you.
Edmund Hen
Thank you.
Howard Flinker
[Foreign Language]
Edmund Hen
Thank you.
Operator
[Operator Instructions] The next concern originates from William Gregozeski with Greenridge Global. Please proceed.
William Gregozeski
Hi. I wondered, do you take a look at a specific metric for income for influencers? You men constantly publish the variety of influencers you have in your business profile in journalism releases. I was simply curious if you take a look at any metrics for income, like typical income that an influencer generates, or how do you see the worth of each influencer?
Edmund Hen
Excuse me, may I have your concern rephrased? One, I comprehend has to do with– your concern has to do with associated to income. Please rephrase your concern for me so that will perhaps make us simpler to comprehend. Thank you.
William Gregozeski
Yeah. You divulged in all of your press launches the variety of influencers you have. I wondered how you take a look at the worth of each influencer? If it’s income per influencer, or how you men see that?
Edmund Hen
Yeah, the influencer is in fact individuals signed up in our SaaS system. So, the more the influencer, that suggests we have more prospective to create the future income. That suggests more individuals is assisting our platform– for our livestreaming company and more individuals will add to our livestreaming in our platform.
William Gregozeski
Right. I’m asking exists a specific metric you take a look at to see the worth of each influencer? So, as you went from 300,000 to 400,000 in the existing news release, should we anticipate that income to keep increasing at a fairly comparable rate moving forward as you bring influencers on?
Edmund Hen
Due To The Fact That we– our company, we still share extremely little market share in this livestreaming company. So, we’re anticipating increasingly more these influencers will join our platform, therefore that– and likewise the income will make– the influencer will contribute in a substantial total up to our income. And at this moment, it’s extremely hard to compute the metrics in between the influencer and the income. However the important things is, the more influencers join our platform, our company believe that the income will likewise increases in a substantial way.
William Gregozeski
Okay. And you have actually had gross margin enhancement. Do you anticipate to see that moving forward? And exists sort of a number you’re aiming for to reach, whether it’s this year or in the next couple of years?
Edmund Hen
Yes, you are appropriate. We’re anticipating the gross margin will– increases in the coming duration and years. Likewise, as I discussed, we are still in a really early phase in this livestreaming location and our company believe that there’s still a great deal of space, a variety of space to grow in our gross margin.
William Gregozeski
Okay. Exists any rough number you men are targeting that you’re intending to grab, or is it simply [flow] (ph) increases?
Edmund Hen
At this minute, as I discussed, we’re still at a really early phase. So, it is extremely hard for us to approximate the fully grown gross margin in the future development. However our company believe that the existing phase does not show the entire image for business.
William Gregozeski
Okay. All right. Excellent quarter. Thank you.
Edmund Hen
Thank you quite.
Operator
This concludes our question-and-answer session. I wish to turn the conference back over to David Rudnick for any closing remarks.
David Rudnick
Great. Thank you. On behalf of the whole Antelope Business management group, I wish to thank all of you for your interest and involvement on this call. This concludes Antelope Business’s very first half 2023 profits teleconference. Thank you quite.
Operator
The conference has actually now concluded. Thank you for participating in today’s discussion. You might now detach.