Half Year 2021 Antelope Enterprise Holdings Ltd Earnings Call

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Good day, and thank you first anybody walking to the Antelope enterprise first half 2021 earnings conference call.

At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. That's a question. During the session you will need to press star one on your telephone please be advised that at East conference is being recorded.

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I would now like to hand the conference over.

Speakers today, David Rudnick. Please go ahead.

Thank you Lisa.

Good morning, ladies and gentlemen, I couldn't hear those of you who are joining us from China.

Welcome to Antelope Enterprises' first half 2021 earnings conference call with US today are Antelope enterprises, Chief Executive Officer his Marchmont Wong.

As Chief Financial Officer, Mr. Ed Manhattan.

Before I turn the call over to Ms. Wang.

Electrode dress clothing are statements that may be discussed on the call forwarding statements involve risks and uncertainties 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.

Company claims the safe Harbor protections for such forward 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 6K, which identify important risk factors that could cause actual results differ from those contained in the forward looking statements. We assume no obligation to update any forward looking statements or information, which speak as if their respective dates and now it's my pleasure.

Nicole over to Antelope, Enterprises', CEO, there's mics Hong Kong.

Antelope Enterprises' CFO, Mr. Edmund Hen Shao Lee Jay will be translate for MS. Wang Ms. Wang you May proceed.

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Thank you David on behalf of the company I would like to welcome everyone to our first half 2020 One earnings conference call.

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That's where some of them.

That sounds good.

Well thanks, Jason.

I think you see the social agenda and.

And then just finally got some.

Do you think.

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You got that I'm sorry.

That's where I'm at Walmart.

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Yeah Bonnie.

I did just that.

For the first half of 2020 one.

Darren challenging market conditions due to additional dawn of the real estate sector in China, which will still be impacted by the continued effects of the colder natural dynamic hours, just 10 marketing assays steering dish theory enabled us to realize an 11% increase in sales volume.

First off the fiscal 2020, one as compared to the same period of Chinese Honeywell, we made a strategic decision to sell products already in inventory and available market prices that are below our cost of production, which hindered our profitability for the first half try and 'twenty one.

This will help us to shift the momentum of the company towards future growth.

On Miami and some of them young women don't go shopping.

Now what would change that.

Please go ahead Sir.

And then Neal someone right.

One piece of it.

Yeah.

Well my opinion and body shaping.

He will then shape to close at some point.

So what's your thought on that.

Zhengzhou Chongqing it sounds.

Sounds awesome.

For the first half of 2020, one we utilized production facilities capable of producing one 1 million square meters of ceramic tiles per year at all in fact Heath annual production capacity of 51.6 million square meters of ceramic tiles.

We chalk production offline at our Haynesville leaf affinity for the free soft Chinese Honeywell adapting that week, one we leased to a third party things we determined that we had ample inventory available to walk through our sales channels.

So John Jordan, Orlando Hudson Young propulsion.

Yes.

Yeah.

Shanghai Joshua.

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J C.

Yeah, well, that's actually not quite true.

That's one question.

Sometimes once.

Yeah, So I'm sure that Shelley.

While we are committed to our core business. We're also focused upon diversifying our business lines do you feel our growth. We're encourage at Antelope can do well enough hours, that's seen a raise in the financial technology sector interested a significant level of revenues to our financial performance for the first half.

Oh 2021.

Well My Yung Kim Jin sang Kim G E.

John what do you do that you will not be what well know more jumbo Jim Thompson.

Thank you Sheila.

Sure.

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Did you see much of a bunch of naphtha Samson.

I'm sorry, Jim.

We believe that our building materials sector will continue to benefit from the importance of the real sector in the Chinese economy, we believe that the Chinese government renewed after used to promote affordable housing projected growth in lower tier cities and upgrading of existing.

Housing stocks are potential catalysts that could benefit our business.

So I just want I want John Kim title jumping some lessons from that assumption, yes, I'll finish it.

It sounds like maybe you can shed some quantification.

With that I would like to turn over the call to the Companys Chief Financial Officer, Mr. Edmund Hen, who will discuss the company's first half 2020 one earnings results in more detail.

Thank you Ms Schwalm.

I will now move onto a more detailed discussion of our financial results for the six months and Thats true Church you 2021.

However for the six months end June 30th 2021.

Most RMB $51 million.

Our U S dollar seven 7 million.

At 25.

Four 9% increase from RMB 39 eight.

Yeah.

Oh, yes, so on the $11.0 million for the same Hubert without transparency.

The increase in revenue was due.

A 6% increase.

In the south of storm at Kohl's.

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The two 2 million or Youre, starting at $11.0 million.

For the six months of 2019.

Since you won.

Compared to the true RMB 13.9 million.

A million.

Our U S dollar five 6 million.

Or the same camera off so without insurance Ya.

And.

RMB, seven 9 million or U S. Dollar 112 million in Sofia rights, we are refraining from Antelope Chengdu.

The increase in sales of stormy calls for steel children, you're definitely one 1% increase.

And our sales volume two 2 million square meters for ceramic tiles for the six months and Sharon stewardship trendy term sheets from Q1.

Compared to one eight.

Median square meters of <unk> for the same period of trends your turnkey.

We will which was partially offset by an eight 6% period over period with you Chris.

Christian FH.

Selling price.

Gross loss.

For the six months ended June 30th 2021 was RMB, six 5 million or USD 1 million.

As compared to two gross profit of RMB 9 million or USD one.

1 million for.

For the same period also 1000 turnkey.

The gross loss margin was 13%.

As you compare the two.

Gross profit margin to 4% for the same period without infringing.

Our income for the six months ended June 30 of 2021.

All of RMB, seven 1 million or Youre still in a $2.0 million.

Compare that to the RMB, nine 8 million or $5.0 million.

For the comparable period answer without saying trends.

Other income primarily consists of rental income.

For the company received by leasing Oleds.

One the production lines.

From this and other <unk> pressures to an 18 year lease.

Lease contracts.

In addition.

We realized RMB, two 4 million or you sort of ballpark 3 million Nintendo Jia consulting income.

From our newly incorporated subsidiary.

When do the future.

During the six months ended June 30th 2020.

Selling and distribution expenses for the six months and if Julian searches 2021.

We're all M B, III, Poland 2 million or U S dollar knock on $5 million.

The decrease from RMB 512 million or U S dollar not one 7 million.

For the comparable period 2000 and trenching.

Administrative expenses for the six months end June throw chips with us or in 'twenty one.

We're all M B seven one.

$2 million or you saw the two concept vermilion.

Compare that to RMB 14.7 million.

Or you are starting at $3.0 million for the same period also with us in 'twenty.

Bad debt expense for the six months ended June 30th without central in Q1.

Our M B.

$57.0 million or I guess sort of $14.0 million.

S come credits your bad debt expense of RMB.

$109.0 million or U S dollar $18.0 million.

For the same periods without entrenched.

We recognize the loss allowance.

Expected credit loss on all financial assets.

Primarily on trade receivables.

The trial subject to impairment under <unk> nine.

Financial instruments.

When you pay it if they're re undertakes an appropriate.

No shares chorizo, how about some expense.

We will continue to reveal itself all questions.

For credit quality as well as.

Since USD test.

Accounts receivable was guidance of spinach upcoming physical sure.

Net loss for the six months ended June 30th 2021.

Whilst RMB 74, 8 million or you are sort of $19.0 million.

As compared to chew net loss of RMB.

Trying to get up in Poland, 5 million or U S totaled $23.0 million.

Or the same carrots with us in 'twenty.

The decrease in net loss was mainly due to you.

Christian bad debt expense.

It was partially offset by an increase in gross loss.

And then Christi in administrative expenses.

Loss per basic and fully diluted share for the six months ended June 30th 2021.

Most RMB 16.24.

Dollar tree plus.

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As compared to a loss per basic and fully diluted share of RMB 40 P. M.

It too or you saw the $82.0 for.

For the same period it all turns out 2020.

First it either because.

Retroactively sand for the street to one reverse merger reverse stock split effective on September <unk>.

2000 and trenching.

Turning to Europe out in shifts.

As of June 30 of 2021.

For the cash and bank balances of RMB, <unk> 4 million or.

Or just under $8.0 million.

Compare that to our M. B throw funds 3 million or U S dollar $10.0 million.

Soft December 31st 2020.

As of June 30 of 2021.

<unk> was 128 states.

As compared to 290 days as of December subject for Us 2000 trenches.

The decrease in the inventory turnover days was primarily due to the secession of production at our <unk> facility.

During the six months end June 2000.

21 Q.

Due to our planned two I'm already utilized kurland inventory install.

We'd be there for the value of our Carolyn inventory is realizable.

Our trade receivables turnover.

That's all.

Rather at the test as of June 30th.

2021, plus.

253 days as compared to 242 days as of December 30, <unk> 2000 and trenching.

The increase in trade receivables turnover was primarily due to.

This low collection of all the trade receivables as they were spokes of tight cash flow.

That's compared to as reported by our customers due to the COVID-19 pandemic.

Our trade payable turnover not software as a test was 17 days as of June 30 of 2021.

Compared to 222 days.

As of December 31, 2020.

Yeah.

Travel for days was within the normal credit period.

But one two full months grounded by our suppliers.

In terms of our plants utilization and capacity.

We utilized the plant capacity capable of producing one 1 million square meters.

Al Salomi calls for the six months end June 30th 2021.

As compared to two six months ended June 30th 2000 Twenty's.

Brian we are utilized for the show facility capable of producing 2.6, new desk parameters.

Our Hain deficits U S has an annual production capacity of.

Turning to two 8 million square meters.

<unk> hotels.

We utilized our production capacity.

It's a facility capable of producing one 1 million square meters Assam hotels for the six month ends June.

Spreadsheet 2021.

Our hangar facility has an annual quota share in Cabo CTO.

Trying to two <unk> million square meters.

Richard Crudes.

Ah, we're leasing out 10 million square meters of production capacity.

So a proxy.

And.

We utilized snow production capacity.

Well I'll handle the first city.

For the six months and sure search yet 2021.

Due to ethane utilized CRO and your inventory and stuff.

We revealed that the therefore will cover though expenditure throughout the year.

And make adjustments or subject to market condition.

Although business conditions are subject to change.

We anticipate a modest level of capital expenditure for the remainder afterwards.

And for anyone other than those associated with.

And even though upgrades small repairs and maintenance of equivalents.

Moving to <unk> outlook.

For the first half faults without the entrance you won.

The company's operating results.

We were impacted by the.

Continuous slow Donald China, whereas to et cetera.

It was still being impacted by.

The continued defense of the COVID-19 pandemic.

Although re utilizing 6% over a period over period increase in revenue.

We realized a 6% for period over period increase in revenue.

From sales off.

So on the calls.

We make a strategic decision to sell product already in inventory at all.

Available market prices to fall below our coals.

Sure rich, resulting gross loss.

However.

The generation of RMB, seven 9 million or just under $3.0 million.

In reference from one of our subsidiaries.

In the financial Technology Center, and they build us to realize a.

<unk> six 9% increase in total revenue.

For the six months and June.

<unk> 2021.

As compared to the same periods without spending trends.

Looking forward, China, <unk> et cetera continues to be a vital component components.

Of China's economic growth.

Asked etc.

And yes.

The impact on the on the other side you have a genius.

Estimate to comprise 25% of China's GDP.

However.

And perhaps it could potentially be amidst the growth of the <unk> et cetera.

For example in order to stem real estate speculation.

Speculation.

And tightened credit.

The Chinese government has outlined measures facing a ceiling on that Brett.

Two towards <unk> cash flows excess and Kevin some of that forward.

So you're fat off.

Such credit tightening measures on properties well per section.

So reduce land purchases and realistic two elements.

In addition.

As it has in the past.

The central government could.

And post Len.

Kurt Suntrust.

Constraining on mortgage lending and restriction on the number of homes that some of the combined.

Further so them.

Municipality.

Health land auction in order to accrue what have been excessive price P thing Len auctions.

We anticipate.

That this train could potentially abiomed Neal project developed by which could make the.

This is a condition for the construction and building materials such as challenges.

We believe that.

The real estate and.

Construction is set so we will continue to grow.

In the long term, which is of key importance to.

So the building metro etc.

And the urbanization continues to be achieved Griffin Joshua.

For construction activities.

In addition.

The Chinese government's guffman.

Shell announced that he intends to promo to construction of $1 million affordable housing unit in 2021.

This along with the upgrade paying off from the cloud to the housing stock.

The renovation of existing home prices staying home.

Submit to a higher demand for building materials.

<unk>.

But the battle for all our products, we will mostly come from Ti Street and lower tier cities.

As well as cost shows such as over the next few years.

However, we view also mark Howell products your tier one and tier two cities.

Our ski opportunity arise.

And we really increasing how athletes.

Two a secure customer the larger southeast Asia markets.

My main focus on diversity diversifying our operations to a few of our girls Sydney.

A new subsidy subsidiary in the financial Carl G SEC.

Sure.

Contributed to a significant level of revenue to our financial performance in the first half of 2021.

This business outlook reflects the company's current and preliminary views.

And just 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 coming months.

The filings.

At this point.

Who would like to open up the call to any questions pertaining to our first half of 2021 financial themselves.

Operator please.

Certainly as a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound or Hashed E. Please.

Please standby, while we compile the Q&A roster.

Again, Thats star one on your telephone.

Yes.

Once again to ask a question you will need to press star one on your telephone. Thank you.

There are no questions at this time I would like to hanigan for any Mcdowell with speakers.

I would like to hand again for inspect too David.

We have no questions at the moment. Thank you.

Thank you on behalf of the entire Antelope Enterprise management team I want to thank all of you for your interest and participation on this call.

This concludes enterprises first half 2021 earnings call. Thank.

Thank you all very much.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay.

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