Half Year 2024 Antelope Enterprise Holdings Ltd Earnings Call
Good morning, and good day and welcome to the Antelope Enterprise Holdings first half 'twenty 'twenty four earnings conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad.
Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over.
Speaker Change: To David Rudnick of Precept Investor Relations. Please go ahead.
Mr. Wilson: Thank you drew good morning, ladies and gentlemen, and good evening to those of you who are joining us from China, what country Antelope Enterprise Holdings first half 'twenty 'twenty four earnings conference call with US today of Antelope Enterprises, Chairman and Chief Executive Officer, Mr. Wilson, and his Chief Financial Officer, Mr. Edmund Hen.
Speaker Change: Fortunately, our corporate Mr. Zhong Electric dress Sport League stems then maybe discussed on the call well make statements involve risks and uncertainties include among others. Those regarding revenue operating expenses other income and expense taxes and future business outlook.
Speaker Change: Actual future performance. These results may differ materially from those expressed in forward looking statements. The company claims the safe Harbor protections for such public statements as contemplated under the private serious litigation Reform Act of 1995.
Speaker Change: Refer 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 to differ from those contained in the fourth and statements.
Speaker Change: No obligation to update any forward looking statements or information, which speak as of their respective dates and now it's my pleasure to turn the call over to envelope enterprises, Chairman and CEO, Mr. Willis on Antelope Enterprises' CFO, Mr. Edmund Hen.
Mr. Zhong: Prior to the separation of Shea will be translating for CEO will Zhang Mr. Zhong you May proceed.
Speaker Change: It sounds all I can say.
Mr. Zhong: Uh huh.
Mr. Zhong: Hello.
Is it that way.
Mr. Zhong: Looking back now boosted by anybody outside Java.
Mr. Zhong: Having somebody at the high volume Holly.
Speaker Change: Alright. Thank you said that on behalf of the company I would like to welcome everyone to our first half 2024 earnings conference call.
Speaker Change: Both years, Don Young woman somebody that's always standby system.
Speaker Change: Did you already talking to somebody in that suggests the Baidu Selim avian Sogou do you shut down the engine Hum such that you've got that.
Speaker Change: E E Sunday at Boston Beer.
Speaker Change: You care about what else can build at Sun Bancorp.
Speaker Change: The bonds will be those about Vodafone kit.
Speaker Change: Awesome, Yeah somebody well, maybe she said those are cohorts eugenol, what's all your own lasagna and punchy zombie themed gala Jean <unk> Jaco.
Speaker Change: Revenue for the live streaming e-commerce business that came on that.
43.4, Neely I'm 46 mouse modestly lower than the 44 6 million in revenue, but it is four to six months of 2023. This slight decline was due to 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.
Speaker Change: Oh, 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.
Yeah.
Speaker Change: So like what is on the Hsinchu the sheeting to go soup, we shelter some titles that Hugo you advancements employee show, what's the book down.
Speaker Change: <unk>, Hi, Elizabeth Tupac old Longhorn TCP thing.
Speaker Change: Well 90 in Kenya.
Speaker Change: Julie will mean, only a chilean sheets for certain of our Pinedale impart coiled it's I'd take a P. Two seats and how long does it since you've been done.
Speaker Change: Oh majority own piling Klatsch subsidiary provides turnkey lifestyle marketing and broadcasting.
Speaker Change: So a consumer brand company still maintain consumer brand products with the appropriate health and then lastly, we have a tremendous market opportunity ahead of us and believe that we have the resources infrastructure and teen culture to achieve sustained well then it does speak to see ecosystem.
Speaker Change: Yeah.
So like obviously you found somebody other Sunday of thought, though while men, taking shinbu well material at the Odeon, Leicester near and Dear Spanky to Tianjin.
Whitney: Thank you Whitney.
Speaker Change: Beyond that there's a thousand votes, you don't they can't even through key sudden indeed, yeah.
Question when things are as shown.
Speaker Change: And an important strategic development for the company, we recently announced that we're planning to enter the energy power and the third quarter of 2024 and are going to launch this business in Texas to make direct like welding me all.
Of the computing power industry.
Speaker Change: Well my session well means that neither inconvenient, you shouldn't give away faith and clean.
Speaker Change: Cleveland's a yoga xiaomi hobey ballpark of Hawk than consonants will use ocean that Thunder horse Hudson I thought you'd seen that even in Q2.
Speaker Change: We believe that our new positioning and the energy supply sector, it's extremely timely to meet the high expected demand for energy due to the growth of this sector.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Well John D hard someday closer so she is how one.
Speaker Change: And then Mohan she had said.
Speaker Change: Todd Young P. Shanxi that problem goes to somebody and they indeed gigawatts just yet.
With that I would like to turn over the call to the company's Chief Financial Officer, Mr. Edmund Hen.
Edmund Hen: Who will discuss the company's first half earnings results in more detail. Thank you so much.
Mr. Zhang: Thank you Mr. Zhang.
Edmund Hen: I would now move on to a more detailed discussion.
Speaker Change: Actual results.
For the six months ending June 30th trends of 2024.
Speaker Change: Revenue for the six months and.
Speaker Change: So what's your 2024.
Speaker Change: Well that's.
Speaker Change: The $3 5 million U S dollar.
Speaker Change: Chris or one 1 million U S soda.
Speaker Change: Two six.
Speaker Change: Sure.
Speaker Change: For the full context, maybe on the U S dollar for the same period of 2023.
Speaker Change: Thank you, Chris your boyfriend and that was due to the law. So a few off the box for maintenance that's major clients.
Speaker Change: Some of them too.
Speaker Change: Compiled ensuring chi and that's dropping to coal cars.
Speaker Change: Securing a large number of mature clubs to market great step is associated with an ultra concentration.
Speaker Change: Right.
Speaker Change: In the first half of 2000 and for the full.
Speaker Change: He says.
Speaker Change: Humans with more than 17.
Fine.
Speaker Change: With fish.
Speaker Change: Fish represented and Chris all nearly 20 clients compared to the same period without kind of industry.
Speaker Change: Gross profit for the six months at June 30 of 2020 full force.
Speaker Change: Three or four o'clock, neither unjust all of it.
Speaker Change: A decrease of $3 3 million.
Speaker Change: And you saw that all was 46, 7%.
Two six.
Speaker Change: $6 million for the same period of 2023.
Christian: Thank you Christian.
Speaker Change: While still true that the Christian revenue and then even crazy in the course of course, so in the current period.
For the first half of 2024.
Gross profit margin was 8%.
Speaker Change: For the live streaming e-commerce business, that's temporary it's really cool.
Speaker Change: Gross profit margin of 15, 3% for the first half box without employment.
Speaker Change: Selling and distribution expenses for the six months ended June 2010 before.
Speaker Change: Well trip, one 1 million U S dollar.
Speaker Change: Crystal for being there in U S dollar or 55%.
Speaker Change: You talked about Microsoft.
Speaker Change: Cambria to sample and 1 million desktop.
Speaker Change: For the same period also without saying industry.
Speaker Change: Being Christian Saturday and distribution expenses.
Speaker Change: Due to decreased advertising and promotion expense, that's all three $5 million.
Speaker Change: And Chris.
Speaker Change: I'm, Michelle and expand says Oh no pardon.
Speaker Change: Maybe I thought.
Speaker Change: Administrative expenses for the six months end June 30th 2010 before.
Speaker Change: There are six partner under the umbrella.
Speaker Change: And then Chris off $1 3 million or 20 232 in the two 8%.
Speaker Change: Compare that to like one eight.
Speaker Change: $6 million.
Speaker Change: Well the same favorite, though so that's tracking 23.
Speaker Change: In Christiana administrative expenses was due to any Christian and stock compensation expenses, all $8 million.
Speaker Change: Oh, no 5 million builder and Chris Young professional service expenses.
Speaker Change: Loss from continuing continuing operations people at Palace station.
Speaker Change: Six months and sure Gotcha, so it hasn't been for while.
Speaker Change: $6 $5 million.
Speaker Change: An increase of one 1 million.
Speaker Change: A 19, 3%.
Speaker Change: Loss from continuing operations.
Speaker Change: You bought a station a $5 5 million.
Speaker Change: Or the same here at all.
Speaker Change: Trying to get through.
Speaker Change: The increase was due to the decreasing gross profit in the current period.
Speaker Change: Compared to the same favorite I'll throw those into the industry.
Speaker Change: As far as any increase in administrative expenses.
Speaker Change: It was possibly offset by I'd be crazy in selling and distribution expenses.
Speaker Change: Loss per basic share.
Speaker Change: 40 diluted share from continuing operations.
Speaker Change: The six month and June 32000, and trying to pool.
Speaker Change: We're knock on six bullet S combat.
Speaker Change: Congrats you loss per basic and fully diluted the ship.
Speaker Change: Street Wall Street a taller.
Speaker Change: For the same period I'll throw them.
Speaker Change: 23.
Speaker Change: Turning to our balance sheet.
Speaker Change: And so doing throw to you through to that 'twenty 'twenty four.
Speaker Change: We had Joe.
Speaker Change: <unk> 3 million.
Speaker Change: Cash and cash a couple of them.
Speaker Change: And then Chris off $1 million or 333, 2%.
Speaker Change: Congrats you enough one 6 million.
Speaker Change: As of December 31st without saying.
Speaker Change: St.
Speaker Change: As of June 30 of 'twenty 'twenty four.
Speaker Change: Working capital was $5 million.
Speaker Change: And the current ratio was two six times.
Speaker Change: Shareholders' equity at June 30th trying to trying to cool.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: That's an increase of $3 $6 million or 25.
Speaker Change: 2%, that's compared to $14 $4 million.
Speaker Change: Yeah.
Speaker Change: Asphalt you sound both of your approach without saying is true.
Speaker Change: Well, thank you all for yourself the holdup.
Speaker Change: We owe him a charity policy shut off that live streaming e-commerce business.
Find on cream cloud, so because that's how long she'd company limited.
Speaker Change: And aim to launch and then the juice.
Speaker Change: Why is that.
Speaker Change: Third quarter 2024.
Speaker Change: In cloud SaaS.
Speaker Change: Tom.
Speaker Change: Platforms jumped itchy stop critically matches host.
Speaker Change: And then shifts to consummate Brent cordless.
Speaker Change: Which resulted in increased sales for those companies.
Speaker Change: In the last few years last streaming E. Commerce is comprised a effort and increasing percentage of China's E Commerce sales.
Speaker Change: Which we expect to continue.
Speaker Change: Yes.
Or is it by a quarter.
Speaker Change: Some.
Speaker Change: Ecosystem that can kill the young demographic and your high usage rates of mobile devices.
Speaker Change: We believe that.
Speaker Change: <unk> cloud you said Youll meet.
Speaker Change: And their livestream names basis since yesterday lives their bonds and analytical.
Speaker Change: It takes that much I suppose in Yokohama shows true consumer brand cordless.
Speaker Change: Bush precedents it's unique.
Content for high conversion rates.
Speaker Change: Brad to your traditional e-commerce.
In the current periods the BSS strategy after large trimming. This us most modified it to focus on securing large jumbo mid tier clients for my great the risks associated with <unk>.
Speaker Change: Wholesale concentration major clients.
Speaker Change: Some of these new clients are still young beginning stage collaborations.
Speaker Change: <unk> volume has just started.
Speaker Change: Maybe it will take time for the new mid tiers.
Speaker Change: Clients to develop and the increased sales volume.
Speaker Change: In the first half 2020 for.
Speaker Change: The live stream business as the pizza.
Speaker Change: Engaged with more than seven key clients.
Speaker Change: Which were signed at an increase of nearly 20 clients compared to the same period in two.
Speaker Change: And for industry.
Speaker Change: And.
Speaker Change: Paul Cheng strategic development for the company.
We recently announced plans to enter there and that you feel through.
Speaker Change: Through the process and efficiency using natural gas generators and taxes.
Speaker Change: You said that <unk> achieved.
Speaker Change: Would that be transmitted piracy too rapidly.
Speaker Change: Go rent computers et cetera.
Speaker Change: Cool and cross high amount of allergy.
Speaker Change: Compared to conventional methods.
Speaker Change: This mess up the minutes.
Speaker Change: Meet these intermediate mean.
Speaker Change: Theater, where he steps like transmission should follow through.
And processing by public.
Speaker Change: Which will result in lower energy losses and high efficiency.
Speaker Change: Given the strong market demand.
Speaker Change: The company believes to your house.
Speaker Change: It wasn't ready for significant growth in the near future.
Speaker Change: This was followed up with plastic companies carbons and Peter you might read Appeals and just based on the information currently available to us.
Speaker Change: Vishal subject to shame.
Speaker Change: Subject to risks and uncertainties as well as risks and uncertainties identified in the company's public filings.
Speaker Change: At this point.
Speaker Change: Back to open up the call to any questions pertaining to our first half 2024 financial results.
Operator please.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using a speaker phone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw your <unk>.
Speaker Change: Question. Please press Star then two at this time, we will pause momentarily to assemble our roster.
The first question comes from Steve Silver with Argus Research. Please go ahead.
Steve Silver: 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.
Steve Silver: Alright, Thank you for the question.
Jonathan I assume about QM Bill Clinton's yeah alcohol.
Speaker Change: Steve Toth alethia away from our call.
Speaker Change: So if I search routines.
Speaker Change: Timna huh.
Speaker Change: Okay.
Oh.
Mhm.
Speaker Change: So again.
Speaker Change: Mike one thing that changes from us.
Speaker Change: Neighborhood or indeed future agenda.
Speaker Change: Oh in Sunshine Easter Cingal.
Speaker Change: So, yes, Youll Boston Tucson.
Speaker Change: So to the kitchen table.
Speaker Change: Let me begin by saying that the U S energy information projects that electricity demand in the United States increased to record highs in 2024 and 2000.
Speaker Change: 25, largely driven by demand from large scale computing facilities.
Speaker Change: Well again, then yes, we would be also change you'll see is ocean dnd's future downside.
Speaker Change: And so on.
Speaker Change: Yes.
Speaker Change: Jim pumping.
Speaker Change: She has undergone some Andy Johnson.
Speaker Change: Pedro and useful on <unk>.
Speaker Change: This woman bodes without Suzhou Chongqing.
Speaker Change: So we cannot tell you I'll say gentlemen, can you say about sudden convenient Philadelphia on the Indian Shindand motion she ourselves on pyoderma <unk>.
Speaker Change: Yes.
Speaker Change: You said when I mean, it still gets auctioned at Navy in Shanghai, Shanghai, Nikhil Brookwood schoenbaum.
The IEA.
Speaker Change: Now all that said that global data center electricity demand is on its way to Cabo.
Speaker Change: 22, 2026, with AI, playing a major route and that anchor.
Speaker Change: Most of US know that data centers to point, all sitting from financial transactions to social media to government operations. It is extremely energy intensive to train.
Speaker Change: Models.
Speaker Change: He has predicted that in two years data center it could consume the same amount of energy S, Sweden or Germany.
Speaker Change: So just on <unk>.
Speaker Change: When did that come in that region, just as a woman in Chile, you will have alethia, even more so.
Women don't wait to digitalization Thomas Thank you for your question.
Speaker Change: None Galway Suzhou Wuxi Jeep Shunyata Kisan mendieta closer to home is on <unk>.
Speaker Change: Powershell E children in that then you go in.
Data centers need continuous and stable supply of energy to operate.
Speaker Change: And that's where we come in because we have developed such a model. We think that we're entering this market at exactly the right time to provide a cost effective stable means of providing electricity to global centers in both companies and made up computing poly.
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's supposed to be a cost effective and designed to be a stable source of energy for your customer.
<unk>.
Speaker Change: Alright, thank you so much.
Speaker Change: It sounds all powerhouse.
Speaker Change: Like entitlement.
Speaker Change: Jacob.
Speaker Change: I'd also like to follow up my system.
Dan: Hello, Dan.
Speaker Change: Oh, okay.
Speaker Change: Thanks, Sean.
Speaker Change: Okay.
Speaker Change: Yeah Jonathan.
Speaker Change: Jonathan.
Uh huh.
Speaker Change: How's that.
Speaker Change:
Speaker Change: Well manav ideal counterweight to housing 10, Nancy sometime soon.
Speaker Change: Since antibody insulin dose it I shouldn't do that Jim.
Speaker Change: Liana JASO.
Speaker Change: Sure.
Well then foundation that JJ.
Speaker Change: Yes, without being dws with somebody you somehow.
And then go place high yield somebody show you the faucet Shank couple of people in Guinea.
Speaker Change: Yeah.
Speaker Change: 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.
Speaker Change: So we check T J.
Speaker Change: <unk> close to our customer stockpile to greatly minimized any transportation costs, there as well.
Speaker Change: Therefore, we can supply electricity to customers in a very cost effective way.
Speaker Change: While <unk> will mirror that some call them, what you call. Your you said that the deal will be.
Speaker Change: So it didn't turn out well.
Speaker Change: Although only a supply challenge at some point indeed, finding Keith Thank you for that Union decision since you don't say, yes.
Speaker Change: We are closely monitoring the market for natural gas and belief that we havent get Mato too quick to project the right time to secure our natural gas business. We currently own for generators that convert natural gas into electricity and plan to launch this business.
Speaker Change: Quarter of this year.
Speaker Change: Thank you very much.
Speaker Change: Thank you Pete.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to David Rudnick for any closing remarks.
Speaker Change: Thank you drew on behalf of the entire <unk> Enterprise management team wed like to thank all of you for your interest and participation on this call.
Speaker Change: This concludes Antelope enterprises first half of 2020 <unk> earnings call. Thank you very much.
Speaker Change: Conference.
Speaker Change: Yeah.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].
Okay.
Speaker Change: [music].
Speaker Change: Yeah.