Antelope Enterprise Holdings Ltd. Q2 FY2020 earnings call

• Impact of COVID-19: Challenging market due to pandemic led to canceled and delayed purchases; 15% price decrease in late 2019 helped sustain sales volume. - Production utilization: Utilized 4.2 million square meters of ceramic tile production capacity out of 51.6 million total annual capacity, maintaining reduced utilization to keep costs low. - Diversification: Focus on diversifying operations; subsidiaries Chengdu Future (computer consulting) and Antelope Chengdu (fintech software) contributed income. - Market outlook: Believes building materials sector will grow due to urbanization, property development, and upgrading; plans to capitalize on new construction in Southeast Asian urban areas.

For the 6 months ended December 31, 2020, revenue was RMB 143.2 million (USD 21.1 million), a 4.6% decrease from RMB 150.2 million (USD 21.4 million) in the same period of 2019. The decrease in revenue was due to a 9.1% decrease in average selling price, offset by a 4.8% increase in sales volume to 6.6 million square meters. Gross loss for the period was RMB 26.9 million (USD 4 million) compared to gross profit of RMB 66 million (USD 9.4 million) in the prior year. Other income was RMB 12.2 million (USD 1.8 million) vs. RMB 7.5 million (USD 1.1 million) in the prior year. Selling and distribution expenses were RMB 4.2 million (USD 0.6 million), slightly decreased from RMB 5.6 million (USD 0.8 million) in the prior year. The two subsidiaries, Chengdu Future and Antelope Chengdu, generated RMB 7.2 million (USD 1.1 million) in income in 2020.

• Intends to bring additional production capacity online as business environment improves. - Remains focused on diversifying operations to fuel growth.

• Forward-looking statements involve risks regarding revenue, operating expenses, other income and expense, taxes, and future business outlook.

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