Antelope Enterprise Holdings Ltd. Q2 FY2021 earnings call

• Challenged by slow real estate sector and COVID-19, but sales volume increased 11% in H1 2021.
• Sold inventory at below production cost, impacting H1 profitability but aiming for future growth.
• Utilized 1.1 million sqm of ceramic tile production capacity out of 51.6 million annual capacity; Hengdali facility production offline except leased part.
• Focus on diversifying business lines, with Antelope Chengdu in fintech contributing significantly to H1 revenue.
• Building materials sector expects benefits from rural economy, affordable housing push, and lower-tier city growth.

For the first half of 2021, the building materials sector (ceramic tiles) had revenue of RMB42.2 million or $6.5 million, a 6% increase from the same period in 2020. The financial technology sector, specifically Antelope Chengdu, contributed RMB7.9 million or $1.2 million in revenue. The ceramic tiles segment's revenue contribution is a significant portion, while the fintech subsidiary's contribution is another key segment.

• Anticipate modest capital expenditure for remainder of 2021, mainly for minimal upgrades, repairs, and maintenance.
• China real estate sector is vital but faces potential limits from credit tightening, lending curbs, and municipal land auction halts.
• Government's affordable housing push and urbanization are seen as potential boosts to building materials demand.
• Continue to focus on diversifying operations, with fintech subsidiary contributing to revenue.

• Impact of real estate slowdown and COVID-19 on profitability.
• Credit tightening measures affecting property developers, limiting land purchases and development.
• Lending curbs and municipal land auction halts potentially limiting new project development for construction and building materials sectors.