Antelope Enterprise Holdings Ltd. Q2 FY2022 earnings call

• The company continued to diversify into new technology sectors. Technology businesses accounted for 88% of total revenue in the first half of 2022, up from 38% in the second half of 2021.
• In November 2021, entered a five-year lease agreement to lease out the Hengdali facility in its entirety.
• New technology subsidiaries are engaged in business management, information system consulting, online social commerce and media, and live broadcast streaming in China.
• Due to the real estate sector slowdown, ceramic tile sales declined, but new technology businesses offset some of the impact.

For the six months ended June 30, 2022, revenue was RMB135 million (approx. $20.9 million), a 169.3% increase from the same period in 2021 ($7.7 million). The business management and consulting segment contributed RMB118.2 million ($18.3 million), accounting for 87.6% of total revenue. The ceramic tile sales decreased to RMB16.7 million ($2.6 million) for the same period, a 60.4% decrease from RMB42.2 million ($6.5 million) in 2021, contributing 12.4% of total revenue.

• Anticipates a modest level of capital expenditures for the remainder of 2022, mainly for minimal upgrades, small repairs, and equipment maintenance.
• Believes online social commerce and live streaming in China will experience sustained growth in the coming years.
• Will continue to evaluate real estate market conditions in China and develop further strategies as needed.

• Continued slowdown of the real estate sector in China impacting ceramic tile sales.
• Effects of COVID-19 on business operations and cash flow.
• Uncertainties in new technology sectors that could affect business growth.