Antelope Enterprise Holdings Ltd. Q2 FY2023 earnings call

• Kylin Cloud's first half revenue was up 172.5% compared to the same period last year.
• Livestreaming ecommerce business revenue for the six months was $44.2 million, modestly higher than pre-announcement top line.
• If not for certain non-cash expenses, the livestreaming ecommerce segment would have had positive operating income for the period.
• Kylin Cloud is a first mover in the livestreaming ecommerce space in China, providing turnkey livestreaming marketing and broadcasting services.
• The company enacted a corporate transformation to pivot towards high-growth technology areas, including acquisition of the livestreaming ecommerce business and divestment of legacy ceramic tile building materials business.

For the six-month ended June 30, 2023, revenue was RMB309.3 million (US$44.6 million), a 161.5% increase from the same period in 2022. The livestreaming ecommerce business contributed RMB305.9 million (US$44.2 million) to revenue, which is 99% of the first half 2023 total revenue, up from 83% in the same period of 2022. Gross profit for the six-month ended June 30, 2023 was RMB47.2 million (US$6.8 million), with the livestreaming ecommerce business contributing RMB52 million (US$7.5 million) in gross profit, a 1,591.4% increase from the same period in 2022. The gross profit margin for the livestreaming ecommerce business was 17% in the first half of 2023 compared to 2.7% in the first half of 2022.

• Kylin Cloud is expected to capitalize on the market opportunity in the periods ahead and grow at a rate higher than the ecommerce livestreaming sector.
• The business outlook is based on current and preliminary views, subject to change, and risks and uncertainties identified in public filings.

• Forward-looking statements involve risks and uncertainties regarding revenue, operating expenses, etc. Actual results may differ materially from forward-looking statements. Risks identified in the company's public filings could cause actual results to differ from forward-looking statements.

Q: At quarter-end, how many shares outstanding?

A: Around 2.5 million after recent reverse split, check public filing later today.

Q: Do you look at a certain metric for revenue from influencers? Expect revenue to keep increasing as influencers are added? Do you expect gross margin improvement to continue?

A: More influencers joining the platform means more potential for future revenue, but difficult to calculate exact metrics between influencers and revenue. Expect gross margin to improve in the future as still in early stage of livestreaming business, with room to grow in gross margin.