Antelope Enterprise Holdings Limited Q2 FY2024 earnings call

• Livestreaming e-commerce revenue for H1 2024 was $43.4 million, down from $44.6 million in H1 2023 due to loss of major clients and shift to mid-tier clients; had over 70 clients in H1 2024, up ~20 from H1 2023.
• KylinCloud subsidiary provides turnkey livestreaming marketing and broadcasting services to consumer brands, sees strong market opportunity in B2C ecosystem.
• Company plans to enter energy field in Q3 2024, launching in Texas to meet computing power industry's energy needs, believing new positioning in energy supply is timely due to growing sectors' demand.

The livestreaming e-commerce business segment had revenue of $43.4 million for the six months ended June 30, 2024, which was modestly lower than the $44.6 million in revenue for the same period in 2023. This decline was due to the loss of a few major clients and a shift to securing more mid-tier clients. The segment had engagements with more than 70 clients in the first half of 2024, an increase of nearly 20 clients compared to the same period in 2023. The majority-owned KylinCloud subsidiary provides livestreaming marketing and broadcasting services. Additionally, the company plans to enter the energy field in Q3 2024, launching in Texas for the computing power industry.

• Planning to enter the energy field in Q3 2024 and launch in Texas.
• Expecting significant growth in the energy supply sector due to high demand from computing industries, leveraging proximity to natural gas production sites to be cost-effective and stable.

• Forward-looking statements involve risks and uncertainties, actual results may differ from projections. Execution risks associated with entering the new energy business segment, including market uncertainties and operational challenges in the energy supply sector.

Q: Provide color about how the company made the strategic decision to enter the energy supply field.

A: The US Energy Information projects record high electricity demand in US in 2024-2025 driven by computing facilities, global data center electricity demand to double by 2026 with AI, data centers need stable energy supply, and the company's model is positioned to provide cost-effective and stable electricity to data centers and computing power companies.

Q: Detail on how the business model is cost-effective and stable for customers.

A: Located close to natural gas production site to minimize transportation costs, avoid compression/transportation/storage costs; strategically positioned close to customers to minimize standing transportation costs; currently own 4 generators converting natural gas to electricity and plan to launch in Q4 2024.