Antelope Enterprise Announces Second Half and Full Year 2024 Financial Results
NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) -- Antelope Enterprise Holdings Limited (NASDAQ Capital Market: AEHL) ("Antelope Enterprise", "AEHL" or the "Company"), which operates KylinCloud, a livestreaming ecommerce business in China, today announced its financial results for the second half and fiscal year ended December 31, 2024.
Fiscal Year 2024 Summary
- Revenue was $98.7 million, an increase of 37% as compared to $72.1 million for fiscal year 2023.
- Gross loss was $0.1 million as compared to gross profit of $7.5 million for fiscal 2023.
- Net loss was $10.6 million as compared to a net loss of $2.0 million for fiscal 2023; the net loss for fiscal 2023 included a $10.4 million gain on the sale of the Company's ceramic tile business.
Tingting Zhang, Chief Executive Officer of Antelope Enterprise, commented, "We are pleased to achieve 37% growth in our revenue for fiscal 2024 as our strategy to develop a mid-tier customer base continues to gain traction. For fiscal 2024, our livestreaming ecommerce business increased its business engagements with more than 256 clients, an increase of 140 clients compared to the same period in 2023."
"Our majority-owned Kylin Cloud subsidiary provides one-stop turnkey livestreaming broadcasting solutions to consumer brand companies by matching consumer brand products with brand influencers. We believe that Kylin Cloud has the resources, infrastructure and experience to achieve sustained growth in this growth sector. As digital purchasing continues to grow, we offer a formidable value proposition for consumers as we bring great products at great prices right to their fingertips."
"We plan to grow and deepen our relationships with our customers through customized support and by providing value-added services. Although there is increased competition in the livestreaming ecommerce sector which has resulted in price pressures, we anticipate that our mid-tier customer acquisition strategy will be sustainable over time as it will result in a more diversified and service-driven customer base. We believe we have built a leading-edge technology platform and that we will create long-term value for all of our stakeholders," concluded CEO Tingting Zhang.
Six Months Results Ended December 31, 2024
Revenue for the six months ended December 31, 2024 was $55.3 million, a 100.1% increase from $27.5 million for the same period of 2023. The increase in revenue was due to the Kylin Cloud's strategy to acquire new mid-tier customers to mitigate customer concentration and expand the delivery of its livestreaming ecommerce services.
Gross loss for the six months ended December 31, 2024 was $3.6 million, as compared to gross profit of $0.7 million for the same period of 2023. The gross loss was due to the rapid growth of the livestreaming ecommerce sector in China which has fueled intensified competition, and which has resulted in price cutting across the sector that compressed margins. For the second half of 2024, gross loss margin was 0.1% as compared to a gross profit margin of 2.5% for the second half of 2023.
Other income for the six months ended December 31, 2024 was $1.4 million, as compared to $0.1 million for the comparable period of 2023. Other income primarily consists of interest income, currency exchange gains and government grants.
Selling and distribution expenses for the six months ended December 31, 2024 were reclassified in alignment with the $3.4 million adjustment for this expense item which was reallocated to cost of goods sold for the full fiscal year ended December 31, 2024. As a result, the original six-month figure is no longer directly comparable to the year-ago figure.
Administrative expenses for the six months ended December 31, 2024 were $3.9 million, as compared to $7.0 million for the same period of 2023. The decrease in administrative expenses was mainly due to period-over-period decreases in professional fees, stock compensation expenses, insurance expenses, R&D expenses, and other additional expenses.
Net loss from continuing operations for the six months ended December 31, 2024 was $4.1 million, as compared to $6.8 million for the same period of 2023. The decrease in the Company's net loss from continuing operations was mainly due to lower operating expenses that occurred in the second half of 2024 compared to the same period of 2023.
Loss per basic share and fully diluted share from continuing operations for the six months ended December 31, 2024 was $8.26.
Note About Six Months Results
The financial results for the six months ended December 31, 2024 presented in this release are unaudited. It includes calculations or figures that have been prepared internally by Management. The Company's independent registered public accounting firm has not reviewed or audited, and does not express an opinion with respect to the six months results. There can be no assurance that the Company's actual results for the periods presented herein do not differ from the six months financial results presented herein, and such changes could be material. These financial results should not be viewed as a substitute for full financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and are not necessarily indicative of the results to be achieved for any future periods. The six months financial information could be impacted by the effects of the Company's financial closing procedures, final adjustments, and other developments.
Full Year 2024 Financial Results
Revenue for the full year ended December 31, 2024 was $98.8 million, as compared to $72.1 million for the year ended December 31, 2023. Gross loss was $0.1 million as compared to gross profit of $7.5 million for fiscal 2023. The gross loss margin was 0.1%, as compared to a gross profit margin of 10.4% for fiscal 2023. Other income was $2.1 million, as compared to $0.5 million for fiscal 2023. Selling expenses were $0.5 million as compared to $7.4 million for fiscal 2023. Administrative expenses were $10.8 million as compared to $12.6 million for fiscal 2023. For the full fiscal year 2024, loss from continuing operations was $10.6 million as compared to loss from continuing operations of $12.3 million in fiscal 2023. Total net loss for fiscal year 2024 was $10.6 million as compared to a net loss of $2.0 million for the same period of 2023, with the net loss for fiscal 2023 including a gain on the sale of the Company's ceramic tile business of $10.4 million. Loss per share from continuing operations on a basic and fully diluted basis was $31.81 for the year ended December 31, 2024, as compared to basic and fully diluted loss per share of $220.80 for the same period of 2023. Earnings per share from discontinued operations on a basic and fully diluted basis were $184.40 and $158.06, respectively, for the year ended December 31, 2023. (Note: on September 18, 2024, the Company effected a one-for-ten reverse split of its issued and outstanding Class A Ordinary Shares, and on April 4, 2025, the Company effected a one-for-forty reverse split of its issued and outstanding Class A Ordinary Shares. The consolidated statements of financial position as of December 31, 2024 and 2023, and consolidated statements of comprehensive loss for the years ended December 31, 2024, 2023 and 2022 were retroactively restated to reflect this reverse split).
Financial Condition
As of December 31, 2024, the Company had $1.0 million in cash and cash equivalents, an increase of $0.5 million or 100.0% as compared to $0.5 million as of December 31, 2023. As of December 31, 2024, the Company's total note payable amount was $5.2 million. As of December 31, 2024, working capital (current assets minus current liabilities) was $16.2 million and the current ratio (current assets divided by current liabilities) was 2.5 times, as compared to working capital of $4.2 million and a current ratio of 8.0 times as of December 31, 2023. Stockholders' equity as of December 31, 2024 was $26.2 million, an increase of $11.8 million or 82.2% as compared to $14.4 million as of December 31, 2023.
Business Outlook
The Company operates a livestreaming ecommerce business through its KylinCloud subsidiary. Kylin Cloud's platform strategically matches appropriate hosts and influencers to the products of consumer brand companies which results in increased sales for consumer brand companies. For the second six months and the full year 2024, Kylin Cloud generated substantially all of the Company's total revenue.
The Company believes its livestreaming ecommerce business is sustainable since livestreaming can offer consumer brand companies a new distribution channel, a potentially large audience and creative content. In addition, the Company believes that livestreaming ecommerce is an important growth engine for consumer good brands as it leverages the content of livestreaming to boost customer engagement and sales as it combines instant purchasing of a featured product and audience participation.
In the current period, Kylin Cloud continued its strategy of acquiring a larger number of mid-tier clients to mitigate the risk associated with an over-concentration of major clients. Since some of these new clients are still in the beginning stages of collaboration, and as their business volume has just started to grow, it will take time for the new mid-tier clients to develop and increase their sales volume. For fiscal 2024, Kylin Cloud had business engagements with more than 256 clients, which represented an increase of 140 clients compared to the same period in 2023.
To counter the currently competitive environment, Kylin Cloud is offering customers low prices with the goal to establish deep relationships with its customers. It is also intent upon creating competitive barriers by continuously improving its diversified value-added services. These integrated services include livestreaming host matching, content planning and scripting, operational support, traffic acquisition and support, product selection and supply chain support, training and incubation, data analysis and brand marketing. Kylin Cloud also plans to strengthen its cooperation with public domain carriers such as Douyin (the mainland Chinese counterpart of TikTok), to promote its business to potential clients.
To update the Company's power generation business, for fiscal 2024, it progressed slower than expected as it has taken more time than expected for the Company to procure, install and operate energy equipment.
This business outlook reflects the Company's current and preliminary views and is based on the information currently available to us, which are subject to change, and is subject to risks and uncertainties, as well as risks and uncertainties identified in the Company's public filings.
About Antelope Enterprise Holdings Limited
Antelope Enterprise Holdings Limited ("Antelope Enterprise", "AEHL" or the "Company") engages holds a 51% ownership position in Hainan Kylin Cloud Services Technology Co. Ltd ("Kylin Cloud"), which operates a livestreaming e-commerce business in China. For more information, please visit our website at https://aehltd.com.
Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, the continued stable macroeconomic environment in the PRC, the consumer and technology sectors continuing to exhibit sound long-term fundamentals, and our ability to continue to grow our business management, information system consulting, and online social commerce and live streaming business. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2024 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
| Contact Information: | |
| Antelope Enterprise Holdings Limited | Precept Investor Relations LLC |
| Xiaoying Song, Chief Financial Officer | David Rudnick, Account Manager |
| Email: [email protected] | Email: [email protected] |
| Phone: +1 646-694-8538 | |
-- FINANCIAL TABLES FOLLOW –
| ANTELOPE ENTERPRISE HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| As of December 31, 2024 | As of December 31, 2023 | ||||||||
| USD'000 | USD'000 | ||||||||
| ASSETS AND LIABILITIES | |||||||||
| NONCURRENT ASSETS | |||||||||
| Property and equipment, net | 4,138 | 161 | |||||||
| Intangible assets, net | - | 1 | |||||||
| Right-of-use assets, net | 1,326 | - | |||||||
| Security deposit | 198 | - | |||||||
| Loan receivable | - | 5,181 | |||||||
| Note Receivable | 5,435 | 6,949 | |||||||
| Total noncurrent assets | $ | 11,097 | 12,292 | ||||||
| CURRENT ASSETS | |||||||||
| Other receivables and prepayments | 6,989 | 2,871 | |||||||
| Available-for-sale financial assets | - | 97 | |||||||
| Loan receivable | 18,873 | - | |||||||
| Due from related parties | - | 1,316 | |||||||
| Cash and bank balances | 1,047 | 538 | |||||||
| Total current assets | $ | 26,909 | 4,822 | ||||||
| Total assets | $ | 38,006 | 17,114 | ||||||
| CURRENT LIABILITIES | |||||||||
| Trade payables | 831 | - | |||||||
| Accrued liabilities and other payables | 1,128 | 216 | |||||||
| Note payable | 5,187 | 1,070 | |||||||
| Unearned revenue | 2,612 | 27 | |||||||
| Amounts owed to related parties | 272 | 78 | |||||||
| Lease liabilities | 348 | - | |||||||
| Taxes payable | 315 | 281 | |||||||
| Total current liabilities | $ | 10,693 | 1,672 | ||||||
| NET CURRENT ASSETS | 16,216 | 3,150 | |||||||
| NONCURRENT LIABILITIES | |||||||||
| Lease liabilities | 1,072 | - | |||||||
| Note payable | - | 1,041 | |||||||
| Total noncurrent liabilities | $ | 1,072 | 1,041 | ||||||
| Total liabilities | 11,765 | 2,713 | |||||||
| NET ASSETS | 26,241 | 14,401 | |||||||
| EQUITY | |||||||||
| Reserves | 25,553 | 13,621 | |||||||
| Noncontrolling interest | 688 | 780 | |||||||
| Total equity | $ | 26,241 | 14,401 | ||||||
| ANTELOPE ENTERPRISE HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
| YEARS ENDED DECEMBER 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| USD'000 | USD'000 | USD'000 | |||||||||
| Net sales | $ | 98,773 | $ | 72,102 | $ | 42,554 | |||||
| Cost of goods sold | 98,899 | 64,609 | 38,406 | ||||||||
| Gross (loss) profit | (126 | ) | 7,493 | 4,148 | |||||||
| Other income | 2,102 | 526 | 441 | ||||||||
| Fair value unrealized gain of unlisted financial assets | - | - | 19 | ||||||||
| Selling and distribution expenses | (548 | ) | (7,399 | ) | (2,434 | ) | |||||
| Administrative expenses | (10,755 | ) | (12,576 | ) | (3,382 | ) | |||||
| Bad debt reversal | - | - | 409 | ||||||||
| Finance costs | (1,240 | ) | (138 | ) | (4 | ) | |||||
| Other expenses | (9 | ) | (170 | ) | (6 | ) | |||||
| Loss before taxation | (10,576 | ) | (12,264 | ) | (809 | ) | |||||
| Income tax expense | 11 | 12 | 31 | ||||||||
| Net loss for the period from continuing operations | (10,587 | ) | (12,276 | ) | (840 | ) | |||||
| Discontinued operations | |||||||||||
| Gain on disposal of discontinued operations | - | 10,430 | - | ||||||||
| Loss from discontinued operations | - | (196 | ) | (7,132 | ) | ||||||
| Net loss | (10,587 | ) | (2,042 | ) | (7,972 | ) | |||||
| Net income (loss) attributable to : | |||||||||||
| Equity holders of the Company | (10,544 | ) | (2,025 | ) | (8,607 | ) | |||||
| Non-controlling interest | (43 | ) | (17 | ) | 635 | ||||||
| Net loss | (10,587 | ) | (2,042 | ) | (7,972 | ) | |||||
| Net income (loss) attributable to the equity holders of the Company arising from: | |||||||||||
| Continuing operations | (10,544 | ) | (12,258 | ) | (1,475 | ) | |||||
| Discontinued operations | - | 10,233 | (7,132 | ) | |||||||
| Other comprehensive income (loss) | |||||||||||
| Exchange differences on translation of financial statements of foreign operations | (348 | ) | (260 | ) | 29 | ||||||
| Exchange differences on translation of financial statements of foreign operations - non-controlling interest | (49 | ) | - | - | |||||||
| Total comprehensive loss | (10,984 | ) | (2,302 | ) | (7,943 | ) | |||||
| Total comprehensive income (loss) attributable to: | |||||||||||
| Equity holders of the Company | (10,892 | ) | (2,285 | ) | (8,578 | ) | |||||
| Non-controlling interest | (92 | ) | (17 | ) | 635 | ||||||
| Total comprehensive income (loss) | (10,984 | ) | (2,302 | ) | (7,943 | ) | |||||
| Total comprehensive loss arising from: | |||||||||||
| Continuing operations | (10,984 | ) | (12,535 | ) | (811 | ) | |||||
| Discontinued operations | - | 10,233 | (7,132 | ) | |||||||
| Income (loss) per share attributable to the equity holders of the Company* | |||||||||||
| Basic (USD) | |||||||||||
| — from continuing operations | (31.81 | ) | (220.84 | ) | (70.50 | ) | |||||
| — from discontinued operations | - | 184.36 | (340.89 | ) | |||||||
| Diluted (USD) | |||||||||||
| — from continuing operations** | (31.81 | ) | (220.84 | ) | (70.50 | ) | |||||
| — from discontinued operations | - | 158.06 | (340.89 | ) | |||||||
| * | Reflects the 1-for-40 reverse split effective on April 3, 2025 | |
| ** | Earnings per share for basic and diluted weighted average shares outstanding from continuing operations are the same due to anti-dilutive feature resulting from the net loss from continuing operations for the year | |
| ANTELOPE ENTERPRISE HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| Years Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2022 | ||||||||||||
| Notes | USD'000 | USD'000 | USD'000 | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
| Loss before taxation | $ | (10,576 | ) | $ | (1,834 | ) | $ | (809 | ) | |||||
| Adjustments for | ||||||||||||||
| Operating lease charge | 235 | - | 72 | |||||||||||
| Depreciation of property, plant and equipment | 178 | 51 | 38 | |||||||||||
| Fair value gain on unlisted financial assets | - | - | (19 | ) | ||||||||||
| Gain on disposal of subsidiaries | - | (10,430 | ) | - | ||||||||||
| Loan forgiveness by related party | - | (164 | ) | - | ||||||||||
| Loan on disposal of PPE | 48 | - | - | |||||||||||
| Loss on convertible note conversion | 488 | 179 | - | |||||||||||
| Interest expense on convertible note | 157 | - | - | |||||||||||
| Bad debt reversal | - | - | (409 | ) | ||||||||||
| Standstill fee on note payable | 185 | 96 | - | |||||||||||
| Share based compensation | 5,991 | 6,985 | 324 | |||||||||||
| Interest expense on lease liabilities | 147 | - | 4 | |||||||||||
| Amortization of OID of convertible note | 44 | 63 | 2 | |||||||||||
| Operating cash flows before working capital changes | (3,103 | ) | (5,054 | ) | (797 | ) | ||||||||
| Decrease in trade receivables | - | - | 638 | |||||||||||
| Increase in other receivables and prepayments | (4,317 | ) | (172 | ) | (133 | ) | ||||||||
| Increase in loan receivable | (12,377 | ) | (5,193 | ) | - | |||||||||
| Increase (decrease) in trade payables | 831 | (435 | ) | 69 | ||||||||||
| Increase (decrease) in unearned revenue | 2,585 | 27 | (2,311 | ) | ||||||||||
| Increase (decrease) in taxes payable | 26 | 228 | (142 | ) | ||||||||||
| Increase (decrease) in accrued liabilities and other payables | 875 | 103 | (312 | ) | ||||||||||
| Cash used in operations | (15,480 | ) | (10,496 | ) | (2,988 | ) | ||||||||
| Interest paid | - | - | - | |||||||||||
| Income tax paid | (3 | ) | (20 | ) | (48 | ) | ||||||||
| Net cash (used in) generated from operating activities from discontinued operations | - | 1,994 | 740 | |||||||||||
| Net cash used in operating activities | (15,483 | ) | (8,522 | ) | (2,296 | ) | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
| Acquisition of fixed assets | (4,202 | ) | (71 | ) | (3 | ) | ||||||||
| Acquisition of intangible assets | - | - | (1 | ) | ||||||||||
| Decrease in notes receivable | 1,514 | 1,3283 | - | |||||||||||
| Decrease (increase) in available-for-sale financial asset | 99 | 1,105 | (1,247 | ) | ||||||||||
| Decrease (increase) in restricted cash | - | 292 | (307 | ) | ||||||||||
| Cash disposed as a result of disposal of subsidiaries | - | (36 | ) | - | ||||||||||
| Net cash used in investing activities from discontinued operations | - | - | - | |||||||||||
| Net cash (used in) generated from investing activities | (2,589 | ) | 2,618 | (1,558 | ) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
| Payment for lease liabilities | (250 | ) | - | (53 | ) | |||||||||
| Insurance of share capital for equity financing | 12,986 | 8,322 | 851 | |||||||||||
| Warrants exercised | 1,228 | - | - | |||||||||||
| Capital contribution from noncontrolling interest | - | - | 364 | |||||||||||
| Proceeds from promissory note | 5,620 | 1,003 | 1,302 | |||||||||||
| Repayment of promissory note | (800 | ) | - | - | ||||||||||
| Due from related parties | - | (1,320 | ) | - | ||||||||||
| Advance from related parties | 194 | 60 | - | |||||||||||
| Net cash used in financing activities from discontinued operations | - | (2,020 | ) | (2,126 | ) | |||||||||
| Net cash generated from financing activities | 18,978 | 6,045 | 338 | |||||||||||
| NET INCREASE (DECREASE) IN CASH AND BANK BALANCES | 906 | 141 | (3,516 | ) | ||||||||||
| CASH AND BANK BALANCES, BEGINNING OF YEAR | 538 | 615 | 4,375 | |||||||||||
| EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES | (397 | ) | (218 | ) | (244 | ) | ||||||||
| CASH AND BANK BALANCES, END OF YEAR | $ | 1,047 | $ | 538 | $ | 615 | ||||||||
The accompanying notes in the Company's Form 20-F for the year 2024 as filed with the SEC are an integral part of these consolidated financial statements.
Source: Antelope Enterprise Holdings, Ltd.
