Antelope Enterprise Holdings Limited

Thank you for standing by and welcome to the Antelope Enterprise Second Half and Fiscal Year-End 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. And to redial your question, press the hash key. If you require technical support at any time, please press star 0. I would now like to hand the conference over to your first speaker today, David Rodnick, please go ahead.

Thank you, Jillian. Good morning, ladies and gentlemen, and good evening to those of you who are joining us from China. Welcome to Antelope Enterprise Holding Limited second half and fifth figure and 2021 earnings conference call. With us today are Antelope Enterprise's Chief Executive Officer, Ms. Mai-Chung Wong, and Chief Financial Officer, Mr. Edmund Han. Working with the cooperative, Ms. Wong, I'd like to address forwarding the statements that may be discussed on the call. Forwarding statements involve risks and uncertainties and include, among others, those regarding revenue, operating expenses, other income and expense, taxes, and the future business outlook. As your future performance outcomes and results may differ materially from those expressed in forwarding statements. The company claims to save harbor protections for such forwarding statements as contemplated under the Private Securities Litigation Reform Act of 1995. These are further documents filed by the company with the SEC. Specifically, the most recent report informs 20F and 6K, which identify important risk factors that could cause actual results different from those contained in the forward-looking statement. We assume no obligation to update any forward-looking statements or information which speak of the perspective dates. And now, it's my pleasure to turn the call over to Antelope Enterprises' CEO, Ms. Meizhuang Huang, and Antelope Enterprises' CFO, Mr. Edmund Han. Charlie Jay will be translating for Ms. Huang. Ms. Huang, you may proceed.

Thank you, David. On behalf of the company, I would like to welcome everyone to our second half anesthetical year-end 2021 earnings conference call. In 2021, due to the slowdown of the Chinese real estate industry, it can be affected by the COVID-19 pandemic. Our real estate product sales continue to face a market full of challenges. In order to resolve these challenges, we will continue to implement our strategic plan in 2021. Through the implementation of new technology departments, we will realize the diversification of business and promote our growth.

During fiscal year 2021, we continue to experience challenging market conditions for our ceramic tiles product sales due to the slowdown of the real estate sectors in China, which will still be impacted by the continued effects of COVID-19 pandemic. To mitigate these challenging conditions, in 2021, we continue to execute our strategic plans to diversify our business and to our growth. by incorporating several new technology sectors subsidiaries.

Thank you. Thank you. Thank you.

These new subsidiaries are engaged in selective markets in China, which we believe have strong growth potential. This includes business management, information system consulting, and social media, online social commerce, and live streaming. We are pleased that these new business segments contributed 38% of revenue to our financial performance for the second half of 2021, and 33% for the full year 2021, which shows that our strategic plan is on course.

Due to the continued trilogy conditions for the real estate and building materials in China,

In November 2021, we entered into a five-year lease agreement to lease out the entire Hendali facility with the same lease that has been leasing out just a portion of the plant. However, we are secure in terms of having after-use production capacity at our Hendali facility for when the real estate market turns around and this decision is consistent with our resolve to pivot towards technology growth sectors.

We are committed to diversifying the company into growth technology sectors,

and are encouraged by the strong contribution from our new technology subsidiaries to date. In particular, we believe that social media, online social commerce, and live streaming in China will experience a big growth in the years to come. 接下来我想请财务中心新闻先生来详细介绍公司2021下半年的应收情况,谢谢。 With that, I would like to turn off the call to the company's chief financial officer, Mr. Edmund Hung, who will discuss the company's sector house 2021 earnings results in more detail. Thank you.

Thank you, Ms. Huang. I will now move on to a more detailed discussion of our financial results for the six months ending December 31, 2021. Our revenue for the six months in December 31st, 2021 was RMB 166.2 million, or US dollar 25.8 million. A 16% decrease from RMB 143.2 million, or US dollar 21.1 million, for the same period of 2020. The year-over-year increase in revenue was due to the generation gap of RMB $63.6 million or $9.9 million in the business management, information system consulting, and online social commerce, and live stream operations, revenue from Chengdu Future, Chengdu, and Hainan Keating health services. New operating subsidiaries of the company, which accounts for 38.3%, of the company's total revenue in the current period. However, this contribution was partially offset by an RMB $42.6 million, or US$6.3 million decrease in organic power sales. Gross profit for the six months end of December 31, 2021 was RMB $73.8 million, or US$11.5 million, compared to gross loss of RMB 26.9 million for the same period of 2020. The gross profit margin was 44.4% as compared to a gross loss margin of 18.8% for the same period of 2020. Other income for the 6th March and 31st November 2021 was RMB 2.3 million, or US dollar 0.4 million, as compared to RMB 12.2 million, or US dollar 1.8 million, for the same period of 2020. Other income consists of rental income, the company received by leasing out one of the production lines, from the Hainan River City Crescent Chien 8-year lease contract. Selling distribution expenses for the 6-month end of December 31, 2021 for RMB $3.1 million or US dollar $0.5 million. A decrease from RMB $4.2 million or US dollar $0.6 million for the same period of 2020. Administrative expenses for the six months and December 31st, 2021 were RMB 15.2 million or US dollar 2.4 million as compared to RMB 11.9 million or US dollar 1.8 million for the same period of 2020. Increase in administrative expenses was fine primarily due to an increase in consulting proportionals As their expenses for the six months end December 31st, 2021, and how the bad debt of RMB 75.7 million, or US dollar 11.8 million, as compared to bad debt expense of RMB 48.5 million, or US dollar 7.2 million for the same period of 2020. We recognize the law that allows for an extended credit loss on financial assets, primarily on our trade receivables, which are subject to impairments under international financial reporting standards. We believe that we have undertaken appropriate measures to resolve the bad debt expense going forward. We will continue to renew credit losses of each of our customers and continuously test our trade receivables balance in each upcoming fiscal period. Net loss for the six months end December 31st, 2021 was RMB 19.3 million or US dollar 3 million as compared to a net loss of RMB 81.6 million or US dollar 12 million. for the same period of 2020. The decrease in net loss was primarily due to an increase in cost of it, a decrease in back-down expenses, and substantial increase in the reversal of the infantry impairment provision in the current period. Loss per basic and fully dilated share for the six months end of December 31, 2021. for RMB 3.75 or USD 0.58. That's compared to lots per basic and fully diluted share of RMB 24.85 or USD 3.67 for the same period of 2020. Turning to our balance sheet, as of December 31st, 2021, We have the cash and bank balances of RMB 27.9 million, or US dollar 4.4 million, as compared to RMB 12.3 million, or US dollar 1.9 million, as of December 31st, 2020. As of December 31st, 2021, our infantry turn was on 183 days, as compared to 190 days, as of December 31st, 2020. Our trade receivables turnover of ceramic tile closures, that's of value at the time, was 168 days as of December 31, 2021, compared to 242 days as of December 31, 2020. Trade receivables turnover of our business management and consulting segment was 11 days as of December 31, 2021. Our trade payables turnover of ceramic tiles products at the test was 20 days as of December 31, 2021, compared with 22 days as of December 31, 2020. Trade receivables turnover of our business management and consulting segments was 7 days as of December 31, 2021. In terms of our plant utilization and capacity, we utilize plant capacity to produce 1.2 million square meters of ceramic tiles for the six months end, December 31st, 2021. That's compared to 1.5 million square meters of ceramic tiles for the same period of 2021. With all of the current period, production that's responsible to outhang the A reduced utilization during the current period was primarily attributable to the continued slowdown of the rest of the industry in China, which was still being impacted by the continued effects of the COVID-19 pandemic. The new lease has a term of five years from November 1, 2021. through October 31, 2026, for an annual rent of RMB 18 million. Therefore, the company's total annual production capacity is 22.8 million square meters of ceramic tiles, which is solely attributable to its paying deficit. We intend to bring unused production capacity and hang them online as consumer demand dictates and when there are signs of improvement in China's drastic and construction sector. We review the level of capital expenditure throughout the year and make adjustments subject to market conditions. Although these conditions are subject to change, we actually present a modest level of capital expenditure for 2022 other than those those days with minimal upgrades small repairs and the maintenance of equipment moving on to our business in terms of of our ceramic house business for physical year 2021 The company's operating results continue to be impacted by the slowdown of China's real estate sector due to the continued effects of the COVID-19 pandemic. Stocks have raised in policy price month over month for the first six months of 2021. Average new home prices in China's 17 major cities fell month over month for the first for the second six months of 2021. And early 2022 data shows the biggest rise in new home crisis since November 2015. Due to this challenging market condition, we are not a plan to work right out for the already-invented through our sales channel. Although we contribute to engaged in marketing for our product for when the real estate market turns around. Looking forward, China's central government indicates that it will invigorate the economy as it has in the past, which would include helping to support China's restructuring. In early 2020, the People's Bank of China cut its reserve requirement ratio, which created more loan capital for homebuyers. Due to weakened market demand, banks have lowered their mortgage rates by an average of 20 to 60 basis points. And some governments have loosened some of their policies, which including removing restrictions on home pressures for those without full local residency status. Jurassic continues to be a vital component of China's economic growth as Jurassic, and its related business activities is estimated to comprise 25% of China's GDP. Maybe it is that the demand for our economic health products will mostly come from tier 3 and lower tier cities, as well as coastal cities over the next few years. And we will be increasing our efforts to secure customers in larger and Southeast Asia markets. In terms of our new technology business development activities during fiscal 2021, we continue to execute a large strategy plan to diversify our operations with new energy sector operations as we generate RMB $71.5 billion. For a year further, we got $11 million in revenue from our new subsidiary business management information system consulting, which includes the sales and software use rights for digital data depot platform and asset management system. and online social media platforms including live streaming and e-commerce platform development and consulting. This new business standpoint enabled us to realize an 18.2% increase in total references for fiscal 2021 as compared to fiscal 2020. This latest outlook reflects the company's current and probably views and views based on the information currently available to us, which are subject to change and subject to risk and uncertainty, as well as risk and uncertainty identified in the Communist public finding. At this point, we would like to open up the call to any questions pertaining to our second half 2021 financial result. Operator,

We will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star one on your telephone keypad. Again, to ask a question, press star one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Once again, if you wish to ask a question, please press star, then the number one on your telephone keypad. No further question at this time. David, please continue.

On behalf of the entire Antelope Enterprise Management team, we would like to thank all of you for your interest and participation on this call.