AEHL Executes on Strategic Transformation as its
Livestreaming Ecommerce Business Accounts for 96% of 2nd Half
Revenue and 84% of 2022 Revenue
CHENGDU,
China, May 2, 2023 /PRNewswire/ -- Antelope
Enterprise Holdings Limited (NASDAQ Capital Market: AEHL)
("Antelope Enterprise", "AEHL" or the "Company"), which operates
KylinCloud, a livestreaming ecommerce business in China with access to 300,000+ hosts and
influencers, today announced its financial results for the second
half and fiscal year ended December
31, 2022.
Fiscal Year 2022 Summary
- Revenue for the Company's livestreaming ecommerce business was
RMB 273.7 million (US$ 40.7 million), as compared to RMB 58.5 million (US$ 9.1
million) for its period of operations from September 21,
2021 to December 31,
2021. Total revenue for fiscal year 2022, including
revenue generated from the Company's consulting and legacy ceramic
tile businesses, was RMB 324.0
million (US$ 48.2 million), as
compared to RMB 216.3 million
(US$ 33.5 million) for fiscal year
2021.
- Gross profit for the Company's livestreaming ecommerce business
was RMB 28.1 million (US$ 4.2 million), as compared to RMB 3.0 million (US$ 0.5
million) for its period of operations from September 21,
2021 to December 31,
2021. Total gross profit for fiscal year 2022,
including gross profit from the Company's consulting and legacy
ceramic tile businesses, was RMB 24.4
million (US$ 3.6 million), as
compared to RMB 67.3 (US$ 10.4 million) for fiscal year 2021.
- Income from operations for the Company's livestreaming
ecommerce business was RMB 8.9
million (US$ 1.3 million), as
compared to a loss from operations of RMB
2.5 million (US$ 0.4 million)
for its period of operations from
September 21, 2021 to December 31, 2021. Total loss from
operations for fiscal year 2022, including the loss from operations
from the Company's consulting and legacy ceramic tile businesses,
was RMB 53.4 million (US$ 7.9 million), as compared to a loss from
operations of RMB 89.8 (US$ 13.9 million) for fiscal year 2021.
Mr. Will Zhang, Chief Executive
Officer of Antelope Enterprise, commented, "I am extremely proud of
the achievements of our team in 2022 and pleased with our results
as we successfully executed on our strategic plan to enter the high
growth livestreaming ecommerce sector. Our KylinCloud livestreaming
business generated 96% of our total revenue for the second half of
2022 as we pivoted away from the legacy ceramic tile building
materials business which has been divested on April 28, 2023. Our top line revenue for our
livestreaming ecommerce business came in $40.7 million for the full year 2022, modestly
ahead of our pre-announcement, and the
registered hosts and influencers on our KylinCloud platform
increased eight times to 316,696 in 2022 from 39,624 in
2021."
"As a first mover in the livestreaming ecommerce space,
KylinCloud provides turnkey livestreaming marketing and
broadcasting services to consumer brand companies by matching
companies' brand characteristics and products with hosts and
influencers. This results in livestreaming sales presentations that
can generate increased sales and profitability for these companies.
We believe that KylinCloud has the core competencies to increase
its market share and be highly competitive in this key sales
channel as a pure play in the sector."
"I believe that we have a tremendous market opportunity ahead of
us and have the financial resources, operating infrastructure and
the vibrant team culture to achieve long-term growth. I am
genuinely excited about our unique business model and execution
capabilities, and I am confident that we will create value for our
shareholders," concluded CEO Will. Zhang.
Six Months Results Ended December 31,
2022
Revenue for the six months ended December 31, 2022 was RMB
168.1 million (US$ 24.1
million), a 164.3% increase from RMB
63.6 million (US$ 9.9 million)
for the same period of 2021. The increase in revenue was due to
RMB 161.4 million (US$ 23.1 million) in revenue generated from
KylinCloud, the Company's livestreaming ecommerce business, which
constituted 96% of second half 2022 total Company revenue.
Gross profit for the six months ended December 31, 2022 was RMB
26.0 million (US$ 3.7
million), as compared to RMB 1.0
million (US$ 0.1 million) for
the same period of 2021. The increase in gross profit was due to
RMB 25.0 million (US$ 3.6 million) in gross profit generated by the
Company's livestreaming ecommerce business. For the second half of
2022, our gross profit margin was 15.5% for the livestreaming
ecommerce business as compared to a gross profit margin of 5.1% for
the second half of 2021; gross profit for the livestreaming
ecommerce business was RMB 3.0
million (US$ 0.5 million) for
the first half of 2021.
Other income for the six months ended December 31, 2022 was RMB
1.3 million (US$ 0.2 million),
as compared to the RMB 24,000
($4,000) for the comparable period of
2021. Other income primarily consists of interest income, currency
exchange gains and government grants. For the second half of 2022,
we had RMB 552,000 in interest
income, and RMB 536,000 in a tax subsidy.
Selling and distribution expenses for the six months
ended December 31, 2022 were
RMB 14.5 million (US$ 2.1 million), as compared to RMB 24,000 (US$
4,000) for the comparable period of 2021. The increase in
selling and distribution expenses was primarily due to an increase
in commission expenses of RMB 7.4
million and an increase in advertising expenses of
RMB 7.0 million, both of which were
attributable to KylinCloud.
Administrative expenses for the six months ended
December 31, 2022 were RMB 21.6 million (US$ 3.1
million), as compared to RMB 8.3
million (US$ 1.3 million) for
the same period of 2021. The increase in administrative expenses
was mainly due to increases of (i) RMB 2.0
million in professional fees, (ii) RMB 1.1 million in compensation fees, (iii)
RMB 1.2 million in insurance
expenses, (iv) RMB 1.3 million
increase in R&D expenses, (v) RMB 1.7
million increase in payroll expenses, and (vi) RMB 6.3 million in promotional fees.
Bad debt reversal for the six months ended December 31, 2022 was RMB
2.8 million (US$ 0.4 million),
as compared to bad debt expense of RMB 10.1
million (US$ 1.6 million) for
the same period of 2021. We recognized a loss allowance for an
expected credit loss on our financial assets, primarily on trade
receivables, which are subject to impairment under IFRS
9, Financial Instruments. We believe that we have undertaken
appropriate measures to resolve our bad debt expense attributable
to our legacy ceramic tile business.
Net loss from continuing operations for the six months
ended December 31, 2022 was
RMB 6.1 million (US$ 0.9 million), as compared to RMB 17.7 million (US$ 2.8
million) for the same period of 2021. In terms of our
livestreaming ecommerce business, net income was RMB 0.7 million (US$ 0.1
million) for the second half of 2022 as compared to a net
loss of RMB 1.4 million (US$ 0.2 million) for the second half of 2021. The
decrease in the Company's total net loss from continuing operations
was mainly due to the increase in gross profit attributable to our
livestreaming ecommerce business and the reversal of bad expense
that occurred in the second half of 2022 as compared to the same
period of 2021.
Loss per basic share and fully diluted share from continuing
operation for the six months ended December 31, 2022 were RMB
0.73 (US$ 0.10), as compared
to loss per basic and fully diluted share of RMB 3.44 (US$ 0.53)
for the same period of 2021.
Full Year 2022 Financial Results
Revenue for the year ended December 31,
2022 was RMB 286.3 million
(US$ 42.6 million), as compared to
RMB 71.5 million (US$ 11.1 million) for the year ended December 31, 2021. The increase in revenue was
due to RMB 273.7 million
(US$ 40.7 million) in revenue
generated from the Company's livestreaming ecommerce business,
which represented 84.5% of 2022 revenue. Gross profit was
RMB 27.9 million (US$ 4.1 million), as compared to RMB 6.0 million (US$ 1.0
million) for the same period of 2021. The increase in gross
profit was due to RMB 28.1 million
(US$ 4.2 million) in gross profit
generated from the Company's livestreaming ecommerce business,
which was 15.2% greater than the total gross profit generated by
the Company for the year 2022, as its other businesses generated
gross losses. Total Company gross profit margin was 9.7%, as
compared to a gross loss margin of 8.4% for the same period of
2021. Other income was RMB 3.0
million (US$ 0.4 million), as
compared to RMB 32,000 (US$ 5,000) for the same period of 2021. Selling
expenses were RMB 16.4 million
(US$ 2.4 million), as compared to
RMB 24,000 (US$ 4,000) for the same period of 2021.
Administrative expenses were RMB 22.8
million (US$ 3.4 million), as
compared to RMB 16.0 million
(US$ 2.5 million) for the same period
of 2021. Bad debt reversal was RMB 2.8
million (US$ 0.4 million), as
compared to bad debt expense of RMB 10.1
million (US$ 1.6 million) for
the same period of 2021. For the full year 2022, income from
operations for the Company's livestreaming ecommerce business was
RMB 8.9 million (US$ 1.3 million) in 2022, as compared to an
operating loss of RMB 2.5 million
(US$ 0.4 million) for its period of
operations in 2021. Total net loss for the Company from continuing
operations for the year ended December 31,
2022 was RMB 5.7 million
(US$ 0.1 million), as compared to a
net loss of RMB 20.3 million
(US$ 3.2 million) for the same period
of 2021. Net loss from discontinued operations for the year ended
December 31, 2022 was RMB 48.0 million (US$ 7.1
million), as compared to a net loss of RMB 69.7 million (US$ 10.8
million) for the same period of 2021. Loss per share from
continuing operations on a basic and fully diluted basis were
RMB 1.19 (US$
0.18) for the year ended December 31,
2022, as compared to basic and fully diluted loss per share
of RMB 3.71 (US$ 0.58) for the same period of 2021. Loss per
share from discontinued operations on a basic and fully diluted
basis were RMB 5.73 (US$ 0.85) for the year ended December 31, 2022, as compared to basic and fully
diluted loss per share of RMB 13.54
(US$ 2.10) for the same period of
2021.
Statements of Selected Financial Position Items for the
Fiscal Year Ended 2022
- Cash and bank balances were RMB 3.9
million (US$ 0.6 million) as
of December 31, 2022, compared with
RMB 27.9 million (US$ 4.4 million) as of December 31, 2021. As of December 31, 2022, out total outstanding bank
loan amounts were nil.
- Trade receivables turnover was zero of December 31, 2022 due to no outstanding trade
receivables at December 31, 2022, as
compared with 11 days as of December 31,
2021.
- Trade payables turnover of our social and livestreaming
ecommerce business was three days as of December 31, 2022 as compared with seven days as
of December 31, 2021.
Liquidity and Capital Resources
Our cash flow analysis for each of the accounts includes the
cash flow transactions of discontinued operations.
Cash flow used in operating activities was RMB 23.1 million (US$ 3.3
million) for the six months ended December 31, 2022, as compared to RMB 4.4 million (US$ 0.7
million) in cash used in operations for the same period of
2021. The increase in cash outflow was mainly due to an increase in
operating cash outflow before working capital changes of
RMB 81.0 million, a decrease in cash
inflow on unearned revenue of RMB 22.7
million, a decrease in cash inflow from inventory of
RMB 82.7 million and a decrease in
cash inflow on trade payable of RMB 7.9
million; these cash flows were partly offset by a decrease
in cash outflow on trade receivables of RMB
168.2 million, a decrease in cash outflow on other
receivables and prepayments of RMB 5.8
million, and a decrease in cash outflow from taxes payable
of RMB 1.4 million.
Cash flow used in investing activities was RMB 1.9 million (US$ 0.3
million) for the six months ended December 31, 2022, as compared to cash flow used
in investing activities of RMB 1.2
million (US$ 0.2 million) for
the same period of 2021. For the six months ended December 31, 2022, we experienced cash outflow
from an available-for-sale financial asset of RMB 8.4 million and the acquisition of fixed
assets of RMB 11,000, which was
partly offset by decrease in restricted cash of RMB 6.5 million. For the six months ended
December 31, 2021, we experienced
cash outflow from the acquisition of fixed assets of RMB 1.15 million.
Cash flow provided by financing activities was
RMB 14.3 million (US$ 2.0 million) for the six months ended
December 31, 2022, as compared to
cash flow used in financing activities of RMB 1.0 million (US$ 0.2
million) in the same period of 2021. For the six months
ended December 31, 2022, we generated
cash inflow from a capital contribution from a noncontrolling
interest of RMB 2.5 million, issuance
of share capital for equity financing of RMB
3.3 million and proceeds from a promissory note of
RMB 8.8 million; these cash flows
were offset by the payment of lease liabilities of RMB 0.2 million. For the six months ended
December 31, 2021, we generated cash
inflow from the issuance of share capital of RMB 0.4 million, proceeds resulting from warrants
exercised of RMB 136,000, and the
payment of lease liabilities of RMB 0.5
million.
Divestiture of Ceramic Tile Business
Over the last two years, the Company enacted a corporate
transformation to pivot towards high growth technology areas which
included the acquisition of livestreaming ecommerce business. In
December 2022, the Company's Board of
Directors unanimously agreed to divest of its legacy ceramic tile
building materials business. On December 30,
2022, the Company entered into a share purchase agreement
pursuant where it agreed to sell the Company's legacy ceramic tile
manufacturing business to New Stonehenge Limited in exchange for a
5% unsecured promissory note (the "Note") with a principal amount
of US$ 8.5 million. The Note will
mature in four years and the 5% interest and principal amount on
the Note is to be paid in four annual installments. A special
meeting of the company's shareholders was held on February 21, 2023, and the shareholders approved
the sale of this business. On April 28,
2023, this transaction closed and the Company transferred
its ownership of the ceramic tile manufacturing business to New
Stonehenge Limited which, as a result, assumed all of its assets
and liabilities.
Business Outlook
The Company operates a livestreaming ecommerce business through
its KylinCloud subsidiary, which comprises virtually all of
Antelope Enterprise's ongoing business operations. 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 2022,
KylinCloud generated 96.0% and 84.5% of the Company's total
revenue, respectively.
The Company believes that livestreaming product marketing is an
important growth engine for consumer brand companies since it
heightens consumer engagement and can build brand loyalty through
rich content and online interaction. The Company expects that
livestreaming ecommerce will comprise an ever-increasing percentage
of China's ecommerce sales in the years ahead spurred by
a consumer ecosystem that includes a young demographic and their
high usage rate of mobile devices. AEHL also believes that
China's livestreaming
ecommerce sector will experience high double-digit growth for many
years to come, and the Company is encouraged by the strong
contribution to revenue of its KylinCloud subsidiary to date.
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.
Conference Call Information
We will host a conference call at 8:00 am
ET on May 2, 2023. Listeners
may access the call by dialing 1-877-270-2148 five to ten minutes
prior to the scheduled conference call time, and international
callers should dial 1-412-902-6510; all callers should ask to join
the Antelope Enterprise Holdings Ltd. earnings conference call. A
replay of the conference call will be available for 14 days
starting from 11:00 am ET on
May 2, 2023. To access the replay,
dial 1-877-344-7529 and international callers should dial
1-412-317-0088. The replay access code is 5861605.
About Antelope Enterprise Holdings Limited
Antelope Enterprise Holdings Limited holds a 51% ownership
position in Hainan Kylin Cloud Services Technology Co., Ltd
("KylinCloud"), which operates a livestreaming ecommerce business
in China with access to 300,000+
hosts and influencers. For more information, please visit our
website at http://www.aehl-kylin.com/, or follow the Company
on Twitter at https://twitter.com/aehl_ltd. To receive the
Company's public announcements, please
email investor@aehltd.com.
Currency Convenience Translation
The Company's financial information is stated in Renminbi
("RMB"). Translations of amounts from RMB into United States dollars ("US$") in this earnings
release are solely for the convenience of the readers and were
calculated at the rate of US$1.00 =
RMB 6.8972 for balance sheet accounts
at the balance sheet date, US$1.00 =
RMB 6.7290 for the P&L accounts
for the year ended December 31, 2022,
and US$1.00 = RMB 6.9789 for the P&L accounts for the six
months ended December 31, 2022. The
exchange rate refers to the historical rate as set forth in the
H.10 statistical release published by www.federalreserve.gov on
December 31, 2022. Such translations
should not be construed as representations that RMB amounts could
have been, or could be, converted realized or settled into US$ at
that rate on December 31, 2022 or any
other rate.
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 PRC real estate, construction and
technology sectors continuing to exhibit sound long-term
fundamentals, our ability to bring additional ceramic tile
production capacity online going forward as our business improves,
our ceramic tile customers continuing to adjust to our product
price increases, our ability to sustain our average selling price
increases and to continue to build volume in the quarters ahead,
and whether our enhanced marketing efforts will help to produce
wider customer acceptance of the new price points; 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, 2022 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.
FINANCIAL
TABLES
|
|
ANTELOPE ENTERPRISE
HOLDINGS., LTD AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
As of December
31, 2022
|
|
As of
December 31,
2021
|
|
USD'000
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Property
and equipment, net
|
146
|
1,006
|
|
1,250
|
Intangible
assets, net
|
1
|
6
|
|
-
|
Right-of-use assets, net
|
68
|
469
|
|
44,288
|
Total noncurrent
assets
|
215
|
1,481
|
|
45,538
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Inventories, net
|
-
|
-
|
|
31,589
|
Trade
receivables, net
|
-
|
-
|
|
51,416
|
Other
receivables and prepayments
|
2,781
|
19,180
|
|
20,781
|
Available-for-sale financial assets
|
1,236
|
8,523
|
|
-
|
VAT
receivable
|
20
|
142
|
|
663
|
Restricted
cash
|
300
|
2,069
|
|
-
|
Cash and
bank balances
|
571
|
3,936
|
|
27,880
|
Total current
assets
|
4,908
|
33,850
|
|
132,329
|
|
|
|
|
|
Assets classified as
held for sale
|
10,826
|
74,675
|
|
-
|
|
|
|
|
|
Total assets
|
15,949
|
110,006
|
|
177,867
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Trade
payables
|
446
|
3,079
|
|
6,290
|
Unearned
revenue
|
-
|
-
|
|
15,545
|
Accrued
liabilities and other
payables
|
116
|
799
|
|
22,381
|
Amounts
owed to related parties
|
187
|
1,291
|
|
36,348
|
Lease
liabilities
|
48
|
328
|
|
13,404
|
Taxes
payable
|
84
|
582
|
|
1,018
|
Total current
liabilities
|
881
|
6,079
|
|
94,986
|
|
|
|
|
|
NET CURRENT
ASSETS
|
4,027
|
27,771
|
|
37,343
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
Lease
liabilities
|
23
|
157
|
|
33,325
|
Notes
payable
|
1,272
|
8,775
|
|
-
|
Total noncurrent
liabilities
|
1,295
|
8,932
|
|
33,325
|
|
|
|
|
|
Liabilities directly
associated with
assets classified as held for sale
|
12,836
|
88,530
|
|
-
|
|
|
|
|
|
NET ASSETS
|
937
|
6,465
|
|
49,556
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Share
capital
|
187
|
1,288
|
|
943
|
Reserves
|
(35)
|
(241)
|
|
49,919
|
Noncontrolling interest
|
785
|
5,418
|
|
(1,306)
|
Total stockholders' equity
|
937
|
6,465
|
|
49,556
|
ANTELOPE ENTERPRISE
HOLDINGS LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
Unaudited
|
|
Six Months ended
December 31,
|
|
2022
|
|
2021
|
|
USD'000
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
Net sales
|
24,087
|
168,101
|
|
63,606
|
|
|
|
|
|
Cost of goods
sold
|
20,360
|
142,091
|
|
62,671
|
|
|
|
|
|
Gross profit
(loss)
|
3,727
|
26,010
|
|
935
|
|
|
|
|
|
Other income
|
184
|
1,284
|
|
24
|
Fair value unrealized
gain of
available-for sale financial asset
|
19
|
130
|
|
-
|
Selling and
distribution expenses
|
(2,078)
|
(14,504)
|
|
(24)
|
Administrative
expenses
|
(3,102)
|
(21,645)
|
|
(8,261)
|
Bad debt reversal
(expense)
|
394
|
2,751
|
|
(10,148)
|
Finance
costs
|
(2)
|
(11)
|
|
(14)
|
Other
expenses
|
(5)
|
(38)
|
|
(1)
|
|
|
|
|
|
Loss before
taxation
|
(863)
|
(6,023)
|
|
(17,489)
|
|
|
|
|
|
Income tax
expense
|
(18)
|
(126)
|
|
(210)
|
|
|
|
|
|
Net loss for the year
from
continuing operations
|
(881)
|
(6,149)
|
|
(17,699)
|
|
|
|
|
|
Loss for the year
from
discontinued operations
|
(3,116)
|
(21,748)
|
|
(1,590)
|
|
|
|
|
|
Net loss for the
year
|
(3,997)
|
(27,897)
|
|
(19,289)
|
|
|
|
|
|
Net loss attributable
to:
|
|
|
|
|
Equity Holders of the
Company
|
(4,095)
|
(28,582)
|
|
(17,983)
|
Non-controlling
interest
|
98
|
685
|
|
(1,306)
|
Net
loss
|
(3,997)
|
(27,897)
|
|
(19,289)
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
Basic (RMB)-
|
|
|
|
|
-- from
continuing operations
|
(0.11)
|
(0.73)
|
|
(3.44)
|
-- from
discontinued operations
|
(0.37)
|
(2.60)
|
|
(0.31)
|
Diluted
(RMB)
|
|
|
|
|
-- from
continuing operations
|
(0.10)
|
(0.73)
|
|
(3.44)
|
-- from
discontinued operations
|
(0.37)
|
(2.60)
|
|
(0.31)
|
ANTELOPE ENTERPRISE
HOLDINGS LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Unaudited
|
|
Six Months Ended
December 31,
|
|
2022
|
|
2021
|
|
USD'000
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Loss before taxation
|
(3,979)
|
(27,770)
|
|
(19,079)
|
Adjustments for
|
|
|
|
|
Operating lease charge
|
963
|
6,721
|
|
7,032
|
Depreciation of property, plant and equipment
|
19
|
134
|
|
77
|
Fair value gain on available-for sale financial assets
|
(19)
|
(130)
|
|
-
|
Write down of inventories (reversal of inventory
provision)
|
(580)
|
(4,045)
|
|
(99,237)
|
Bad debt provision of trade receivables
|
(13,066)
|
(91,186)
|
|
75,727
|
Share based compensation
|
165
|
1,155
|
|
1,003
|
Interest expense on lease liability
|
108
|
751
|
|
1,072
|
Amortization of OID of convertible note
|
2
|
15
|
|
-
|
Operating cash flows before working capital changes
|
(16,386)
|
(114,355)
|
|
(33,405)
|
Decrease in inventories
|
1,768
|
12,336
|
|
95,013
|
Increase in trade receivables
|
14,308
|
99,855
|
|
(68,360)
|
Decrease (Increase) in other receivables and
prepayments
|
(1,030)
|
(7,185)
|
|
(13,002)
|
Decrease in trade payables
|
(1,024)
|
(7,143)
|
|
794
|
Decrease in unearned revenue
|
(1,030)
|
(7,188)
|
|
15,545
|
Increase (decrease) in taxes payable
|
136
|
947
|
|
(441)
|
Decrease in accrued liabilities, other payables, and
amounts owed to related
parties
|
(6)
|
(41)
|
|
(547)
|
Cash generated from (used in) operations
|
(3,263)
|
(22,774)
|
|
(4,403)
|
Interest paid
|
-
|
-
|
|
-
|
Income tax paid
|
(43)
|
(301)
|
|
(34)
|
|
|
|
|
|
Net
cash generated from (used in) operating activities
|
(3,306)
|
(23,075)
|
|
(4,437)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Acquisition of fixed assets
|
(2)
|
(11)
|
|
(1,150)
|
Acquisition of intangible assets
|
-
|
|
|
|
Decrease (increase) in available-for-sale financial
asset
|
(1,203)
|
(8,393)
|
|
|
Decrease (increase) in restricted cash
|
929
|
6,481
|
|
-
|
Interest received
|
-
|
-
|
|
-
|
|
|
|
|
|
Net cash generated from (used in) investing activities
|
(276)
|
(1,923)
|
|
(1,150)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Payment for lease liabilities
|
(26)
|
(181)
|
|
(483)
|
Issuance
of share capital
for equity financing
|
469
|
3,274
|
|
(390)
|
Warrants exercised
|
-
|
-
|
|
(136)
|
Capital contribution from noncontrolling interest
|
351
|
2,450
|
|
-
|
Proceeds from convertible note
|
1,255
|
8,759
|
|
-
|
|
|
|
|
|
Net cash
generated from (used in) financing activities
|
2,049
|
14,302
|
|
(1,009)
|
|
|
|
|
|
NET DECREASE IN CASH
& EQUIVALENTS
|
(1,533)
|
(10,696)
|
|
(6,596)
|
CASH & EQUIVALENTS,
BEGINNING OF PERIOD
|
2,240
|
15,003
|
|
34,029
|
EFFECT OF FOREIGN
EXCHANGE RATE DIFFERENCES
|
(92)
|
(65)
|
|
447
|
|
|
|
|
|
CASH & EQUIVALENTS,
END OF PERIOD
|
615
|
4,242
|
|
27,880
|
ANTELOPE ENTERPRISE
HOLDINGS LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
|
|
Years ended December
31,
|
|
|
2022
|
|
2021
|
|
|
|
USD'000
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
|
|
|
|
Net sales
|
42,554
|
286,347
|
|
71,527
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
38,406
|
258,431
|
|
65,493
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
4,149
|
27,916
|
|
6,034
|
|
|
|
|
|
|
|
|
|
Other income
|
441
|
2,966
|
|
32
|
|
|
Fair value unrealized
gain of available-
for sale financial asset
|
19
|
130
|
|
-
|
|
|
Selling and
distribution expenses
|
(2,434)
|
(16,380)
|
|
(24)
|
|
|
Administrative
expenses
|
(3,382)
|
(22,757)
|
|
(15,975)
|
|
|
Bad debt reversal
(expense)
|
409
|
2,751
|
|
(10,148)
|
|
|
Finance
costs
|
(4)
|
(25)
|
|
(51)
|
|
|
Other
expenses
|
(6)
|
(42)
|
|
(34)
|
|
|
|
|
|
|
|
|
|
Loss before
taxation
|
(809)
|
(5,441)
|
|
(20,166)
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(31)
|
(209)
|
|
(217)
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
(840)
|
(5,650)
|
|
(20,383)
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations
|
(7,132)
|
(47,994)
|
|
(69,675)
|
|
|
|
|
|
|
|
|
|
Net loss for the
year
|
(7,972)
|
(53,644)
|
|
(90,058)
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to :
|
|
|
|
|
|
|
Equity holders of the
Company
|
(8,607)
|
(57,918)
|
|
(88,752)
|
|
|
Non-controlling
interest
|
635
|
4,274
|
|
(1,306)
|
|
|
Net loss
|
(7,972)
|
(53,644)
|
|
(90,058)
|
|
|
|
|
|
|
|
|
|
Net loss attributable to the equity holders of the
Company arise from:
|
|
|
|
|
Continuing
operations
|
(1,475)
|
(9,924)
|
|
(19,077)
|
|
|
Discontinued operations
|
(7,132)
|
(47,994)
|
|
(69,675)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
Exchange differences on
translation of
financial statements of foreign
operations
|
29
|
198
|
|
585
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the year
|
(7,943)
|
(53,446)
|
|
(178,225)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to:
|
|
|
|
|
|
Equity holders of the
Company
|
(8,578)
|
(57,720)
|
|
(88,167)
|
|
|
Non-controlling
interest
|
635
|
4,274
|
|
(1,306)
|
|
|
Total comprehensive
loss
|
(7,943)
|
(53,446)
|
|
(89,473)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to
the equity holders of the Company arise
from:
|
|
|
|
|
|
|
Continuing
operations
|
(810)
|
(5,452)
|
|
(19,798)
|
|
|
Discontinued
operations
|
(7,132)
|
(47,994)
|
|
(69,675)
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
Basic (RMB)
|
|
|
|
|
|
|
-- from
continuing operations
|
(0.18)
|
(1.19)
|
|
(3.71)
|
|
|
-- from
discontinued operations
|
(0.85)
|
(5.73)
|
|
(13.54)
|
|
|
Diluted
(RMB)
|
|
|
|
|
|
|
-- from
continuing operations
|
(0.18)
|
(1.19)
|
|
(3.71)
|
|
|
-- from
discontinued operations
|
(0.85)
|
(5.73)
|
|
(13.54)
|
|
|
ANTELOPE ENTERPRISE
HOLDINGS LIMITED AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Years ended December
31,
|
|
2022
|
|
2021
|
|
USD'000
|
RMB'000
|
|
RMB'000
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Loss before taxation
|
(7,941)
|
(53,433)
|
|
(89,841)
|
Adjustments for
|
|
|
|
|
Operating lease charge
|
1,974
|
13,285
|
|
14,067
|
Depreciation of property, plant and equipment
|
40
|
266
|
|
96
|
Fair value gain on available-for sale financial assets
|
(19)
|
(130)
|
|
-
|
Write down of inventories (reversal of inventory
provision)
|
(601)
|
(4,045)
|
|
(99,237)
|
Bad debt provision
of trade receivables
|
(11,540)
|
(77,650)
|
|
125,554
|
Share based compensation
|
324
|
2,180
|
|
1,835
|
Interest expense on lease liability
|
224
|
1,504
|
|
2,166
|
Amortization of OID of convertible note
|
2
|
15
|
|
-
|
Operating cash flows before working capital changes
|
(17,537)
|
(118,008)
|
|
(45,360)
|
Increase in trade receivables
|
17,661
|
118,842
|
|
(75,499)
|
Increase in inventories
|
1,023
|
6,885
|
|
119,850
|
Decrease (Increase) in other receivables and prepayments
|
(208)
|
(1,398)
|
|
(19,936)
|
Decrease in trade payables
|
(477)
|
(3,211)
|
|
(461)
|
Decrease in unearned revenue
|
(2,310)
|
(15,545)
|
|
15,545
|
Increase (decrease) in taxes payable
|
(45)
|
(306)
|
|
(1,756)
|
Decrease in accrued liabilities, other payables, and
amounts owed to related
parties
|
(354)
|
(2,385)
|
|
(465)
|
Cash generated from (used in) operations
|
(2,248)
|
(15,126)
|
|
(8,082)
|
Interest paid
|
-
|
-
|
|
-
|
Income tax paid
|
(48)
|
(326)
|
|
(41)
|
|
|
|
|
|
Net
cash generated from (used in) operating activities
|
(2,296)
|
(15,452)
|
|
(8,123)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Acquisition of fixed assets
|
(3)
|
(22)
|
|
(1,279)
|
Acquisition of intangible assets
|
(1)
|
(6)
|
|
|
Increase available-for-sale financial assets
|
(1,247)
|
(8,393)
|
|
|
Decrease (increase) in restricted cash
|
(307)
|
(2,069)
|
|
-
|
Interest received
|
-
|
-
|
|
-
|
|
|
|
|
|
Net cash generated from (used in) investing activities
|
(1,559)
|
(10,490)
|
|
(1,279)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Payment for lease liabilities
|
(2,179)
|
(14,661)
|
|
(15,447)
|
Issuance of share capital for equity financing
|
851
|
5,724
|
|
29,586
|
Warrants exercised
|
-
|
-
|
|
10,258
|
Capital contribution from noncontrolling interest
|
364
|
2,450
|
|
-
|
Proceeds from promissory note
|
1,302
|
8,759
|
|
-
|
Advance from related parties
|
-
|
-
|
|
-
|
|
|
|
|
|
Net cash
generated from (used in) financing activities
|
338
|
2,272
|
|
24,397
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH & EQUIVALENTS
|
(3,518)
|
(23,670)
|
|
14,995
|
CASH & EQUIVALENTS,
BEGINNING OF YEAR
|
4,375
|
27,880
|
|
12,344
|
EFFECT OF FOREIGN
EXCHANGE RATE DIFFERENCES
|
(242)
|
32
|
|
541
|
|
|
|
|
|
CASH & EQUIVALENTS,
END OF YEAR
|
615
|
4,242
|
|
27,880
|
|
|
|
|
|
|
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SOURCE Antelope Enterprise Holdings Ltd.