Antelope Enterprise Announces Second Half and Full Year 2024 Financial Results

Rhea-AI Summary

Antelope Enterprise Holdings (NASDAQ: AEHL) reported its financial results for H2 and FY 2024. The company's revenue increased by 37% to $98.7 million in FY2024, with H2 revenue showing a remarkable 100% year-over-year growth to $55.3 million. However, AEHL reported a gross loss of $0.1 million in FY2024 compared to a gross profit of $7.5 million in FY2023, and a net loss of $10.6 million versus $2.0 million in FY2023.

The company's KylinCloud subsidiary, which operates a livestreaming ecommerce business in China, expanded its client base to over 256 clients, adding 140 new clients compared to 2023. Despite increased competition and price pressures in the sector, AEHL maintains a strategy focused on developing a mid-tier customer base and providing value-added services.

As of December 31, 2024, AEHL had $1.0 million in cash, working capital of $16.2 million, and stockholders' equity of $26.2 million, an 82.2% increase from 2023.

Positive

• Revenue grew 37% YoY to $98.7 million in FY2024
• H2 2024 revenue increased 100.1% YoY to $55.3 million
• Client base expanded significantly with 140 new clients in 2024
• Stockholders' equity increased 82.2% to $26.2 million
• Working capital improved to $16.2 million from $4.2 million in 2023

Negative

• Reported gross loss of $0.1 million in FY2024 vs $7.5 million profit in FY2023
• Net loss increased to $10.6 million from $2.0 million in FY2023
• Intensified competition leading to price cutting and margin compression
• Cash position remains low at $1.0 million despite improvement
• Note payable amount of $5.2 million on balance sheet

Insights

Financial Analyst

AEHL shows strong revenue growth but concerning profitability with gross losses and consecutive reverse stock splits indicating significant financial challenges.

Antelope Enterprise's 2024 financial results reveal concerning profitability issues despite impressive topline growth. While revenue increased 37% to $98.7 million for the full year and surged 100.1% to $55.3 million in the second half, the company's profit metrics deteriorated significantly.

Most alarming is the shift from a 10.4% gross profit margin in 2023 to a -0.1% gross loss in 2024, indicating the company is now selling services below cost. Net losses widened to $10.6 million from $2.0 million in 2023, though the prior year benefited from a $10.4 million one-time gain from divesting their ceramic tile business.

The balance sheet presents mixed signals. Positive indicators include doubled cash reserves to $1.0 million, expanded working capital to $16.2 million, and increased stockholders' equity of $26.2 million (82.2% growth). However, the $5.2 million in notes payable represents a substantial obligation relative to cash holdings.

Particularly concerning are the two dramatic reverse stock splits implemented within seven months - a 1-for-10 split in September 2024 followed by a 1-for-40 split in April 2025. These corporate actions, which cumulatively reduced share count by a factor of 400, typically reflect significant challenges in maintaining share price thresholds.

While the client expansion strategy has successfully diversified their customer base from 116 to 256 clients, the fundamental question remains whether sacrificing margins for growth is sustainable in China's increasingly competitive livestreaming ecommerce market.

Ecommerce Strategy Expert

AEHL's aggressive customer acquisition strategy has doubled revenue but created unsustainable margins in China's hypercompetitive livestreaming market.

Antelope Enterprise's KylinCloud subsidiary has made a strategic choice to prioritize market share over profitability in China's hypercompetitive livestreaming ecommerce sector. This approach delivered strong client acquisition results - growing from approximately 116 to 256 clients year-over-year - but at the significant cost of margin erosion.

The company explicitly acknowledges the challenging competitive landscape, noting "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." Their response has been to deliberately offer lower prices to establish deeper customer relationships, betting they can later monetize through value-added services.

This strategy resembles the classic "land and expand" playbook seen in many technology markets, but execution risks are substantial. KylinCloud's value proposition centers on matching consumer brands with appropriate influencers and hosts, alongside operational support, content planning, and data analysis. However, these services are increasingly becoming commoditized in China's maturing livestreaming ecosystem.

The partnership with Douyin (China's TikTok) represents a logical channel for client acquisition, though performance metrics from this relationship remain unspecified. While the livestreaming ecommerce sector continues growing in China, AEHL's financial results suggest that growth is coming at the expense of industry profitability.

Without successfully differentiating services in ways that command premium pricing, the current strategy of volume over margins risks creating a larger but perpetually unprofitable enterprise. The gross margin deterioration demonstrates the substantial challenges in this competitive landscape.

AEHL Second Half Revenue Increased by 100% Year-over-Year

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: info@aehltd.com	Email: david.rudnick@preceptir.com
	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.

FAQ

What was AEHL's revenue growth in fiscal year 2024?

Antelope Enterprise's revenue grew 37% to $98.7 million in fiscal year 2024, compared to $72.1 million in 2023.

Why did AEHL report a loss despite revenue growth in 2024?

AEHL reported losses due to intense competition in the livestreaming ecommerce sector, leading to price cutting and margin compression, resulting in a gross loss of $0.1 million compared to a $7.5 million profit in 2023.

How many clients does AEHL's KylinCloud have in 2024?

KylinCloud had business engagements with more than 256 clients in 2024, representing an increase of 140 clients compared to 2023.

What is AEHL's current financial position as of December 2024?

As of December 2024, AEHL had $1.0 million in cash, working capital of $16.2 million, a current ratio of 2.5, and stockholders' equity of $26.2 million.

What is KylinCloud's business strategy for growth?

KylinCloud focuses on acquiring mid-tier clients to reduce customer concentration risk, offering competitive pricing, and providing integrated value-added services including livestreaming host matching, content planning, and operational support.