NEW YORK - Antelope Enterprise Holdings Limited (NASDAQ:AEHL), a company with a majority stake in Kylin Cloud, a livestreaming ecommerce operator in China, has reported its financial results for the first half of 2024. The company disclosed a slight decrease in revenue and a significant drop in gross profit from its livestreaming ecommerce business, alongside a widened operational loss compared to the same period last year.
For the six months ending June 30, 2024, Antelope Enterprise's revenue from livestreaming ecommerce was $43.4 million, a 2.6% decline from the $44.6 million reported in the first half of 2023. Gross profit saw a substantial decrease of 48.7%, falling to $3.5 million from $6.8 million. The company also experienced a loss from operations of $6.5 million, an increase from the $5.5 million operational loss in the prior year.
Chairman and CEO Will Zhang attributed the revenue decline to the loss of several major clients, prompting a strategic shift towards engaging more mid-tier clients to diversify risk. Despite the revenue dip, the company increased its client base from 50 to over 70 in the first half of 2024.
Looking ahead, Antelope Enterprise announced its plans to enter the energy sector by producing electricity in Texas using natural gas generators. This move is aimed at catering to the computing power industry's growing demand for energy. The company expects to launch this new business segment in the third quarter of 2024.
Financially, the company's cash and cash equivalents stood at $2.3 million as of June 30, 2024, a significant increase from the end of 2023. The working capital and stockholders' equity also saw increases, indicating improved liquidity and financial health.
Antelope Enterprise's future outlook is based on leveraging the growth of livestreaming ecommerce and tapping into the energy supply market. The company's strategic developments are subject to change and influenced by various risk factors, which are detailed in its filings with the U.S. Securities and Exchange Commission.
This financial update is based on a press release statement from Antelope Enterprise Holdings Limited.
InvestingPro Insights
Antelope Enterprise Holdings Limited's recent financial results align with several key insights from InvestingPro. The company's reported operational loss of $6.5 million for the first half of 2024 is consistent with the InvestingPro Tip that AEHL is "Not profitable over the last twelve months." This is further supported by the negative Operating Income Margin of -17.55% for the last twelve months as of Q4 2023.
The company's strategic shift towards mid-tier clients to diversify risk comes at a time when InvestingPro data shows a significant Revenue Growth of 78.3% in the last twelve months as of Q4 2023. However, this growth is juxtaposed with the InvestingPro Tip that AEHL is "Quickly burning through cash," which may explain the company's move into the energy sector as a potential new revenue stream.
Despite the challenges, AEHL's stock appears to be trading at a relatively low valuation. The Price to Book ratio stands at 0.72, and an InvestingPro Tip indicates that the stock is "Trading at a low revenue valuation multiple." This could present an opportunity for investors, although it's important to note that the stock "has fared poorly over the last month" with a 1 Month Price Total Return of -65.22%.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for AEHL, providing a deeper understanding of the company's financial health and market position.
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