Antelope Enterprise Holdings Ltd

Antelope Enterprise Holdings Limited (AEHL) is a British Virgin Islands-incorporated holding company with its primary operations conducted through subsidiaries in China and the US ¹. The company has recently undergone a strategic transition, divesting its legacy ceramic tile manufacturing business to pivot towards high-growth technology areas, specifically livestreaming e-commerce and business management and information systems consulting services, with plans to enter the energy supply business ². The company changed its fiscal year end from December 31 to September 30, effective from the period ended September 30, 2025, to streamline financial reporting with industry practices and better synchronize operational planning ³.

AEHL's core business model revolves around providing livestreaming e-commerce services and business management and information systems consulting services. The livestreaming e-commerce segment offers one-stop solutions for consumer goods brands, merchants, and small-scale e-commerce platforms seeking to leverage livestreaming for sales and customer engagement ⁴. The business management and consulting segment diagnoses infrastructure and enterprise system difficulties, developing strategies and implementing workflow solutions via proprietary software to address business challenges ⁵. The company is also planning to launch an energy supply business, aiming to provide efficient and stable power output to the energy supply market by purchasing natural gas generators and implementing modern power generation technologies, and also plans to generate revenue by securing hosting sites for cryptocurrency mining operators ⁶.

For the nine months ended September 30, 2025, AEHL reported total revenues of $60.822 million ⁷, a decrease from $70.894 million ⁸ for the nine months ended September 30, 2024. The cost of goods sold for the period was $60.691 million ⁹, resulting in a gross profit of $0.131 million ¹⁰. Other income amounted to $1.016 million ¹¹. Selling and distribution expenses were $1.121 million ¹², administrative expenses were $7.159 million ¹³, finance costs were $1.185 million ¹⁴, and other expenses were $2.897 million ¹⁵. This led to a loss before taxation of $11.215 million ¹⁶ and a net loss for the period from continuing operations of $11.224 million ¹⁷. The net loss attributable to equity holders of the Company was $10.759 million ¹⁸, with a basic and diluted loss per share from continuing operations of $2.47 ¹⁹. Cash and cash equivalents at the end of the period were $1.927 million ²⁰, and total outstanding note payables were $2.4 million ²¹.

Comparing the nine months ended September 30, 2025, to the same period in 2024, revenue from livestreaming e-commerce decreased by $10.3 million ²², or 14.5% ²³, from $70.9 million ²⁴ to $60.6 million ²⁵. This was primarily due to a decision to centralize e-commerce traffic acquisition under the Anhui Kylin entity, leading to the loss of certain customers, and the cessation of the DOU+ sector in 2025 due to regulatory changes and lack of users, which had generated $25.3 million ²⁶ in revenue in the prior period. Conversely, revenue from business management and information system consulting services increased by $0.2 million ²⁷, or 440.9% ²⁸, from $44,000 ²⁹ to $0.2 million ³⁰, driven by the resumption of previously suspended contracts. Gross profit for livestreaming e-commerce shifted from a profit of $2.5 million ³¹ in 2024 to a loss of $0.1 million ³² in 2025, attributed to fierce competition and temporary lowering of service rates. Selling and distribution expenses decreased by $2.3 million ³³, or 67.1% ³⁴, and administrative expenses decreased by $1.2 million ³⁵, or 14.5% ³⁶. Finance costs increased by $0.3 million ³⁷, or 32.4% ³⁸, due to higher interest expense on note payables.

During the period, AEHL made several operational developments. The company disposed of its ceramic tile manufacturing business in April 2023 ³⁹. In February 2024, Antelope USA acquired 100% equity interests of AEHL US at a nominal price, with plans to launch an energy supply business through AEHL US ⁴⁰. In March 2024, AEHL US purchased two used Waukesha 1450 KW generators and two chillers for $594,150 ⁴¹, and two additional used Fairbanks Morse 3MW generators for $690,000 ⁴², along with two D Volt transformers for $94,000 ⁴³, all for the energy supply business. The company also incorporated AEHL BTC Inc. in the US on June 10, 2025 ⁴⁴, and AEHL PTE Ltd in Singapore on June 15, 2025 ⁴⁵, both as holding companies with no material operations yet. Hubei Kylin Cloud Services Technology Co., Ltd, a 100% owned subsidiary engaged in livestreaming e-commerce, was deregistered on September 10, 2025 ⁴⁶. On December 15, 2025, Hainan Kylin incorporated Chuzhou Kylin Cloud Services Technology Co., Ltd, engaged in business management and consulting services for the livestreaming e-commerce industry ⁴⁷.

Management anticipates continued growth and expansion in its existing business segments, specifically the livestreaming e-commerce business and the business management and consulting business ⁴⁸. The company also plans to expand into new business segments, such as its natural gas power generation business ⁴⁹.

A significant growth area for the company is the planned natural gas power generation business, which is expected to start operation in the first quarter of 2026 ⁵⁰. This initiative involves AEHL US, which has already engaged a broker to source natural gas from Texas and procured electricity generators ⁵¹. The plan is to supply power to a data center in Midland, Texas, and generate revenue by securing hosting sites for cryptocurrency mining operators, leveraging anticipated cost-effective electricity costs ⁵².

Another key growth strategy involves strengthening the existing livestreaming e-commerce business by increasing sales and marketing efforts. This includes enhancing brand awareness and recognition through social media marketing, advertisements, search engine marketing, and search engine optimization ⁵³. The company plans to invest in content and campaign ideation and production, brand positioning, and digital and performance marketing to expand its customer base ⁵⁴. Additionally, the company may pursue opportunistic and strategic acquisitions of businesses or companies within the livestreaming e-commerce industry, considering factors such as reputation, popularity, MUVs, information technology, revenue, customer base, and financial capability ⁵⁵.

Operationally, the company plans to invest in enhancing its services by improving data analytics capabilities through upgrading its database and IT systems ⁵⁶. This will enable better analysis of customer preferences and demand to select suitable hosts and influencers ⁵⁷. The company is also developing a training program for hosts and influencers to help them gain followers and improve conversion rates ⁵⁸. Management expects administrative expenses to remain constant compared to the prior year ⁵⁹.

Regarding capital allocation, the company's capital expenditures for the nine months ended September 30, 2025, were $0.4 million ⁶⁰. The company believes its current cash and cash equivalents and anticipated cash flow from operations are sufficient for present requirements ⁶¹. However, it may seek to sell additional equity or debt securities or obtain additional credit facilities to enhance liquidity or increase cash reserves for future acquisitions and capital equipment expenditures ⁶². The company has adopted the 2025 Equity Compensation Plan, initially authorizing 280,000 Class A ordinary shares for issuance to attract and retain employees, directors, and consultants ⁶³.

The company faces several material risks, including a limited operating history in the highly competitive and transforming livestreaming e-commerce sector, which may attract better-capitalized competitors and lead to decreased market share ⁶⁴. The business is dependent on consumer behavior trends, which are difficult to ascertain and can change quickly, potentially adversely affecting operating results ⁶⁵. Reliance on existing technology systems, networks, and platforms outside of the company's control poses risks, as changes could necessitate business model adjustments ⁶⁶. The planned energy supply business is subject to significant uncertainties, including natural gas price fluctuations, business negotiations, cryptocurrency price volatility, and intense competition in the power generation industry ⁶⁷. PRC regulatory changes, particularly concerning data security and overseas listings, could significantly limit or hinder the company's ability to operate, accept foreign investments, or maintain its Nasdaq listing, potentially leading to a material adverse effect on financial condition and results of operations ⁶⁸. Fluctuations in exchange rates between the U.S. dollar and Renminbi could adversely affect the business and the value of shares, as nearly all earnings and cash assets are denominated in Renminbi ⁶⁹. There is also a risk that the company could be classified as a Passive Foreign Investment Company (PFIC), resulting in adverse U.S. federal income tax consequences for U.S. holders of its securities ⁷⁰. The company has identified a material weakness in its internal control over financial reporting related to controls over bank deposits, specifically timely reconciliation of bank accounts and maintenance of account opening/closing documentation ⁷¹.

Management's overall tone emphasizes a strategic pivot towards high-growth technology areas, particularly livestreaming e-commerce and business management consulting, following the divestiture of the ceramic tile manufacturing business. They are also actively pursuing a new energy supply business. Management acknowledges the competitive nature of the livestreaming e-commerce industry and the impact of regulatory changes, such as the cessation of the DOU+ sector in 2025 due to new Advertising Law enforcement guidelines that reduced profitability ⁷². Despite a decrease in livestreaming e-commerce revenue for the nine months ended September 30, 2025, management is focused on regaining customers and expanding new customer relationships by temporarily lowering service rates to seize market share and then building competitive barriers through diversified value-added services ⁷³. They plan to strengthen cooperation with public domain traffic platforms like Douyin to promote these services and improve profitability ⁷⁴. The company is also committed to enhancing its data analytics capabilities and developing training programs for hosts and influencers ⁷⁵. Management expects administrative expenses to remain constant compared to the prior year ⁷⁶. The company believes its current working capital is sufficient for present requirements but may seek additional equity or debt financing for future acquisitions and capital expenditures ⁷⁷.