Open Letter from Chairman and CEO Will Zhang to Antelope Enterprise Shareholders
CHENGDU, China, March 13, 2023 /PRNewswire/ — Antelope Enterprise Holdings Limited (NASDAQ Capital Market: AEHL) (“Antelope Enterprise” or the “Company”), which operates KylinCloud, a leading live streaming Social Ecommerce Platform with over 300,000 anchors and influencers Chinatoday announced the following Open Letter to the Company’s Shareholders from Chairman and Chief Executive Officer Weilai ‘Will’ Zhang.
To our valued shareholders:
First of all, we would like to thank all of our shareholders for their continued support of Antelope Enterprise. As of 2020, the company has engaged in a major strategic transformation of its operations and we welcome this opportunity to provide you with an update on our current activities as well as our vision for the future.
Sale of the ceramic tile business
As we have reported in our previous press releases and earnings reports, of China The real estate sector has experienced a significant slowdown in recent years, exacerbated by the impact of the Covid-19 pandemic. These challenging market conditions resulted in a significant decline in the company’s ceramic tile building materials business. As a result, the company has undertaken a strategic transformation to focus on high-growth technology areas, including the acquisition of a live-streaming social e-commerce business. As a key element of this transformation, in December 2022 The Company’s Board of Directors unanimously approved the divestment of its legacy ceramic tile building materials business. A special meeting of the company’s stockholders was held on February 21, 2023 and shareholders approved the sale of this business, which is expected to close pending the satisfaction of customary closing conditions. The divestiture of the ceramic tile building materials business of the company, which has suffered operating losses, will reduce the company’s cash spend and sales proceeds by 10% $8.5 million payable over four years will help fund the growth of our new live streaming social e-commerce business.
Laser focus on KylinCloud, our high growth live streaming social e-commerce company
As a result of our business transformation, we are now devoting all our resources and energies to the development of our 51 percent subsidiary, Hainan Kylin Cloud Services Technology Co., Ltd. (“KylinCloud”), which operates a leading social and live streaming social e-commerce platform China. As a pioneer in the live streaming space, KylinCloud provides turnkey live streaming marketing and broadcasting services for consumer brand companies by matching companies’ brand attributes and products with our 300,000+ anchors and influencers. This leads to live broadcasts of sales presentations that generate significantly more sales and profitability for these companies. We believe KylinCloud has the core competencies and competitive advantages to maintain its leading market share and potentially dominate this important distribution channel as a pure-play company in this sector.
of China Live streaming of the social e-commerce sector
We believe that live streaming social ecommerce is becoming more and more popular of China Growth driver for consumer brand companies as it harnesses the content power of live stream broadcasts to engage customers and increase product sales. In our view, live streaming social e-commerce is revolutionizing traditional marketing as the central sales and marketing channel where consumer brand companies engage interactively with consumers at scale. Accordingly of China Department of Commerce, in 2022 there were 120 million live broadcasts with a total of 1.1 trillion views and more than 95 million product categories sold; This led to the generation of live streaming e-commerce about RMB 3.4 trillion ($500 billion). Live streaming e-commerce is expected to account for an ever-increasing percentage of China E-commerce sales in the coming years will be fueled by a consumer ecosystem that includes a young demographic and their high rate of mobile device adoption. We are convinced of that of China The live streaming social e-commerce sector is set to experience high double-digit growth in the coming years.
New governance and new culture
In recent months we have welcomed four new members to the Company’s Board of Directors who are highly experienced and knowledgeable in the digital economy and who we believe will provide valuable guidance in fulfilling our strategic growth plan. Most importantly, our young, energetic and creative staff in all occupation positions embody a very strong work ethic and vibrant team culture that is very goal oriented. Our board of directors, senior management and employees are all focused and determined to grow Antelope Enterprise rapidly to achieve greatness, maintain our leading market position and maximize shareholder value.
My personal commitment to the company
As has been publicly announced, I have invested my personal capital in the company to demonstrate my firm belief in the future of KylinCloud and the tremendous market opportunity that lies ahead. I believe we have the financial resources, the digital IT infrastructure and the operational infrastructure to achieve sustainable growth. In addition, we see the opportunity to use our experience and know-how and to explore selected international markets such as e.g South East Asia and the US
As the newly appointed Chairman and CEO, I am deeply grateful and excited about this unique market opportunity and I am committed to leading and inspiring our team to achieve disruptive success in this sector. I have a long track record of commercializing and scaling growth companies and am truly passionate about our unique business model, entrepreneurial spirit and execution skills that I believe will create long-term value for all our stakeholders.
About Antelope Enterprise Holdings Limited
Antelope Enterprise Holdings Limited holds a 51% interest in Hainan Kylin Cloud Services Technology Co., Ltd (“KylinCloud”), which is a leading live streaming Social Ecommerce platform with 300,000+ anchors and influencers China. The company also operates a traditional ceramic tile manufacturing enterprise in China.
For more information, please visit our website at http://www.aehl-kylin.com/ or follow the company on Twitter at https://twitter.com/AntelopeAEHL. To receive public announcements from the company, please email firstname.lastname@example.org.
Safe Harbor Declaration
Certain statements in this press release are “forward-looking statements” within the meaning and protection 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 regarding our beliefs, plans, objectives, goals, expectations, expectations, beliefs, estimates, intentions and future performance and involve known and unknown risks, uncertainties and other factors that may be beyond our control and the related thereto could cause the Company’s actual results, performance, capital, assets or achievements to differ materially from any 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 which continue to exhibit solid long-term fundamentals, our ability to continue to grow our business management, information systems consulting and online -social commerce and live streaming business, our ability to keep pace with and leverage new technologies to compete effectively in our industry, our ability to attract and engage more anchors and influencers to our platform, and the evolution of the regulatory environment of the online social commerce and live streaming industries in China. All statements other than statements of historical fact are statements that may be forward-looking statements. You can identify these forward-looking statements by our use of words such as “may”, “will”, “anticipate”, “assume”, “should”, “state”, “would”, “believe”, “consider”, “expect”, “estimate”, “continue”, “plan”, “indicate”, “project”, “could”, “intend”, “aim” and other similar future words and expressions.
All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement, including without limitation the risks and uncertainties described in our Annual Report on Form 20-F for the current year December 31, 2021 and elsewhere in our SEC reports and filings. Such reports are available upon request from the Company or the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov. We undertake no obligation and do not undertake to update, revise or revise any forward-looking statements after the date of this release or after the respective dates as of which such statements are otherwise made.
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SOURCE Antelope Enterprise Holdings Ltd.