Company: AEHL
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-008020
Chunk: 5

Company: Antelope Enterprise Holdings Ltd
Filing Date: 2025-05-01
Form: 20-F
Item: Item 3
Chunk 5
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 profitability or cause us to suffer operating losses.

Economic growth in China has,
in the past, been accompanied by periods of high inflation. In the past, the Chinese government has implemented various policies from
time to time to control inflation. For example, the Chinese government has periodically introduced measures in certain sectors to avoid
overheating of the economy, including tighter bank lending policies, increases in bank interest rates, and measures to curb inflation,
which has resulted in a decrease in the rate of inflation. An increase in inflation could cause our costs for energy, labor costs, raw
materials and other operating costs to increase, which would adversely affect our financial condition and results of operations.

Extensive competition in power generation industry
could adversely affect our performance.

The power generation industry
is characterized by intense competition, and we will encounter competition from utilities, industrial companies, marketing and trading
companies and other independent power producers. This competition has put pressure on power utilities to lower their costs, including
the cost of purchased power, and increasing competition in the supply of power in the future could increase this pressure. In addition,
construction during the last decade has created excess power supply and higher reserve margins in the power trading markets, putting downward
pressure on prices.

Other companies we are going to
compete with may have greater liquidity, greater access to credit and other financial resources, lower cost structures, greater ability
to incur losses, longer-standing relationships with customers, greater potential for profitability from ancillary services or greater
flexibility in the timing of their sale of generation capacity and ancillary services than we do.

Additionally, there is extensive
competition in the retail power markets. Competitors may offer lower prices or other incentives which may attract customers away from
our retail subsidiaries. We may also face competition from a number of other energy service providers, other energy industry participants,
or nationally branded providers of consumer products and services who may develop businesses that will compete with our retail subsidiaries.

We will rely on power transmission and fuel
distribution facilities owned and operated by other companies.

We will depend on facilities and
assets that we do not own or control for the transmission to our customers of the power produced by our generators and the distribution
of natural gas to our generators. If these transmission and distribution systems are disrupted or capacity on those systems is inadequate,
our ability to sell and deliver power products or obtain fuel may be hindered. Independent system operators that oversee transmission
systems in regional power markets have imposed price limitations and other mechanisms to address volatility in their power markets. Existing