Company: AEHL
Filing Date: 2025-08-05
Form Type: 20-F/A
Source: 0001641172-25-022290
Chunk: 107

Company: Antelope Enterprise Holdings Ltd
Filing Date: 2025-08-05
Form: 20-F/A
Chunk 107
---
 Anhui Zhongiun. Anhui Zhongjun’s
shareholder is an unrelated third party .

We entered into the loan agreement
with Anhui Zhongjun with the understanding that it would make these funds available to the customers of our livestreaming ecommerce business.
These customers, while selling products on popular third party sales platforms such as Douyin, Xiaohongshu and Kuaishou, do not immediately
receive payment for their sales to consumers. With the popular “7-day unconditional return policy” adopted by most of the
third-party sales platforms our customers are not paid for a period of two weeks to two months, resulting in negative cash flows. Following
a popular model in China, we enter into this loan arrangement so that our customers use the borrowed funds to relieve the negative cash
flows. The understanding of all parties is that upon receipt of funds from Anhui Zhongjun, our customers will prioritize the dispatch
and delivery of their products to the consumers who purchase these products on the livestreaming sites hosted by our influencers and hosts.
By providing these funds, we seek to ensure the availability and ample supply of the products sold on our livestreaming sites. If, and
when, customers approach us for potential financing support, which is common in the e-commerce industry in China, we refer them to Anhui
Zhongjun. Anhui Zhongjun’s loans to our customers typically carry annual interest of 6.35% and the terms of such loans
range from 3 months up to two years. We utilize this third-party financing mechanism, instead of providing direct financing
to our customers, to avoid potential disputes with our customers, such as attempts to offset the repayment of loans against service fees
payable to us.

In the third quarter of 2023, we also lent funds to three related parties,
Liping Huang (“Huang”), the spouse of the former CEO of our holding company Antelope Enterprise Holdings Limited, Lei Deng
(“Deng”), the legal representative of our subsidiary Antelope Holdings (Chengdu) Co., Ltd. and Xiaorong Yang (“Yang”),
the Supervisor of Antelope Chengdu, in the aggregate amount of $1.316 million. These loans were of the same nature as the loans we made
to Anhui Zhongjun and these funds were made available to the customers of our livestreaming ecommerce business through these individuals.
The loan to Ms. Huang of $500,000