Elate Holdings Limited Issues Significant Profit Warning for Fiscal Year 2025

Elate Holdings Limited (Stock Code: 076), a company listed on the Hong Kong Stock Exchange, has issued a profit warning to shareholders and potential investors regarding its financial performance for the year ended 31 December 2025.

Key Highlights from the Profit Warning

• Expected Loss for FY2025: The Group is projected to record a loss attributable to owners of the Company in the range of US\$14.0 million to US\$16.0 million for the year ended 31 December 2025. This is a significant reversal from the previous year’s profit of approximately US\$40.3 million for 2024.
• Primary Drivers of Loss:
  • A one-off fair value loss on financial assets at fair value through profit or loss, amounting to approximately US\$42.7 million.
  • This loss was partially offset by a one-off fair value gain on cryptocurrencies of approximately US\$22.0 million.
• Underlying Profit (Excluding One-Off Items): Excluding the above one-off items, the Group would have recorded a net profit between US\$4.7 million and US\$6.7 million for the period, significantly higher than the comparable net profit of US\$1.1 million for 2024 (also excluding one-offs).
• Operational Improvements: The increase in underlying profit is primarily attributed to a US\$5.1 million increase in gross profit. This improvement was driven by stronger sales and re-aligned pricing across key customers in the electronic products manufacturing and sales segment.

Important Information for Shareholders

• Price-Sensitive Event: The anticipated swing from a substantial profit in 2024 to a notable loss in 2025 is a material event and likely to impact the Company’s share price. Investors should be aware of the potential for increased volatility in the Company’s stock.
• Nature of Loss: It is important to note that the expected loss is largely the result of a non-recurring, one-off fair value loss on financial assets, partially offset by a one-off fair value gain on cryptocurrencies. The underlying business remains profitable, as evidenced by the improved operational performance.
• Unaudited Figures: The financial information in this announcement is based on unaudited management accounts and is subject to finalisation and possible adjustments. The audited final results will be published on 30 March 2026.
• Caution Advised: The Board has specifically advised shareholders and potential investors to exercise caution when dealing in the shares of the Company during this period of uncertainty.

Corporate Governance

As of the announcement date, the Board of Directors comprises Mr. Feng Zhong Yun and Ms. Zhang Xue (Executive Directors), and Mr. Ng Lai Po, Ms. Ye Yi Fan, and Dr. Yan Shao Shi (Independent Non-Executive Directors).

Conclusion

The profit warning from Elate Holdings Limited is a significant development for shareholders and potential investors. The shift from a substantial profit in 2024 to a projected loss in 2025—driven primarily by large, non-recurring fair value adjustments—marks a potentially volatile period for the Company’s shares. However, operational improvements and a stronger underlying business performance may provide some confidence for the future.

Disclaimer: This article is for reference and informational purposes only and does not constitute investment advice. Investors are advised to exercise caution and consult with professional advisors before making any investment decisions. The financial figures discussed are based on unaudited management accounts and may be subject to change upon finalisation and audit.

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