Elate Holdings (076) has announced a supplemental update regarding cryptocurrency transactions conducted between 28 September 2024 and 24 June 2025. These involve the acquisition and disposal of USD Tether (USDT), Bitcoin (BTC), and Multiple Up Point (MUP), which the company has reclassified as inventories for trading and potential settlement of graphite product purchases.

According to the announcement, some acquisitions and disposals exceeded applicable percentage ratios under Chapter 14 of the Listing Rules, triggering discloseable, major, and very substantial transaction thresholds. The company did not initially treat the transactions as notifiable events because it regarded digital currencies as functional tools for ordinary operations. Discovering that cryptocurrencies may instead be considered investments, the company reported non-compliance with Listing Rules for these completed transactions.

Elate Holdings noted total MUP acquisition costs of US$15.44 million, with a fair value of US$18.58 million as of 26 February 2026, registering a US$3.14 million gain. The reclassification of MUP from intangible assets to inventories followed confirmations from two graphite suppliers in December 2024 and June 2025 that MUP could be used for settlement. The company now plans to dispose of 5.11 million MUP, aiming to utilize 60% for settling graphite product purchases and 40% through open-market sales, subject to Listing Rules compliance.

To address the prior non-compliance, Elate Holdings has introduced strengthened internal controls and approval workflows, systematic calculation of percentage ratios before entering transactions, and additional training for management on compliance and transaction classification. The group will also consult professional advisers as needed, ensuring stricter adherence to Chapter 14 requirements.

As the relevant transactions have already concluded, Elate Holdings will not seek ex-post shareholder approval and will not issue a circular for these past activities. Future transactions involving digital assets will follow the newly instituted oversight measures, and the company emphasizes that it remains committed to ongoing compliance with the Listing Rules.