Elate Holdings Limited reported a sharp turnaround for the six months ended 30 June 2026, moving from a US$15.11 million loss a year earlier to a net profit attributable to shareholders of US$41.14 million. The swing was underpinned by a US$38.80 million fair-value gain on cryptocurrencies acquired through collateral enforcement and trading activities.

Revenue climbed 21.1% year on year to US$76.44 million, driven mainly by the manufacture and sale of electronic products, which rose 22.2% to US$62.35 million. Graphite product sales increased 16.7% to US$14.09 million but generated a segment loss of US$0.99 million amid higher energy and logistics costs. The UK-based Axiom Manufacturing Services contributed US$8.71 million in segment profit, up from US$6.68 million in the prior-year period.

Gross profit expanded 17.5% to US$11.65 million; however, gross margin eased slightly to 15.2% (H1 2025: 15.7%) due to cost inflation. Operating profit reached US$43.14 million (H1 2025: US$13.51 million loss), aided by the cryptocurrency gain and the absence of the US$19.13 million fair-value loss on listed financial assets recorded last year. Basic and diluted earnings per share improved to 9.26 US cents from a loss of 3.97 US cents.

Total assets increased to US$518.76 million from US$466.12 million at year-end 2025, propelled by a US$44.53 million rise in inventories to US$420.92 million and a US$13.26 million uplift in trade receivables to US$60.83 million. Net assets stood at US$465.48 million, up 9.4% since December 2025.

Liquidity remained adequate with cash and bank balances of US$10.72 million, though net cash used in operations was US$1.78 million. The group is debt-free, carrying minimal lease liabilities of US$0.20 million and posting a gearing ratio of 0.04%. No interim dividend was declared.

Management reiterated its strategy to pivot the graphite division toward a light-asset, platform-based trading model leveraging Web3.0 technologies, funded partly by reallocated proceeds from its 2018 and 2024 convertible debentures. Approximately HK$11.98 million (US$1.54 million) and HK$21.00 million (US$2.69 million) of unutilised proceeds remain earmarked for developing a Web3.0-enabled mineral trading platform, marketing, and related working capital.

Axiom is set to expand capacity and diversify its customer base in H2 2026, while the group continues to evaluate AI and Web3.0 collaborations through ventures such as GoMeta and planned digital trading platforms. Management also highlighted inflationary and geopolitical pressures on energy and material costs but reported no material post-period events, contingent liabilities, or significant changes in capital structure.